[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 108 Introduced in Senate (IS)]

114th CONGRESS
  1st Session
                                 S. 108

    To amend the Higher Education Act of 1965 to improve access for 
  students to Federal grants and loans to help pay for postsecondary, 
  graduate, and professional educational opportunities, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 7, 2015

    Mr. Alexander (for himself, Mr. Bennet, Mr. Burr, Mr. King, Mr. 
Isakson, and Mr. Booker) introduced the following bill; which was read 
 twice and referred to the Committee on Health, Education, Labor, and 
                                Pensions

_______________________________________________________________________

                                 A BILL


 
    To amend the Higher Education Act of 1965 to improve access for 
  students to Federal grants and loans to help pay for postsecondary, 
  graduate, and professional educational opportunities, 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 ``Financial Aid Simplification and 
Transparency Act of 2015''.

SEC. 2. REFERENCES.

    Except as otherwise specifically provided, whenever in this Act a 
section or other provision is amended or repealed, such amendment or 
repeal shall be considered to be made to that section or other 
provision of the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.).

SEC. 3. STATEMENT OF PURPOSE.

    The purpose of this Act is to simplify the Federal student aid 
programs in order to provide--
            (1) access to postsecondary education for students and 
        families; and
            (2) information that will allow students and families to 
        make better consumer choices.

SEC. 4. DEFINITIONS; SPECIAL RULE FOR PARENT BORROWERS.

    Part A of title IV (20 U.S.C. 1070 et seq.) is amended, in the 
matter preceding subpart 1, by striking section 400 and inserting the 
following:

``SEC. 400. DEFINITIONS; SPECIAL RULE FOR PARENT BORROWERS.

    ``(a) Definitions.--In part A and part F:
            ``(1) Cost of attendance.--The term `cost of attendance' 
        means--
                    ``(A) tuition and fees normally assessed a student 
                carrying the same academic workload as determined by 
                the institution, and including costs for rental or 
                purchase of any equipment, materials, or supplies 
                required of all students in the same course of study;
                    ``(B) an allowance for books, supplies, 
                transportation, and miscellaneous personal expenses, 
                including a reasonable allowance for the documented 
                rental or purchase of a personal computer, for a 
                student attending the institution on at least a half-
                time basis, as determined by the institution;
                    ``(C) an allowance (as determined by the 
                institution) for room and board costs incurred by the 
                student which--
                            ``(i) shall be an allowance determined by 
                        the institution for a student without 
                        dependents residing at home with parents;
                            ``(ii) for students without dependents 
                        residing in institutionally owned or operated 
                        housing, shall be a standard allowance 
                        determined by the institution based on the 
                        amount normally assessed most of its residents 
                        for room and board;
                            ``(iii) for students who live in housing 
                        located on a military base or for which a basic 
                        allowance is provided under section 403(b) of 
                        title 37, United States Code, shall be an 
                        allowance based on the expenses reasonably 
                        incurred by such students for board but not for 
                        room; and
                            ``(iv) for all other students shall be an 
                        allowance based on the expenses reasonably 
                        incurred by such students for room and board;
                    ``(D) for less than half-time students (as 
                determined by the institution), tuition and fees and an 
                allowance for only--
                            ``(i) books, supplies, and transportation 
                        (as determined by the institution);
                            ``(ii) dependent care expenses (determined 
                        in accordance with subparagraph (H)); and
                            ``(iii) room and board costs (determined in 
                        accordance with subparagraph (C)), except that 
                        a student may receive an allowance for such 
                        costs under this subparagraph for not more than 
                        3 semesters or the equivalent, of which not 
                        more than 2 semesters or the equivalent may be 
                        consecutive;
                    ``(E) for a student engaged in a program of study 
                by correspondence, only tuition and fees and, if 
                required, books and supplies, travel, and room and 
                board costs incurred specifically in fulfilling a 
                required period of residential training;
                    ``(F) for incarcerated students only tuition and 
                fees and, if required, books and supplies;
                    ``(G) for a student enrolled in an academic program 
                in a program of study abroad approved for credit by the 
                student's home institution, reasonable costs associated 
                with such study (as determined by the institution at 
                which such student is enrolled);
                    ``(H) for a student with one or more dependents, an 
                allowance based on the estimated actual expenses 
                incurred for such dependent care, based on the number 
                and age of such dependents, except that--
                            ``(i) such allowance shall not exceed the 
                        reasonable cost in the community in which such 
                        student resides for the kind of care provided; 
                        and
                            ``(ii) the period for which dependent care 
                        is required includes, but is not limited to, 
                        class-time, study-time, field work, 
                        internships, and commuting time;
                    ``(I) for a student with a disability, an allowance 
                (as determined by the institution) for those expenses 
                related to the student's disability, including special 
                services, personal assistance, transportation, 
                equipment, and supplies that are reasonably incurred 
                and not provided for by other assisting agencies;
                    ``(J) for a student receiving all or part of the 
                student's instruction by means of telecommunications 
                technology, no distinction shall be made with respect 
                to the mode of instruction in determining costs;
                    ``(K) for a student engaged in a work experience 
                under a cooperative education program, an allowance for 
                reasonable costs associated with such employment (as 
                determined by the institution);
                    ``(L) for a student who receives a loan under this 
                or any other Federal law, or, at the option of the 
                institution, a conventional student loan incurred by 
                the student to cover a student's cost of attendance at 
                the institution, an allowance for the actual cost of 
                any loan fee, origination fee, or insurance premium 
                charged to such student or such parent on such loan, or 
                the average cost of any such fee or premium charged by 
                the Secretary, lender, or guaranty agency making or 
                insuring such loan, as the case may be; and
                    ``(M) at the option of the institution, for a 
                student in a program requiring professional licensure 
                or certification, the one-time cost of obtaining the 
                first professional credentials (as determined by the 
                institution).
            ``(2) Eligible student.--The term `eligible student' means 
        an individual who--
                    ``(A) is enrolled or accepted for enrollment in a 
                program of study at an eligible institution of higher 
                education leading to a degree, certificate, or 
                credential issued by such institution;
                    ``(B) in the case of a student who is enrolled at 
                an eligible institution, is maintaining satisfactory 
                academic progress in the program of study the student 
                is pursuing while attending the institution (as defined 
                in accordance with section 484(c));
                    ``(C) does not owe a refund on grants previously 
                received at any institution under this title;
                    ``(D) is not in a default status on any loan made, 
                insured, or guaranteed by the Secretary under this 
                title for attendance at any institution; and
                    ``(E) is a citizen or national of the United 
                States, a permanent resident of the United States, or 
                able to provide evidence from Immigration and Customs 
                Enforcement that he or she is in the United States for 
                other than a temporary purpose with the intention of 
                becoming a citizen or permanent resident.
            ``(3) Means-tested federal benefit program.--The term 
        `means-tested Federal benefit program' means any of the 
        following mandatory spending programs of the Federal 
        Government:
                    ``(A) The supplemental security income program 
                established under title XVI of the Social Security Act 
                (42 U.S.C. 1381 et seq.).
                    ``(B) The supplemental nutrition assistance program 
                established under the Food and Nutrition Act of 2008 (7 
                U.S.C. 2011 et seq.).
                    ``(C) The free and reduced price school lunch 
                program established under the Richard B. Russell 
                National School Lunch Act (42 U.S.C. 1751 et seq.).
                    ``(D) The program of block grants to States for 
                temporary assistance for needy families program 
                established under part A of title IV of the Social 
                Security Act (42 U.S.C. 601 et seq.).
                    ``(E) The special supplemental nutrition program 
                for women, infants, and children established by section 
                17 of the Child Nutrition Act of 1966 (42 U.S.C. 1786).
            ``(4) Graduate or professional student.--The term `graduate 
        or professional student' means a student who has received a 
        baccalaureate degree and is enrolled in a program of study 
        requiring a baccalaureate degree as a condition of that 
        enrollment.
    ``(b) Special Rule for Parent Borrowers.--Whenever necessary to 
carry out the provisions of part A or F, the terms `student' and 
`borrower' shall include a parent borrower.

