[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 2557 Introduced in Senate (IS)]

<DOC>






116th CONGRESS
  1st Session
                                S. 2557

To amend the Higher Education Act of 1965 to improve the financial aid 
process for students, to provide continued support for minority-serving 
                 institutions, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 26, 2019

 Mr. Alexander 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 the financial aid 
process for students, to provide continued support for minority-serving 
                 institutions, 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; REFERENCES.

    (a) Short Title.--This Act may be cited as the ``Student Aid 
Improvement Act of 2019''.
    (b) References.--Except as otherwise expressly provided, whenever 
in this Act an amendment or repeal is expressed in terms of an 
amendment to, or 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.).

SEC. 2. CONTINUED SUPPORT FOR MINORITY-SERVING INSTITUTIONS.

    Sec. 371(b)(1)(A) (20 U.S.C. 1067q(b)(1)(A)) is amended by striking 
``for each of the fiscal years 2008 through 2019.'' and all that 
follows, and inserting the following: ``for fiscal year 2020 and each 
fiscal year thereafter.''.

SEC. 3. MAKING IT EASIER TO APPLY FOR FEDERAL AID AND MAKING THAT AID 
              PREDICTABLE.

    (a) Need Analysis.--
            (1) In general.--Section 471 (20 U.S.C. 1087kk) is amended 
        to read as follows:

``SEC. 471. AMOUNT OF NEED.

    ``(a) In General.--Except as otherwise provided therein, beginning 
with award year 2021-2022, the amount of need of any student for 
financial assistance under this title (except subpart 1 or 2 of part A) 
is equal to--
            ``(1) the cost of attendance of such student; minus
            ``(2) the student aid index (as defined in section 473) for 
        such student; minus
            ``(3) other financial assistance not received under this 
        title (as defined in section 480(j)).
    ``(b) Effective Date of Changes.--The amendments made to this title 
under the Student Aid Improvement Act of 2019 shall take effect 
beginning with award year 2021-2022. The amounts provided under such 
amendments for award year 2020-2021 shall be used solely as a base to 
determine adjustments for subsequent award years.''.
            (2) Maximum aid under part d.--Section 451 (20 U.S.C. 
        1087a) is amended by adding at the end the following:
    ``(c) Maximum Aid.--The maximum dollar amount of financial 
assistance provided under this part to a student shall not exceed the 
cost of attendance for such student.''.
    (b) Student Aid Index.--Section 473 (20 U.S.C. 1087mm) is amended 
to read as follows:

``SEC. 473. STUDENT AID INDEX.

    ``(a) In General.--For the purpose of this title, other than 
subpart 1 or 2 of part A, the term `student aid index' means, with 
respect to a student, an index that reflects an evaluation of a 
student's approximate financial resources to contribute toward the 
student's postsecondary education for the academic year, as determined 
in accordance with this part.
    ``(b) Special Rule for Students Eligible for the Total Maximum Pell 
Grant.--The Secretary shall consider an applicant to automatically have 
a student aid index equal to zero if the applicant is eligible for the 
total maximum Federal Pell Grant under subpart 1 of part A, except if 
the applicant has a calculated student aid index of less than zero the 
Secretary shall consider the negative number as the student aid index 
for the applicant.
    ``(c) Special Rule for Nonfilers.--For an applicant (or, as 
applicable, an applicant and spouse, or an applicant's parents) not 
required filed a Federal tax return for the applicable tax year, the 
Secretary shall for the purposes of this title consider the student aid 
index as equal to -$1,500 for the applicant.
    ``(d) Special Rule for Recipients of Means-Tested Benefits.--For an 
applicant (including the student, the student's parent, or the 
student's spouse, as applicable) who at any time during the previous 
24-month period was a recipient of a means-tested Federal benefit 
program, the Secretary shall consider an applicant to automatically 
have a student aid index equal to zero, except if the applicant has a 
calculated student aid index of less than zero the Secretary shall 
consider the negative number as the student aid index for the 
applicant.
    ``(e) Means-Tested Federal Benefit Program.--In this section, the 
term `means-tested Federal benefit program' means any of the following:
            ``(1) The supplemental security income program under title 
        XVI of the Social Security Act (42 U.S.C. 1381 et seq.).
            ``(2) The supplemental nutrition assistance program under 
        the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.).
            ``(3) The program of block grants for States for temporary 
        assistance for needy families established under part A of title 
        IV of the Social Security Act (42 U.S.C. 601 et seq.).
            ``(4) 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).
            ``(5) The Medicaid program under title XIX of the Social 
        Security Act (42 U.S.C. 1396 et seq.).''.
    (c) Determination of Student Aid Index.--Section 474 (20 U.S.C. 
1087nn) is amended to read as follows:

``SEC. 474. DETERMINATION OF STUDENT AID INDEX.

    ``The student aid index--
            ``(1) for a dependent student shall be determined in 
        accordance with section 475;
            ``(2) for a single independent student or a married 
        independent student without dependents (other than a spouse) 
        shall be determined in accordance with section 476; and
            ``(3) for an independent student with dependents other than 
        a spouse shall be determined in accordance with section 477.''.
    (d) Student Aid Index for Dependent Students.--Section 475 (20 
U.S.C. 1087oo) is amended to read as follows:

``SEC. 475. STUDENT AID INDEX FOR DEPENDENT STUDENTS.

    ``(a) Computation of Student Aid Index.--
            ``(1) In general.--For each dependent student, the student 
        aid index is equal to (except as provided in paragraph (2)) the 
        sum of--
                    ``(A) the assessment of the parents' adjusted 
                available income (determined in accordance with 
                subsection (b));
                    ``(B) the assessment of the student's available 
                income (determined in accordance with subsection (g)); 
                and
                    ``(C) the student's available assets (determined in 
                accordance with subsection (h)).
            ``(2) Exception.--If the sum of paragraphs (1), (2), and 
        (3) with respect to a dependent student is less than -$1,500, 
        the student aid index for the dependent student shall be 
        -$1,500.
    ``(b) Assessment of Parents' Adjusted Available Income.--The 
assessment of parents' adjusted available income is equal to the amount 
determined by--
            ``(1) computing adjusted available income by adding--
                    ``(A) the parents' available income (determined in 
                accordance with subsection (c)); and
                    ``(B) the parents' available assets (determined in 
                accordance with subsection (d));
            ``(2) assessing such adjusted available income in 
        accordance with the assessment schedule set forth in subsection 
        (e); and
            ``(3) considering such assessment resulting under paragraph 
        (2) as the amount determined under this subsection.
    ``(c) Parents' Available Income.--
            ``(1) In general.--The parents' available income is 
        determined by subtracting from total income (as defined in 
        section 480)--
                    ``(A) Federal income taxes;
                    ``(B) an allowance for payroll taxes, determined in 
                accordance with paragraph (2);
                    ``(C) an income protection allowance, determined in 
                accordance with paragraph (3); and
                    ``(D) an employment expense allowance, determined 
                in accordance with paragraph (4).
            ``(2) Allowance for payroll taxes.--The allowance for 
        payroll taxes is equal to the sum of--
                    ``(A) the total amount earned by the parents, 
                multiplied by the rate of tax under section 3101(b) of 
                the Internal Revenue Code of 1986; and
                    ``(B) the amount earned by the parents that does 
                not exceed such contribution and benefit base (twice 
                such contribution and benefit base, in the case of a 
                joint return) for the year of the earnings, multiplied 
                by the rate of tax applicable to such earnings under 
                section 3101(a) of such Code.
            ``(3) Income protection allowance.--The income protection 
        allowance for award year 2020-2021 and each succeeding award 
        year shall equal the amount determined in the following table, 
        as adjusted by the Secretary pursuant to section 478(b):

  ``Income Protection Allowance 2020-2021 (to be adjusted for 2021-2022
                          and succeeding years)
------------------------------------------------------------------------
              Family Size (including student)                   Amount
------------------------------------------------------------------------
2..........................................................      $19,080
3..........................................................      $23,760
4..........................................................      $29,340
5..........................................................      $34,620
6..........................................................      $40,490
For each additional add....................................      $4,750.
------------------------------------------------------------------------

            ``(4) Employment expense allowance.--The employment expense 
        allowance is equal to the lesser of $4,000 or 35 percent of the 
        single parent's earned income or married parents' combined 
        earned income (or is equal to a successor amount as adjusted by 
        the Secretary pursuant to section 478(g)).
    ``(d) Parents' Available Assets.--
            ``(1) In general.--
                    ``(A) Determination.--Except as provided in 
                subparagraph (B), the parents' available assets are 
                equal to--
                            ``(i) the difference between the parents' 
                        net assets and the education savings and asset 
                        protection allowance (determined in accordance 
                        with paragraph (2)); multiplied by
                            ``(ii) 12 percent.
                    ``(B) Not less than zero.--Parents' available 
                assets under this subsection shall not be less than 
                zero.
            ``(2) Education savings and asset protection allowance.--
        The education savings and asset protection allowance is 
        calculated according to the following table (or a successor 
        table prescribed by the Secretary under section 478(d)):

