1.Short title; table of contents
(a)This Act may be cited as the
Financial Aid Form Simplification and
Access Act
.
(b)The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Simplified needs test and automatic zero
improvements.
Sec. 3. Improving paper and electronic forms.
Sec. 4. Support for working students.
Sec. 5. Simplification for students with special
circumstances.
Sec. 6. Definitions.
Sec. 7. Advisory Committee on Student Financial
Assistance.
2.Simplified needs test and automatic zero
improvements
(a)Section 479 of the
Higher Education Act of 1965 (20
U.S.C. 1087ss) is amended—
(1)in subsection (b)—
(A)in paragraph (1)(A)(i)—
(i)in subclause (II), by striking
or
after the semicolon;
(ii)by redesignating subclause (III) as
subclause (IV);
(iii)by inserting after subclause (II) the
following:
(III)1 of whom is a dislocated worker;
or
; and
(iv)in subclause (IV) (as redesignated by
clause (ii)), by striking 12-month
and inserting
24-month
; and
(B)in subparagraph (B)(i)—
(i)in subclause (II), by striking
or
after the semicolon;
(ii)by redesignating subclause (III) as
subclause (IV);
(iii)by inserting after subclause (II) the
following:
(III)1 of whom is a dislocated worker;
or
; and
(iv)in subclause (IV) (as redesignated by
clause (ii)), by striking 12-month
and inserting
24-month
;
(2)in subsection (c)—
(A)in paragraph (1)—
(i)in subparagraph (A)—
(I)in clause (ii), by striking
or
after the semicolon;
(II)by redesignating clause (iii) as clause
(iv);
(III)by inserting after clause (ii) the
following:
(iii)1 of whom is a dislocated worker;
or
; and
(IV)in clause (iv) (as redesignated by
subclause (II)), by striking 12-month
and inserting
24-month
; and
(ii)in subparagraph (B), by striking
20,000
and inserting $30,000
; and
(B)in paragraph (2)—
(i)in subparagraph (A)—
(I)in clause (ii), by striking
or
after the semicolon;
(II)by redesignating clause (iii) as clause
(iv);
(III)by inserting after clause (ii) the
following:
(iii)is a dislocated worker;
or
; and
(IV)in clause (iv) (as redesignated by
subclause (II)), by striking 12-month
and inserting
24-month
; and
(ii)in subparagraph (B), by striking
$20,000
and inserting $30,000
; and
(C)in the flush matter following paragraph
(2)(B), by adding at the end the following: The Secretary shall annually
adjust the income level necessary to qualify an applicant for the zero expected
family contribution. The income level shall be adjusted according to increases
in the Consumer Price Index, as defined in section 478(f).
; and
(3)in subsection (d)—
(A)by redesignating paragraphs (1) through (6)
as subparagraphs (A) through (F), respectively;
(B)by striking (d)
Definition
and all that follows through
the term
and inserting the following:
(d)In this section:
(1)The term dislocated worker has
the meaning given the term in section 101 of the Workforce Investment Act of
1998 (29 U.S.C. 2801).
(2)Means-tested Federal Benefit
ProgramThe
term
.
(b)Discretion of Student Financial Aid
AdministratorsSection
479A(a) of the Higher Education Act of
1965 (20 U.S.C. 1087tt(a)) is amended in the third sentence by
inserting a family member who is a dislocated worker (as defined in
section 101 of the Workforce Investment Act of 1998 (29 U.S.C. 2801)),
after recent unemployment of a family member,
.
(c)
(1)The Secretary of Education shall regularly
evaluate the impact of the eligibility guidelines in subsections (b)(1)(A)(i),
(b)(1)(B)(i), (c)(1)(A), and (c)(2)(A) of section 479 of the
Higher Education Act of 1965 (20
U.S.C. 1087ss(b)(1)(A)(i), (b)(1)(B)(i), (c)(1)(A), and (c)(2)(A)).
(2)Means-tested federal benefit
programThe Secretary shall
evaluate every 3 years the impact of including whether a student or parent
received benefits under a means-tested Federal benefit program (as defined in
section 479(d) of the Higher Education Act of
1965 (20 U.S.C. 1087ss(d)) as a factor in determining eligibility
under subsections (b) and (c) of section 479 of the
Higher Education Act of 1965 (20
U.S.C. 1087ss(b) and (c)).
