[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 1346 Introduced in Senate (IS)]
<DOC>
116th CONGRESS
1st Session
S. 1346
To amend the Higher Education Act of 1965 to require the Secretary to
provide for the use of data from the second preceding tax year to carry
out the simplification of applications for the estimation and
determination of financial aid eligibility, to increase the income
threshold to qualify for a student aid index equal to or less than
zero, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 7, 2019
Mr. Booker (for himself, Mr. Merkley, Ms. Cortez Masto, and Mrs.
Gillibrand) 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 require the Secretary to
provide for the use of data from the second preceding tax year to carry
out the simplification of applications for the estimation and
determination of financial aid eligibility, to increase the income
threshold to qualify for a student aid index equal to or less than
zero, 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 ``Simplifying Financial Aid for
Students Act of 2019''.
SEC. 2. REFERENCES; GENERAL EFFECTIVE DATE.
(a) References.--Except as otherwise expressly provided, whenever
in this Act there is a reference to, or an amendment or repeal is
expressed in terms of an amendment to, or a repeal of, a section or
other provision, the reference shall be considered to be made to a
section or other provision of the Higher Education Act of 1965 (20
U.S.C. 1001 et seq.).
(b) General Effective Date.--Except as otherwise provided in this
Act or the amendments made by this Act, this Act and the amendments
made by this Act shall be effective with respect to determinations of
need under part F of title IV of the Higher Education Act of 1965 (20
U.S.C. 1087kk et seq.) for the award year beginning July 1, 2020.
SEC. 3. EARLY ESTIMATES OF AVAILABLE AID.
Section 483(a) (20 U.S.C. 1090(a)) is amended by adding at the end
the following:
``(13) Evaluation of early estimate tools.--Not later than
the award year beginning July 1, 2020, the Secretary shall--
``(A) evaluate any early estimate tools authorized
under paragraph (9); and
``(B) identify and implement opportunities to
streamline those tools to align with the provisions
under part F.''.
SEC. 4. STUDENT AID INDEX.
(a) Conforming Amendments.--The Act (20 U.S.C. 1001 et seq.) is
amended--
(1) by striking ``an expected family contribution'' each
place the term appears and inserting ``a student aid index'';
(2) by striking ``expected family contributions'' each
place the term appears and inserting ``student aid indexes'';
(3) by striking ``expected family contribution'' each place
the term appears and inserting ``student aid index'';
(4) in section 474--
(A) in the section heading, by striking ``expected
family contribution'' and inserting ``student aid
index''; and
(B) in subsection (a), in the heading, by striking
``Expected Family Contribution'' and inserting
``Student Aid Index'';
(5) in section 475--
(A) in the section heading, by striking ``family
contribution'' and inserting ``student aid index''; and
(B) in subsection (a), in the heading, by striking
``Expected Family Contribution'' and inserting
``Student Aid Index'';
(6) in section 476--
(A) in the section heading, by striking ``family
contribution'' and inserting ``student aid index''; and
(B) in subsection (a), in the heading, by striking
``Expected Family Contribution'' and inserting
``Student Aid Index'';
(7) in section 477--
(A) in the section heading, by striking ``family
contribution'' and inserting ``student aid index''; and
(B) in subsection (a), in the heading, by striking
``Expected Family Contribution'' and inserting
``Student Aid Index'';
(8) by striking ``family contribution'' each place the term
appears and inserting ``student aid index''; and
(9) by striking ``family contributions'' each place the
term appears and inserting ``student aid indexes''.
(b) Calculation of Negative Student Aid Index.--The Act (20 U.S.C.
1001 et seq.) is amended--
(1) in section 475--
(A) in subsection (b), by striking ``requested;''
and all that follows through the period at the end and
inserting ``requested.''; and
(B) in subsection (g)(1), by striking ``paragraph
(5);'' and all that follows through the period at the
end and inserting ``paragraph (5).'';
(2) in section 476(a), by striking ``enrollment;'' and all
that follows through the period at the end and inserting
``enrollment.'';
(3) in section 477(a), by striking ``enrollment;'' and all
that follows through the period at the end and inserting
``enrollment.''; and
(4) in section 479(a)(2)(B), by inserting ``whose student
aid index would otherwise be a positive number using only the
elements of the simplified needs test under subsection
(b)(2),'' after ``requirements of subsection (c),''.
(c) Negative Student Aid Index.--Section 471 (20 U.S.C. 1087kk) is
amended to read as follows:
``SEC. 471. AMOUNT OF NEED.
``(a) In General.--The maximum dollar amount of financial
assistance provided under this title to a student shall not exceed the
cost of attendance for such student.
``(b) Negative Student Aid Index.--For purposes of determining
eligibility for Federal financial aid under this part, any negative
student aid index shall be treated as zero.''.
SEC. 5. CALCULATION OF STUDENT AID INDEX.
(a) Student Aid Index.--Section 473 (20 U.S.C. 1087mm) is amended--
(1) in the section heading, by striking ``family
contribution'' and inserting ``student aid index''; and
(2) in subsection (b)--
(A) by striking the subsection heading and
inserting ``Student Aid Index Equal to or Less Than
Zero'';
(B) in paragraph (1), by adding ``or (3)'' after
``paragraph (2)'';
(C) in paragraph (2)--
(i) by striking the paragraph heading and
inserting ``Children of certain deceased
veterans'';
(ii) in each of subparagraphs (B) and (C),
by redesignating clauses (i) and (ii) as
subclauses (I) and (II), respectively and
adjusting the margins accordingly;
(iii) by redesignating subparagraphs (A),
(B), and (C), as clauses (i), (ii), and (iii),
respectively; and
(iv) by striking ``Paragraph (1) shall''
and inserting the following:
``(A) Applicability.--Paragraph (1) shall'';
(D) in paragraph (3)--
(i) in subparagraph (A), by striking
``subparagraphs (A), (B)(i), and (C) of
paragraph (2)'' and inserting ``clause (i),
(ii)(I), and (iii) of subparagraph (A)''; and
(ii) in subparagraph (B)--
(I) by striking ``subparagraphs
(A), (B)(ii), and (C) of paragraph
(2)'' and inserting ``clause (i),
(ii)(II), and (iii) of subparagraph
(A)'';
(II) by redesignating clauses (i)
through (iii) as subclauses (I) through
(III), respectively, and adjusting the
margins accordingly; and
(III) by redesignating
subparagraphs (A) and (B) as clauses
(i) and (ii), respectively, and
adjusting the margins accordingly;
(E) by redesignating paragraph (3) as subparagraph
(B) of paragraph (2), and adjusting the margins
accordingly;
(F) by redesignating paragraphs (4) and (5) as
paragraphs (5) and (6), respectively; and
(G) by inserting after paragraph (2)(B), as
redesignated by subparagraph (E), the following:
``(3) Recipients of certain means-tested benefits.--
``(A) In general.--Paragraph (1) shall apply to a
student if--
``(i) that student is a dependent student
whose parent participated in a means-tested
benefits program at any time during the period
encompassed from the beginning of the second
prior calendar year through the date of filing;
or
``(ii) that student is independent and the
student or spouse of that student participated
in a means-tested benefits program at any time
during the period encompassed from the
beginning of the second prior calendar year
through the date of filing.