              ``Education Savings and Asset Protection Allowances for Parents of Dependent Students
----------------------------------------------------------------------------------------------------------------
                                                                                  And there are
                                                               -------------------------------------------------
                                                                      two parents               one parent
             If the age of the oldest parent is--              -------------------------------------------------
                                                                then the allowance is--
 
----------------------------------------------------------------------------------------------------------------
25 or less....................................................                       $0                       $0
26............................................................                     $300                     $100
27............................................................                     $700                     $200
28............................................................                   $1,000                     $300
29............................................................                   $1,300                     $500
30............................................................                   $1,600                     $600
31............................................................                   $2,000                     $700
32............................................................                   $2,300                     $800
33............................................................                   $2,600                     $900
34............................................................                   $2,900                   $1,000
35............................................................                   $3,300                   $1,100
36............................................................                   $3,600                   $1,200
37............................................................                   $3,900                   $1,300
38............................................................                   $4,200                   $1,500
39............................................................                   $4,600                   $1,600
40............................................................                   $4,900                   $1,700
41............................................................                   $5,100                   $1,700
42............................................................                   $5,200                   $1,700
43............................................................                   $5,300                   $1,800
44............................................................                   $5,400                   $1,800
45............................................................                   $5,500                   $1,900
46............................................................                   $5,700                   $1,900
47............................................................                   $5,800                   $1,900
48............................................................                   $6,000                   $2,000
49............................................................                   $6,100                   $2,000
50............................................................                   $6,300                   $2,100
51............................................................                   $6,400                   $2,100
52............................................................                   $6,600                   $2,200
53............................................................                   $6,800                   $2,200
54............................................................                   $6,900                   $2,300
55............................................................                   $7,100                   $2,300
56............................................................                   $7,300                   $2,400
57............................................................                   $7,500                   $2,500
58............................................................                   $7,700                   $2,500
59............................................................                   $7,900                   $2,600
60............................................................                   $8,200                   $2,700
61............................................................                   $8,400                   $2,700
62............................................................                   $8,600                   $2,800
63............................................................                   $8,900                   $2,900
64............................................................                   $9,200                   $2,900
65 or more....................................................                   $9,400                  $3,000.
----------------------------------------------------------------------------------------------------------------

    ``(e) Assessment Schedule.--The assessment of the parents' adjusted 
available income (as determined under subsection (b)(1) and hereafter 
in this subsection referred to as `AAI') is calculated according to the 
following table (or a successor table prescribed by the Secretary under 
section 478(e)):

                    ``Parents' Contribution From AAI
------------------------------------------------------------------------
                                          Then the parents' contribution
        If the parents' AAI is--                  from AAI is--
------------------------------------------------------------------------
Less than -$6,820......................  -$1,500
$-6,820 to $17,000.....................  22% of AAI
$17,001 to $21,400.....................  $3,740 + 25% of AAI over
                                          $17,000
$21,401 to $25,700.....................  $4,840 + 29% of AAI over
                                          $21,400
$25,701 to $30,100.....................  $6,087 + 34% of AAI over
                                          $25,700
$30,101 to $34,500.....................  $7,583 + 40% of AAI over
                                          $30,100
$34,501 or more........................  $9,343 + 47% of AAI over
                                          $34,500.
------------------------------------------------------------------------

    ``(f) Consideration of Parental Income.--
            ``(1) Married parents.--Parental income and assets in the 
        case of student whose parents are married and not separated 
        shall include the income and assets of both parents.
            ``(2) Divorced or separated parents.--Parental income and 
        assets for a student whose parents are divorced or separated, 
        but not remarried, is determined:
                    ``(A) By including only the income and assets of 
                the parent with whom the student resided for the 
                greater portion of the 12-month period preceding the 
                date of the application.
                    ``(B) If the preceding criterion does not apply, 
                include only the income and assets of the parent who 
                provided the greater portion of the student's support 
                for the 12-month period preceding the date of 
                application.
                    ``(C) If neither of the preceding criteria apply, 
                include only the income and assets of the parent who 
                provided the greater support during the most recent 
                calendar year for which parental support was provided.
            ``(3) Death of a parent.--Parental income and assets in the 
        case of the death of any parent is determined as follows:
                    ``(A) If either of the parents has died, the 
                surviving parent shall be considered a single parent, 
                until that parent has remarried.
                    ``(B) If both parents have died, the student shall 
                not report any parental income or assets.
            ``(4) Remarried parents.--If a parent whose income and 
        assets are taken into account under paragraph (2), or if a 
        parent who is a widow or widower and whose income is taken into 
        account under paragraph (3), has remarried, the income of that 
        parent's spouse shall be included in determining the parent's 
        assessment of adjusted available income if the student's parent 
        and the stepparent are married as of the date of application 
        for the award year concerned.
            ``(5) Single parent who is not divorced or separated.--
        Parental income and assets in the case of a student whose 
        parent is a single parent but who is not divorced, separated, 
        or remarried, shall include the income and assets of such 
        single parent.
    ``(g) Student's Available Income.--
            ``(1) In general.--The student's available income is equal 
        to--
                    ``(A) the difference between the student's total 
                income (determined in accordance with section 480) and 
                the adjustment to student income (determined in 
                accordance with paragraph (2)); multiplied by
                    ``(B) 50 percent.
            ``(2) Adjustment to student income.--The adjustment to 
        student income is equal to the sum of--
                    ``(A) the Federal income taxes of the student;
                    ``(B) an allowance for payroll taxes determined in 
                accordance with paragraph (3);
                    ``(C) an income protection allowance that is equal 
                to--
                            ``(i) $9,110 for award year 2020-2021; and
                            ``(ii) for each succeeding award year, the 
                        amount adjusted pursuant to section 478(b); and
                    ``(D) an allowance for parents' negative available 
                income, determined in accordance with paragraph (4).
            ``(3) Allowance for payroll taxes.--The allowance for 
        payroll taxes is equal to the sum of--
                    ``(A) the total amount earned by the student, 
                multiplied by the rate of tax under section 3101(b) of 
                the Internal Revenue Code of 1986; and
                    ``(B) the amount earned by the student that does 
                not exceed such contribution and benefit base for the 
                year of the earnings, multiplied by the rate of tax 
                applicable to such earnings under section 3101(a) of 
                such Code.
            ``(4) Allowance for parents' negative available income.--
        The allowance for parents' negative available income is the 
        amount, if any, by which the sum of the amounts deducted under 
        subparagraphs (A) through (D) of subsection (c)(1) exceeds the 
        sum of the parents' total income (as defined in section 480) 
        and the parents' available assets (as determined in accordance 
        with subsection (d)).
    ``(h) Student's Assets.--The student's assets are determined by 
calculating the net assets of the student and multiplying such amount 
by 20 percent, except that the result shall not be less than zero.''.
    (e) Student Aid Index for Independent Students Without Dependents 
Other Than a Spouse.--Section 476 (20 U.S.C. 1087pp) is amended to read 
as follows:

``SEC. 476. STUDENT AID INDEX FOR INDEPENDENT STUDENTS WITHOUT 
              DEPENDENTS OTHER THAN A SPOUSE.