``SEC. 400A. SIMPLIFIED APPLICATION FOR FEDERAL PELL GRANTS AND LOANS 
              UNDER PART A AND PART F.

    ``(a) In General.--Each individual desiring to apply for Federal 
financial aid under this title for any year shall file an application 
with the Secretary to determine eligibility for aid as described in 
subsection (b).
    ``(b) Free Application.--
            ``(1) In general.--The Secretary shall make available, for 
        the purposes of subsection (a), a free application to determine 
        the eligibility of a student for a Federal Pell Grant under 
        section 401 or a Federal loan under part F based--
                    ``(A) in the case of a Federal Pell Grant, on the 
                adjusted gross income and family size of a student 
                applicant, as described under section 401(b); and
                    ``(B) in the case of a loan, on the maximum amount 
                allowed as determined under section 470(e)(4)(B).
            ``(2) Information required of the applicant.--The Secretary 
        shall request the following information in order to determine 
        an applicant's eligibility for Federal student aid:
                    ``(A) For the purposes of attaining a Federal Pell 
                Grant--
                            ``(i) the applicant's name and address;
                            ``(ii) the applicant's social security 
                        number;
                            ``(iii) the applicant's date of birth;
                            ``(iv) in the case of an applicant who 
                        filed taxes, or an applicant whose parent or 
                        spouse (as applicable) filed taxes, in the year 
                        prior to the current prior year tax filing (as 
                        determined by the date of enrollment), income 
                        and family size information, which shall be 
                        retrieved from the Internal Revenue Service; 
                        and
                            ``(v) in the case of an applicant who did 
                        not file taxes, and whose parent or spouse (as 
                        applicable) did not file taxes, in the year 
                        prior to the current prior year tax filing (as 
                        determined by the date of enrollment), income 
                        and family size information, which shall be 
                        reported by the applicant.
                    ``(B) For the purpose of attaining a Federal loan, 
                the applicant's--
                            ``(i) name and address;
                            ``(ii) social security number;
                            ``(iii) date of birth; and
                            ``(iv) if the applicant so chooses, a list 
                        of institutions of higher education that the 
                        applicant is interested in attending.
            ``(3) Information to be supplied by the secretary.--Upon 
        receiving and timely processing an application described under 
        paragraph (1), the Secretary will provide to only the 
        applicant, the following information:
                    ``(A) If the applicant applied for a Federal Pell 
                Grant, the amount of the applicant's Federal Pell Grant 
                award.
                    ``(B) If the applicant applied for a Federal loan 
                under section 470, the amount of the Federal loan that 
                the applicant may receive if the applicant chooses, and 
                the following information:
                            ``(i) If the interest rate on the loan has 
                        been determined at the time such information is 
                        provided, the interest rate on the loan.
                            ``(ii) If the interest rate on the loan has 
                        not been determined at the time such 
                        information is provided, the current interest 
                        rate and a statement that the interest rate is 
                        subject to change.
                            ``(iii) The monthly amount that the 
                        applicant would be required to repay if the 
                        applicant chooses to accept the loan, based 
                        on--
                                    ``(I) the amount of the Federal 
                                loan under section 470 that the 
                                applicant may choose to receive; and
                                    ``(II) payment of such loan on a 
                                10-year repayment plan.
                            ``(iv) The monthly amount that the 
                        applicant would be required to repay if the 
                        applicant chooses to accept a loan of the same 
                        amount and paid according to the same repayment 
                        plan as described in clause (iii)--
                                    ``(I) if the applicant were to 
                                attend a program 2 years in length; and
                                    ``(II) if the applicant were to 
                                attend a program 4 years in length.
                            ``(v) The monthly amount that the applicant 
                        would be required to repay if the applicant 
                        chooses to accept the loan, based on--
                                    ``(I) the amount of the Federal 
                                loan under section 470 that the 
                                applicant may choose to receive; and
                                    ``(II) payment of such loan 
                                according to the income-based repayment 
                                plan, reflecting not less than 5 
                                different income levels.
                            ``(vi) The monthly amount (based on not 
                        less than 5 different income levels) that the 
                        applicant would be required to repay if the 
                        applicant chooses to accept a loan of the same 
                        amount and paid according to the same repayment 
                        plan as described in clause (v)--
                                    ``(I) if the applicant were to 
                                attend a program 2 years in length; and
                                    ``(II) if the applicant were to 
                                attend a program 4 years in length.''.

SEC. 5. ONE GRANT PROGRAM.

    Part A of title IV of the Act (20 U.S.C. 1070 et seq.) is further 
amended--
            (1) in subpart 1, by striking sections 401 and 401A and 
        inserting the following:

``SEC. 401. FEDERAL PELL GRANTS.

    ``(a) Program Authority and Method of Distribution.--
            ``(1) In general.--Grants made under this subpart shall be 
        known as `Federal Pell Grants'.
            ``(2) Program authorized.--For each of fiscal years 2016 
        through 2022, the Secretary shall pay to each eligible 
        institution such sums as may be necessary to pay to each 
        eligible student, as defined in accordance with section 400(a), 
        for each academic year during which that student is in 
        attendance at an institution of higher education, as an 
        undergraduate, a Federal Pell Grant in the amount for which 
        that student is eligible, as determined pursuant to subsection 
        (b).
            ``(3) Method of distribution.--The Secretary shall provide 
        funds to each eligible institution of higher education in an 
        accurate and timely manner based upon an amount requested by 
        the institution for eligible students at that institution that 
        have submitted an approved application in accordance with 
        subsection (d).
    ``(b) Purpose and Amount of Grant.--
            ``(1) Purpose.--The purpose of this part is to assist in 
        making available the benefits of postsecondary education to 
        eligible students in institutions of higher education by 
        providing Federal Pell Grants to all eligible students.
            ``(2) Determination of amount.--
                    ``(A) Qualification for federal pell grant award.--
                An eligible student shall automatically qualify to 
                receive a Federal Pell Grant award, which shall be 
                determined in accordance with subparagraph (B)(ii) if 
                the student or the student's family received benefits 
                at some time during the previous 24-month period under 
                a means-tested Federal benefit program, as defined in 
                section 400.
                    ``(B) Award amount.--
                            ``(i) Award year 2015.--An eligible student 
                        shall receive a Federal Pell Grant award for 
                        award year 2015 in an amount determined in 
                        accordance with clause (ii).
                            ``(ii) Calculation of individual award 
                        amount.--
                                    ``(I) For family size of 1:


------------------------------------------------------------------------
                         ``2013 AGI                           Pell Award
------------------------------------------------------------------------
$0-$11,670.................................................       $5,730
$11,671-$12,837............................................       $5,380
$12,838-$14,004............................................       $4,890
$14,005-$15,171............................................       $4,400
$15,172-$16,338............................................       $3,910
$16,339-$17,505............................................       $3,420
$17,506-$18,672............................................       $2,930
$18,673-$19,839............................................       $2,440
$19,840-$21,006............................................       $1,950
$21,007-$22,173............................................       $1,460
$22,174-$23,340............................................        $970.
------------------------------------------------------------------------

                                    ``(II) For family size of 2:


------------------------------------------------------------------------
                         ``2013 AGI                           Pell Award
------------------------------------------------------------------------
$0-$15,730.................................................       $5,730
$15,731-$17,303............................................       $5,505
$17,304-$18,876............................................       $5,235
$18,877-$20,449............................................       $4,965
$20,450-$22,022............................................       $4,695
$22,023-$23,595............................................       $4,425
$23,596-$25,168............................................       $4,155
$25,169-$26,741............................................       $3,885
$26,742-$28,314............................................       $3,615
$28,315-$29,887............................................       $3,345
$29,888-$31,460............................................       $3,075
$31,461-$33,033............................................       $3,130
$33,034-$34,606............................................       $2,890
$34,607-$36,179............................................       $2,650
$36,180-$37,752............................................       $2,410
$37,753-$39,325............................................      $2,170.
------------------------------------------------------------------------

                                    ``(III) For family size of 3:


------------------------------------------------------------------------
                         ``2013 AGI                           Pell Award
------------------------------------------------------------------------
$0-$19,790.................................................       $5,730
$19,791-$21,769............................................       $5,555
$21,770-$23,748............................................       $5,345
$23,749-$25,727............................................       $5,135
$25,728-$27,706............................................       $4,925
$27,707-$29,685............................................       $4,715
$29,686-$31,664............................................       $4,505
$31,665-$33,643............................................       $4,295
$33,644-$35,622............................................       $4,085
$35,623-$37,601............................................       $3,875
$37,602-$39,580............................................       $3,665
$39,581-$41,559............................................       $3,130
$41,560-$43,538............................................       $2,890
$43,539-$45,517............................................       $2,650
$45,518-$47,496............................................       $2,410
$47,497-$49,475............................................      $2,170.
------------------------------------------------------------------------

                                    ``(IV) For family size of 4:


------------------------------------------------------------------------
                         ``2013 AGI                           Pell Award
------------------------------------------------------------------------
$0-$23,850.................................................       $5,730
$23,851-$26,235............................................       $5,555
$26,236-$28,620............................................       $5,345
$28,621-$31,005............................................       $5,135
$31,006-$33,390............................................       $4,925
$33,391-$35,775............................................       $4,715
$35,776-$38,160............................................       $4,505
$38,161-$40,545............................................       $4,295
$40,546-$42,930............................................       $4,085
$42,931-$45,315............................................       $3,875
$45,316-$47,700............................................       $3,665
$47,701-$50,085............................................       $3,130
$50,086-$52,470............................................       $2,890
$52,471-$54,855............................................       $2,650
$54,856-$57,240............................................       $2,410
$57,241-$59,625............................................      $2,170.
------------------------------------------------------------------------

                                    ``(V) For family size of 5:


------------------------------------------------------------------------
                         ``2013 AGI                           Pell Award
------------------------------------------------------------------------
$0-$27,910.................................................       $5,730
$27,911-$30,701............................................       $5,530
$30,702-$33,492............................................       $5,290
$33,493-$36,283............................................       $5,050
$36,284-$39,074............................................       $4,810
$39,075-$41,865............................................       $4,570
$41,866-$44,656............................................       $4,330
$44,657-$47,447............................................       $4,090
$47,448-$50,238............................................       $3,850
$50,239-$53,029............................................       $3,610
$53,030-$55,820............................................       $3,370
$55,821-$58,611............................................       $3,130
$58,612-$61,402............................................       $2,890
$61,403-$64,193............................................       $2,650
$64,194-$66,984............................................       $2,410
$66,985-$69,775............................................      $2,170.
------------------------------------------------------------------------

                                    ``(VI) For family size of 6:


------------------------------------------------------------------------
                         ``2013 AGI                           Pell Award
------------------------------------------------------------------------
$0-$31,970.................................................       $5,730
$31,971-$35,167............................................       $5,530
$35,168-$38,364............................................       $5,290
$38,365-$41,561............................................       $5,050
$41,562-$44,758............................................       $4,810
$44,759-$47,955............................................       $4,570
$47,956-$51,152............................................       $4,330
$51,153-$54,349............................................       $4,090
$54,350-$57,546............................................       $3,850
$57,547-$60,743............................................       $3,610
$60,744-$63,940............................................       $3,370
$63,941-$67,137............................................       $3,130
$67,138-$70,334............................................       $2,890
$70,335-$73,531............................................       $2,650
$73,532-$76,728............................................       $2,410
$76,729-$79,925............................................      $2,170.
------------------------------------------------------------------------

                                    ``(VII) For family size of 7:


------------------------------------------------------------------------
                         ``2013 AGI                           Pell Award
------------------------------------------------------------------------
$0-$36,030.................................................       $5,730
$36,031-$39,633............................................       $5,530
$39,634-$43,236............................................       $5,290
$43,237-$46,839............................................       $5,050
$46,840-$50,442............................................       $4,810
$50,443-$54,045............................................       $4,570
$54,046-$57,648............................................       $4,330
$57,649-$61,251............................................       $4,090
$61,252-$64,854............................................       $3,850
$64,855-$68,457............................................       $3,610
$68,458-$72,060............................................       $3,370
$72,061-$75,663............................................       $3,130
$75,664-$79,266............................................       $2,890
$79,267-$82,869............................................       $2,650
$82,870-$86,472............................................       $2,410
$86,473-$90,075............................................      $2,170.
------------------------------------------------------------------------

                                    ``(VIII) For family size of 8 or 
                                more:


------------------------------------------------------------------------
                         ``2013 AGI                           Pell Award
------------------------------------------------------------------------
$0-$40,909.................................................       $5,730
$40,910-$45,000............................................       $5,505
$45,001-$49,091............................................       $5,235
$49,092-$53,182............................................       $4,943
$53,183-$57,273............................................       $4,628
$57,274-$61,364............................................       $4,290
$61,365-$65,454............................................       $3,953
$65,455-$69,545............................................       $3,615
$69,546-$73,636............................................       $3,278
$73,637-$77,727............................................       $2,940
$77,728-$81,818............................................       $2,603
$81,819-$85,909............................................       $3,130
$85,910-$90,000............................................       $2,890
$90,001-$94,091............................................       $2,650
$94,092-$98,182............................................       $2,410
$98,182-$102,273...........................................      $2,170.
------------------------------------------------------------------------