``(B) Means-tested benefits program.--In this
paragraph, the term `means-tested Federal benefits
program' means--
``(i) the supplemental security income
program under title XVI of the Social Security
Act (42 U.S.C. 1381 et seq.);
``(ii) the supplemental nutrition
assistance program established under the Food
and Nutrition Act of 2008 (7 U.S.C. 2011 et
seq.);
``(iii) the Medicaid program under title
XIX of the Social Security Act (42 U.S.C. 1396
et seq.);
``(iv) 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.);
``(v) a State program funded under the
temporary assistance for needy families program
under part A of title IV of the Social Security
Act (42 U.S.C. 601 et seq.);
``(vi) 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); and
``(vii) any other program determined by the
Secretary to be appropriate based on--
``(I) the reliability under which
the need for benefits from the program
is established; and
``(II) the feasibility of data
linkages.
``(4) Determination for state and institutional aid.--For
each student whose student aid index is deemed to be zero under
paragraph (1), the Secretary shall also calculate the student
aid index for the student, using the simplified version of the
Free Application for Federal Student Aid form in accordance
with section 479, to identify students who have a negative
student aid index and may be eligible for additional State or
institutional aid.''.
(b) Simplified Needs Test.--Section 479 (20 U.S.C. 1087ss) is
amended to read as follows:
``SEC. 479. SIMPLIFIED NEEDS TESTS.
``(a) Simplified Application Section.--
``(1) In general.--The Secretary shall develop and use a
simplified version of the Free Application for Federal Student
Aid form prescribed under section 483(a) for families described
in subsections (b) and (c) of this section.
``(2) Reduced data requirements.--The simplified version
shall--
``(A) in the case of a family meeting the
requirements of subsection (b)(1), permit such family
to submit only the data elements required under
subsection (b)(2) for the purposes of establishing
eligibility for student financial aid under this part;
and
``(B) in the case of a family meeting the
requirements of subsection (c), permit such family to
be treated as having a student aid index equal to or
less than zero for purposes of establishing such
eligibility and to submit only the data elements
required to make a determination under subsection (c).
``(b) Simplified Needs Test.--
``(1) Eligibility.--An applicant is eligible to file a
simplified version containing the elements required by
paragraph (2) if--
``(A) in the case of an applicant who is a
dependent student--
``(i) the student's parents include at
least one parent who is a dislocated worker;
and
``(ii) the total adjusted gross income of
the parents (excluding any income of the
dependent student) is less than $50,000; or
``(B) in the case of an applicant who is an
independent student--
``(i) the student (and the student's
spouse, if any) is a dislocated worker or has a
spouse who is a dislocated worker; and
``(ii) the adjusted gross income of the
student (and the student's spouse, if any) is
less than $50,000.
``(2) Simplified test elements.--The six elements to be
used for the simplified needs analysis are--
``(A) adjusted gross income,
``(B) Federal taxes paid,
``(C) untaxed income and benefits,
``(D) the number of family members,
``(E) the number of family members in postsecondary
education, and
``(F) an allowance (A) for State and other taxes,
as defined in section 475(c)(2) for dependent students
and in section 477(b)(2) for independent students with
dependents other than a spouse, or (B) for State and
other income taxes, as defined in section 476(b)(2) for
independent students without dependents other than a
spouse.
``(3) Qualifying forms.--In the case of an independent
student, the student, or in the case of a dependent student,
the family, files a form described in this subsection, or
subsection (c), as the case may be, if the student or family,
as appropriate, files--
``(A) a form 1040 (including any prepared or
electronic version of such form) required pursuant to
the Internal Revenue Code of 1986; or
``(B) an income tax return (including any prepared
or electronic version of such return) required pursuant
to the tax code of the Commonwealth of Puerto Rico,
Guam, American Samoa, the Virgin Islands, the Republic
of the Marshall Islands, the Federated States of
Micronesia, or Palau.
``(c) Student Aid Index Equal to or Less Than Zero.--
``(1) In general.--The Secretary shall consider an
applicant to have a student aid index equal to or less than
zero if--
``(A) in the case of a dependent student--
``(i) the student's parents--
``(I) certify that the parents are
not required to file a Federal income
tax return; and
``(II) include at least one parent
who is a dislocated worker; or
``(ii) the sum of the adjusted gross annual
income of the parents is less than or equal to
$36,000;
``(B) in the case of an independent student with
dependents other than a spouse--
``(i) the student (and the student's
spouse, if any)--
``(I) certifies that the student
(and the student's spouse, if any) is
not required to file a Federal income
tax return; and
``(II) is a dislocated worker or
has a spouse who is a dislocated
worker; or
``(ii) the sum of the adjusted gross annual
income of the student and spouse (if
appropriate) is less than or equal to $36,000;
or
``(C) in the case of an independent students
without dependents--
``(i) the student--
``(I) certifies that the student is
not required to file a Federal income
tax return; and
``(II) is a dislocated worker; or
``(ii) the sum of the adjusted gross annual
income of the student is less than or equal to
$23,000.
``(2) Eligibility.--An individual is not required to
qualify or file for the earned income credit in order to be
eligible under this subsection. The Secretary shall annually
adjust the income level necessary to qualify an applicant for
the student aid index of equal to or less than zero. The income
level shall be adjusted by a percentage equal to increases in
the Consumer Price Index between the calendar year preceding
the beginning of such academic year, and the second preceding
year, rounding the result to the nearest $1,000.
``(d) Dislocated Worker.--In this section, the term `dislocated
worker' has the meaning given the term in section 3 of the Workforce
Innovation and Opportunity Act.''.
SEC. 6. FAFSA SIMPLIFICATION.
(a) FAFSA Simplification.--Section 483(f) (20 U.S.C. 1090(f)) is
amended to read as follows:
``(f) Reduction of Income and Asset Information To Determine
Eligibility for Student Financial Aid.--
``(1) Use of internal revenue service data to populate
fafsa.--The Secretary shall--
``(A) make every effort to make available and allow
applicants to utilize the data that is available to the
Secretary pursuant to section 6103(l)(13) of the
Internal Revenue Code of 1986 to reduce the amount of
original data entry by applicants and strengthen the
reliability of data used to calculate a student aid
index to--
``(i) allow an applicant to automatically
populate the electronic version of the forms
under this section with data available from the
Internal Revenue Service;
``(ii) direct an applicant to appropriate
questions on such forms based on the
applicant's answers to previous questions;
``(iii) identify the type of form filed and
whether certain forms or schedules, as
identified by the Secretary, were filed with
Federal form 1040;
``(iv) transfer all applicable schedule
information; and
``(v) allow an applicant to verify that the
applicant or the family of the applicant did
not file a Federal tax return without
additional action on the part of the student;
and
``(B) allow single taxpayers, married taxpayers
filing jointly, and married taxpayers filing separately
to utilize such data retrieval tool to its full
capacity.
``(2) Strengthening the irs data.--The Secretary shall work
with the Secretary of the Treasury to expand the capabilities
of transferring relevant Internal Revenue Service data by--
``(A) incorporating all fields from Federal tax
returns and W-2 forms relevant to need analysis; and
``(B) incorporating line items from forms and
schedules identified by the Secretary.
``(3) Cross agency linkages.--
``(A) In general.--The Secretary, in coordination
with the head of each agency that administers a
specified means-tested Federal benefits program (as
defined in section 473(b)(3)), shall examine how the
agency can verify an applicant or an applicant's
family's receipt of specified means-tested Federal
benefits in order to compute a student aid index for
low-income students in order to simplify, for students,
the application process for student financial
assistance.