    ``(a) Computation of Student Aid Index.--
            ``(1) In general.--For each independent student without 
        dependents other than a spouse, the student aid index is equal 
        to (except as provided in paragraph (2)) the sum of--
                    ``(A) the family's available income (determined in 
                accordance with subsection (b)); and
                    ``(B) the family's available assets (determined in 
                accordance with subsection (c)).
            ``(2) Exception.--If the sum of paragraphs (1) and (2) with 
        respect to a independent student without dependents other than 
        a spouse is less than -$1,500, the student aid index for the 
        independent student shall be -$1,500.
    ``(b) Family's Available Income.--
            ``(1) In general.--The family's available income is 
        determined by--
                    ``(A) deducting from total income (as defined in 
                section 480)--
                            ``(i) Federal income taxes;
                            ``(ii) an allowance for payroll taxes, 
                        determined in accordance with paragraph (2);
                            ``(iii) an income protection allowance that 
                        is equal to--
                                    ``(I) in the case of a single 
                                independent student without 
                                dependents--
                                            ``(aa) $14,190 for award 
                                        year 2020-2021; and
                                            ``(bb) for each succeeding 
                                        award year, the amount adjusted 
                                        pursuant to section 478(b); and
                                    ``(II) in the case of a married 
                                independent student without 
                                dependents--
                                            ``(aa) $22,750 for award 
                                        year 2020-2021; and
                                            ``(bb) for each succeeding 
                                        award year, the amount adjusted 
                                        pursuant to section 478(b); and
                            ``(iv) in the case of a married independent 
                        student, an employment expense allowance, as 
                        determined in accordance with paragraph (3); 
                        and
                    ``(B) multiplying the amount determined under 
                subparagraph (A) by 50 percent.
            ``(2) Allowance for payroll taxes.--The allowance for 
        payroll taxes is equal to the sum of--
                    ``(A) the total amount earned by the student (and 
                spouse, if appropriate), multiplied by the rate of tax 
                under section 3101(b) of the Internal Revenue Code of 
                1986; and
                    ``(B) the amount earned by the student (and spouse, 
                if appropriate) that does not exceed such contribution 
                and benefit base (twice such contribution and benefit 
                base, in the case of a joint return) for the year of 
                the earnings, multiplied by the rate of tax applicable 
                to such earnings under section 3101(a) of such Code.
            ``(3) Employment expenses allowance.--The employment 
        expense allowance is equal to the following:
                    ``(A) If the student is married, such allowance is 
                equal to the lesser of $4,000 or 35 percent of the 
                couple's combined earned income (or is equal to a 
                successor amount as adjusted by the Secretary pursuant 
                to section 478(g)).
                    ``(B) If the student is not married, the employment 
                expense allowance is zero.
    ``(c) Family's Available Assets.--
            ``(1) In general.--
                    ``(A) Determination.--Except as provided in 
                subparagraph (B), the family's available assets are 
                equal to--
                            ``(i) the difference between the family's 
                        assets (as defined in section 480(f)) and the 
                        asset protection allowance (determined in 
                        accordance with paragraph (2)); multiplied by
                            ``(ii) 20 percent.
                    ``(B) Not less than zero.--Family's available 
                assets under this subsection shall not be less than 
                zero.
            ``(2) Asset protection allowance.--The asset protection 
        allowance is calculated according to the following table (or a 
        successor table prescribed by the Secretary under section 
        478(d)):

                             ``Asset Protection Allowances for Families and Students
----------------------------------------------------------------------------------------------------------------
                                                                               And the student is
                                                               -------------------------------------------------
                                                                        married                   single
                 If the age of the student is--                -------------------------------------------------
                                                                then the allowance is--
 
----------------------------------------------------------------------------------------------------------------
25 or less....................................................                       $0                       $0
26............................................................                     $300                     $100
27............................................................                     $700                     $200
28............................................................                   $1,000                     $300
29............................................................                   $1,300                     $500
30............................................................                   $1,600                     $600
31............................................................                   $2,000                     $700
32............................................................                   $2,300                     $800
33............................................................                   $2,600                     $900
34............................................................                   $2,900                   $1,000
35............................................................                   $3,300                   $1,100
36............................................................                   $3,600                   $1,200
37............................................................                   $3,900                   $1,400
38............................................................                   $4,200                   $1,500
39............................................................                   $4,600                   $1,600
40............................................................                   $4,900                   $1,700
41............................................................                   $5,100                   $1,700
42............................................................                   $5,200                   $1,700
43............................................................                   $5,300                   $1,800
44............................................................                   $5,400                   $1,800
45............................................................                   $5,500                   $1,900
46............................................................                   $5,700                   $1,900
47............................................................                   $5,800                   $1,900
48............................................................                   $6,000                   $2,000
49............................................................                   $6,100                   $2,000
50............................................................                   $6,300                   $2,100
51............................................................                   $6,400                   $2,100
52............................................................                   $6,600                   $2,200
53............................................................                   $6,800                   $2,200
54............................................................                   $6,900                   $2,300
55............................................................                   $7,100                   $2,300
56............................................................                   $7,300                   $2,400
57............................................................                   $7,500                   $2,500
58............................................................                   $7,700                   $2,500
59............................................................                   $7,900                   $2,600
60............................................................                   $8,200                   $2,700
61............................................................                   $8,400                   $2,700
62............................................................                   $8,600                   $2,800
63............................................................                   $8,900                   $2,900
64............................................................                   $9,200                   $2,900
65 or more....................................................                   $9,400                  $3,000.
----------------------------------------------------------------------------------------------------------------

    ``(d) Computations in Case of Separation, Divorce, or Death.--In 
the case of a student who is divorced or separated, or whose spouse has 
died, the spouse's income and assets shall not be considered in 
determining the family's available income or assets.''.
    (f) Student Aid Index for Independent Students With Dependents 
Other Than a Spouse.--Section 477 (20 U.S.C. 1087qq) is amended to read 
as follows:

``SEC. 477. STUDENT AID INDEX FOR INDEPENDENT STUDENTS WITH DEPENDENTS 
              OTHER THAN A SPOUSE.

    ``(a) Computation of Student Aid Index.--For each independent 
student with dependents other than a spouse, the student aid index is 
equal to the amount determined by--
            ``(1) computing adjusted available income by adding--
                    ``(A) the family's available income (determined in 
                accordance with subsection (b)); and
                    ``(B) the family's available assets (determined in 
                accordance with subsection (c));
            ``(2) assessing such adjusted available income in 
        accordance with an assessment schedule set forth in subsection 
        (d); and
            ``(3) considering such assessment resulting under paragraph 
        (2) as the amount determined under this subsection.
    ``(b) Family's Available Income.--
            ``(1) In general.--The family's available income is 
        determined by deducting from total income (as defined in 
        section 480)--
                    ``(A) Federal income taxes;
                    ``(B) an allowance for payroll taxes, determined in 
                accordance with paragraph (2);
                    ``(C) an income protection allowance, determined in 
                accordance with paragraph (3); and
                    ``(D) an employment expense allowance, determined 
                in accordance with paragraph (4).
            ``(2) Allowance for payroll taxes.--The allowance for 
        payroll taxes is equal to the sum of--
                    ``(A) the amount earned by the student (and spouse, 
                if appropriate), multiplied by the rate of tax under 
                section 3101(b) of the Internal Revenue Code of 1986; 
                and
                    ``(B) the amount earned by the student (and spouse, 
                if appropriate) that does not exceed such contribution 
                and benefit base (twice such contribution and benefit 
                base, in the case of a joint return) for the year of 
                the earnings, multiplied by the rate of tax applicable 
                to such earnings under section 3101(a) of such Code.
            ``(3) Income protection allowance.--The income protection 
        allowance for award year 2020-2021 and each succeeding award 
        year shall equal the amount determined in the following table, 
        as adjusted by the Secretary pursuant to section 478(b):
                    ``(A) In the case of a married independent student 
                with dependents:

  ``Income Protection Allowance 2020-2021 (to be adjusted for 2021-2022
                          and succeeding years)
------------------------------------------------------------------------
              Family Size (including student)                   Amount
------------------------------------------------------------------------
3..........................................................      $44,470
4..........................................................      $55,260
5..........................................................      $65,190
6..........................................................      $76,230
For each additional add....................................      $8,610.
------------------------------------------------------------------------

                    ``(B) In the case of a single independent student 
                with dependents:

  ``Income Protection Allowance 2020-2021 (to be adjusted for 2021-2022
                          and succeeding years)
------------------------------------------------------------------------
              Family Size (including student)                   Amount
------------------------------------------------------------------------
2..........................................................      $43,128
3..........................................................      $54,364
4..........................................................      $66,312
5..........................................................      $78,228
6..........................................................      $91,476
For each additional add....................................     $10,332.
------------------------------------------------------------------------

            ``(4) Employment expense allowance.--The employment expense 
        allowance is equal to the lesser of $4,000 or 35 percent of the 
        student's earned income or the combined earned income of the 
        student and the student's spouse (or is equal to a successor 
        amount as adjusted by the Secretary under section 478(g)).
    ``(c) Family's Available Assets.--
            ``(1) In general.--
                    ``(A) Determination.--Except as provided in 
                subparagraph (B), the family's available assets are 
                equal to--
                            ``(i) the difference between the family's 
                        assets (as defined in 480(f)) and the asset 
                        protection allowance (determined in accordance 
                        with paragraph (2)); multiplied by
                            ``(ii) 7 percent.
                    ``(B) Not less than zero.--Family's available 
                assets under this subsection shall not be less than 
                zero.
            ``(2) Asset protection allowance.--The asset protection 
        allowance is calculated according to the following table (or a 
        successor table prescribed by the Secretary under section 
        478(d)):

                             ``Asset Protection Allowances for Families and Students
----------------------------------------------------------------------------------------------------------------
                                                                               And the student is
                                                               -------------------------------------------------
                                                                        married                   single
                 If the age of the student is--                -------------------------------------------------
                                                                then the allowance is--
 