3.Improving paper and electronic
forms
(a)Section 479(a) of the
Higher Education Act of 1965 (20
U.S.C. 1087ss(a)) is amended by adding at the end the following:
(3)The Secretary shall make special efforts to
notify families meeting the requirements of subsection (c) that such families
may use the EZ FAFSA described in section 483(a)(2)(B) and notify families
meeting the requirements of subsection (b) that such families may use the
simplified electronic application form described in section
483(a)(3)(B).
.
(b)Common Financial Aid Form Development and
ProcessingSection 483 of the
Higher Education Act of 1965 (20
U.S.C. 1090) is amended—
(1)in subsection (a)—
(A)by striking paragraphs (1), (2), and
(5);
(B)by redesignating paragraphs (3), (4), (6),
and (7), as paragraphs (8), (9), (10), and (11), respectively;
(C)by inserting before paragraph (8), as
redesignated by subparagraph (B), the following:
(1)
(A)Common financial reporting
formsThe Secretary, in
cooperation with representatives of agencies and organizations involved in
student financial assistance, shall produce, distribute, and process free of
charge common financial reporting forms as described in this subsection to be
used for application and reapplication to determine the need and eligibility of
a student for financial assistance under parts A through E (other than subpart
4 of part A). These forms shall be made available to applicants in both paper
and electronic formats and shall be referred to (except as otherwise provided
in this subsection) as the Free Application for Federal Student
Aid
or FAFSA
.
(B)The Secretary shall
permit an applicant to complete a form described in this subsection prior to
enrollment in order to obtain an estimate from the Secretary of the applicant’s
expected family contribution. Such applicant shall be permitted to update the
information contained on a form submitted pursuant to the preceding sentence,
using the process described in paragraph (4), for purposes of applying for
assistance under this title for the first academic year for which the applicant
applies for financial assistance under this title.
(2)
(A)Subject to subparagraph (C), the Secretary
shall produce, distribute, and process common forms in paper format to meet the
requirements of paragraph (1). The Secretary shall develop a common paper form
for applicants who do not meet the requirements of section 479(c).
(B)
(i)The Secretary shall develop and use a
simplified paper application form, to be known as the EZ FAFSA
,
to be used for applicants meeting the requirements of section 479(c).
(ii)Reduced data requirementsThe EZ FAFSA shall permit an applicant to
submit for financial assistance purposes, only the data elements required to
make a determination of whether the applicant meets the requirements under
section 479(c).
(iii)The Secretary shall include on the EZ FAFSA
space for information that is required of an applicant to be eligible for State
financial assistance, as provided under paragraph (5), except the Secretary
shall not include a State’s data if that State does not permit its applicants
for State assistance to use the EZ FAFSA.
(iv)Free availability and
processingThe provisions of
paragraph (6) shall apply to the EZ FAFSA, and the data collected by means of
the EZ FAFSA shall be available to institutions of higher education, guaranty
agencies, and States in accordance with paragraph (8).
(v)The Secretary shall conduct appropriate
field testing on the EZ FAFSA.
(C)Phasing out the paper form for students who
do not meet the requirements of the automatic zero expected family
contribution
(i)The Secretary shall make all efforts to
encourage all applicants to utilize the electronic forms described in paragraph
(3).
(ii)Phaseout of full paper fafsaNot later than 5 years after the date of
enactment of the Financial Aid Form Simplification and Access Act, to the
extent practicable, the Secretary shall phaseout the printing of the full paper
Free Application for Federal Student Aid described in subparagraph (A) and used
by applicants who do not meet the requirements of the EZ FAFSA described in
subparagraph (B).
(iii)Availability of full paper fafsa
(I)Prior to and after the phaseout described
in clause (ii), the Secretary shall maintain an online printable version of the
paper forms described in subparagraphs (A) and (B).
(II)The online printable version described in
subclause (I) shall be made easily accessible and downloadable to students on
the same website used to provide students with the electronic application forms
described in paragraph (3).
(III)The Secretary shall enable, to the extent
practicable, students to submit a form described in this clause that is
downloaded and printed in order to meet the filing requirements of this section
and to receive aid from programs established under this title.
(iv)Use of savings to address the digital
divide
(I)The Secretary shall utilize savings accrued
by phasing out the full paper Free Application for Federal Student Aid and
moving more applicants to the electronic forms, to improve access to the
electronic forms for applicants meeting the requirements of section
479(c).