``(B) Connection to other means tested benefits.--
The Secretary shall enter into data sharing agreements,
as necessary, to enable the sharing of FAFSA data for
the purpose of conducting outreach regarding, and
connecting students to, State or Federal means-tested
benefits programs (including means-tested Federal
benefits programs as defined in section 473(b)(3)) for
which the students may be eligible and for which, if
eligible, could reduce the applicant's need to borrow
or work during college.
``(C) Automatic maximum federal pell grant.--The
Secretary shall ensure that a student who is described
in section 473(b)(3) or whose income or family income
is less than $36,000 at any point during the 24-month
period preceding the date of the determination, is a
full-time student, and submits a form under this
section, shall receive a maximum Federal Pell Grant and
a determination of a student aid index of equal to or
less than zero without additional action on the part of
the student or the family of the student.
``(D) Part-time students.--The Secretary shall
ensure that a part-time student who is described in
section 473(b)(3) and submits a form under this section
shall receive a determination of a student aid index of
equal to or less than zero.
``(4) Prohibition against requesting information more than
once.--Any information requested during the process of creating
an account for completing the web-based free application under
this subsection, shall not be required a second time for the
same award year, or in a duplicative manner, when completing
such web-based free application.
``(5) Change in family size.--The Secretary shall provide a
process by which an applicant shall confirm the accuracy of
family size or may update the family size with respect to such
applicant for purposes of determining the need of such
applicant for financial assistance under this title based on a
change in family size from the tax year data used for such
determination.
``(6) Report.--The Secretary shall report to Congress
annually on the Department's progress in maintaining and
expanding the Internal Revenue Service data retrieval tool and
in establishing cross agency linkages, as described in this
subsection, and simultaneously make such reports publicly
available.''.
(b) Mobile Use.--Section 483(a)(3) (20 U.S.C. 1090(a)(3)) is
amended by adding at the end the following:
``(I) Mobile device format.--The Secretary shall
make the electronic version of the forms under this
paragraph available through a technology tool that can
be used on mobile devices. Such technology tool shall,
at a minimum, enable applicants to--
``(i) save data; and
``(ii) submit the electronic version of the
forms under this paragraph to the Secretary
through such tool.''.
(c) Languages for FAFSA.--Section 483 (20 U.S.C. 1090 et seq.) is
amended by adding at the end the following:
``(i) Languages for FAFSA.--The Secretary, in conjunction with the
Director of the Census Bureau, shall determine the most common
languages spoken at home in the United States and shall develop
versions of the FAFSA form in each of those languages.''.
(d) Outreach by Financial Aid Advisors.--Section 483 (20 U.S.C.
1090 et seq.), as amended by subsection (c), is further amended by
adding at the end the following:
``(j) Outreach by Financial Aid Advisors.--An institution of higher
education may use information provided on a FAFSA to reach out to and
counsel a student on the student's eligibility for means-tested
benefits in which the student is not enrolled and outside scholarships
for which a student is eligible.''.
SEC. 7. PRIOR-PRIOR YEAR AND DEFINITIONS OF TOTAL INCOME AND ASSETS.
(a) Total Income.--Section 480(a)(1) (20 U.S.C. 1087vv(a)(1)) is
amended to read as follows:
``(1) In general.--
``(A) Determination.--Except as provided in
paragraph (2), the term `total income' is equal to--
``(i) in the case of an individual who has
not filed, and is not required to file, any
Federal tax return or in the case of a
qualified recipient of a means-tested Federal
benefits program, as defined in section
473(b)(3)(B), earned income for the second
preceding tax year minus excludable income (as
defined in subsection (e)); and
``(ii) in the case of an individual who
filed a Federal tax return or in the case of an
individual who filed a foreign tax return in
lieu of a Federal tax return, adjusted gross
income from applicable schedule plus untaxed
income and benefits for the second preceding
fiscal tax year minus excludable income (as
defined in subsection (e)).
``(B) Use of data.--Notwithstanding section 478(a),
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.''.
(b) Conforming Amendment.--Section 480(a) (20 U.S.C. 1087vv(a)) is
amended--
(1) by moving paragraph (2) two ems to the right; and
(2) in paragraph (2), by striking ``No portion'' and
inserting the following: ``Amounts not included.--No portion''.
(c) Untaxed Income and Benefits.--Section 480(b) (20 U.S.C.
1087vv(b)) is amended to read as follows:
``(b) Untaxed Income and Benefits.--The term `untaxed income and
benefits' means--
``(1) the aggregate amount of losses taken into account for
determining adjusted gross income on Federal form 1040 and
applicable schedules;
``(2) the amount of any tax-exempt interest income reported
on Federal form 1040; and
``(3) amounts of foreign income excluded from adjusted
gross income and reported on Federal form 2555.''.
(d) Excludable Income.--Section 480(e) (20 U.S.C. 1087vv(e)) is
amended to read as follows:
``(e) The term `excludable income' means--
``(1) any student financial assistance awarded based on
need as determined in accordance with the provisions of this
part, including any income earned from work under part C of
this title; and
``(2) payments made and services provided under part E of
title IV of the Social Security Act (42 U.S.C. 670 et seq.) to
or on behalf of any child or youth over whom the State agency
has responsibility for placement, care, or supervision,
including the value of vouchers for education and training and
amounts expended for room and board for youth who are not in
foster care but are receiving services under section 477 of
such Act (42 U.S.C. 677).''.
(e) Assets.--Section 480(f)(1) (20 U.S.C. 1087vv(f)(1)) is amended
by striking ``The term'' and all that follows through the period at the
end and inserting the following:
``(A) In determining the value of assets in a
determination of need under this title in the case of
an individual who has not filed, and is not required to
file, any Federal tax return or in the case of a
qualified recipient of a means-tested Federal benefits
program, as defined in section 473(b)(3)(B), the
individual's assets shall be considered to be equal to
zero.
``(B) In the case of an individual who filed a form
1040 with forms or schedules, the term assets means
amounts held in money market savings accounts or funds,
capital gains, prize or award money, gambling winnings,
time deposits, trusts, stocks, bonds, other securities,
mutual funds, tax shelters, business income, rental
real estate, royalties, partnerships, S corporations,
qualified education benefits (except as provided in
paragraph (3)), and the net value of real estate,
income producing property, and business and farm
assets, excluding the primary home.''.
(f) Special Combat Pay.--Section 480 (20 U.S.C. 1087vv) is
amended--
(1) in subsection (j), by striking paragraph (4); and
(2) by striking subsection (n).
SEC. 8. ELIMINATING UNNECESSARY AND BURDENSOME QUESTIONS.
Section 483(a) (20 U.S.C. 1090(a)), as amended by section 3, is
further amended by adding at the end the following:
``(14) Prohibition of unnecessary and burdensome
questions.--Notwithstanding any other provision of law, the
Secretary shall not include on any form developed under this
section a question about the applicant's criminal history,
registration for selective service, student taxable earnings
from need-based employment like work study, student combat pay,
student cooperative education program earnings, student IRA
deductions, student tax exempt interest income, student untaxed
portions of IRA distributions, student untaxed portions of
pensions, student military or clergy living allowances, student
veteran noneducation benefits, student other untaxed income,
parent child support paid, child support received, parent
taxable earnings from need-based employment like work-study,
parent college grant or scholarship aid reported to the
Internal Revenue Service, parent combat pay, parent cooperative
education program earnings, parent IRA deductions, parent tax
exempt interest income, parent untaxed portions of pensions,
parent military or clergy living allowances, parent veteran
noneducation benefits, or parent other untaxed income.''.