----------------------------------------------------------------------------------------------------------------
25 or less....................................................                       $0                       $0
26............................................................                     $300                     $100
27............................................................                     $700                     $200
28............................................................                   $1,000                     $300
29............................................................                   $1,300                     $500
30............................................................                   $1,600                     $600
31............................................................                   $2,000                     $700
32............................................................                   $2,300                     $800
33............................................................                   $2,600                     $900
34............................................................                   $2,900                   $1,000
35............................................................                   $3,300                   $1,100
36............................................................                   $3,600                   $1,200
37............................................................                   $3,900                   $1,400
38............................................................                   $4,200                   $1,500
39............................................................                   $4,600                   $1,600
40............................................................                   $4,900                   $1,700
41............................................................                   $5,100                   $1,700
42............................................................                   $5,200                   $1,700
43............................................................                   $5,300                   $1,800
44............................................................                   $5,400                   $1,800
45............................................................                   $5,500                   $1,900
46............................................................                   $5,700                   $1,900
47............................................................                   $5,800                   $1,900
48............................................................                   $6,000                   $2,000
49............................................................                   $6,100                   $2,000
50............................................................                   $6,300                   $2,100
51............................................................                   $6,400                   $2,100
52............................................................                   $6,600                   $2,200
53............................................................                   $6,800                   $2,200
54............................................................                   $6,900                   $2,300
55............................................................                   $7,100                   $2,300
56............................................................                   $7,300                   $2,400
57............................................................                   $7,500                   $2,500
58............................................................                   $7,700                   $2,500
59............................................................                   $7,900                   $2,600
60............................................................                   $8,200                   $2,700
61............................................................                   $8,400                   $2,700
62............................................................                   $8,600                   $2,800
63............................................................                   $8,900                   $2,900
64............................................................                   $9,200                   $2,900
65 or more....................................................                   $9,400                  $3,000.
----------------------------------------------------------------------------------------------------------------

    ``(d) Assessment Schedule.--The assessment of adjusted available 
income (as determined under subsection (a)(1) and hereafter in this 
subsection referred to as `AAI') is calculated according to the 
following table (or a successor table prescribed by the Secretary 
pursuant to section 478(e)):

               ``Assessment From Adjusted Available Income
------------------------------------------------------------------------
              If AAI is--                    Then the assessment is--
------------------------------------------------------------------------
Less than -$6,820......................  -$1,500
$-6,820 to $17,000.....................  22% of AAI
$17,001 to $21,400.....................  $3,740 + 25% of AAI over
                                          $17,000
$21,401 to $25,700.....................  $4,840 + 29% of AAI over
                                          $21,400
$25,701 to $30,100.....................  $6,087 + 34% of AAI over
                                          $25,700
$30,101 to $34,500.....................  $7,583 + 40% of AAI over
                                          $30,100
$34,501 or more........................  $9,343 + 47% of AAI over
                                          $34,500.
------------------------------------------------------------------------

    ``(e) Computations in Case of Separation, Divorce, or Death.--In 
the case of a student who is divorced or separated, or whose spouse has 
died, the spouse's income and assets shall not be considered in 
determining the family's available income or assets.''.
    (g) Regulations; Updated Tables.--Section 478 (20 U.S.C. 1087rr) is 
amended to read as follows:

``SEC. 478. REGULATIONS; UPDATED TABLES.

    ``(a) Authority To Prescribe Regulations Restricted.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, the Secretary shall not have the authority to prescribe 
        regulations to carry out this part except--
                    ``(A) to prescribe updated tables in accordance 
                with subsections (b) through (g);
                    ``(B) to propose modifications in the need analysis 
                methodology required by this part; or
                    ``(C) with respect to the definition of cost of 
                attendance under section 472.
            ``(2) Notification and approval.--Any regulation proposed 
        by the Secretary that updates tables in a manner that does not 
        comply with subsections (b) through (g), or that proposes 
        modifications under paragraph (1)(B), shall not be effective 
        unless subject to notification and approval by the authorizing 
        committees not less than 90 days before such regulation is 
        published in the Federal Register in accordance with section 
        482.
    ``(b) Income Protection Allowance Adjustments.--For award year 
2021-2022 and each succeeding award year, the Secretary shall publish 
in the Federal Register revised income protection allowances for the 
purposes of subsections (c)(3) and (g)(2)(C) of section 475, subclauses 
(I) and (II) of section 476(b)(1)(A)(iii), and section 477(b)(3), by 
increasing the income protection allowances in each of such provisions, 
by a percentage equal to the percentage increase in the Consumer Price 
Index, as defined in subsection (f), between April 2019 and the April 
prior to the beginning of the award year and rounding the result to the 
nearest $10.
    ``(c) Adjusted Net Worth of a Farm or Business.--
            ``(1) Table.--The table of the net worth of a business or 
        farm (hereafter in this subsection referred to as `NW') for 
        purposes of making determinations of assets as defined under 
        section 480(f) for award year 2020-2021 is the following:

                  ``Business/Farm Net Worth Adjustment
------------------------------------------------------------------------
 If the net worth of a business or farm  Then the adjusted net worth is--
                  is--
------------------------------------------------------------------------
Less than $1...........................  $0
$1 to $135,000.........................  40% of net worth of business/
                                          farm
$135,001 to $410,000...................  $54,000 + 50% of net worth over
                                          $135,000
$410,001 to $680,000...................  $191,500 + 60% of net worth
                                          over $410,000
$680,001 or more.......................  $353,500 + 100% of net worth
                                          over $680,000.
------------------------------------------------------------------------

            ``(2) Revised tables.--For each award year after award year 
        2020-2021, the Secretary shall publish in the Federal Register 
        a revised table of adjusted net worth of a farm or business for 
        purposes of section 480(f). Such revised table shall be 
        developed--
                    ``(A) by increasing each dollar amount that refers 
                to net worth of a farm or business by a percentage 
                equal to the percentage increase in the Consumer Price 
                Index between April 2019 and the April prior to the 
                beginning of such award year, and rounding the result 
                to the nearest $5,000; and
                    ``(B) by adjusting the dollar amounts in the column 
                referring the adjusted net worth to reflect the changes 
                made pursuant to subparagraph (A).
    ``(d) Education Savings and Asset Protection Allowance.--For each 
award year after award year 2020-2021, the Secretary shall publish in 
the Federal Register a revised table of allowances for the purpose of 
sections 475(d)(2), 476(c)(2), and 477(c)(2). Such revised table shall 
be developed by determining the present value cost, rounded to the 
nearest $100, of an annuity that would provide, for each age cohort of 
40 and above, a supplemental income at age 65 (adjusted for inflation) 
equal to the difference between the moderate family income (as most 
recently determined by the Bureau of Labor Statistics), and the current 
average social security retirement benefits. For each age cohort below 
40, the allowance shall be computed by decreasing the allowance for age 
40, as updated, by one-fifteenth for each year of age below age 40 and 
rounding the result to the nearest $100. In making such 
determinations--
            ``(1) inflation shall be presumed to be 6 percent per year;
            ``(2) the rate of return of an annuity shall be presumed to 
        be 8 percent; and
            ``(3) the sales commission on an annuity shall be presumed 
        to be 6 percent.
    ``(e) Assessment Schedules and Rates.--For each award year after 
award year 2020-2021, the Secretary shall publish in the Federal 
Register a revised table of assessments from adjusted available income 
for the purpose of sections 475(e) and 477(d). Such revised table shall 
be developed--
            ``(1) by increasing each dollar amount that refers to 
        adjusted available income by a percentage equal to the 
        percentage increase in the Consumer Price Index between April 
        2019 and the April prior to the beginning of such academic 
        year, rounded to the nearest $100; and
            ``(2) by adjusting the other dollar amounts to reflect the 
        changes made pursuant to paragraph (1).
    ``(f) Consumer Price Index Defined.--In this section, the term 
`Consumer Price Index' means the Consumer Price Index for All Urban 
Consumers published by the Department of Labor. Each annual update of 
tables to reflect changes in the Consumer Price Index shall be 
corrected for misestimation of actual changes in such Index in previous 
years.
    ``(g) Employment Expense Allowance.--For each award year after 
award year 2020-2021, the Secretary shall publish in the Federal 
Register a revised table of employment expense allowances for the 
purpose of sections 475(c)(4), 476(b)(3), and 477(b)(4). Such revised 
table shall be developed by increasing the dollar amount specified in 
sections 475(c)(4), 476(b)(3), and 477(b)(4) to reflect the 
inflationary adjustment that is used for the income protection 
allowances in subsection (b).''.
    (h) Applicants Exempt From Asset Reporting.--Section 479 (20 U.S.C. 
1087ss) is amended to read as follows:

``SEC. 479. APPLICANTS EXEMPT FROM ASSET REPORTING.

