II 109th CONGRESS 1st Session S. 1249 IN THE SENATE OF THE UNITED STATES June 15, 2005 Mr. Corzine (for himself, Mr. Kennedy, Mrs. Clinton, and Mr. Reed) introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions A BILL To require the Secretary of Education to rebate the amount of Federal Pell Grant aid lost as a result of the update to the tables for State and other taxes used in the Federal student aid need analysis for award year 2005–2006.

1.

Short title

This Act may be cited as the Student Fairness Act.

2.

Rebate required

(a)

Calculation of expected family contribution

Beginning 60 days after the date of enactment of this Act, the Secretary of Education (referred to in this Act as the Secretary) shall, for each student who submits a completed Free Application for Federal Student Aid described in section 483 of the Higher Education Act of 1965 (20 U.S.C. 1090) for the 2005–2006 award year, calculate— (1)the expected family contribution, as determined for such student for such award year on the basis of the allowance for State and other taxes as adjusted by the updated tax tables published in the Federal Register on Thursday, December 23, 2004 (69 Fed. Reg. 76926–76927); and (2)the expected family contribution that would apply to such student if such calculation was based upon the allowance for State and other taxes used for the 2004–2005 award year. (b)

Rebate the difference in the pell grant award

(1)

In general

For each student for whom the amount determined under subsection (a)(1) exceeds the amount determined under subsection (a)(2), the Secretary shall— (A)determine the amount (if any) by which— (i)the Federal Pell Grant aid under subpart 1 of part A of title IV of the Higher Education Act of 1965 (20 U.S.C. 1070a et seq.) that would have been provided to such student if such calculation was based upon the allowance for State and other taxes for the 2004–2005 award year, exceeds (ii)the Federal Pell Grant aid provided to such student for award year 2005–2006, based upon the updated tax tables described in subsection (a)(1); and (B)not later than 30 days after the date of the determination under subparagraph (A), provide directly to such student a rebate equal to the amount of such excess. (2)

No reduction

If the amount determined under subsection (a)(1) for a student is equal to or less than the amount determined under subsection (a)(2), the Secretary shall not reduce the amount of the Federal Pell Grant under subpart 1 of part A of title IV of the Higher Education Act of 1965 (20 U.S.C. 1070a et seq.) available for such student based on the updated tax tables described in subsection (a)(1) for award year 2005–2006. (c)

Treatment of rebate

Any rebate amount provided to a student under this section shall not be— (1)treated as a resource or estimated financial aid for determining an overaward; (2)adjusted based upon the student's attendance status during the 2005–2006 payment period; (3)included as assistance provided to such student under section 484B of the Higher Education Act of 1965 (20 U.S.C. 1091b); (4)considered as income received when completing any form required by the Secretary under section 483 of the Higher Education Act of 1965 (20 U.S.C. 1090); and (5)treated as other financial aid, assets, or income for purposes of determining the need for financial assistance for any award year subsequent to award year 2005–2006. (d)

Authority to use contractors for administration

(1)

In general

Except as provided in paragraph (2), the Secretary may provide by contract for the administration of the requirements of this section. (2)

Institutions not required to perform administrative tasks

Any institution that is eligible to participate in programs under subpart 1 of part A of title IV of the Higher Education Act of 1965 (20 U.S.C. 1070a et seq.) shall not be required to perform any administrative requirement under this Act. (e)

Use of FAFSA data permitted

The Secretary may use information provided on the Free Application for Federal Student Aid to comply with the requirements of this section. (f)

Required payments of rebate

The Secretary shall transfer any unobligated funds available to the Secretary under the Consolidated Appropriations Act, 2005 (Public Law 108–447) as may be necessary to carry out this Act.