                            ``(iii) Subsequent award years.--For each 
                        award year subsequent to 2015, the dollar 
                        amounts in the table under clause (ii) shall be 
                        adjusted (rounded to the nearest dollar) by the 
                        percentage by which--
                                    ``(I) the maximum Federal Pell 
                                Grant award amount calculated in 
                                accordance with subparagraph (C)(i), 
                                exceeds or decreases below
                                    ``(II) $5730.
                    ``(C) Maximum amount of federal pell grant award.--
                            ``(i) In general.--The maximum amount of 
                        the Federal Pell Grant for a student eligible 
                        under this part shall be--
                                    ``(I) the maximum Federal Pell 
                                Grant, as specified in the last enacted 
                                appropriation Act applicable to that 
                                award year, plus
                                    ``(II) the amount of the increase 
                                calculated under clause (ii) for that 
                                year.
                            ``(ii) Additional funds.--There are 
                        authorized to be appropriated, and there are 
                        appropriated (in addition to any other amounts 
                        appropriated to carry out this section and out 
                        of any money in the Treasury not otherwise 
                        appropriated) the following amounts--
                                    ``(I) to carry out clause (iii), 
                                such sums as may be necessary for 
                                fiscal year 2010 and each subsequent 
                                fiscal year to provide the amount of 
                                increase of the maximum Federal Pell 
                                Grant required by clause (iii); and
                                    ``(II) to carry out this section--
                                            ``(aa) $0 for fiscal year 
                                        2015;
                                            ``(bb) $0 for fiscal year 
                                        2016;
                                            ``(cc) $1,574,000,000 for 
                                        fiscal year 2017;
                                            ``(dd) $1,382,000,000 for 
                                        fiscal year 2018;
                                            ``(ee) $1,409,000,000 for 
                                        fiscal year 2019;
                                            ``(ff) $1,430,000,000 for 
                                        fiscal year 2020; and
                                            ``(gg) $1,145,000,000 for 
                                        fiscal year 2021 and each 
                                        succeeding fiscal year.
                            ``(iii) Increase in federal pell grants.--
                        The amounts made available pursuant to clause 
                        (ii)(I) shall be used to increase the amount of 
                        the maximum Federal Pell Grant for which a 
                        student shall be eligible during an award year, 
                        as specified in the last enacted appropriation 
                        Act applicable to that award year, by the 
                        amount determined under clause (iv) for each 
                        succeeding award year.
                            ``(iv) Adjustment amounts.--
                                    ``(I) Award years 2015-2016 through 
                                2017-2018.--For each of the award years 
                                2015-2016 through 2017-2018, the amount 
                                determined under this clause for 
                                purposes of clause (iii) shall be equal 
                                to--
                                            ``(aa) the total maximum 
                                        Federal Pell Grant for the 
                                        preceding award year (as 
                                        determined under subclause 
                                        (IV)), increased by a 
                                        percentage equal to the annual 
                                        adjustment percentage for the 
                                        award year for which the amount 
                                        under this subparagraph is 
                                        being determined, reduced by
                                            ``(bb) $4,860 or the 
                                        maximum Federal Pell Grant for 
                                        which a student was eligible 
                                        for the preceding award year, 
                                        as specified in the last 
                                        enacted appropriation Act 
                                        applicable to that year, 
                                        whichever is greater, and
                                            ``(cc) rounded to the 
                                        nearest $5.
                                    ``(II) Subsequent award years.--For 
                                award year 2018-2019 and each 
                                subsequent award year, the amount 
                                determined under this clause for 
                                purposes of clause (iii) shall be equal 
                                to the amount determined under 
                                subclause (IV) for award year 2017-
                                2018.
                                    ``(III) Annual adjustment 
                                percentage.--For purposes of this 
                                clause, the term `annual adjustment 
                                percentage' as applied to an award 
                                year, is equal to the estimated 
                                percentage change in the Consumer Price 
                                Index (as determined by the Secretary, 
                                using the definition in section 478(f)) 
                                for the most recent calendar year 
                                ending prior to the beginning of that 
                                award year.
                                    ``(IV) Total maximum federal pell 
                                grant.--For purposes of this clause, 
                                the term `total maximum Federal Pell 
                                Grant' as applied to a preceding award 
                                year, is equal to the sum of--
                                            ``(aa) the maximum Federal 
                                        Pell Grant for which a student 
                                        is eligible during an award 
                                        year, as specified in the last 
                                        enacted appropriation Act 
                                        applicable to that preceding 
                                        award year; and
                                            ``(bb) the amount of the 
                                        increase in the maximum Federal 
                                        Pell Grant required by this 
                                        subparagraph for that preceding 
                                        award year.
                            ``(v) Program requirements and operations 
                        otherwise unaffected.--Except as provided in 
                        clauses (iii) and (iv), nothing in this 
                        subparagraph shall be construed to alter the 
                        requirements and operations of the Federal Pell 
                        Grant Program as authorized under this section, 
                        or authorize the imposition of additional 
                        requirements or operations for the 
                        determination and allocation of Federal Pell 
                        Grants under this section.
                            ``(vi) Ratable increases and decreases.--
                        The amounts specified in clause (iii) shall be 
                        ratably increased or decreased to the extent 
                        that funds available under clause (ii) exceed 
                        or are less than (respectively) the amount 
                        required to provide the amounts specified in 
                        clause (iii).
                            ``(vii) Availability of funds.--The amounts 
                        made available by clause (ii) for any fiscal 
                        year shall be available beginning on October 1 
                        of that fiscal year, and shall remain available 
                        through September 30 of the succeeding fiscal 
                        year.
                    ``(D) Exception.--Nothing in this part shall be 
                interpreted as limiting the authority of the financial 
                aid administrator, on the basis of adequate 
                documentation, to make adjustments on a case-by-case 
                basis to the values of the data items required to 
                calculate the amount of a Federal Pell Grant award as 
                described under subparagraph (B) to allow only for 
                treatment of an individual eligible applicant with a 
                change in family income or family size.
                    ``(E) Limitations.--
                            ``(i) Part-time students.--In any case 
                        where a student attends an institution of 
                        higher education on less than a full-time basis 
                        (including a student who attends an institution 
                        of higher education on less than a half-time 
                        basis) during any academic year, the amount of 
                        the Federal Pell Grant to which that student is 
                        entitled shall be reduced in proportion to the 
                        degree to which that student is not so 
                        attending on a full-time basis in accordance 
                        with a schedule of reductions established by 
                        the Secretary for the purposes of this clause, 
                        computed in accordance with this subpart.