(II)The Secretary shall report annually to the
Committee on Health, Education, Labor, and Pensions of the Senate and the
Committee on Education and Labor of the House of Representatives on steps taken
to eliminate the digital divide and on the phaseout of the full paper Free
Application for Federal Student Aid described in subparagraph (A). The report
shall specifically address the impact of the digital divide on independent
students, adults, and dependent students, including students completing
applications described in this paragraph and paragraphs (3) and (4).
(3)
(A)
(i)The Secretary shall produce, distribute,
and process common financial reporting forms in electronic format (such as
through a website called FAFSA on the Web
) to meet the
requirements of paragraph (1). The Secretary shall include an electronic
version of the EZ FAFSA form for applicants who meet the requirements of
section 479(c) and develop common electronic forms for applicants who meet the
requirements of section 479(b) and common electronic forms for applicants who
do not meet the requirements of section 479(b).
(ii)The Secretary shall include on the common
electronic forms described in clause (i) space for information that is required
of an applicant to be eligible for State financial assistance, as provided
under paragraph (5). The Secretary may not require an applicant to complete
data required by any State other than the applicant’s State of
residence.
(iii)The Secretary shall use, to the fullest
extent practicable, all available technology to ensure that a student answers
only the minimum number of questions necessary.
(B)
(i)The Secretary shall develop and use a
simplified electronic application form to be used by applicants meeting the
requirements under section 479(b).
(ii)Reduced data requirementsThe simplified electronic application form
shall permit an applicant to submit for financial assistance purposes, only the
data elements required to make a determination of whether the applicant meets
the requirements under section 479(b).
(iii)The Secretary shall include on the
simplified electronic application form space for information that is required
of an applicant to be eligible for State financial assistance, as provided
under paragraph (5), except the Secretary shall not include a State’s data if
that State does not permit its applicants for State assistance to use the
simplified electronic application form.
(iv)Free availability and
processingThe provisions of
paragraph (6) shall apply to the simplified electronic application form, and
the data collected by means of the simplified electronic application form shall
be available to institutions of higher education, guaranty agencies, and States
in accordance with paragraph (8).
(v)The Secretary shall conduct appropriate
field testing on the form developed under this subparagraph.
(C)Nothing in this subsection shall be
construed to prohibit the use of the form developed by the Secretary pursuant
to this paragraph by an eligible institution, eligible lender, guaranty agency,
State grant agency, private computer software provider, a consortium of such
entities, or such other entities as the Secretary may designate.
(D)The Secretary shall ensure that data
collection under this paragraph complies with section 552a of title 5, United
States Code, and that any entity using the electronic version of the forms
developed by the Secretary pursuant to this paragraph shall maintain reasonable
and appropriate administrative, technical, and physical safeguards to ensure
the integrity and confidentiality of the information, and to protect against
security threats, or unauthorized uses or disclosures of the information
provided on the electronic version of the form. Data collected by such
electronic version of the form shall be used only for the application, award,
and administration of aid awarded under this title, State aid, or aid awarded
by eligible institutions or such entities as the Secretary may designate. No
data collected by such electronic version of the form shall be used for making
final aid awards under this title until such data have been processed by the
Secretary or a contractor or designee of the Secretary, except as may be
permitted under this title.
(E)Notwithstanding any other provision of this
Act, the Secretary may permit an electronic form to be submitted without a
signature, if a signature is subsequently submitted by the applicant.
(F)Personal identification numbers
authorizedThe Secretary is
authorized to assign to applicants personal identification numbers—
(i)to enable the applicants to use such
numbers in lieu of a signature for purposes of completing a form under this
paragraph; and
(ii)for any purpose determined by the Secretary
to enable the Secretary to carry out this title.
(G)Personal identification number improvement
assessment and report
(i)The Secretary shall conduct an assessment
of the feasibility of minimizing, and of eliminating, the time required for
applicants to obtain a Personal Identification Number when applying for aid
under this title through an electronic format (such as through a website called
FAFSA on the Web
) including an examination of the feasibility of
implementing a real-time data match between the Social Security Administration
and the Department.
(ii)The Secretary shall report the findings of
the assessment described in clause (i) to Congress not later than 6 months
after the date of enactment of the Financial Aid Form Simplification and Access
Act, including the next steps that may be taken to minimize the time required
for applicants to obtain a Personal Identification Number when applying for aid
under this title through an electronic format.
(4)
(A)The Secretary shall develop streamlined
reapplication forms and processes, including both paper and electronic
reapplication processes, consistent with the requirements of this subsection,
for an applicant who applies for financial assistance under this title in the
next succeeding academic year subsequent to the year in which such applicant
first applied for financial assistance under this title.