SEC. 9. EXCEPTION TO REQUIRED REGISTRATION WITH SELECTIVE SERVICE
SYSTEM; DEPARTMENT OF EDUCATION DATA MATCHING.
(a) Student Eligibility.--Subsection (n) of section 484 (20 U.S.C.
1091) is repealed.
(b) Repeal of Ineligibility for Certain Assistance for Failure To
Register With System.--Section 12 of the Military Selective Service Act
(50 U.S.C. 3811) is amended--
(1) by striking subsection (f); and
(2) by redesignating subsection (g) as subsection (f).
SEC. 10. REPEAL OF SUSPENSION OF ELIGIBILITY FOR DRUG-RELATED OFFENSES;
NOTICE CONCERNING PENALTIES FOR DRUG VIOLATIONS.
(a) Repeal.--Subsection (r) of section 484 (20 U.S.C. 1091(r)) is
repealed.
(b) Conforming Amendments.--The Act is amended--
(1) in section 428(b)(3) (20 U.S.C. 1078(b)(3))--
(A) in subparagraph (C), by striking ``485(l)'' and
inserting ``485(k)''; and
(B) in subparagraph (D), by striking ``485(l)'' and
inserting ``485(k)'';
(2) in section 435(d)(5) (20 U.S.C. 1085(d)(5))--
(A) in subparagraph (E), by striking ``485(l)'' and
inserting ``485(k)''; and
(B) in subparagraph (F), by striking ``485(l)'' and
inserting ``485(k)'';
(3) in section 485 (20 U.S.C. 1092)--
(A) by striking subsection (k); and
(B) by redesignating subsections (l) and (m) as
subsections (k) and (l), respectively; and
(4) in section 487(e)(2)(B)(ii)(IV) (20 U.S.C.
1094(e)(2)(B)(ii)(IV)), by striking ``(l) of section 485'' and
inserting ``(k) of section 485''.
SEC. 11. IMPROVING FINANCIAL AID FOR HOMELESS AND FOSTER CARE CHILDREN
AND YOUTH.
(a) Independent Student.--Section 480(d)(1)(H) (20 U.S.C.
1087vv(d)(1)(H)) is amended--
(1) in the matter preceding clause (i)--
(A) by striking ``during the school year in which
the application is submitted'';
(B) by inserting ``age 23 or younger'' after
``unaccompanied youth''; and
(C) by striking ``terms are'' and inserting ``term
is'';
(2) in clause (i), by inserting ``, or a designee of the
liaison'' after ``Act'';
(3) in clause (ii), by striking ``a program funded under
the Runaway and Homeless Youth Act'' and inserting ``an
emergency or transitional shelter, street outreach program,
homeless youth drop-in center, or other program serving
homeless youth,''; and
(4) in clause (iii), by striking ``program funded under
subtitle B of title IV of the McKinney-Vento Homeless
Assistance Act (relating to emergency shelter grants)'' and
inserting ``Federal TRIO program or a Gaining Early Awareness
and Readiness for Undergraduate program under chapter 1 or 2 of
subpart 2 of part A,''.
(b) Foster Care Children and Youth.--Section 103 (20 U.S.C. 1003)
is amended--
(1) by redesignating paragraphs (10) through (24) as
paragraphs (11) through (25), respectively; and
(2) by inserting after paragraph (9) the following:
``(10) Foster care children and youth.--The term `foster
care children and youth'--
``(A) means children and youth whose care and
placement are the responsibility of the State or Tribal
agency that administers a State or Tribal plan under
part B or E of title IV of the Social Security Act (42
U.S.C. 621 et seq. and 670 et seq.), without regard to
whether foster care maintenance payments are made under
section 472 of such Act (42 U.S.C. 672) on behalf of
such children and youth; and
``(B) includes individuals who were age 13 or older
when their care and placement were the responsibility
of a State or Tribal agency that administered a State
or Tribal plan under part B or E of title IV of the
Social Security Act (42 U.S.C. 621 et seq. and 670 et
seq.) and who are no longer under the care and
responsibility of such a State or Tribal agency,
without regard to any such individual's subsequent
adoption, guardianship arrangement, or other form of
permanency outcome.''.
(c) Streamlining Determinations and Verification.--Section 480(d)
(20 U.S.C. 1087vv(d)) is amended by adding at the end the following:
``(3) Simplifying the determination process for
unaccompanied youth.--
``(A) Verification.--A financial aid administrator
shall accept a determination of independence made by
any individual authorized to make such determinations
under clause (i), (ii), or (iii) of paragraph (1)(H) in
the absence of conflicting information. A documented
phone call with, or a written statement from, one of
the authorized individuals is sufficient verification
when needed. For purposes of this paragraph, a
financial aid administrator's disagreement with the
determination made by an authorized individual shall
not be considered conflicting information.
``(B) Determination of independence.--A financial
aid administrator shall make a determination of
independence under paragraph (1)(H) if a student does
not have, and cannot get, documentation from any of the
other designated authorities described in such
paragraph. Such a determination shall be--
``(i) based on the definitions outlined in
paragraph (1)(H);
``(ii) distinct from a determination of
independence under paragraph (1)(I);
``(iii) based on a documented interview
with the student; and
``(iv) limited to whether the student meets
the definitions in paragraph (1)(H) and not
about the reasons for the student's
homelessness.
``(C) Additional streamlining permitted.--Nothing
in this paragraph prohibits an institution from
implementing polices that--
``(i) streamline the determination of
independence under paragraph (1)(H); and
``(ii) improve a student's access to
financial aid because that student is an
unaccompanied youth.
``(4) Simplifying the verification process for foster care
youth.--
``(A) Verification of independence.--If an
institution requires documentation to verify that a
student is independent based on a status described in
paragraph (1)(B), a financial aid administrator shall
consider any of the following as adequate verification:
``(i) Submission of a court order or
official State documentation that the student
received Federal or State support in foster
care.
``(ii) A documented phone call with,
written statement from, or verifiable
electronic data match with--
``(I) a child welfare agency
authorized by a State or county;
``(II) a Tribal child welfare
authority;
``(III) an independent living case
worker;
``(IV) a public or private foster
care placing agency or foster care
facility or placement;
``(V) another program serving
orphans, foster care youth, or wards of
the court; or
``(VI) a probation officer.
``(iii) A documented phone call with, or a
written statement from, an attorney, a guardian
ad litem, or a court appointed special
advocate, documenting that person's
relationship to the student.
``(iv) A documented phone call with, or a
written statement from, a representative of a
Federal TRIO program or a Gaining Early
Awareness and Readiness for Undergraduate
Program under chapter 1 or 2 of subpart 2 of
part A.
``(v) Verification of the student's
eligibility for an education and training
voucher under the John H. Chafee Foster Care
Independence Program under section 477 of the
Social Security Act (42 U.S.C. 677).