                            ``(ii) Cost of attendance.--No Federal Pell 
                        Grant under this subpart shall exceed the cost 
                        of attendance at the institution at which that 
                        student is in attendance.
                            ``(iii) Incarceration.--No Federal Pell 
                        Grant shall be awarded under this subpart to 
                        any individual who is incarcerated in any 
                        Federal or State penal institution or who is 
                        subject to an involuntary civil commitment upon 
                        completion of a period of incarceration for a 
                        forcible or nonforcible sexual offense (as 
                        determined in accordance with the Federal 
                        Bureau of Investigation's Uniform Crime 
                        Reporting Program).
    ``(c) Period of Eligibility for Grants.--
            ``(1) In general.--The period during which a student may 
        receive Federal Pell Grants shall be the period required for 
        the completion of the first undergraduate baccalaureate program 
        of study being pursued by that student at the institution at 
        which the student is in attendance, except that any period 
        during which the student is enrolled in a non-credit or 
        remedial program of study as defined in paragraph (2) shall not 
        be counted for the purpose of this paragraph.
            ``(2) Non-credit or remedial coursework and study abroad 
        programs.--Nothing in this section shall exclude from 
        eligibility--
                    ``(A) programs of study which are non-credit or 
                remedial in nature (including courses in English 
                language instruction) which are determined by the 
                institution to be necessary to help the student be 
                prepared for the pursuit of a first undergraduate 
                baccalaureate degree or certificate or, in the case of 
                courses in English language instruction, to be 
                necessary to enable the student to utilize already 
                existing knowledge, training, or skills; or
                    ``(B) programs of study abroad that are approved 
                for credit by the home institution at which the student 
                is enrolled.
            ``(3) Limitation.--No student is entitled to receive 
        Federal Pell Grant payments concurrently from more than one 
        institution.
            ``(4) Exceptions.--Notwithstanding paragraph (1), the 
        Secretary may allow, on a case-by-case basis, a student to 
        receive a basic grant if the student--
                    ``(A) is carrying at least one-half the normal 
                full-time work load for the program of study the 
                student is pursuing, as determined by the institution 
                of higher education; and
                    ``(B) is enrolled or accepted for enrollment in a 
                postbaccalaureate program that does not lead to a 
                graduate degree, and in courses required by a State in 
                order for the student to receive a professional 
                certification or licensing credential that is required 
                for employment as a teacher in an elementary school or 
                secondary school in that State, except that this 
                paragraph shall not apply to a student who is enrolled 
                in an institution of higher education that offers a 
                baccalaureate degree in education.
            ``(5) Annual award.--
                    ``(A) In general.--The period during which a 
                student may receive Federal Pell Grants shall not 
                exceed 12 semesters, or the equivalent of 12 semesters, 
                as determined by the Secretary by regulation. Such 
                regulation shall provide, with respect to a student who 
                received a Federal Pell Grant for a semester and was 
                enrolled on a less than full-time basis during that 
                semester, that only a fraction of such semester shall 
                count towards the semester limit described in this 
                subparagraph.
                    ``(B) Exceptions for accelerated completion.--
                            ``(i) Accelerated coursework.--An eligible 
                        student who completes coursework equivalent to 
                        one academic year before the end of an award 
                        year and has exhausted the Federal Pell Grant 
                        award funding for which that student is 
                        eligible for such award year may receive all, 
                        or a portion of, the Federal Pell Grant funds 
                        that the student would otherwise be eligible to 
                        receive in the next award year to pay 
                        additional tuition and fees charged to the 
                        student due to enrolling in additional courses 
                        during such award year. A student who receives 
                        all, or a portion, of such Federal Pell Grant 
                        funds for the next award year in accordance 
                        with this clause shall not have the amount of 
                        Federal Pell Grant funds reduced in that next 
                        award year due to such accelerated coursework.
                            ``(ii) 2 pell grants in a single award 
                        year.--
                                    ``(I) 2 pell grants in a single 
                                award year.--In addition to the 
                                exception described in clause (i), the 
                                Secretary shall award an eligible 
                                student who has not completed 
                                coursework equivalent to one academic 
                                year before the end of an award year 
                                not more than 2 Federal Pell Grants 
                                during a single award year to permit 
                                such student to complete academic 
                                progress for that award year so that 
                                the student may receive a degree or 
                                certificate on time. Such eligible 
                                student may earn academic credits 
                                exceeding the minimum number of credits 
                                needed to maintain academic progress 
                                toward receiving a degree or 
                                certificate on time, if those credits 
                                are earned in the course of pursuing 
                                academic progress for on time 
                                completion of a degree or certificate.
                                    ``(II) Exception to annual pell 
                                grant limit.--In the case of a student 
                                receiving more than 1 Federal Pell 
                                Grant in a single award year under 
                                subclause (I), the total amount of 
                                Federal Pell Grants awarded to such 
                                student for the award year may exceed 
                                the maximum basic grant level 
                                calculated in accordance with 
                                subsection (b)(2)(C)(i) for such award 
                                year, but shall not exceed an amount 
                                equal to 150 percent of such maximum 
                                basic grant level.
                                    ``(III) Inclusion in duration 
                                limit.--Any period of study covered by 
                                a Federal Pell Grant awarded under this 
                                clause shall be included in determining 
                                a student's duration limit under 
                                subparagraph (A).
    ``(d) Application for Grants.--The Secretary shall from time to 
time set dates by which students shall file applications for Federal 
Pell Grants under this subpart. Each student desiring a Federal Pell 
Grant for any year shall file an application with the Secretary to 
determine eligibility for an award as described in section 400A.
    ``(e) Distribution of Grants to Students.--
            ``(1) In general.--Payments under this section shall be 
        made in accordance with regulations promulgated by the 
        Secretary for such purpose, in such manner as will best 
        accomplish the purpose of this section.
            ``(2) Limitations.--Any disbursement allowed to be made by 
        crediting the student's account shall be limited to tuition and 
        fees and, in the case of institutionally owned housing, room 
        and board.
            ``(3) Exception.--A student may elect to have the 
        institution provide other such goods and services by crediting 
        the student's account.
    ``(f) Treatment of Institutions and Students Under Other Laws.--Any 
institution of higher education which enters into an agreement with the 
Secretary to disburse to students attending that institution the 
amounts those students are eligible to receive under this subpart shall 
not be deemed, by virtue of such agreement, a contractor maintaining a 
system of records to accomplish a function of the Secretary. Recipients 
of Federal Pell Grants shall not be considered to be individual 
grantees for purposes of subtitle D of title V of Public Law 100-690.
    ``(g) Insufficient Appropriations.--If, for any fiscal year, the 
funds appropriated for payments under this subpart are insufficient to 
satisfy fully all entitlements, as calculated under subsection (b) (but 
at the maximum grant level specified in such appropriation), the 
Secretary shall promptly transmit a notice of such insufficiency to 
each House of the Congress, and identify in such notice the additional 
amount that would be required to be appropriated to satisfy fully all 
entitlements (as so calculated at such maximum grant level).
    ``(h) Use of Excess Funds.--If, at the end of a fiscal year, the 
funds available for making payments under this subpart exceed the 
amount necessary to make the payments required under this subpart to 
eligible students, then all of the excess funds shall remain available 
for making payments under this subpart during the next succeeding 
fiscal year.'';
            (2) by striking subparts 3, 4, and 6; and
            (3) by redesignating subparts 5, 7, 9, and 10 as subparts 
        3, 4, 5, and 6, respectively.