(B)The Secretary shall determine, in
cooperation with States, institutions of higher education, and agencies and
organizations involved in student financial assistance, the data elements that
can be updated from the previous academic year’s application.
(C)Applicants determined to have a zero family
contribution pursuant to section 479(c) shall not be required to provide any
financial data in a reapplication form, except that which is necessary to
determine eligibility under such section.
(5)
(A)The Secretary shall include on the forms
developed under this subsection, such State-specific data items as the
Secretary determines are necessary to meet State requirements for need-based
State aid. Such items shall be selected in consultation with States to assist
in the awarding of State financial assistance in accordance with the terms of
this subsection. The number of such data items shall not be less than the
number included on the form on October 7, 1998, unless States notify the
Secretary that they no longer require those data items for the distribution of
State need-based aid.
(B)The Secretary shall conduct an annual
review process to determine which forms and data items the States require to
award need-based State aid and other application requirements that the States
may impose.
(C)The Secretary shall publish on an annual
basis a notice in the Federal Register requiring each State agency to inform
the Secretary—
(i)if the agency is unable to permit
applicants to utilize the forms described in paragraphs (2)(B) and (3)(B);
and
(ii)of the State-specific data that the agency
requires for delivery of State need-based financial aid.
(D)State notification to the
secretary
(i)Each State shall notify the
Secretary—
(I)whether the State permits an applicant to
file a form described in paragraph (2)(B) or (3)(B) for purposes of determining
eligibility for State need-based grant aid; and
(II)of the State-specific data that the State
requires for delivery of State need-based financial aid.
(ii)In the event that a State does not permit
an applicant to file a form described in paragraph (2)(B) or (3)(B) for
purposes of determining eligibility for State need-based grant aid—
(I)the State shall notify the Secretary if it
is not permitted to do so because of State law or because of agency policy;
and
(II)the notification under subclause (I) shall
include an estimate of the program cost to permit applicants to complete the
forms described in paragraphs (2)(B) and (3)(B).
(iii)Lack of notification by the
stateIf a State does not
notify the Secretary pursuant to clause (i), the Secretary shall—
(I)permit residents of that State to complete
the forms described in paragraphs (2)(B) and (3)(B); and
(II)not require any resident of that State to
complete any data previously required by that State.
(E)The Secretary shall not require applicants
to complete any nonfinancial data or financial data that are not required by
the applicant’s State agency, except as may be required for applicants who use
the paper forms described in subparagraphs (A) and (B) of paragraph (2).
(6)Charges to students and parents for use of
forms prohibitedThe common
financial reporting forms prescribed by the Secretary under this subsection
shall be produced, distributed, and processed by the Secretary and no parent or
student shall be charged a fee by the Secretary, a contractor, a third party
servicer or private software provider, or any other public or private entity
for the collection, processing, or delivery of financial aid through the use of
such forms. The need and eligibility of a student for financial assistance
under parts A through E (other than under subpart 4 of part A) may only be
determined by using a form developed by the Secretary pursuant to this
subsection. No student may receive assistance under parts A through E (other
than under subpart 4 of part A), except by use of a form developed by the
Secretary pursuant to this subsection. No data collected on a paper or
electronic form or other document, which the Secretary determines was created
to replace a form prescribed under this subsection and therefore violates the
integrity of a simplified and free financial aid application process, for which
a fee is charged shall be used to complete the form prescribed under this
subsection. No person, commercial entity, or other entity shall request,
obtain, or utilize an applicant’s Personal Identification Number for purposes
of submitting an application on an applicant’s behalf, other than a State
agency, an eligible institution, or a program under this title that the
Secretary permits to so request, obtain, or utilize an applicant's Personal
Identification Number in order to streamline the application.
(7)Application processing cycleThe Secretary shall, prior to January 1 of
a student’s planned year of enrollment to the extent practicable—
(A)enable the student to submit a form
described under this subsection in order to meet the filing requirements of
this section and receive aid from programs under this title; and
(B)initiate the processing of a form under
this subsection submitted by the
student.