``(vi) Submission of a copy of the
student's biological or adoptive parents' or
legal guardians'--
``(I) certificates of death; or
``(II) verifiable obituaries.
``(vii) An attestation from the student,
which includes a description of why the student
may qualify for a status described in paragraph
(1)(B), including the approximate dates that
the student was an orphan, in foster care, or a
ward of the court, to the best of the student's
knowledge after making reasonable efforts to
provide any requested documentation.
``(B) Additional streamlining permitted.--Nothing
in this paragraph prohibits an institution from
implementing polices that streamline the determination
of independent status and improve a student's access to
financial aid because that student is an orphan, in
foster care, or a ward of the court, or was an orphan,
in foster care, or a ward of the court at any time when
the student was 13 years of age or older.
``(5) Timing; use of earlier determination.--
``(A) Timing.--A determination under subparagraph
(B) or (H) of paragraph (1) for a student--
``(i) shall be made as quickly as
practicable;
``(ii) may be made as early as the year
before the award year for which the student
initially submits an application; and
``(iii) shall be made no later than during
the award year for which the student initially
submits an application.
``(B) Use of earlier determination.--Any student
who is determined to be independent under subparagraph
(B) or (H) of paragraph (1) for a preceding award year
at an institution shall be presumed to be independent
for each subsequent award year at the same institution
unless--
``(i) the student informs the institution
that circumstances have changed; or
``(ii) the institution has specific
conflicting information about the student's
independence, and has informed the student of
this information and the opportunity to
challenge such information through a documented
interview or an impartial review by the Student
Loan Ombudsman pursuant to section 141(f)(3).
``(6) Retention of documents.--A financial aid
administrator shall retain all documents related to the
determination of independence under subparagraph (B) or (H) of
paragraph (1), including documented interviews, for the
duration of the student's enrollment at the institution and for
a minimum of 1 year after the student is no longer enrolled at
the institution.''.
(d) Consolidating Questions Regarding Homeless Status on the
FAFSA.--Section 483(a)(4) (20 U.S.C. 1090(a)(4)) is amended by adding
at the end the following:
``(C) Single question regarding homeless status.--
The Secretary shall ensure that, on each form developed
under this section for which the information is
applicable, there is a single, easily understood
screening question to identify an applicant for aid who
is--
``(i) an unaccompanied homeless child or
youth (as such term is defined in section 725
of the McKinney-Vento Homeless Assistance Act);
or
``(ii) an unaccompanied youth who is self-
supporting and at risk of homelessness.''.
(e) Data Transparency on the Number of Financial Aid Applicants.--
Section 483 (20 U.S.C. 1090), as amended by section 6, is further
amended by adding at the end the following:
``(k) Data Transparency on the Number of Applicants.--
``(1) In general.--The Secretary shall annually publish
data on the number of individuals who apply for Federal student
aid pursuant to this section who are homeless individuals
described in section 725 of the McKinney-Vento Homeless
Assistance Act (42 U.S.C. 11434a), including unaccompanied
youth, and foster care youth.
``(2) Contents.--The data described in paragraph (1) with
respect to homeless individuals shall include, at a minimum,
for each application cycle--
``(A) the total number of all applicants who were
determined to be (or to be at risk of becoming)
unaccompanied homeless youth, under section
480(d)(1)(H);
``(B) the number of applicants described in
subparagraph (A), disaggregated--
``(i) by State; and
``(ii) by the sources of determination as
described in clauses (i) through (iv) of
section 480(d)(1)(H); and
``(C) the number of undetermined requests for
homelessness consideration, including statuses that
remain unknown because no determination had been made
in response the applicant's request for the institution
to consider the applicant's special circumstance of
being homeless.''.
SEC. 12. ELIGIBILITY FOR DREAMERS, TEMPORARY PROTECTED STATUS
BENEFICIARIES, AND DEFERRED ENFORCED DEPARTURE GRANTEES.
Section 484 (20 U.S.C. 1091), as amended by sections 9 and 10, is
further amended--
(1) in subsection (a)(5), by inserting ``or be a Dreamer
student or a temporary protected status or deferred enforced
departure student'' after ``becoming a citizen or permanent
resident''; and
(2) by inserting after subsection (q) the following:
``(r) Definitions for Dreamer Students and Temporary Protected
Status or Deferred Enforcement Departure Students.--In this section:
``(1) Dreamer students.--
``(A) In general.--The term `Dreamer student' means
an alien (as defined in section 101(a) of the
Immigration and Nationality Act (8 U.S.C. 1101(a)))
who--
``(i) has been continuously physically
present in the United States for not less than
the 4-year period preceding the date of
enactment of the Simplifying Financial Aid for
Students Act of 2019;
``(ii) was younger than 18 years of age on
the date on which the alien initially entered
the United States;
``(iii)(I) has been admitted to an
institution of higher education;
``(II) in the United States, has--
``(aa) earned a high school diploma
or a commensurate alternative award
from a public or private high school;
``(bb) obtained a General
Educational Development credential, or
other equivalent of a high school
diploma, recognized under State law; or
``(cc) obtained a recognized
postsecondary credential that is
recognized by the Secretary of
Education, the Secretary of Labor, or a
State under the Workforce Innovation
and Opportunity Act; or
``(III) is enrolled in secondary school or
in an education program assisting students in--
``(aa) obtaining a regular high
school diploma or a General Educational
Development credential, or other
equivalent of a high school diploma,
recognized under State law;
``(bb) passing the General
Educational Development examinations, a
State-recognized high school diploma
equivalency examination, or other
similar State-authorized examination;
``(cc) obtaining a certificate or
credential from an area career and
technical education school, as defined
in section 3 of the Carl D. Perkins
Career and Technical Education Act of
2006, providing education at the
secondary level; or
``(dd) obtaining a recognized
postsecondary credential; and
``(iv)(I) is not inadmissible under
paragraph (2), (3), (6)(E), (6)(G), (8),
(10)(A), (10)(C), (10)(D), or (10)(E) of
section 212(a) of the Immigration and
Nationality Act (8 U.S.C. 1182(a));
``(II) has not ordered, incited, assisted,
or otherwise participated in the persecution of
any person on account of race, religion,
nationality, membership in a particular social
group, or political opinion; and
``(III) excluding any offense under State
law for which an essential element is the
alien's immigration status and any minor
traffic offense, has not been convicted of--
``(aa) any offense under Federal or
State law that is punishable by a
maximum term of imprisonment of more
than 1 year; or
``(bb) 3 or more offenses under
Federal or State law for which the
alien was convicted on different dates
for each of the 3 offenses and
imprisoned for an aggregate of 90 days
or more.
``(B) Hardship exception.--The Secretary of
Homeland Security shall issue regulations that direct
when the Department shall waive the requirement of
clause (i) or (ii), or both, of subparagraph (A) for an
individual to qualify as a Dreamer student, under such
subparagraph, if the individual--
``(i) demonstrates compelling circumstances
for the inability to satisfy the requirement of
such clause (i) or (ii), or both; and
``(ii) satisfies the requirement of clauses
(iii) and (iv) of subparagraph (A).