SEC. 6. ONE LOAN PROGRAM.

    Title IV of the Act (20 U.S.C. 1070 et seq.) is further amended--
            (1) in section 451(a), by inserting ``, and ending on the 
        June 30 following the date of enactment of the Financial Aid 
        Simplification and Transparency Act of 2015'' after ``during 
        the period beginning July 1, 1994''; and
            (2) by striking part F and inserting the following:

                       ``PART F--ONE LOAN PROGRAM

``SEC. 470. LOANS TO STUDENTS AND FAMILIES FOR POSTSECONDARY AND 
              GRADUATE EDUCATION.

    ``(a) Program Authorized.--
            ``(1) In general.--There are hereby made available, in 
        accordance with the provisions of this part, such sums as may 
        be necessary to make loans (including consolidation loans, as 
        described in subsection (f)) to all eligible students (and the 
        eligible parents of such students) in attendance at 
        participating institutions of higher education, to enable such 
        students to pursue their programs of study at such institutions 
        during the period beginning on the July 1 after the date of 
        enactment of the Financial Aid Simplification and Transparency 
        Act of 2015.
            ``(2) Loan origination.--Loans made under this part shall 
        be made by participating institutions, or consortia thereof, 
        that have agreements with the Secretary to originate loans, or 
        by alternative originators designated by the Secretary to make 
        loans for students in attendance at participating institutions.
    ``(b) Funds for Origination.--
            ``(1) In general.--The Secretary shall provide, on the 
        basis of the estimated loan amount determined under subsection 
        (e)(4) and the eligibility of students at each participating 
        institution, and parents of such students, for such loans, 
        funds for student and parent loans under this part directly to 
        an institution of higher education that has an agreement with 
        the Secretary under subsection (d)(1) to participate in the 
        student loan programs under this part and that also has an 
        agreement with the Secretary under subsection (d)(2) to 
        originate loans under this part.
            ``(2) No entitlement to participate or originate.--No 
        institution of higher education shall have a right to 
        participate in the program authorized by this part, to 
        originate loans, or to perform any program function under this 
        part. Nothing in this paragraph shall be construed so as to 
        limit the entitlement of an eligible student attending a 
        participating institution (or the eligible parent of such 
        student) to borrow under this part.
            ``(3) Delivery of loan funds.--Loan funds shall be paid and 
        delivered to an institution by the Secretary prior to the 
        beginning of the payment period established by the Secretary in 
        a manner that is consistent with payment and delivery of 
        Federal Pell Grants under subpart 1 of part A of this title.
            ``(4) Institutions outside the united states.--Loan funds 
        for students (and parents of students) attending institutions 
        outside the United States shall be disbursed through a 
        financial institution located or operating in the United States 
        and designated by the Secretary to serve as the agent of such 
        institutions with respect to the receipt of the disbursements 
        of such loan funds and the transfer of such funds to such 
        institutions. To be eligible to receive funds under this part, 
        an institution outside the United States shall make 
        arrangements with the agent designated by the Secretary under 
        this paragraph to receive funds under this part.
    ``(c) Selection of Institutions for Participation and 
Origination.--
            ``(1) General authority.--The Secretary shall enter into 
        agreements pursuant to subsection (d)(1) with institutions of 
        higher education to participate in the student loan program 
        under this part, and agreements pursuant to subsection (d)(2) 
        with institutions of higher education, or consortia thereof, to 
        originate loans in such program, for academic years beginning 
        on or after the July 1 after the date of enactment of the 
        Financial Aid Simplification and Transparency Act of 2015. Such 
        agreements for the academic year 2015-2016 shall, to the extent 
        feasible, be entered into not later than January 1, 2015.
            ``(2) Selection criteria.--
                    ``(A) Application.--Each institution of higher 
                education desiring to participate in the student loan 
                program under this part shall submit an application 
                satisfactory to the Secretary containing such 
                information and assurances as the Secretary may 
                require.
                    ``(B) Selection procedure.--The Secretary shall 
                select institutions for participation in the student 
                loan program under this part, and shall enter into 
                agreements with such institutions under subsection 
                (d)(1), from among those institutions that submit the 
                applications described in subparagraph (A), and meet 
                such other eligibility requirements as the Secretary 
                shall prescribe.
            ``(3) Selection criteria for origination.--
                    ``(A) In general.--The Secretary may enter into a 
                supplemental agreement with an institution (or a 
                consortium of such institutions) that--
                            ``(i) has an agreement under subsection 
                        (d)(1);
                            ``(ii) desires to originate loans under 
                        this part; and
                            ``(iii) meets the criteria described in 
                        subparagraph (B).
                    ``(B) Selection criteria.--The Secretary may 
                approve an institution to originate loans only if such 
                institution--
                            ``(i) is not on the reimbursement system of 
                        payment for any of the programs under subpart 1 
                        of part A or part C of this title;
                            ``(ii) is not overdue on program or 
                        financial reports or audits required under this 
                        title;
                            ``(iii) is not subject to an emergency 
                        action, or a limitation, suspension, or 
                        termination under section 428(b)(1)(T), 432(h), 
                        or 487(c);
                            ``(iv) in the opinion of the Secretary, has 
                        not had severe performance deficiencies for any 
                        of the programs under this title, including 
                        such deficiencies demonstrated by audits or 
                        program reviews submitted or conducted during 
                        the 5 calendar years immediately preceding the 
                        date of application;
                            ``(v) provides an assurance that such 
                        institution has no delinquent outstanding debts 
                        to the Federal Government, unless such debts 
                        are being repaid under or in accordance with a 
                        repayment arrangement satisfactory to the 
                        Federal Government, or the Secretary in the 
                        Secretary's discretion determines that the 
                        existence or amount of such debts has not been 
                        finally determined by the cognizant Federal 
                        agency; and
                            ``(vi) meets such other criteria as the 
                        Secretary may establish to protect the 
                        financial interest of the United States and to 
                        promote the purposes of this part.
            ``(4) Eligible institutions.--The Secretary may not select 
        an institution of higher education for participation under this 
        section unless such institution is an eligible institution 
        under section 435(a).
            ``(5) Consortia.--Subject to such requirements as the 
        Secretary may prescribe, eligible institutions of higher 
        education (as determined under paragraph (4)) with agreements 
        under subsection (d)(1) may apply to the Secretary as consortia 
        to originate loans under this part for students in attendance 
        at such institutions. Each such institution shall be required 
        to meet the requirements of paragraph (3) with respect to loan 
        origination.
    ``(d) Agreements With Institutions.--
            ``(1) Participation agreements.--An agreement with any 
        institution of higher education for participation in the 
        student loan program under this part shall--
                    ``(A) provide for the establishment and maintenance 
                of a student loan program at the institution under 
                which the institution will--
                            ``(i) identify eligible students who seek 
                        student financial assistance at such 
                        institution in accordance with subsection 
                        (e)(2);
                            ``(ii) estimate the loan amount of each 
                        such student in accordance with subsection 
                        (e)(4)(A)(i);
                            ``(iii) provide a statement that certifies 
                        the eligibility of any student to receive a 
                        loan under this part that is not in excess of 
                        the annual or aggregate limit applicable to 
                        such loan, except that the institution may, in 
                        exceptional circumstances identified by the 
                        Secretary, refuse to certify a statement that 
                        permits a student to receive a loan under this 
                        part, or certify a loan amount that is less 
                        than the amount the student may otherwise be 
                        eligible to receive, as described in clauses 
                        (iii) and (iv) of subsection (e)(4)(B);
                            ``(iv) set forth a schedule for 
                        disbursement of the proceeds of the loan in 
                        installments, consistent with the requirements 
                        of section 428G; and
                            ``(v) provide timely and accurate 
                        information concerning the status of student 
                        borrowers (and students on whose behalf parents 
                        borrow under this part) while such students are 
                        in attendance at the institution and concerning 
                        any new information of which the institution 
                        becomes aware for such students (or their 
                        parents) after such borrowers leave the 
                        institution, to the Secretary for the servicing 
                        and collecting of loans made under this part;
                    ``(B) provide assurances that the institution will 
                comply with requirements established by the Secretary 
                relating to student loan information with respect to 
                loans made under this part;
                    ``(C) provide that the institution accepts 
                responsibility and financial liability stemming from 
                its failure to perform its functions pursuant to the 
                agreement;
                    ``(D) provide for the implementation of a quality 
                assurance system, as established by the Secretary and 
                developed in consultation with institutions of higher 
                education, to ensure that the institution is complying 
                with program requirements and meeting program 
                objectives;
                    ``(E) provide that the institution will not charge 
                any fees of any kind, however described, to student or 
                parent borrowers for origination activities or the 
                provision of any information necessary for a student or 
                parent to receive a loan under this part, or any 
                benefits associated with such loan; and
                    ``(F) include such other provisions as the 
                Secretary reasonably determines are necessary to 
                protect the interests of the United States and to 
                promote the purposes of this part.
            ``(2) Origination.--An agreement with any institution of 
        higher education, or consortia thereof, for the origination of 
        loans under this part shall--
                    ``(A) supplement the agreement entered into in 
                accordance with paragraph (1);
                    ``(B) include provisions established by the 
                Secretary that are similar to the participation 
                agreement provisions described in subparagraphs (A)(v), 
                (B), (C), (D), (E), and (F) of paragraph (1), as 
                modified to relate to the origination of loans by the 
                institution or consortium;
                    ``(C) provide that the institution or consortium 
                will originate loans to eligible students and parents 
                in accordance with this part; and
                    ``(D) provide that the note or evidence of 
                obligation on the loan shall be the property of the 
                Secretary.
            ``(3) Withdrawal and termination procedures.--The Secretary 
        shall establish procedures by which institutions or consortia 
        may withdraw or be terminated from the program under this part.
    ``(e) Terms and Conditions of Loans.--
            ``(1) Parallel terms, conditions, benefits, and amounts of 
        loans.--Unless otherwise specified in this part, loans made to 
        borrowers under this part shall have the same terms, 
        conditions, and benefits as Federal Direct Unsubsidized 
        Stafford Loans under part D made to borrowers and first 
        disbursed on July 1, 1994.
            ``(2) Eligibility.--In order to be eligible for a loan 
        under this section, an individual must be--
                    ``(A) an eligible student, as defined in section 
                400(a), who is an undergraduate;
                    ``(B) an eligible graduate or professional student 
                as defined in section 400(a); or
                    ``(C) a parent or legal guardian of an eligible 
                student who is an undergraduate, as defined in section 
                400(a).
            ``(3) Application for loans.--Each eligible student (or the 
        parent of such student) desiring to obtain a Federal loan under 
        this part for any year shall file an application with the 
        Secretary to determine eligibility for a loan as described in 
        section 400A.
            ``(4) Amount of loan.--
                    ``(A) In general.--The amount of a loan disbursed 
                by a participating institution under this section shall 
                be the lesser of--
                            ``(i) an amount that is equal to the 
                        estimated loan amount, as determined by the 
                        institution by calculating--
                                    ``(I) the estimated cost of 
                                attendance at the eligible institution; 
                                minus
                                    ``(II)(aa) any estimated financial 
                                assistance that the student will 
                                receive from a Federal grant, including 
                                a Federal Pell Grant, a State grant, an 
                                institutional grant, or a scholarship 
                                or grant from another source, that is 
                                known to the institution at the time 
                                the student's determination of need is 
                                made; and
                                    ``(bb) in the case of a loan to a 
                                parent, the amount of a loan awarded 
                                under this part to the parent's child; 
                                or
                            ``(ii) the maximum Federal loan amount for 
                        which such student is eligible in accordance 
                        with subparagraph (B).
                    ``(B) Loan limits.--
                            ``(i) Annual limits.--Except as provided 
                        under clause (iv), the annual amount of loans 
                        under this section that an eligible student may 
                        borrow shall be--
                                    ``(I) $8,000, in the case of a 
                                student who is an undergraduate student 
                                attending a participating institution; 
                                and
                                    ``(II) $30,000, in the case of a 
                                graduate or professional student 
                                attending a participating institution.
                            ``(ii) Aggregate limits.--Except as 
                        provided under clause (iv), the maximum 
                        aggregate amount of loans under this section 
                        that an eligible student may borrow shall be--
                                    ``(I) $37,500 in the case of a 
                                student who is an undergraduate student 
                                attending an eligible institution; and
                                    ``(II) $150,000 in the case of a 
                                student who is a graduate or 
                                professional student attending an 
                                eligible institution, except that such 
                                aggregate limit shall not include any 
                                debt that the student incurred as an 
                                undergraduate.
                            ``(iii) Part-time students.--Any eligible 
                        student receiving loans under this section that 
                        is enrolled in a program of study on less than 
                        a full-time basis shall have their loans 
                        prorated based on actual enrollment status.
                            ``(iv) Institutional determined limits and 
                        increases.--
                                    ``(I) Institutional determined 
                                limits.--
                                            ``(aa) In general.--
                                        Notwithstanding any other 
                                        provision of this paragraph, a 
                                        participating institution may 
                                        limit the annual amount that 
                                        students enrolled in an 
                                        identified program of study at 
                                        that institution may borrow 
                                        under this section, if--