    ``(a) In General.--Notwithstanding any other provision of law, this 
section shall be effective for each individual seeking to apply for 
Federal financial aid under this title, as part of the simplified 
application for Federal student financial aid under section 483.
    ``(b) Applicants Exempt From Asset Reporting.--
            ``(1) In general.--Except as provided in paragraph (3), in 
        carrying out section 483, the Secretary shall not use asset 
        information from an eligible applicant or, as applicable, the 
        parent or spouse of an eligible applicant.
            ``(2) Eligible applicants.--In this subsection, the term 
        `eligible applicant' means an applicant who meets at least one 
        of the following criteria:
                    ``(A) Is an applicant who qualifies for an 
                automatic zero student aid index or automatic negative 
                student aid index under subsection (b), (c) or (d) of 
                section 473.
                    ``(B) Is an applicant who is a dependent student 
                and the student's parents have a total adjusted gross 
                income (excluding any income of the dependent student) 
                that is less than $75,000 and do not file a Schedule A, 
                B, D, E, F, or H (or equivalent successor schedules), 
                with the Federal income tax return for the second 
                preceding tax year, and--
                            ``(i) do not file a Schedule C (or the 
                        equivalent successor schedule) with the Federal 
                        income tax return for the second preceding tax 
                        year; or
                            ``(ii) file a Schedule C (or the equivalent 
                        successor schedule) with net business income of 
                        not more than a $10,000 loss or gain with the 
                        Federal income tax return for the second 
                        preceding tax year.
                    ``(C) Is an applicant who is an independent student 
                and the student (and including the student's spouse, if 
                any) has a total adjusted gross income that is less 
                than $75,000 and does not file a Schedule A, B, C, D, 
                E, F, or H (or equivalent successor schedules), with 
                the Federal income tax return for the second preceding 
                tax year, and--
                            ``(i) does not file a Schedule C (or the 
                        equivalent successor schedule) with the Federal 
                        income tax return for the second preceding tax 
                        year; or
                            ``(ii) files a Schedule C (or the 
                        equivalent successor schedule) with net 
                        business income of not more than a $10,000 loss 
                        or gain with the Federal income tax return for 
                        the second preceding tax year.
            ``(3) Special rule.--An eligible applicant shall not be 
        exempt from asset reporting under this section if the applicant 
        is a dependent student and the students' parents do not--
                    ``(A) reside in the United States or a United 
                States territory; or
                    ``(B) file taxes in the United States or a United 
                States territory, except if such nonfiling is due to 
                not being required to file a Federal tax return for the 
                applicable tax year due to a low income.''.
    (i) Discretion of Student Financial Aid Administrators.--Section 
479A (20 U.S.C. 1087tt) is amended to read as follows:

``SEC. 479A. DISCRETION OF STUDENT FINANCIAL AID ADMINISTRATORS.

    ``(a) Authority of Financial Aid Administrator.--
            ``(1) General authority.--A financial aid administrator 
        shall have the authority to, on the basis of documentation, 
        make adjustments on a case-by-case basis to the cost of 
        attendance or the values of the data used to calculate the 
        student aid index or Federal Pell Grant award (or both) for an 
        individual eligible applicant with special circumstances. In 
        making adjustments described in this paragraph, a financial aid 
        administrator may--
                    ``(A) request and use supplementary information, as 
                necessary, about the financial status or personal 
                circumstances of eligible applicants as it relates to 
                the special circumstances based on which the applicant 
                is requesting an adjustment; or
                    ``(B) offer a dependent student financial 
                assistance under a Federal Direct Unsubsidized Stafford 
                Loan without requiring the parents of such student to 
                file the Free Application for Federal Student Aid if 
                the student financial aid administrator determines that 
                each parent of such student has ended financial support 
                of such student and refuses to file such form.
            ``(2) Limitation relating to authority of the financial aid 
        administrator.--In the absence of special circumstances as 
        described in subparagraphs (A) and (B) of this paragraph, the 
        authority under paragraph (1) shall not be construed to permit 
        financial aid administrators to deviate from the cost of 
        attendance, the values of the data used to calculate the 
        student aid index or the values of the data used to calculate 
        the Federal Pell Grant award (or both) for awarding aid under 
        this title.
                    ``(A) Special circumstances for adjustments related 
                to pell grants.--Special circumstances for adjustments 
                to calculate a Federal Pell Grant award--
                            ``(i) shall be conditions that 
                        differentiate an individual student from a 
                        class of students rather than conditions that 
                        exist across a class of students; and
                            ``(ii) may include--
                                    ``(I) recent unemployment of a 
                                family member or an independent 
                                student;
                                    ``(II) a student or family member 
                                who is a dislocated worker (as defined 
                                in section 3 of the Workforce 
                                Innovation and Opportunity Act);
                                    ``(III) a change in housing status 
                                that results in an individual being 
                                homeless (as defined in section 103 of 
                                the McKinney-Vento Homeless Assistance 
                                Act);
                                    ``(IV) a recent condition of severe 
                                disability of the student, the 
                                dependent student's parent or guardian, 
                                or an independent student's dependent 
                                or spouse; or
                                    ``(V) other changes or adjustments 
                                in the income, assets, or size of a 
                                family, or a student's dependency 
                                status.
                    ``(B) Special circumstances for adjustments related 
                to cost of attendance and student aid index.--Special 
                circumstances for adjustments to the cost of attendance 
                or the values of the data used to calculate the student 
                aid index--
                            ``(i) shall be conditions that 
                        differentiate an individual student from a 
                        class of students rather than conditions that 
                        exist across a class of students; and
                            ``(ii) may include--
                                    ``(I) tuition expenses at an 
                                elementary school or secondary school;
                                    ``(II) medical, dental, or nursing 
                                home expenses not covered by insurance;
                                    ``(III) unusually high child care 
                                or dependent care costs;
                                    ``(IV) recent unemployment of a 
                                family member or an independent 
                                student;
                                    ``(V) a student or family member 
                                who is a dislocated worker (as defined 
                                in section 3 of the Workforce 
                                Innovation and Opportunity Act);
                                    ``(VI) the number of family members 
                                enrolled in a degree, certificate, or 
                                other program leading to a recognized 
                                educational credential at an 
                                institution with a program 
                                participation agreement under section 
                                487;
                                    ``(VII) a change in housing status 
                                that results in an individual being 
                                homeless (as defined in section 103 of 
                                the McKinney-Vento Homeless Assistance 
                                Act);
                                    ``(VIII) in the case of a dependent 
                                student, a recent condition of severe 
                                disability of the student, the 
                                dependent student's parent or guardian, 
                                or an independent student's dependent 
                                or spouse;
                                    ``(IX) exceptional circumstances of 
                                claimed losses against income on the 
                                Federal tax return that substantially 
                                lower adjusted gross income, such as 
                                unusual business, investment, or real 
                                estate losses; or
                                    ``(X) other changes or adjustments 
                                in the income, assets, or size of a 
                                family, or a student's dependency 
                                status.
            ``(3) Use of authority.--No institution of higher education 
        or financial aid administrator shall maintain a policy of 
        denying all requests for adjustments under this subsection.
            ``(4) Documentation and prohibition on fees.--
                    ``(A) In general.--Documentation for adjustments 
                under paragraph (1) shall substantiate the special 
                circumstances of individual students, and may include a 
                documented interview between the student and the 
                financial aid administrator.
                    ``(B) No additional fee.--No student or parent 
                shall be charged a fee for a documented interview of 
                the student by the financial aid administrator or for 
                the review of a student or parent's request for 
                adjustments under this subsection including the review 
                of any supplementary information or documentation of a 
                student or parent's special circumstance.
                    ``(C) Disclosure.--Each institution of higher 
                education shall provide a public notice on the 
                institution's financial aid website that students 
                applying for aid under this title shall have the 
                opportunity to pursue adjustments under this 
                subsection.
    ``(b) Provisional Independent Students.--
            ``(1) Requirements for the secretary.--The Secretary 
        shall--
                    ``(A) enable each student who, based on an unusual 
                circumstance specified in accordance with section 
                480(d)(1)(I), may qualify for an adjustment under 
                subsection (a) that will result in a determination of 
                independence under this section and section 
                480(d)(1)(I) to complete the Free Application for 
                Federal Student Aid as an independent student for the 
                purpose of a provisional determination of the student's 
                Federal financial aid award, but subject to the 
                authority under paragraph (2)(E), for the purpose of 
                the final determination of the award;
                    ``(B) upon completion of the Free Application for 
                Federal Student Aid provide an estimate of the 
                student's Federal Pell Grant award, based on the 
                assumption the student is determined to be an 
                independent student; and
                    ``(C) specify, on the Free Application for Federal 
                Student Aid, the consequences under section 490(a) of 
                knowingly and willfully completing the Free Application 
                for Federal Student Aid as an independent student under 
                subparagraph (A) without meeting the unusual 
                circumstances to qualify for such a determination.
            ``(2) Requirements for financial aid administrators.--With 
        respect to a student accepted for admission who completes the 
        Free Application for Federal Student Aid 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 this 
                section and section 480(d)(1)(I) that will result in a 
                review of the student's request for an adjustment and a 
                determination of the student's dependency status under 
                such sections within a reasonable time after the 
                student completes the Free Application for Federal 
                Student Aid;
                    ``(B) shall provide the student a final 
                determination of the student's dependency status and 
                Federal financial aid award within a reasonable amount 
                of time after all requested documentation is provided;
                    ``(C) may consider as adequate verification that a 
                student qualifies for an adjustment under this section 
                and 480(d)(1)(I)--
                            ``(i) submission of a court order or 
                        official Federal or State documentation that 
                        the student's parents or legal guardians are 
                        incarcerated in any Federal or State penal 
                        institution;
                            ``(ii) a documented phone call or a written 
                        statement, which confirms the specific unusual 
                        circumstances with--
                                    ``(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 or a 
                        written statement from an attorney, a guardian 
                        ad litem, or a court appointed special 
                        advocate, which confirms the specific unusual 
                        circumstances and documents the person's 
                        relationship to the student;
                            ``(iv) a documented phone call or a written 
                        statement from a representative of a program 
                        under chapter 1 or 2 of subpart 2 of part A, 
                        which confirms the specific unusual 
                        circumstances and documents the person's 
                        relationship to the student;
                            ``(v) submission of a copy of the student's 
                        parents'--
                                    ``(I) certificates of death; or
                                    ``(II) verified obituaries; or
                            ``(vi) in the absence of documentation 
                        described in this subparagraph, other 
                        documentation the financial aid administrator 
                        determines is adequate and appropriate to 
                        confirm the unusual circumstances;
                    ``(D) shall retain all documents related to the 
                adjustment under this section and section 480(d)(1)(I), 
                including documented interviews, for at least the 
                duration of the student's enrollment, and shall abide 
                by all other record keeping requirements of this Act; 
                and
                    ``(E) shall presume that any student who has 
                obtained an adjustment under this section and section 
                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.
    ``(c) Adjustments to Assets or Income Taken Into Account.--A 
financial aid administrator shall be considered to be making a 
necessary adjustment in accordance with subsection (a) if--
            ``(1) the administrator makes adjustments excluding from 
        family income or assets any proceeds or losses from a sale of 
        farm or business assets of a family if such sale results from a 
        voluntary or involuntary foreclosure, forfeiture, or bankruptcy 
        or a voluntary or involuntary liquidation; or
            ``(2) the administrator makes adjustments for a student 
        with a disability so as to take into consideration the 
        additional costs such student incurs as a result of such 
        student's disability.
    ``(d) Refusal or Adjustment of Loan Certifications.--On a case-by-
case basis, an eligible institution may refuse to use the authority 
provided under this section, certify a statement that permits a student 
to receive a loan under part D, certify a loan amount, or make a loan 
that is less than the student's determination of need (as determined 
under this part), if the reason for the action is documented and 
provided in written form to the student. No eligible institution shall 
discriminate against any borrower or applicant in obtaining a loan on 
the basis of race, national origin, religion, sex, marital status, age, 
or disability status.''.
    (j) Disregard of Student Aid in Other Programs.--Section 479B (20 
U.S.C. 1087uu) is amended to read as follows:

``SEC. 479B. DISREGARD OF STUDENT AID IN OTHER PROGRAMS.

    ``Notwithstanding any other provision of law, student financial 
assistance received under this title, or under Bureau of Indian Affairs 
student assistance programs, shall not be taken into account in 
determining the need or eligibility of any person for benefits or 
assistance, or the amount of such benefits or assistance, under any 
Federal, State, or local program financed in whole or in part with 
Federal funds.''.
    (k) Native American Students.--Section 479C (20 U.S.C. 1087uu-1) is 
amended to read as follows:

``SEC. 479C. NATIVE AMERICAN STUDENTS.

    ``In determining the student aid index for Native American 
students, computations performed pursuant to this part shall exclude--
            ``(1) any income and assets of $2,000 or less per 
        individual payment received by the student (and spouse) and 
        student's parents under Public Law 98-64 (25 U.S.C. 117a et 
        seq.; 97 Stat. 365) (commonly known as the `Per Capita Act') or 
        the Indian Tribal Judgment Funds Use or Distribution Act (25 
        U.S.C. 1401 et seq.); and
            ``(2) any income received by the student (and spouse) and 
        student's parents under the Alaska Native Claims Settlement Act 
        (43 U.S.C. 1601 et seq.) or the Maine Indian Claims Settlement 
        Act of 1980 (25 U.S.C. 1721 et seq.).''.
    (l) Definitions.--Section 480 (20 U.S.C. 1087vv) is amended to read 
as follows:

``SEC. 480. DEFINITIONS.

