[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4385 Introduced in House (IH)]

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114th CONGRESS
  2d Session
                                H. R. 4385

To amend the Higher Education Act to improve higher education programs, 
                        and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 13, 2016

 Mr. Grayson introduced the following bill; which was referred to the 
                Committee on Education and the Workforce

_______________________________________________________________________

                                 A BILL


 
To amend the Higher Education Act to improve higher education programs, 
                        and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``College for All Act''.

        TITLE I--FEDERAL-STATE PARTNERSHIP TO ELIMINATE TUITION

SEC. 101. GRANT PROGRAM TO ELIMINATE TUITION AND REQUIRED FEES AT 
              PUBLIC INSTITUTIONS OF HIGHER EDUCATION.

    (a) Program Authorized.--
            (1) Grants authorized.--From amounts appropriated under 
        subsection (f), the Secretary of Education (referred to in this 
        section as the ``Secretary'') shall award grants, from 
        allotments under subsection (b), to States having applications 
        approved under subsection (d), to enable the States to 
        eliminate tuition and required fees at public institutions of 
        higher education.
            (2) Matching funds requirement.--Each State that receives a 
        grant under this section shall provide matching funds for a 
        fiscal year in an amount that is equal to one half the amount 
        received under this section for the fiscal year toward the cost 
        of reducing the cost of attendance at public institutions of 
        higher education in the State.
    (b) Determination of Allotment.--
            (1) Initial allotment.--For fiscal year 2017, the Secretary 
        shall allot to each eligible State that submits an application 
        under this section an amount that is equal to 67 percent of the 
        total revenue received by the State's public system of higher 
        education in the form of tuition and related fees for fiscal 
        year 2017. For each of fiscal years 2018 through 2020, the 
        Secretary shall allot to each eligible State that submits an 
        application under this section--
                    (A) an amount equal to the allotment the State 
                received for fiscal year 2017, plus
                    (B) if the State provides additional funds toward 
                the cost of reducing the cost of attendance at public 
                institutions of higher education in the State for any 
                of such fiscal years that is more than the matching 
                funds requirement under subsection (a)(2), an amount 
                equal to such additional funding provided by the State, 
                which amount provided by the Secretary may be used for 
                the activities described in subsection (e)(2).
            (2) Subsequent allotments.--Beginning in fiscal year 2021, 
        the Secretary shall determine the median allotment per full-
        time equivalent student made to all eligible States under this 
        section for fiscal year 2020 and incrementally reduce 
        allotments made to States under this section such that by 
        fiscal year 2026, no State receives an allotment under this 
        section per full-time equivalent student that exceeds the 
        median allotment per full-time equivalent student made under 
        this section for fiscal year 2020.
    (c) State Eligibility Requirements.--In order to be eligible to 
receive an allotment under this section for a fiscal year, a State 
shall--
            (1) ensure that public institutions of higher education in 
        the State maintain per-pupil expenditures on instruction at 
        levels that meet or exceed the expenditures for the previous 
        fiscal year;
            (2) ensure that tuition and required fees for in-State 
        undergraduate students in the State's public higher education 
        system are eliminated;
            (3) maintain State operating expenditures for public 
        institutions of higher education, excluding the amount of funds 
        provided for a fiscal year under this section, at a level that 
        meets or exceeds the level of such support for fiscal year 
        2016;
            (4) maintain State expenditures on need-based financial aid 
        programs for enrollment in public institutions of higher 
        education in the State at a level that meets or exceeds the 
        level of such support for fiscal year 2016;
            (5) ensure public institutions of higher education in the 
        State maintain funding for institutional need-based student 
        financial aid in an amount that is equal to or exceeds the 
        level of such funding for the previous fiscal year;
            (6) provide an assurance that not later than 5 years after 
        the date of enactment of this Act, not less than 75 percent of 
        instruction at public institutions of higher education in the 
        State is provided by tenured or tenure-track faculty;
            (7) require that public institutions of higher education in 
        the State provide, for each student enrolled at the institution 
        who receives for the maximum Federal Pell Grant award under 
        subpart 1 of part A of title IV of the Higher Education Act of 
        1965 (20 U.S.C. 1070a et seq.), institutional student financial 
        aid in an amount equal to 100 percent of the difference 
        between--
                    (A) the cost of attendance at such institution (as 
                determined in accordance with section 472 of the Higher 
                Education Act of 1965 (20 U.S.C. 1087ll)), and
                    (B) the sum of--
                            (i) the amount of the maximum Federal Pell 
                        Grant award; and
                            (ii) the student's expected family 
                        contribution; and
            (8) ensure that public institutions of higher education in 
        the State not adopt policies to reduce enrollment.
    (d) Submission and Contents of Application.--For each fiscal year 
for which a State desires a grant under this section, the State agency 
with jurisdiction over higher education, or another agency designated 
by the Governor or chief executive of the State to administer the 
program under this section, shall submit an application to the 
Secretary at such time, in such manner, and containing such information 
as the Secretary may require.
    (e) Use of Funds.--
            (1) In general.--A State that receives a grant under this 
        section shall use the grant funds and the matching funds 
        required under this section to eliminate tuition and required 
        fees for students at public institutions of higher education in 
        the State.
            (2) Additional funding.--Once tuition and required fees 
        have been eliminated pursuant to paragraph (1), a State that 
        receives a grant under this section shall use any remaining 
        grant funds and matching funds required under this section to 
        increase the quality of instruction and student support 
        services by carrying out the following:
                    (A) Expanding academic course offerings to 
                students.
                    (B) Increasing the number and percentage of full-
                time instructional faculty.
                    (C) Providing all faculty with professional 
                supports to help students succeed, such as professional 
                development opportunities, office space, and shared 
                governance in the institution.
                    (D) Compensating part-time faculty for work done 
                outside of the classroom relating to instruction, such 
                as holding office hours.
                    (E) Strengthening and ensuring all students have 
                access to student support services such as academic 
                advising, counseling, and tutoring.
                    (F) Any other additional activities that improve 
                instructional quality and academic outcomes for 
                students as approved by the Secretary through a peer 
                review process.
            (3) Prohibition.--A State that receives a grant under this 
        section may not use grant funds or matching funds required 
        under this section--
                    (A) for the construction of nonacademic facilities, 
                such as student centers or stadiums;
                    (B) for merit-based student financial aid; or
                    (C) to pay the salaries or benefits of school 
                administrators.
    (f) Authorization and Appropriation.--There are authorized to be 
appropriated to carry out this section $47,000,000,000 for fiscal year 
2017, and such sums as may be necessary for each of the fiscal years 
2018 through 2026.