                                                    ``(AA) the 
                                                institution can 
                                                reasonably demonstrate, 
                                                based on previous 
                                                student income 
                                                following such program, 
                                                that student debt 
                                                levels are excessive; 
                                                and

                                                    ``(BB) subject to 
                                                item (bb), any 
                                                proration or limiting 
                                                of loan amounts are 
                                                applied in the same 
                                                manner to all students 
                                                enrolled in the 
                                                institution or program 
                                                of study.

                                            ``(bb) Exception.--
                                        Notwithstanding item (aa)(BB), 
                                        upon the request of an 
                                        individual student, an 
                                        institution (at the discretion 
                                        of a financial aid 
                                        administrator) may increase the 
                                        annual amount limit established 
                                        under this subclause for an 
                                        individual student if that 
                                        student demonstrates special 
                                        circumstances.
                                    ``(II) Institutional determined 
                                increases.--Notwithstanding the annual 
                                loan limits described in clause (i) and 
                                subject to subclause (III), a 
                                participating institution may increase 
                                the annual amount that graduate and 
                                professional students enrolled in an 
                                identified program of study at that 
                                institution may borrow under this 
                                section and allow the annual amount to 
                                exceed such limit, if--
                                            ``(aa) the institution can 
                                        reasonably demonstrate that 
                                        students enrolled in a program 
                                        of study have an increased need 
                                        and should not be subject to 
                                        the loan limitations described 
                                        in clauses (i) and (iii); and
                                            ``(bb) any increase of loan 
                                        amounts are applied in the same 
                                        manner to all students enrolled 
                                        in the institution or program 
                                        of study.
                                    ``(III) Limitation on institutional 
                                determined increases.--An increase in 
                                the annual loan amount under subclause 
                                (II) shall not be for an amount that 
                                results in more than a 50 percent 
                                increase to the aggregate loan limit 
                                amount established under clause 
                                (ii)(II).
            ``(5) Repayment.--
                    ``(A) In general.--Repayment of principal and 
                interest accrued on loans made under this part shall 
                commence not later than the day after 6 months after 
                the date the student, or the student on whose behalf 
                the loan was made--
                            ``(i) ceases to carry at least one-half of 
                        the normal full-time academic workload, as 
                        determined by the institution; or
                            ``(ii) successfully completes the program 
                        of study in which the student is enrolled, as 
                        determined by the institution.
                    ``(B) Repayment plans.--
                            ``(i) In general.--Not later than 2 months 
                        after a student enters the status described 
                        under clause (i) or (ii) of subparagraph (A), 
                        the Secretary shall inform a borrower of a loan 
                        made under this part of the borrower's 
                        repayment options, by providing--
                                    ``(I) the monthly payment amount 
                                that the borrower will owe based on the 
                                total amount of the borrower's Federal 
                                loan under this section if such loan is 
                                paid under a 10-year repayment plan; 
                                and
                                    ``(II) estimates of the monthly 
                                payment amounts that the borrower may 
                                owe under the income-based repayment 
                                plan, based on the total amount of the 
                                borrower's Federal loan under this 
                                section and a schedule of different 
                                income levels.
                            ``(ii) Repayment options.--A borrower of a 
                        loan made under this part may choose from--
                                    ``(I) a repayment plan with a fixed 
                                monthly repayment amount paid over a 
                                fixed period of time, not to exceed 10 
                                years; or
                                    ``(II) an income-based repayment 
                                plan under section 493C.
    ``(f) Consolidation Loans.--
            ``(1) In general.--A borrower of a loan made under this 
        part may consolidate such loan with--
                    ``(A) another loan made under this part;
                    ``(B) a loan described in section 428C(a)(4) that 
                was first disbursed before July 1, 2010; or
                    ``(C) a loan made under section 455 that was first 
                disbursed before the July 1 prior to the date of 
                enactment of this Act.
            ``(2) Eligibility.--To be eligible for a consolidation loan 
        under this part, a borrower shall meet the eligibility criteria 
        set forth in section 428C(a)(3).
            ``(3) Terms and conditions.--A consolidation loan under 
        this subsection shall have the same terms and conditions as a 
        consolidation loan made under section 455(g).''.