;
and
(D)by adding at the end the following:
(12)Early application and award demonstration
program
(A)Not later than 2 years after the date of
enactment of the Financial Aid Form
Simplification and Access Act, the Secretary shall implement an
early application demonstration program enabling dependent students to—
(i)complete applications under this subsection
in such students’ junior year of secondary school, or in the academic year that
is 2 years prior to such students’ intended year of enrollment at an
institution of higher education (as early as the Secretary determines
practicable after January 1st of such junior year or academic year,
respectively);
(ii)receive an estimate of such students' final
financial aid awards in such junior year or academic year, respectively;
(iii)update, in the year prior to such students'
planned year of enrollment (before January 1st of the planned year of
enrollment to the extent practicable), the information contained in an
application submitted under clause (i), using the process described in
paragraph (4) to determine such students' final financial aid awards;
and
(iv)receive final financial aid awards based on
updated information described in clause (iii).
(B)The purpose of the demonstration program
under this paragraph is to measure the benefits, in terms of student
aspirations and plans to attend college, and the adverse effects, in terms of
program costs, integrity, distribution, and delivery of aid under this title,
of implementing an early application system for all dependent students that
allows dependent students to apply for financial aid using information from the
year prior to the year prior to enrollment at an institution of higher
education. Additional objectives associated with implementation of the
demonstration program are the following:
(i)Measure the feasibility of enabling
dependent students to apply for Federal, State, and institutional financial aid
in such students’ junior year of secondary school, or in the academic year that
is 2 years prior to such students’ intended year of enrollment at an
institution of higher education, using information from the year prior to the
year prior to enrollment, by completing any of the application forms under this
subsection.
(ii)Determine the feasibility, benefits, and
adverse effects of utilizing information from the Internal Revenue Service in
order to simplify the Federal student aid application process.
(iii)Identify whether receiving estimates of
final financial aid awards not later than a student’s junior year, or the
academic year that is 2 years prior to such students’ intended year of
enrollment at an institution of higher education, positively impacts the
college aspirations and plans of such student.
(iv)Measure the impact of using income
information from the year prior to the year prior to enrollment on—
(I)eligibility for financial aid under this
title and for other institutional aid; and
(II)the cost of financial aid programs under
this title.
(v)Effectively evaluate the benefits and
adverse effects of the demonstration program on program costs, integrity,
distribution, and delivery of aid.
(C)The Secretary shall select, in consultation
with States and institutions of higher education, States and institutions of
higher education within the States interested in participating in the
demonstration program under this paragraph. The States and institutions of
higher education shall participate in programs under this title and be willing
to make estimates of final financial aid awards to students based on such
students’ application information from the year prior to the year prior to
enrollment. The Secretary shall also select as participants in the
demonstration program secondary schools that are located in the participating
States and dependent students who reside in the participating States.
(D)The Secretary shall ensure that the
following provisions are included in the demonstration program:
(i)Participating States and institutions of
higher education shall—
(I)encourage participating students to apply
for estimates of final financial aid awards as provided under this title in
such students’ junior year of secondary school, or in the academic year that is
2 years prior to such students’ intended year of enrollment at an institution
of higher education, using information from the year prior to the year prior to
enrollment;
(II)provide estimates of final financial aid
awards to participating students based on the students' application information
from the year prior to the year of enrollment; and
(III)make final financial aid awards to
participating students based on the updated information contained on a form
submitted using the process described in paragraph (4).
(ii)Financial aid administrators at
participating institutions of higher education shall be allowed to use such
administrators’ discretion in awarding financial aid to participating students,
as outlined under section 479A.
(E)The Secretary shall include in the
demonstration program a study of the feasibility of utilizing data from the
Internal Revenue Service in order to—
(i)pre-populate electronic application forms
for financial aid under this title (such as through a website called
FAFSA on the Web
) with applicant information from the Internal
Revenue Service;
(ii)verify data provided by students
participating in the demonstration program, including the feasibility of a data
match; and
(iii)award and deliver financial aid under this
title.
(F)The Secretary shall conduct a rigorous
evaluation of the demonstration program in order to measure the program’s
benefits and adverse effects as the benefits and affects relate to the purpose
and objectives described in subparagraph (B).
(G)The Secretary shall make appropriate
efforts in order to notify States of the demonstration program. Upon
determination of which States will be participating in the demonstration
program, the Secretary shall continue to make efforts to notify institutions of
higher education and dependent students within such participating States of the
opportunity to participate in the demonstration program and of the
participation requirements.
(H)The Secretary shall consult with the
Advisory Committee on Student Financial Assistance, established under section
491, on the design and implementation of the demonstration program and on the
evaluation described in paragraph
(F).