``(2) Temporary protected status or deferred enforced
departure student.--The term `temporary protected status or
deferred enforced departure student' means an alien (as defined
in section 101(a) of the Immigration and Nationality Act (8
U.S.C. 1101(a))) who--
``(A)(i) has been continuously physically present
in the United States for a period of not less than 3
years before the date of enactment of the Simplifying
Financial Aid for Students Act of 2019; and
``(ii) is a national of a foreign state (or part
thereof), (or in the case of an alien having no
nationality, is a person who last habitually resided in
such state), with a designation under subsection (b) of
section 244 of the Immigration and Nationality Act (8
U.S.C. 1254a(b)) on September 25, 2016, who had or was
otherwise eligible for temporary protected status on
such date; or
``(B) was under a grant of deferred enforced
departure as of September 28, 2016.''.
SEC. 13. PROVISIONAL INDEPENDENCE FOR CERTAIN STUDENTS.
Section 483 (20 U.S.C. 1090), as amended by section 11, is further
amended--
(1) in subsection (h)(1), by inserting the following before
the semicolon: ``, including the special circumstances under
which a student may qualify for a determination of
independence''; and
(2) by adding at the end the following:
``(l) Provisional Independent Students.--
``(1) Requirements for the secretary.--The Secretary
shall--
``(A) enable each student who, based on a special
circumstance specified in accordance with subsection
(h)(1), may qualify for an adjustment under section
479A that will result in a determination of
independence under such section and section
480(d)(1)(I), to complete the forms developed by the
Secretary under subsection (a) as an independent
student for the purpose of a provisional determination
of the student's Federal financial aid award, but
subject to verification under paragraph (2)(E) for the
purpose of the final determination of the award;
``(B) upon completion of the forms developed by the
Secretary under subsection (a), provide an estimate of
the student's Federal Pell Grant award, based on the
assumption the student is determined to be an
independent student;
``(C) ensure that, on each form developed under
this section, there is a single and easily understood
screening question to identify an applicant for aid who
wishes to provisionally apply for independent status
under sections 479A and 480(d)(1)(I); and
``(D) specify, on the forms, the consequences under
section 490(a) of knowingly and willfully completing
the forms as an independent student under subparagraph
(A) without meeting the special circumstances to
qualify for such a determination.
``(2) Requirements for financial aid administrators.--With
respect to a student accepted for admission who completes the
forms as an independent student under paragraph (1)(A), a
financial aid administrator--
``(A) shall notify the student of the institutional
process and requirements for an adjustment under
sections 479A and 480(d)(1)(I) that will result in a
determination of independence under such sections
within a reasonable time after the student completes
the forms developed by the Secretary under subsection
(a) as an independent student for the purpose of a
provisional determination of the student's Federal
financial aid award;
``(B) may make an adjustment under sections 479A
and 480(d)(1)(I) for a determination of independence in
the absence of conflicting information;
``(C) shall provide a final determination of the
student's Federal financial aid award to the student in
the same manner as, and by not later than the date
that, the administrator provides most other
provisionally independent students their final
determinations of Federal financial aid awards, or
during the award year in which the student initially
submits an application, whichever comes sooner;
``(D) shall, in making a final determination of the
student's Federal financial aid award, use the
discretion provided under sections 479A and
480(d)(1)(I) to verify whether the student meets the
special circumstances to qualify as an independent
student;
``(E) in accordance with subparagraph (B), may
consider as adequate verification that a student
qualifies for an adjustment under sections 479A and
480(d)(1)(I)--
``(i) submission of a court order or
official Federal or State documentation that
the student's parent or legal guardian is
incarcerated in any Federal or State penal
institution;
``(ii) a documented phone call with, or a
written statement from--
``(I) a child welfare agency
authorized by a State or county;
``(II) a Tribal child welfare
authority;
``(III) an independent living case
worker; or
``(IV) a public or private agency,
facility, or program serving the
victims of abuse, neglect, assault, or
violence;
``(iii) a documented phone call with, or a
written statement from, an attorney, a guardian
ad litem, or a court appointed special
advocate, documenting that person's
relationship to the student;
``(iv) a documented phone call with, or a
written statement from, a representative of a
program under chapter 1 or 2 of subpart 2 of
part A; or
``(v) submission of a copy of the student's
biological or adoptive parents' or legal
guardians'--
``(I) certificates of death; or
``(II) verified obituaries;
``(F) if a student does not have, and cannot get,
documentation from any of the designated authorities
described in subparagraph (E) of whether a student may
qualify for an adjustment under sections 479A and
480(d)(1)(I) that will result in a determination of
independence, may base the verification and final
determination on--
``(i) a documented interview with the
student that is limited to whether the student
meets the requirements, and not about the
reasons for the student's situations; and
``(ii) an attestation from the student that
the student meets the requirements, which
includes a description of the approximate dates
that the student ended the financial or
caregiving relationship with their parent or
legal guardian, to the best of the student's
knowledge;
``(G) shall retain all documents related to the
adjustment under sections 479A and 480(d)(1)(I),
including documented interviews, for the duration of
the student's enrollment at the institution and for a
minimum of 1 year after the student is no longer
enrolled at the institution; and
``(H) shall presume that any student who has
obtained an adjustment under sections 479A and
480(d)(1)(I) and a final determination of independence
for a preceding award year at an institution to be
independent for a subsequent award year at the same
institution unless--
``(i) the student informs the institution
that circumstances have changed; or
``(ii) the institution has specific
conflicting information about the student's
independence.''.
SEC. 14. SECURE DISCLOSURE OF TAX RETURN INFORMATION TO CARRY OUT THE
HIGHER EDUCATION ACT OF 1965.
(a) Amendments to the Internal Revenue Code of 1986.--
(1) In general.--Paragraph (13) of section 6103(l) of the
Internal Revenue Code of 1986 is amended to read as follows:
``(13) Disclosure of return information to carry out the
higher education act of 1965.--
``(A) Income-contingent or income-based repayment
and total and permanent disability discharge.--The
Secretary shall, upon written request from the
Secretary of Education, disclose to officers,
employees, and contractors of the Department of
Education, as specifically authorized and designated by
the Secretary of Education, only for the purpose of
(and to the extent necessary in) establishing,
renewing, administering, and conducting analyses and
forecasts for estimating costs related to income
contingent or income-based repayment programs, and the
discharge of loans based on a total and permanent
disability (within the meaning of section 437(a) of the
Higher Education Act of 1965), under title IV of the
Higher Education Act of 1965, the following return
information (as defined in subsection (b)(2)) with
respect to taxpayers identified by the Secretary of
Education as participating in the loan programs under
title IV of such Act, for taxable years specified by
such Secretary:
``(i) Taxpayer identity information with
respect to such taxpayer.
``(ii) The filing status of such taxpayer.
``(iii) Type of tax return from which the
return information is provided.
``(iv) The adjusted gross income of such
taxpayer.
``(v) Total number of exemptions claimed,
or total number of individuals and dependents
claimed, as applicable, on the return.
``(vi) Number of children with respect to
which tax credits under section 24 are claimed
on the return.
``(vii) Other information determined to be
necessary by agreement between the Secretary
and the Secretary of Education to administer
the Federal financial aid programs as required
by the Higher Education Act of 1965.
``(B) Federal student financial aid.--The Secretary
shall, upon written request from the Secretary of
Education, disclose to officers, employees, and
contractors of the Department of Education, as
specifically authorized and designated by the Secretary
of Education, only for the purpose of (and to the
extent necessary in) determining eligibility for, and
amount of, Federal student financial aid under programs
authorized by title IV of the Higher Education Act of
1965 and conducting analyses and forecasts for
estimating costs related to such programs, the
following return information (as defined in subsection
(b)(2)) with respect to taxpayers identified by the
Secretary of Education as applicants for Federal
student financial aid under title IV of such Act, for
taxable years specified by such Secretary:
``(i) Taxpayer identity information with
respect to such taxpayer.