SEC. 7. EARLY AWARENESS OF FINANCIAL AID ELIGIBILITY.

    Section 485E of the Act (20 U.S.C. 1092f) is amended by adding at 
the end the following:
    ``(c) Early Awareness.--
            ``(1) In general.--Not later than 180 days after the date 
        of enactment of the Financial Aid Simplification and 
        Transparency Act of 2015, the Secretary shall develop and 
        implement a plan to disseminate information about eligibility 
        for Federal financial aid under title IV to local educational 
        agencies and to middle and secondary schools that serve 
        students at least 25 percent of whom are eligible for a free or 
        reduced price school lunch under the Richard B. Russell 
        National School Lunch Act (42 U.S.C. 1751 et seq.).
            ``(2) Recommendations to congress.--Not later than 365 days 
        after the date of enactment of the Financial Aid Simplification 
        and Transparency Act of 2015, the Secretary, in consultation 
        with State educational agencies, local educational agencies, 
        and the Secretary of Agriculture, shall make recommendations to 
        Congress on ways to provide individualized information about 
        eligibility for Federal financial aid under title IV to 
        elementary school and secondary school students who are 
        eligible for a free or reduced price school lunch under the 
        Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et 
        seq.).''.

SEC. 8. AMENDMENTS TO GENERAL PROVISIONS.

    Part G of the Act (20 U.S.C. 1088 et seq.) is amended--
            (1) by repealing section 483;
            (2) in section 484--
                    (A) in subsection (a), by striking ``under this 
                title'' and inserting ``under parts A through E of this 
                title'';
                    (B) in subsection (b), by striking ``other than a 
                loan under section 428B'' and inserting ``other than a 
                loan under part F, section 428B,'';
                    (C) in subsection (c), by striking ``subsection 
                (a)(2)'' and inserting ``subsection (a)(2) or section 
                400(a)(2)'' each place the term appears;
                    (D) in subsection (d), by striking ``under subparts 
                1, 3, and 4 of part A and parts B, C, D, and E of this 
                title'' and inserting ``under subpart 1 of part A and 
                parts B, C, D, E, and F of this title'';
                    (E) in subsection (f)(1), by striking ``part B, 
                part D, or part E'' and inserting ``part B, part D, 
                part E, or part F'' each place the term appears;
                    (F) in subsection (g)(1), by inserting ``or section 
                400(a)(2)'' after ``subsection (a)(5)'';
                    (G) in subsection (m), by striking ``under parts B, 
                C, D, and E'' and inserting ``under parts B, C, D, E, 
                and F'';
                    (H) in subsection (p), by inserting ``or section 
                400A'' after ``under subsection (a)(4)''; and
                    (I) in subsection (q)(1), by striking ``Federal 
                student financial aid application'' and all that 
                follows through the end of that paragraph and inserting 
                ``application described under section 400A (in the case 
                of a student applying for a Federal Pell Grant) as the 
                Secretary determines is necessary for the purpose of 
                prepopulating or verifying the information on such 
                student financial aid applications.'';
            (3) in section 484A(a)(2)(C) by striking ``made under part 
        D or E'' and inserting ``made under part D, E, or F'';
            (4) in section 484B--
                    (A) in subsection (a)(3)(C)(i), by striking ``parts 
                B, D, and E'' and inserting ``parts B, D, E, and F'';
                    (B) in subsection (b)(2)(B), by striking ``under 
                part B or D'' and inserting ``under part B, D, or F''; 
                and
                    (C) in subsection (b)(3)(A)--
                            (i) by redesignating clauses (v) through 
                        (vii) as clauses (vi) through (viii); and
                            (ii) by inserting after clause (iv) the 
                        following:
                            ``(v) To outstanding balances on loans made 
                        under part F for the payment period or period 
                        of enrollment for which a return of funds is 
                        required.'';
            (5) in section 485--
                    (A) in subsection (a)--
                            (i) by striking ``under parts B, D, and E'' 
                        and inserting ``under parts B, D, E, and F'' 
                        each place the term appears; and
                            (ii) by striking ``part B or D'' and 
                        inserting ``part B, D, or F'' each place the 
                        term appears;
                    (B) in subsection (b)--
                            (i) in paragraph (1)(A)--
                                    (I) in the matter preceding clause 
                                (i), by inserting ``or part F'' after 
                                ``or made under part E''; and
                                    (II) in clause (vii), by striking 
                                ``parts B, D, and E'' and inserting 
                                ``parts B, D, E, and F''; and
                            (ii) in paragraph (2)(A), in the matter 
                        preceding clause (i), by striking ``part B, D, 
                        or E'' and inserting ``part B, D, E, or F'';
                    (C) in subsection (d)(1), by inserting ``or part 
                F'' after ``repayment plans for loans made under part 
                D''; and
                    (D) in subsection (l)(1)--
                            (i) in subparagraph (A), in the matter 
                        preceding clause (i), by striking ``or made 
                        under part D (other than a Federal Direct 
                        Consolidation Loan or a Federal Direct PLUS 
                        loan made on behalf of a student),'' and 
                        inserting ``, made under part D (other than a 
                        Federal Direct Consolidation Loan or a Federal 
                        Direct PLUS loan made on behalf of a student), 
                        or made under part F (other than a 
                        consolidation loan made under part F)''; and
                            (ii) in subparagraph (B), by striking 
                        ``part B or D'' and inserting ``part B, D, or 
                        F'';
            (6) in section 485B--
                    (A) by striking ``parts D and E'' and inserting 
                ``parts D, E, and F'' each place the term appears; and
                    (B) by striking ``part B, D, or E'' and inserting 
                ``part B, D, E, or F'' each place the term appears;
            (7) in section 487, by striking ``part B or D'' and 
        inserting ``part B, D, or F'' each place the term appears; and
            (8) in section 493C by striking ``part B or D'' and 
        inserting ``part B, D, or F'' each place the term appears.

SEC. 9. TRANSITION PROVISION.

    The Secretary of Education shall take such actions as the Secretary 
determines to be appropriate to provide for the orderly transition from 
any authority to issue loans under part D of the Higher Education Act 
of 1965 (20 U.S.C. 1087a et seq.) to any authority to issue loans under 
part F of the Higher Education Act of 1965, as amended by this Act.
                                 <all>