;
(2)by striking subsection (b) and inserting
the following:
(b)Early Awareness of Aid Eligibility
(1)The Secretary shall make every effort to
provide students with early information about potential financial aid
eligibility.
(2)Availability of means to determine
eligibility
(A)The Secretary shall provide, in cooperation
with States, institutions of higher education, agencies, and organizations
involved in student financial assistance, through a widely disseminated printed
form and through the Internet or other electronic means, a system for
individuals to determine easily, by entering relevant data, approximately the
amount of grant, work-study, and loan assistance for which an individual would
be eligible under this title upon completion and verification of a form under
subsection (a).
(B)Determination of whether to use simplified
applicationThe system
established under this paragraph shall also permit an individual to determine
whether or not the individual may apply for aid using an EZ FAFSA described in
subsection (a)(2)(B) or a simplified electronic application form described in
subsection (a)(3)(B).
(3)Availability of means to communicate
eligibility
(A)The Secretary shall—
(i)make special efforts to notify students who
qualify for a free or reduced price lunch under the school lunch program
established under the Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et
seq.), benefits under the food stamp program under the
Food Stamp Act of 1977 (7 U.S.C.
2011 et seq.), or benefits under such programs as the Secretary shall
determine, of such students’ potential eligibility for a maximum Federal Pell
Grant under subpart 1 of part A; and
(ii)disseminate informational materials
regarding the linkage between eligibility for means-tested Federal benefit
programs and eligibility for a Federal Pell Grant, as determined necessary by
the Secretary.
(B)The Secretary shall, in cooperation with
States, middle schools, programs under this title that serve middle school
students, and other cooperating independent outreach programs, make special
efforts to notify middle school students of the availability of financial
assistance under this title and of the approximate amounts of grant,
work-study, and loan assistance an individual would be eligible for under this
title.
(C)Secondary school studentsThe Secretary, in cooperation with States,
secondary schools, programs under this title that serve secondary school
students, and cooperating independent outreach programs, shall make special
efforts to notify students in their junior year of secondary school, or in the
academic year that is 2 years prior to such students’ intended year of
enrollment at an institution of higher education, of the approximate amounts of
grant, work-study, and loan assistance an individual would be eligible for
under this title upon completion and verification of an application form under
subsection
(a).
;
(3)in subsection (c)—
(A)by striking Labor and Human
Resources
and inserting Health, Education, Labor, and
Pensions
; and
(B)by striking the Workforce
and inserting Labor
; and
(4)by striking subsections (d) and (e), and
inserting the following:
(d)Assistance in Preparation of Financial Aid
Application
(1)Nothing in this Act shall be construed to
limit an applicant from using a preparer for consultative or preparation
services for the completion of the common financial reporting forms described
in subsection (a).
(2)Any common financial reporting form
required to be made under this title shall include the name, signature, address
or employer’s address, social security number or employer identification
number, and organizational affiliation of the preparer of such common financial
reporting form.
(3)Nothing in this Act shall be construed to
limit preparers of common financial reporting forms required to be made under
this title from collecting source information, including Internal Revenue
Service tax forms, in providing consultative and preparation services in
completing the forms.
(4)A preparer that provides consultative or
preparation services pursuant to this subsection shall—
(A)clearly inform individuals upon initial
contact (including advertising in clear and conspicuous language on the website
of the preparer, including by providing a link directly to the website
described in subsection (a)(3), if the preparer provides such services through
a website) that the common financial reporting forms that are required to
determine eligibility for financial assistance under parts A through E (other
than subpart 4 of part A) may be completed for free via paper or electronic
forms provided by the Secretary;
(B)refrain from producing or disseminating any
form other than the forms produced by the Secretary under subsection (a);
and
(C)not charge any fee to any individual
seeking such services who meets the requirements under subsection (b) or (c) of
section
479.
.
(c)Toll-Free Application and
InformationSection 479 of
the Higher Education Act of 1965 (20
U.S.C. 1087ss), as amended by subsection (b)(4), is further amended by adding
at the end the following:
(e)Toll-Free Application and
InformationThe Secretary
shall contract for, or establish, and publicize a toll-free telephone service
to provide an application mechanism and timely and accurate information to the
general public. The information provided shall include specific instructions on
completing the application form for assistance under this title. Such service
shall also include a service accessible by telecommunications devices for the
deaf (TDD’s) and shall, in addition to the services provided for in the
previous sentence, refer such students to the national clearinghouse on
postsecondary education or another appropriate provider of technical assistance
and information on postsecondary educational services, that is supported under
section 663 of the Individuals with Disabilities Education Act (20 U.S.C.