                        TITLE II--STUDENT LOANS

SEC. 201. RESTORATION OF CERTAIN INTEREST RATE PROVISIONS.

    Section 455(b) of the Higher Education Act of 1965 (20 U.S.C. 
1087e(b)) is amended--
            (1) in paragraph (8)--
                    (A) in the heading, by striking ``on or after july 
                1, 2013'' and inserting ``on or after july 1, 2013, and 
                before july 1, 2016''; and
                    (B) by striking ``on or after July 1, 2013'' and 
                inserting ``on or after July 1, 2013, and before July 
                1, 2016'' each place the term appears;
            (2) by redesignating paragraphs (9) and (10) as paragraphs 
        (10) and (11), respectively; and
            (3) by inserting the following after paragraph (8):
            ``(9) Interest rate provisions for new loans on or after 
        july 1, 2016.--
                    ``(A) Rates for fdsl and fdusl.--Notwithstanding 
                the preceding paragraphs of this subsection, for 
                Federal Direct Stafford Loans and Federal Direct 
                Unsubsidized Stafford Loans for which the first 
                disbursement is made on or after July 1, 2016, the 
                applicable rate of interest shall, during any 12-month 
                period beginning on July 1 and ending on June 30, be 
                determined on the preceding June 1 and be equal to--
                            ``(i) the bond equivalent rate of 91-day 
                        Treasury bills auctioned at the final auction 
                        held prior to such June 1; plus
                            ``(ii) 2.3 percent,
                except that such rate shall not exceed 8.25 percent.
                    ``(B) In school and grace period rules.--
                Notwithstanding the preceding paragraphs of this 
                subsection, with respect to any Federal Direct Stafford 
                Loan or Federal Direct Unsubsidized Stafford Loan for 
                which the first disbursement is made on or after July 
                1, 2016, the applicable rate of interest for interest 
                which accrues--
                            ``(i) prior to the beginning of the 
                        repayment period of the loan; or
                            ``(ii) during the period in which principal 
                        need not be paid (whether or not such principal 
                        is in fact paid) by reason of a provision 
                        described in subsection (f),
                shall be determined under subparagraph (A) by 
                substituting `1.7 percent' for `2.3 percent'.
                    ``(C) PLUS loans.--Notwithstanding the preceding 
                paragraphs of this subsection, with respect to Federal 
                Direct PLUS Loan for which the first disbursement is 
                made on or after July 1, 2016, the applicable rate of 
                interest shall be determined under subparagraph (A)--
                            ``(i) by substituting `3.1 percent' for 
                        `2.3 percent'; and
                            ``(ii) by substituting `9.0 percent' for 
                        `8.25 percent'.
                    ``(D) Consolidation loans.--Notwithstanding the 
                preceding paragraphs of this subsection, any Federal 
                Direct Consolidation loan for which the application is 
                received on or after July 1, 2016, shall bear interest 
                at an annual rate on the unpaid principal balance of 
                the loan that is equal to the lesser of--
                            ``(i) the weighted average of the interest 
                        rates on the loans consolidated, rounded to the 
                        nearest higher \1/8\ of 1 percent; or
                            ``(ii) 8.25 percent.''.