``(ii) The filing status of such taxpayer.
``(iii) Type of tax return from which the
return information is provided.
``(iv) The adjusted gross income of such
taxpayer.
``(v) The amount of any net earnings from
self-employment (as defined in section 1402),
wages (as defined in section 3121(a) or
3401(a)), business income, investment income,
and taxable income from a farming business (as
defined in section 236A(e)(4)) for the period
reported on the return.
``(vi) The total income tax of such
taxpayer.
``(vii) Total number of exemptions claimed,
or total number of individuals and dependents
claimed, as applicable, on the return.
``(viii) Number of children with respect to
which tax credits under section 24 are claimed
on the return.
``(ix) Amount of any credit claimed under
section 25A for the taxable year.
``(x) Amount of individual retirement
account distributions not included in adjusted
gross income for the taxable year.
``(xi) Amount of individual retirement
account contributions and payments to self-
employed SEP, Keogh, and other qualified plans
which were deducted from income for the taxable
year.
``(xii) The amount of tax-exempt interest.
``(xiii) Amounts from retirement pensions
and annuities not included in adjusted gross
income for the taxable year.
``(xiv) If applicable, the fact that there
is no return filed for such taxpayer for the
applicable year.
``(xv) Other information determined to be
necessary by agreement between the Secretary
and the Secretary of Education to administer
the Federal financial aid programs as required
by the Higher Education Act of 1965.
``(C) Restriction on use of disclosed
information.--
``(i) In general.--Return information
disclosed under subparagraphs (A) and (B) may
be used by officers, employees, and contractors
of the Department of Education, as specifically
authorized and designated by the Secretary of
Education, only for the purposes and to the
extent necessary described in such
subparagraphs and for mitigating risks (as
defined in clause (ii)) relating to the
programs described in such subparagraphs.
``(ii) Mitigating risks.--For purposes of
this subparagraph, the term `mitigating risks'
means, with respect to the programs described
in subparagraphs (A) and (B)--
``(I) analyzing or estimating costs
associated with potential changes to
the need-analysis formula;
``(II) oversight activities by the
Office of Inspector General of the
Department of Education as authorized
by the Inspector General Act of 1978,
as amended;
``(III) developing or administering
statistical models that inform support
to populations of Federal student loan
borrowers who are at risk of default or
delinquency;
``(IV) reducing the net cost of
improper payments to Federal financial
aid recipients; and
``(V) producing aggregate
statistics for reporting, research, or
consumer information on the performance
of programs or institutions of higher
education participating in the programs
under title IV of the Higher Education
Act of 1965.
Such term does not include the conduct of
criminal investigations or prosecutions.
``(iii) Redisclosure to institutions of
higher education, state higher education
agencies, and designated scholarship
organizations.--The Secretary of Education, and
officers, employees, and contractors of the
Department of Education, may disclose return
information received under subparagraph (B),
solely for the use in the application, award,
and administration of Federal student financial
aid, State aid, or aid awarded by eligible
institutions or such entities as the Secretary
of Education may designate, to the following
persons:
``(I) An institution of higher
education with which the Secretary of
Education has an agreement under
subpart 1 of part A, or part D or E, of
title IV of the Higher Education Act of
1965.
``(II) A State higher education
agency.
``(III) A scholarship organization
which is designated by the Secretary of
Education as of the date of the
enactment of the Simplifying Financial
Aid for Students Act of 2019 as an
organization eligible to receive the
information provided under this clause.
The preceding sentence shall only apply to the
extent that the taxpayer with respect to whom
the return information relates provides consent
for such disclosure to the Secretary of
Education as part of the application for
Federal student financial aid under title IV of
the Higher Education Act of 1965.
``(D) Required notification periods.--
``(i) Notification to congress.--The
Secretary and the Secretary of Education shall
issue joint notifications to the Committees on
Finance and Health, Education, Labor, and
Pensions of the Senate and the Committees on
Ways and Means and Education and Labor of the
House of Representatives not less than 120 days
prior to the first disclosure of any type of
return information under subparagraph (A)(vii)
or (B)(xv) with respect to which such a
notification has not been previously made.
``(ii) Public notice and comment.--There
shall be a public notice and comment period
beginning not less than 60 days prior to the
first disclosure of any type of return
information under subparagraph (A)(vii) or
(B)(xv) with respect to which such a
notification has not been previously made,
subsequent to the period allotted for
congressional comment under clause (i).''.
(2) Confidentiality of return information.--Section
6103(a)(3) of such Code is amended by inserting ``, (13)(A),
(13)(B)'' after ``(12)''.
(3) Conforming amendments.--Section 6103(p)(4) of such Code
is amended--
(A) by inserting ``(A), (13)(B)'' after ``(13)''
each place it occurs; and
(B) by inserting ``, (13)(A), (13)(B)'' after
``(l)(10)'' each place it occurs.
(b) Effective Date.--The amendments made by this section shall
apply to disclosures made under section 6103(l)(13) of the Internal
Revenue Code of 1986 (as amended by this section) after the date of the
enactment of this Act.
SEC. 15. NOTIFICATION OF REQUEST FOR TAX RETURN INFORMATION.
(a) In General.--Part G of title IV (20 U.S.C. 1088 et seq.) is
amended by adding at the end the following:
``SEC. 494. NOTIFICATION OF REQUEST FOR TAX RETURN INFORMATION.
``The Secretary shall advise students and borrowers who submit an
application for Federal student financial aid under this title or for
the discharge of a loan based on permanent and total disability, as
described in section 437(a), or who request an income-contingent or
income-based repayment plan on their loan (as well as parents and
spouses who sign such an application or request or a Master Promissory
Note on behalf of those students and borrowers) that the Secretary has
the authority to request that the Internal Revenue Service disclose
their tax return information (as well as that of parents and spouses
who sign such an application or request or a Master Promissory Note on
behalf of those students and borrowers) to officers, employees, and
contractors of the Department of Education as authorized under section
6103(1)(13) of the Internal Revenue Code of 1986, to the extent
necessary for the Secretary to carry out this title.''.
(b) Conforming Amendments Related to Student Eligibility.--Section
484, as amended by sections 9, 10, and 12, is further amended--
(1) by striking subsection (q);
(2) by redesignating subsections (o), (p), (s), and (t) as
subsections (n), (o), (p), and (q), respectively; and
(3) by transferring subsections (p) and (q), as
redesignated by paragraph (2), so as to precede subsection (r)
(as added by section 12(b)).
SEC. 16. EARLY FEDERAL PELL GRANT COMMITMENT PROGRAM.
Subpart 1 of part A of title IV (20 U.S.C. 1070a et seq.) is
amended by adding at the end the following:
``SEC. 401B. EARLY FEDERAL PELL GRANT COMMITMENT PROGRAM.
``(a) Program Authority.--The Secretary shall carry out an Early
Federal Pell Grant Commitment Program (referred to in this section as
the `Program') under which the Secretary--
``(1) makes a commitment to award Federal Pell Grants to
eligible students in accordance with this section; and
``(2) awards grants to States with approved applications
under subsection (c), to enable the States to administer the
Program, support eligible students, and carry out a targeted
information campaign described in subsection (d) in the State.