1463). Not later than 2 years after the date of enactment of the Financial Aid
Form Simplification and Access Act, the Secretary shall test and implement, to
the extent practicable, a toll-free telephone-based application system to
permit applicants who are eligible to utilize the EZ FAFSA described in section
483(a) over such
system.
.
(d)Section 482(a)(1)(B) of the
Higher Education Act of 1965 (20
U.S.C. 1089(a)(1)(B)) is amended to read as follows:
(B)by March 1: proposed modifications and
updates pursuant to sections 478, 479(c), and 483(a)(5) published in the
Federal
Register;
.
(e)Simplifying the Verification
ProcessSection 484 of the
Higher Education Act of 1965 (20
U.S.C. 1091) is amended by adding at the end the following:
(s)Verification of Student
Eligibility
(1)The Secretary shall review all regulations
of the Department related to verifying the information provided on a student’s
financial aid application in order to simplify the verification process for
students and institutions.
(2)Not later than 2 years after the date of
enactment of the Financial Aid Form
Simplification and Access Act, the Secretary shall prepare and
submit a final report to the Committee on Health, Education, Labor, and
Pensions of the Senate and the Committee on Education and Labor of the House of
Representatives on steps taken, to the extent practicable, to simplify the
verification process. The report shall specifically address steps taken
to—
(A)reduce the burden of verification on
students who are selected for verification at multiple institutions;
(B)reduce the number of data elements that are
required to be verified for applicants meeting the requirements of subsection
(b) or (c) of section 479, so that only those data elements required to
determine eligibility under subsection (b) or (c) of section 479 are subject to
verification;
(C)reduce the burden and costs associated with
verification for institutions that are eligible to participate in Federal
student aid programs under this title; and
(D)increase the use of technology in the
verification
process.
.
4.Support for working students
(a)Section 475(g)(2)(D) of the
Higher Education Act of 1965 (20
U.S.C. 1087oo(g)(2)(D)) is amended to read as follows:
(D)$9,000;
.
(b)Independent Students Without Dependents
Other Than a SpouseSection
476(b)(1)(A)(iv) of the Higher Education Act of
1965 (20 U.S.C. 1087pp(b)(1)(A)(iv)) is amended to read as
follows:
(iv)an income protection allowance of the
following amount (or a successor amount prescribed by the Secretary under
section 478)—
(I)$10,000 for single or separated
students;
(II)$10,000 for married students where both are
enrolled pursuant to subsection (a)(2); and
(III)$13,000 for married students where 1 is
enrolled pursuant to subsection
(a)(2);
.
(c)Independent Students With Dependents Other
Than a SpouseSection
477(b)(4) of the Higher Education Act of
1965 (20 U.S.C. 1087qq(b)(4)) is amended to read as follows:
(4)Income protection allowanceThe income protection allowance is
determined by the following table (or a successor table prescribed by the
Secretary under section 478):
Income Protection Allowance
Family SizeNumber in College
12345
2$17,580$15,230
3
20,94017,610$16,260
424,95022,60020,270$17,930
528,74026,39024,06021,720$19,390
632,95030,61028,28025,94023,610
NOTE: For each
additional family member, add $3,280.For each additional college
student, subtract $2,330.”.
.
5.Simplification for students with special
circumstances
(a)Section 480(d) of the
Higher Education Act of 1965 (20
U.S.C. 1087vv(d)) is amended to read as follows:
(d)
(1)The term independent, when
used with respect to a student, means any individual who—
(A)is 24 years of age or older by December 31
of the award year;
(B)is an orphan, in foster care, or a ward of
the court, or was in foster care or a ward of the court until the individual
reached the age of 18;
(C)is an emancipated minor or is in legal
guardianship as determined by a court of competent jurisdiction in the
individual’s State of legal residence;
(D)is a veteran of the Armed Forces of the
United States (as defined in subsection (c)(1)) or is currently serving on
active duty in the Armed Forces;
(E)is a graduate or professional
student;
(F)is a married individual;
(G)has legal dependents other than a spouse;
or
(H)is a student for whom a financial aid
administrator makes a documented determination of independence by reason of
other unusual circumstances.
(2)Simplifying the dependency override
processNothing in this
section shall be construed to prohibit a financial aid administrator from
making a determination of independence, as described in paragraph (1)(H), based
upon a determination of independence previously made by another financial aid
administrator in the same application
year.