SEC. 202. BORROWER MODIFICATION OF INTEREST RATES UNDER TITLE IV.

    Section 455(b) of the Higher Education Act of 1965 (20 U.S.C. 
1087e(b)), as amended by section 201, is further amended by adding at 
the end the following:
            ``(12) Borrower modification of interest rate.--
                    ``(A) Modification.--Notwithstanding any other 
                provision of law, the borrower of a Federal Stafford 
                Loan under section 428, a Federal Direct Stafford Loan, 
                a Federal Unsubsidized Stafford Loan under section 
                428H, a Federal Direct Unsubsidized Stafford Loan, a 
                Federal PLUS Loan under section 428B, a Federal Direct 
                PLUS Loan, a Federal Consolidation Loan under section 
                428C, or a Federal Direct Consolidation Loan may elect 
                to modify the interest rate of the loan to be equal 
                to--
                            ``(i) in the case of a Federal Direct 
                        Stafford Loan, a Federal Direct Unsubsidized 
                        Stafford Loan, a Federal Direct PLUS Loan, or a 
                        Federal Direct Consolidation Loan, the interest 
                        rate that would be applicable to such loan if 
                        such loan were first disbursed (or in the case 
                        of a Federal Direct Consolidation Loan, first 
                        applied for) on the date on which such borrower 
                        elects to modify the interest rate of such 
                        loan; and
                            ``(ii) in the case of a Federal Stafford 
                        Loan, a Federal Unsubsidized Stafford Loan, a 
                        Federal PLUS Loan, or a Federal Consolidation 
                        Loan, the weighted average of the interest 
                        rates applicable to loans under part B on the 
                        date the loan was first disbursed (or in the 
                        case of a Federal Consolidation Loan, first 
                        applied for).
                    ``(B) Fixed rate.--Except as provided in 
                subparagraph (C), an interest rate elected under 
                subparagraph (A) for a loan shall be fixed for the life 
                of the loan.
                    ``(C) Continuing authority to modify.--A borrower 
                may elect to modify the interest rate of a loan in 
                accordance with subparagraph (A) at any time during the 
                life of the loan.''.

                 TITLE III--FEDERAL WORK-STUDY PROGRAMS

SEC. 301. AUTHORIZATION OF APPROPRIATIONS.

    Section 441(b) of the Higher Education Act of 1965 (42 U.S.C. 
2751(b)) is amended to read as follows:
    ``(b) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this part--
            ``(1) $975,000,000 for fiscal year 2017;
            ``(2) $1,500,000,000 for fiscal year 2018;
            ``(3) $2,000,000,000 for fiscal year 2019;
            ``(4) $2,500,000,000 for fiscal year 2020; and
            ``(5) $3,000,000,000 for fiscal year 2021.''.

SEC. 302. FEDERAL WORK-STUDY ALLOCATION OF FUNDS.