``(b) Program Requirements.--The Program shall meet the following
requirements:
``(1) Eligible students.--A student shall be eligible to
receive a commitment from the Secretary under paragraph (2) if
the student--
``(A) is in any of the grades 8 through 12; and
``(B) is a member of a household receiving
assistance under the supplemental nutrition assistance
program established under the Food and Nutrition Act of
2008 (7 U.S.C. 2011 et seq.).
``(2) Federal pell grant commitment.--
``(A) In general.--Each eligible student shall
receive a commitment from the Secretary to receive a
Federal Pell Grant during the first 2 academic years
that the student is in attendance at an institution of
higher education as an undergraduate student, if the
student--
``(i) applies for Federal financial aid
(via the Free Application for Federal Student
Aid under section 483) during the student's
senior year of secondary school and during the
succeeding academic year; and
``(ii) enrolls at such institution of
higher education--
``(I) not later than 3 years after
such student receives a secondary
school diploma or its recognized
equivalent; or
``(II) if such student becomes a
member of the armed forces, not later
than 3 years after such student is
discharged, separated, or released from
the Armed Forces.
``(B) Determination of continued eligibility.--When
an eligible student receiving a Federal Pell Grant
pursuant to the commitment under subparagraph (A)
enters the student's second academic year, the
Secretary shall notify the student--
``(i) of the upcoming conclusion of the
commitment; and
``(ii) that the student will remain
eligible for a Federal Pell Grant under section
401 if the student, at the time of application,
is--
``(I) a member of a household
receiving assistance under the
supplemental nutrition assistance
program established under the Food and
Nutrition Act of 2008 (7 U.S.C. 2011 et
seq.) at the time of such application;
or
``(II) is receiving benefits
under--
``(aa) the supplemental
security income program under
title XVI of the Social
Security Act (42 U.S.C. 1381 et
seq.);
``(bb) a State program
funded under the temporary
assistance for needy families
program under part A of title
IV of the Social Security Act
(42 U.S.C. 601 et seq.);
``(cc) the Medicaid program
under title XIX of the Social
Security Act (42 U.S.C. 1396 et
seq.); or
``(dd) a means-tested
Federal benefit program, not
described in subclause (I),
(II), or (III), that is
determined appropriate by the
Secretary.
``(3) Applicability of federal pell grant requirements.--
``(A) In general.--The requirements of section 401
shall apply to Federal Pell Grants awarded pursuant to
this section, except that with respect to each eligible
student in the Program, the amount of each such
eligible student's Federal Pell Grant only shall be
calculated by deeming such student to have a student
aid index equal to zero.
``(B) Determination for state and institutional
aid.--For each student whose student aid index is
deemed to be zero under subparagraph (A), the Secretary
shall also calculate the student aid index for the
student, using the simplified version of the Free
Application for Federal Student Aid form in accordance
with section 479, to identify students who have a
negative student aid index and may be eligible for
additional State or institutional aid.
``(c) State Applications.--
``(1) In general.--Each State desiring to participate in
the Program shall submit an application to the Secretary at
such time and in such manner as the Secretary may require.
``(2) Contents.--Each application shall include--
``(A) a description of the State's proposed
targeted information campaign for the Program, in
accordance with subsection (d), and a copy of the plan
described in subsection (d)(2);
``(B) an assurance that the State will fully
cooperate with the ongoing evaluation of the Program
under subsection (e);
``(C) a description of how the State will--
``(i) encourage participating secondary
students to enroll in rigorous and challenging
curricula and coursework, in order to reduce
the need for remedial coursework at the
postsecondary level;
``(ii) increase the number of eligible
students who--
``(I) obtain a secondary school
diploma; and
``(II) complete applications for
and enroll in a program of
postsecondary education;
``(iii) introduce eligible students to
institutions of higher education, through trips
and school-based sessions;
``(iv) provide eligible students with
assistance in the admissions and application
process for institutions of higher education or
other postsecondary education programs; and
``(v) ensure that each eligible student has
an educational development plan; and
``(D) such other information as the Secretary may
require.
``(3) Educational development plan.--In this subsection,
the term `educational development plan' means an individualized
plan for a student that--
``(A) contains a series of steps to help promote
the student's career awareness and exploration; and
``(B) assists students in identifying--
``(i) postsecondary options, including
baccalaureate and subbaccalaureate degree
programs; or
``(ii) career and technical programs of
study, including career and technical programs
of study as defined in section 3 of the Carl D.
Perkins Career and Technical Education Act of
2006 (20 U.S.C. 2302).
``(d) Targeted Information Campaign and Plan.--
``(1) In general.--Each State receiving a grant under this
section shall, in cooperation with the participating local
educational agencies within the State and the Secretary,
develop a targeted information campaign for the Program.
``(2) Plan.--Each State receiving a grant under this
section shall include in the application submitted under
subsection (c) a written plan for their proposed targeted
information campaign. The plan shall include the following:
``(A) Outreach.--Outreach to students and their
families, at a minimum, at the beginning and end of
each academic year.
``(B) Distribution.--How the State plans to provide
the outreach described in subparagraph (A) and to
provide the information described in subparagraph (C).
``(C) Information.--The annual provision by the
State to all students and families participating in the
Program of information regarding--
``(i) the average net price of in-State
institutions of higher education, disaggregated
by sector and by income quintile;
``(ii) Federal Pell Grants, including--
``(I) the maximum Federal Pell
Grant for each academic year;
``(II) when and how to apply for a
Federal Pell Grant; and
``(III) what the application
process for a Federal Pell Grant
requires;
``(iii) State-specific postsecondary
education savings programs;
``(iv) State-based financial aid;
``(v) Federal financial aid available to
students, including eligibility criteria for
the Federal financial aid and an explanation of
the Federal financial aid programs; and
``(vi) financial aid that may be available
from nongovernmental sources.
``(3) Annual information.--The information described in
paragraph (2)(C) shall be provided to eligible students
annually for the duration of the students' participation in the
Program.
``(4) Reservation.--Each State receiving a grant under this
section shall reserve $200,000 of the grant funds received each
fiscal year to carry out the targeted information campaign
described in this subsection.
``(5) Information campaign in non-participating states.--In
the case of a State does not apply for a grant under this
section, or applies but does not satisfy the requirements of
the grant, the Secretary shall carry out an information
campaign and administer the Program for the State, in order to
ensure that eligible students in the State are assisted under
the Program.
``(e) Evaluation.--
``(1) In general.--From amounts appropriated under
subsection (f) for a fiscal year, the Secretary shall reserve
not more than $1,000,000 to award a grant or contract to an
organization outside the Department for an independent
evaluation of the impact of the Program.
``(2) Competitive basis.--The grant or contract shall be
awarded on a competitive basis.
``(3) Matters evaluated.--The evaluation described in this
subsection shall consider metrics established by the Secretary
that emphasize college access and success, encouraging low-
income students to pursue higher education, and the cost
effectiveness of the program.
``(4) Dissemination.--The findings of the evaluation shall
be widely disseminated to the public by the organization
conducting the evaluation as well as by the Secretary.
``(f) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section such sums as may be
necessary.''.
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