.
(b)Tailoring Electronic Applications for
Students with Special CircumstancesSection 483(a) of the
Higher Education Act of 1965 (20
U.S.C. 1090(a)), as amended by section 3(b)(1)(D), is further amended by adding
at the end the following:
(13)Applications for students seeking a
documented determination of independenceIn the case of a dependent student seeking
a documented determination of independence by a financial aid administrator, as
described in section 480(d), nothing in this section shall prohibit the
Secretary from—
(A)allowing such student to—
(i)indicate the student’s request for a
documented determination of independence on an electronic form developed
pursuant to this subsection; and
(ii)submit such form for preliminary processing
that only contains those data elements required of independent students, as
defined in section 480(d);
(B)collecting and processing on a preliminary
basis data provided by such a student using the electronic forms developed
pursuant to this subsection; and
(C)distributing such data to institutions of
higher education, guaranty agencies, and States for the purposes of processing
loan applications and determining need and eligibility for institutional and
State financial aid awards on a preliminary basis, pending a documented
determination of independence by a financial aid
administrator.
.
6.
(a)Section 480(a)(2) of the Higher Education
Act of (20 U.S.C. 1087vv(a)(2)) is amended—
(1)by striking and no portion
and inserting no portion
; and
(2)by inserting and no distribution
from any qualified education benefit described in subsection (f)(3) that is not
subject to Federal income tax,
after 1986,
.
(b)Section 480(f) of the Higher Education Act
of 1965 (20 U.S.C. 1087vv(f)) is amended—
(1)in paragraph (3), by striking shall
not be considered an asset of a student for purposes of section 475
and
inserting shall be considered an asset of the parent for purposes of
section 475
;
(2)by redesignating paragraphs (4) and (5) as
paragraphs (5) and (6), respectively; and
(3)by inserting after paragraph (3) the
following:
(4)A qualified education benefit shall be
considered an asset of the student for purposes of section 476 and
477.
.
(c)Other financial assistanceSection 480(j)(2) of the Higher Education
Act of 1965 (20 U.S.C. 1087vv(j)(2)) is amended by inserting , or a
distribution that is not includable in gross income under section 529 of such
Code, under another prepaid tuition plan offered by a State, or under a
Coverdell education savings account under section 530 of such Code,
after 1986
.
7.Advisory Committee on Student Financial
AssistanceSection 491 of the
Higher Education Act of 1965 (20
U.S.C. 1098) is further amended—
(1)in subsection (a)(2)—
(A)in subparagraph (B), by striking
and
after the semicolon;
(B)in subparagraph (C), by striking the period
at the end and inserting a semicolon; and
(C)by adding at the end the following:
(D)to provide knowledge and understanding of
early intervention programs and make recommendations that will result in early
awareness by low- and moderate-income students and families of their
eligibility for assistance under this title, and, to the extent practicable,
their eligibility for other forms of State and institutional need-based student
assistance; and
(E)to make recommendations that will expand
and improve partnerships among the Federal Government, States, institutions,
and private entities to increase the awareness and total amount of need-based
student assistance available to low- and moderate-income
students.
;
(2)in subsection (d)—
(A)in paragraph (6), by striking , but
nothing in this section shall authorize the committee to perform such studies,
surveys, or analyses
;
(B)in paragraph (8), by striking
and
after the semicolon;
(C)by redesignating paragraph (9) as paragraph
(10); and
(D)by inserting after paragraph (8) the
following:
(9)monitor the adequacy of total need-based
aid available to low- and moderate-income students from all sources, assess the
implications for access and persistence, and report those implications annually
to Congress and the Secretary;
and
;
(3)in subsection (j)—
(A)in paragraph (4), by striking
and
after the semicolon;
(B)in paragraph (5), by striking the period at
the end and inserting ; and
; and
(C)by adding at the end the following:
(6)monitor and assess implementation of
improvements called for under this title, make recommendations to the Secretary
that ensure the timely design, testing, and implementation of the improvements,
and report annually to Congress and the Secretary on progress made toward
simplifying overall delivery, reducing data elements and questions,
incorporating the latest technology, aligning Federal, State, and institutional
eligibility, enhancing partnerships, and improving early awareness of total
student aid eligibility for low- and moderate-income students and
families.
;
and
(4)in subsection (k), by striking
2004
and inserting 2011
.