    Section 442 of the Higher Education Act of 1965 (42 U.S.C. 2752) is 
amended--
            (1) by striking subsection (a) and inserting the following:
    ``(a) Revision to the Federal Work Study Allocation.--The Secretary 
shall allocate funds under this section solely on the basis of the 
self-help need determination described under subsection (c).'';
            (2) in subsection (c)--
                    (A) in paragraph (2), by striking ``To determine 
                the self-help need of an institution's eligible 
                undergraduate students,'' and inserting ``Until such 
                time as the Secretary establishes a revised method to 
                determine the self-help need of an institution's 
                eligible undergraduate students, in accordance with 
                paragraph (5),'';
                    (B) in paragraph (3), by striking ``To determine 
                the self-help need of an institution's eligible 
                graduate and professional students,'' and inserting 
                ``Until such time as the Secretary establishes a 
                revised method to determine the self-help need of an 
                institution's eligible graduate and professional 
                students, in accordance with paragraph (5),''; and
                    (C) by adding at the end the following:
            ``(5) Not later than 1 year after the date of enactment of 
        the College for All Act, the Secretary shall establish revised 
        methods for determining the self-help need of an institution's 
        eligible undergraduate students, as described in paragraph (2), 
        and eligible graduate and professional students, as described 
        in paragraph (3), that shall take into account the number of 
        Federal Pell Grant eligible low- and moderate-income students 
        that an eligible institution serves and provide considerations 
        for eligible institutions that successfully demonstrate 
        improved employment outcomes. The Secretary shall promulgate 
        any regulations necessary to carry out the revised methods of 
        determining an eligible institution's self-help need under this 
        subsection.''; and
            (3) by adding at the end the following:
    ``(f) Funds To Expand Job Location Development Programs.--
Notwithstanding any other provision of this part, to promote career 
readiness and improve the employment skills of Federal Pell Grant-
eligible students, the Secretary is authorized to enter into agreements 
with eligible institutions under which such institution may not use 
more than 20 percent or $150,000 of its allotment under this section, 
whichever amount is less, to expand job location development programs, 
which can be coordinated with State and local workforce development 
boards.''.

   TITLE IV--OFFERING NECESSARY ELIGIBILITY FOR TIMELY INSTITUTIONAL 
                      MATRICULATION AND ENROLLMENT

SEC. 401. FAFSA PILOT PROGRAM.

    Part G of title IV of the Higher Education Act of 1965 (20 U.S.C. 
1088 et seq.) is amended by inserting after section 483 the following:

``SEC. 483A. FAFSA PILOT PROGRAM.

    ``(a) Purposes.--The purposes of this section are--
            ``(1) to streamline the annual process by which students 
        apply for Federal financial assistance;
            ``(2) to reduce the need for students to reapply for such 
        assistance each year;
            ``(3) to lower the cost of student borrowing by maintaining 
        important student loan protections, such as the in-school 
        interest subsidy;
            ``(4) to strengthen the middle class and reduce income 
        inequality by targeting financial aid to low- and middle-income 
        students; and
            ``(5) to ensure that the financial aid application uses 
        income data from prior tax years readily available to students 
        and families to facilitate the widespread and increased use of 
        automated processes, such as at the IRS-Data Retrieval Tool 
        (IRS-DRT), with the goal of reducing errors and easing the time 
        and rigor of the application process.
    ``(b) Pilot Program Authorized.--The Secretary is authorized to 
establish a pilot program and select 5 eligible States--
            ``(1) in which a student who attends an institution of 
        higher education in the eligible State may submit a single Free 
        Application for Federal Student Aid, as described in section 
        483 and modified under subsection (d) (referred to in this 
        section as the `FAFSA'), to be used as the application to 
        determine the need and eligibility of the student for financial 
        assistance under this title during the official length of the 
        student's proposed postsecondary degree program; and
            ``(2) that shall each receive a grant in accordance with 
        subsection (e).
    ``(c) Eligible States.--The Secretary shall select 5 eligible 
States that are determined by the Secretary to have a strong record of 
increasing college access and affordability, especially for low-income 
students, to participate in the pilot program described in subsection 
(b). The selection of eligible States shall be based on the extent to 
which the State has--
            ``(1) invested, and continues to invest, significantly in 
        public higher education, resulting in a comparatively lower net 
        price for low-income students;
            ``(2) allocated State financial aid primarily on the basis 
        of need; and
            ``(3) agreed, as a condition of the State's application for 
        the pilot program under this section, to provide all in-State 
        students (as determined by the State) with an offer for State 
        financial aid that--
                    ``(A) is valid for not less than 2 years and not 
                more than 4 years, as determined by the State; and
                    ``(B) shall be subject to change only upon certain 
                conditions, such as significant changes in a student's 
                financial circumstances.
    ``(d) Single FAFSA Submission.--The Secretary shall implement, in 
consultation with the 5 selected eligible States, a pilot program to 
streamline the process of application to determine the need and 
eligibility of a student for financial assistance under this title that 
incorporates the following:
            ``(1) An option for students that are enrolled in an 
        institution of higher education in a selected eligible State to 
        submit a single FAFSA at the beginning of the student's 
        postsecondary degree program and receive a determination of 
        financial assistance under this title that shall, on a 
        contingent basis, be valid for not less than 2 years and not 
        more than 4 years, as determined by the State.
            ``(2) The determination of financial assistance under 
        paragraph (1) shall be made in accordance with part F, except 
        that relevant calculations shall be made using a multi-year 
        average, of 2 or 3 years, from the most recent tax years for 
        which data are available. A student may use previously 
        submitted student and parent taxpayer data to prepopulate the 
        electronic version of the FAFSA, as described in section 
        483(f).
            ``(3) As a condition of the continued receipt of financial 
        assistance under this section, the Secretary may require a 
        student who submits the single FAFSA to respond to a short 
        number of questions (which may be determined by the Secretary), 
        on an annual basis, to determine if there is a change in the 
        financial status of the student (such as whether the student or 
        the student's parent has experienced a substantial increase in 
        annual income) in order to ensure that the student continues to 
        receive the appropriate amount of financial assistance under 
        this title.
            ``(4) Notwithstanding paragraph (1), a requirement that 
        students who experience significant changes in their financial 
        circumstances, as determined by the Secretary, will be required 
        to resubmit the FAFSA in order to receive a new determination 
        of financial assistance under this title.
            ``(5) An income verification process--
                    ``(A) which the Secretary, through the 
                establishment of a memorandum of understanding with the 
                Secretary of the Treasury, will develop to share the 
                income tax data of a random sample of students who have 
                received Federal assistance under this title, including 
                Federal Pell Grants under section 401 and loans made 
                under part D;
                    ``(B) to ensure that students who have not 
                resubmitted a FAFSA in accordance with paragraph (3) 
                did not have a significant change in financial 
                circumstances that would have required them to do so;
                    ``(C) that shall be carried out in a way so as to 
                ensure that no personally identifiable information is 
                made public through the income verification process; 
                and
                    ``(D) that will be carried out only with the 
                consent of students, whose consent will be requested as 
                part of the annual response required under paragraph 
                (3).
            ``(6) An option for students to request professional 
        judgment or resubmit their FAFSA each year, to receive a new 
        determination of eligibility for financial assistance under 
        this title.
    ``(e) Grant Amount.--Each eligible State selected under this 
section shall receive a grant to increase public awareness of, and 
promote the use of, the single FAFSA that may be submitted under the 
pilot program to be used as the application to determine the need and 
eligibility of the student for financial assistance under this title 
during the official length of the student's proposed postsecondary 
degree program.
    ``(f) Supplement Not Supplant.--Grants provided under this section 
shall be used to supplement, and not supplant, State funds that are 
used to improve college access and affordability.
    ``(g) Evaluation.--Not later than 3 years after the date of 
enactment of the College for All Act, and 5 years thereafter, the 
Secretary shall prepare and submit to the authorizing committees a 
report that contains an evaluation of the effectiveness of the pilot 
program under this section in improving college access, increasing 
FAFSA submission rates, and increasing postsecondary education credit 
and course accumulation.''.

SEC. 402. PRIOR, PRIOR YEAR.

    Section 480(a)(1) of the Higher Education Act of 1965 (20 U.S.C. 
1087vv(a)(1)) is amended by striking subparagraph (B) and inserting the 
following:
    ``(B) Notwithstanding section 478(a) and beginning not later than 
180 days after the date of enactment of the College for All Act, the 
Secretary shall provide for the use of data from the second preceding 
tax year when and to the extent necessary to carry out the 
simplification of applications (including simplification for a subset 
of applications) used for the estimation and determination of financial 
aid eligibility. Such simplification shall include the sharing of data 
between the Internal Revenue Service and the Department, pursuant to 
the consent of the taxpayer.''.
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