    ``In this part:
    ``(a) Total Income.--The term `total income' means the amount equal 
to adjusted gross income for the second preceding tax year plus untaxed 
income and benefits for the second preceding tax year minus excludable 
income for the second preceding tax year. The factors used to determine 
total income shall be derived from the Federal income tax return, if 
available, except for the applicant's ability to indicate a qualified 
rollover in the second preceding tax year as outlined in section 483.
    ``(b) Untaxed Income and Benefits.--The term `untaxed income and 
benefits' means--
            ``(1) deductions and payments to self-employed SEP, SIMPLE, 
        Keogh, and other qualified individual retirement accounts 
        excluded from income for Federal tax purposes, except such term 
        shall not include payments made to tax-deferred pension and 
        retirement plans, paid directly or withheld from earnings, that 
        are not delineated on the Federal tax return;
            ``(2) tax-exempt interest income;
            ``(3) untaxed portion of individual retirement account 
        distributions;
            ``(4) untaxed portion of pensions; and
            ``(5) untaxed contributions to health savings accounts.
    ``(c) Veteran.--The term `veteran' has the meaning given the term 
in section 101(2) of title 38, United States Code.
    ``(d) Independent Students and Determinations.--
            ``(1) Definition.--The term `independent', when used with 
        respect to a student, means any individual who--
                    ``(A) is 24 years of age or older by December 31 of 
                the award year;
                    ``(B) is an orphan, in foster care, or a ward of 
                the court, or was an orphan, in foster care, or a ward 
                of the court at any time when the individual was 13 
                years of age or older;
                    ``(C) is, or was immediately prior to attaining the 
                age of majority, an emancipated minor or in legal 
                guardianship as determined by a court of competent 
                jurisdiction in the individual's State of legal 
                residence;
                    ``(D) is a veteran of the Armed Forces of the 
                United States (as defined in subsection (c)) or is 
                currently serving on active duty in the Armed Forces 
                for other than training purposes;
                    ``(E) is a graduate or professional student;
                    ``(F) is a married individual;
                    ``(G) has legal dependents other than a spouse;
                    ``(H) has been verified as either an unaccompanied 
                youth 23 years of age or younger who is a homeless 
                child or youth (as such term is defined in section 725 
                of the McKinney-Vento Homeless Assistance Act), or as 
                unaccompanied, at risk of homelessness, and self-
                supporting, by--
                            ``(i) a local educational agency homeless 
                        liaison, designated pursuant to section 
                        722(g)(1)(J)(ii) of the McKinney-Vento Homeless 
                        Assistance Act or a designee of the liaison;
                            ``(ii) the director of a recognized 
                        emergency shelter, transitional living, street 
                        outreach program, or other program serving 
                        individuals who are homeless or a designee of 
                        the director;
                            ``(iii) the director 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 or a 
                        designee of the director; or
                            ``(iv) a financial aid administrator who 
                        verified the student's circumstance in a prior 
                        award year; or
                    ``(I) is a student for whom a financial aid 
                administrator makes a documented determination of 
                independence by reason of other unusual circumstances 
                in which the student is unable to contact a parent or 
                where contact with parents poses a risk to such 
                student, which may include circumstances of--
                            ``(i) human trafficking, as described in 
                        the Trafficking Victims Protection Act of 2000 
                        (22 U.S.C. 7101 et seq.);
                            ``(ii) legally granted refugee or asylum 
                        status;
                            ``(iii) parental abandonment; or
                            ``(iv) parental imprisonment.
            ``(2) Simplifying the dependency override process.--A 
        financial aid administrator may make a determination of 
        independence under paragraph (1)(I) based upon a documented 
        determination of independence that was previously made by 
        another financial aid administrator under such paragraph in the 
        same award year.
            ``(3) Determination process for unaccompanied youth.--A 
        financial aid administrator shall make a case-by-case 
        determination 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, and, in the 
        absence of conflicting information, may verify a status 
        described in such paragraph. Such a determination shall be--
                    ``(A) based on the definitions outlined in 
                paragraph (1)(H);
                    ``(B) distinct from a determination of independence 
                under paragraph (1)(I);
                    ``(C) based on a written statement from or a 
                documented interview with the student which confirms 
                the student's status as an unaccompanied youth;
                    ``(D) limited to whether the student's status has 
                been verified through an individual described in 
                paragraph (1)(H); and
                    ``(E) made independent from the reasons for the 
                student's homelessness.
            ``(4) Verification process for foster care youth.--If an 
        institution requires documentation to verify that a student was 
        in foster care when the student was age 13 or older, as 
        described in paragraph (1)(B), a financial aid administrator 
        shall consider any of the following as adequate verification, 
        in the absence of documented conflicting information:
                    ``(A) Submission of a court order or official State 
                documentation that the student received Federal or 
                State support in foster care.
                    ``(B) A documented phone call, written statement, 
                or verifiable electronic data match, which confirms the 
                student was in foster care at an applicable age, from--
                            ``(i) a State or tribal agency 
                        administering a program under part B or E of 
                        title IV of the Social Security Act (42 U.S.C. 
                        621 et seq. and 670 et seq.);
                            ``(ii) a State Medicaid agency; or
                            ``(iii) a public or private foster care 
                        placing agency or foster care facility or 
                        placement.
                    ``(C) A documented phone call or a written 
                statement from an attorney, a guardian ad litem, or a 
                Court Appointed Special Advocate that confirms that the 
                student was in foster care at an applicable age, and 
                documents the person's relationship to the student.
                    ``(D) Verification of the student's eligibility for 
                an education and training voucher under the John H. 
                Chafee Foster Care Program under section 477 of the 
                Social Security Act (42 U.S.C. 677).
            ``(5) Timing; use of earlier determination.--
                    ``(A) Timing.--A determination under subparagraph 
                (B), (H) or (I) 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 not 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), (H) or (I) 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.
            ``(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.
    ``(e) Excludable Income.--The term `excludable income' means an 
amount equal to the education credits described in paragraphs (1) and 
(2) of section 25A(a) of the Internal Revenue Code of 1986.
    ``(f) Assets.--
            ``(1) In general.--The term `assets' means cash on hand, 
        including the amount in checking and savings accounts, time 
        deposits, money market funds, trusts, stocks, bonds, 
        derivatives, other securities, mutual funds, tax shelters, 
        qualified education benefits (except as provided in paragraph 
        (3)), the annual amount of child support received and the net 
        value of real estate, income producing property, and business 
        and farm assets, determined in accordance with section 478(c).
            ``(2) Exclusions.--With respect to determinations of need 
        under this title, the term `assets' shall not include the net 
        value of the family's principal place of residence.
            ``(3) Qualified education benefit.--A qualified education 
        benefit shall be considered an asset of--
                    ``(A) the student if the student is an independent 
                student; or
                    ``(B) the parent if the student is a dependent 
                student and the account is designated for the student, 
                regardless of whether the owner of the account is the 
                student or the parent.
    ``(g) Net Assets.--The term `net assets' means the current market 
value at the time of application of the assets (as defined in 
subsection (f)), minus the outstanding liabilities or indebtedness 
against the assets.
    ``(h) Treatment of Income Taxes Paid to Other Jurisdictions.--
            ``(1) The tax on income paid to the Governments of the 
        Commonwealth of Puerto Rico, Guam, American Samoa, the Virgin 
        Islands, or the Commonwealth of the Northern Mariana Islands, 
        the Republic of the Marshall Islands, the Federated States of 
        Micronesia, or Palau under the laws applicable to those 
        jurisdictions, or the comparable tax paid to the central 
        government of a foreign country, shall be treated as Federal 
        income taxes.
            ``(2) References in this part to title 26, Federal income 
        tax forms, and the Internal Revenue Service shall, for purposes 
        of the tax described in paragraph (1), be treated as references 
        to the corresponding laws, tax forms, and tax collection 
        agencies of those jurisdictions, respectively, subject to such 
        adjustments as the Secretary may provide by regulation.
    ``(i) Current Balance.--The term `current balance of checking and 
savings accounts' does not include any funds over which an individual 
is barred from exercising discretion and control because of the actions 
of any State in declaring a bank emergency due to the insolvency of a 
private deposit insurance fund.
    ``(j) Other Financial Assistance.--
            ``(1) For purposes of determining a student's eligibility 
        for funds under this title, other financial assistance not 
        received under this title shall include all scholarships, 
        grants, loans, or other assistance known to the institution at 
        the time the determination of the student's need is made, 
        including national service educational awards or post-service 
        benefits under title I of the National and Community Service 
        Act of 1990 (42 U.S.C. 12511 et seq.).
            ``(2) Notwithstanding paragraph (1), a tax credit taken 
        under section 25A of the Internal Revenue Code of 1986, or a 
        distribution that is not includable in gross income under 
        section 529 of such Code, under another prepaid tuition plan 
        offered by a State, or under a Coverdell education savings 
        account under section 530 of such Code, shall not be treated as 
        other financial assistance for purposes of section 471(a)(3).
            ``(3) Notwithstanding paragraph (1) and section 472, 
        assistance not received under this title may be excluded from 
        both other financial assistance and cost of attendance, if that 
        assistance is provided by a State and is designated by such 
        State to offset a specific component of the cost of attendance. 
        If that assistance is excluded from either other financial 
        assistance or cost of attendance, it shall be excluded from 
        both.
            ``(4) Notwithstanding paragraph (1), payments made and 
        services provided under part E of title IV of the Social 
        Security Act 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, shall not be treated as other financial 
        assistance for purposes of section 471(a)(3).
    ``(k) Dependents.--
            ``(1) Except as otherwise provided, the term `dependent of 
        the parent' means the student, dependent children of the 
        student's parents, including those children who are deemed to 
        be dependent students when applying for aid under this title, 
        and other persons who live with and receive more than one-half 
        of their support from the parent and will continue to receive 
        more than half of their support from the parent during the 
        award year.
            ``(2) Except as otherwise provided, the term `dependent of 
        the student' means the student's dependent children and other 
        persons (except the student's spouse) who live with and receive 
        more than one-half of their support from the student and will 
        continue to receive more than half of their support from the 
        student during the award year.
    ``(l) Family Size.--
            ``(1) Dependent student.--Except as provided in paragraph 
        (3), in determining family size in the case of a dependent 
        student--
                    ``(A) if the parents are not divorced or separated, 
                family members include the student's parents, and any 
                dependent (within the meaning of section 152 of the 
                Internal Revenue Code of 1986 or was an eligible 
                individual for purposes of the credit under section 32 
                of the Internal Revenue Code of 1986) of the student's 
                parents for the taxable year used in determining the 
                amount of need of the student for financial assistance 
                under this title;
                    ``(B) if the parents are divorced or separated, 
                family members include the parent whose income is 
                included in computing available income and any 
                dependent (within the meaning of section 152 of the 
                Internal Revenue Code of 1986 or was an eligible 
                individual for purposes of the credit under section 32 
                of the Internal Revenue Code of 1986) of that parent 
                for the taxable year used in determining the amount of 
                need of the student for financial assistance under this 
                title;
                    ``(C) if the parents are divorced and the parents 
                whose income is so included is remarried, or if the 
                parent was a widow or widower who has remarried, family 
                members also include, in addition to those individuals 
                referred to in paragraph (B), and any dependent (within 
                the meaning of section 152 of the Internal Revenue Code 
                of 1986 or was an eligible individual for purposes of 
                the credit under section 32 of the Internal Revenue 
                Code of 1986) of the new spouse for the taxable year 
                used in determining the amount of need of the student 
                for financial assistance under this title, if that 
                spouse's income is included in determining the parent's 
                adjusted available income; and
                    ``(D) if the student is not considered as a 
                dependent (within the meaning of section 152 of the 
                Internal Revenue Code of 1986 or was an eligible 
                individual for purposes of the credit under section 32 
                of the Internal Revenue Code of 1986) of any parent, 
                the parents' family size shall include the student and 
                the family members applicable to the parents' situation 
                under subparagraph (A), (B), or (C).
            ``(2) Independent student.--Except as provided in paragraph 
        (3), in determining family size in the case of an independent 
        student--
                    ``(A) family members include the student, the 
                student's spouse, and any dependent (within the meaning 
                of section 152 of the Internal Revenue Code of 1986 or 
                was an eligible individual for purposes of the credit 
                under section 32 of the Internal Revenue Code of 1986) 
                of that student for the taxable year used in 
                determining the amount of need of the student for 
                financial assistance under this title; and
                    ``(B) if the student is divorced or separated, 
                family members do not include the spouse (or ex-
                spouse), but do include the student and any dependent 
                (within the meaning of section 152 of the Internal 
                Revenue Code of 1986 or was an eligible individual for 
                purposes of the credit under section 32 of the Internal 
                Revenue Code of 1986) of that student for the taxable 
                year used in determining the amount of need of the 
                student for financial assistance under this title.
            ``(3) Procedures and modification.--The Secretary shall 
        provide procedures for determining family size in cases in 
        which information for the taxable year used in determining the 
        amount of need of the student for financial assistance under 
        this title has changed or does not accurately reflect the 
        applicant's current household size.
    ``(m) Business Assets.--The term `business assets' means property 
that is used in the operation of a trade or business, including real 
estate, inventories, buildings, machinery, and other equipment, 
patents, franchise rights, and copyrights.''.
    (m) FAFSA.--Section 483 (20 U.S.C. 1090) is amended to read as 
follows:

``SEC. 483. FREE APPLICATION FOR FEDERAL STUDENT AID.

    ``(a) Simplified Application for Federal Student Financial Aid.--
            ``(1) In general.--Each individual seeking to apply for 
        Federal financial aid under this title for any award year shall 
        file a free application with the Secretary, known as the `Free 
        Application for Federal Student Aid', to determine eligibility 
        for such aid, as described in paragraph (2), and in accordance 
        with section 479.
            ``(2) Free application.--
                    ``(A) In general.--The Secretary shall make 
                available, for the purposes of paragraph (1), a free 
                application to determine the eligibility of a student 
                for Federal financial aid under this title.
                    ``(B) Information required by the applicant.--
                            ``(i) In general.--The applicant, and, if 
                        necessary, the parents or spouse of the 
                        applicant, shall provide the Secretary with the 
                        applicable information described in clause (ii) 
                        in order to be eligible for Federal financial 
                        aid under this title.
                            ``(ii) Information to be provided.--The 
                        information described in this clause is the 
                        following:
                                    ``(I) Name.
                                    ``(II) Contact information, 
                                including address, phone number, email 
                                address, or other electronic address.
                                    ``(III) Social security number.
                                    ``(IV) Date of birth.
                                    ``(V) Marital status.
                                    ``(VI) Citizenship status, 
                                including alien registration number, if 
                                applicable.
                                    ``(VII) State of legal residence 
                                and date of residency.
                                    ``(VIII) Name and location of the 
                                high school from which the applicant 
                                received, or will receive prior to the 
                                period of enrollment for which aid is 
                                sought, a regular high school diploma, 
                                name and location of the entity from 
                                which the applicant received, or will 
                                receive prior to the period of 
                                enrollment for which aid is sought, a 
                                recognized equivalent of a regular high 
                                school diploma, or if the applicant 
                                completed or will complete prior to the 
                                period of enrollment for which aid is 
                                sought, a secondary school education in 
                                a home school setting that is treated 
                                as a home school or private school 
                                under State law.
                                    ``(IX) Name of each institution 
                                where the applicant intends to apply 
                                for enrollment or continue enrollment.
                                    ``(X) Year in school for period of 
                                enrollment for which aid is sought, 
                                including whether applicant will have 
                                finished first bachelor's degree prior 
                                to the period of enrollment for which 
                                aid is sought.
                                    ``(XI) Whether one or both of an 
                                applicant's parents attended college.
                                    ``(XII) Any required asset 
                                information, unless exempt under 
                                section 479, in which the applicant 
                                shall indicate--
                                            ``(aa) the annual amount of 
                                        child support received, if 
                                        applicable; and
                                            ``(bb) all required asset 
                                        information not described in 
                                        item (aa).
                                    ``(XIII) The number of members of 
                                the applicant's family who will also be 
                                enrolled in an eligible institution of 
                                higher education on at least a half-
                                time basis during the same enrollment 
                                period as the applicant.
                                    ``(XIV) If the applicant meets any 
                                of the following designations:
                                            ``(aa) Homeless, at risk of 
                                        being homeless, or an 
                                        unaccompanied youth.
                                            ``(bb) Emancipated minor.
                                            ``(cc) In legal 
                                        guardianship.
                                            ``(dd) Dependent ward of 
                                        the court at any time since the 
                                        applicant turned 13.
                                            ``(ee) In foster care at 
                                        any time since the applicant 
                                        turned 13.
                                            ``(ff) If both parents have 
                                        died since the applicant turned 
                                        13.
                                            ``(gg) Is a veteran or a 
                                        member of the Armed Forces.
                                            ``(hh) Has a dependent 
                                        child or relative and is under 
                                        the age of 24.
                                            ``(ii) Does not have access 
                                        to parental income due to an 
                                        unusual circumstance.
                                    ``(XV) If the applicant receives or 
                                has received any of the following 
                                means-tested Federal benefits within 
                                the last two years:
                                            ``(aa) The supplemental 
                                        security income program under 
                                        title XVI of the Social 
                                        Security Act (42 U.S.C. 1381 et 
                                        seq.).
                                            ``(bb) The supplemental 
                                        nutrition assistance program 
                                        under the Food and Nutrition 
                                        Act of 2008 (7 U.S.C. 2011 et 
                                        seq.).
                                            ``(cc) 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.).
                                            ``(dd) The program of block 
                                        grants for States for temporary 
                                        assistance for needy families 
                                        established under part A of 
                                        title IV of the Social Security 
                                        Act (42 U.S.C. 601 et seq.).
                                            ``(ee) 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).
                                            ``(ff) The Medicaid program 
                                        under title XIX of the Social 
                                        Security Act (42 U.S.C. 1396 et 
                                        seq.).
                                            ``(gg) Any other means-
                                        tested program determined by 
                                        the Secretary to be 
                                        appropriate.
                                    ``(XVI) If the applicant, or, if 
                                necessary, the parents or spouse of the 
                                applicant, reported receiving tax 
                                exempt payments from an IRA 
                                distribution or from pensions or 
                                annuities on a Federal tax return the 
                                Secretary shall request the applicant, 
                                or, if necessary, the parents or spouse 
                                of the applicant to provide information 
                                as to how much of the IRA distribution 
                                or the pension or annuity disbursement 
                                was a qualified rollover and the 
                                applicant, or, if necessary, the 
                                parents or spouse of the applicant 
                                shall provide such information to the 
                                Secretary for the purpose of the need 
                                analysis.
                            ``(iii) 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.
                            ``(iv) Change in family size.--The 
                        Secretary shall provide a process by which an 
                        applicant shall confirm the accuracy of family 
                        size or 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.
                            ``(v) Single question for homeless 
                        status.--The Secretary shall ensure that, on 
                        the form developed under this section for which 
                        the information is applicable, there is a 
                        single, easily understood screening question to 
                        identify an applicant who is an unaccompanied 
                        homeless child or youth (as such term is 
                        defined in section 725 of the McKinney-Vento 
                        Homeless Assistance Act) or an unaccompanied 
                        youth who is self-supporting and at risk of 
                        homelessness.
                    ``(C) 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 (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) of the authority of the Secretary to request 
                that the Internal Revenue Service disclose their tax 
                return information as described in section 494.
                    ``(D) Authorizations available to the applicant.--
                            ``(i) Authorization to release and transmit 
                        to institution.--An applicant and, if 
                        necessary, the parents or spouse of the 
                        applicant shall provide the Secretary with 
                        authorization to release and transmit to an 
                        institution, as specified by the applicant, in 
                        order for the applicant's eligibility for 
                        Federal financial aid programs to be 
                        determined, the following:
                                    ``(I) Information described under 
                                section 6103(l)(13) of the Internal 
                                Revenue Code of 1986.
                                    ``(II) All information provided by 
                                the applicant on the application 
                                described by this subsection to 
                                determine the applicant's eligibility 
                                for Federal financial aid under this 
                                title and for the application, award, 
                                and administration of such Federal 
                                financial aid.
                            ``(ii) Authorization to release and 
                        transmit to state and institution.--
                                    ``(I) In general.--An applicant 
                                and, if necessary, the parents or 
                                spouse of the applicant may provide the 
                                Secretary with authorization to release 
                                and transmit to the State of residence 
                                of the applicant and to any institution 
                                specified by the applicant, in order 
                                for the applicant's eligibility for 
                                State student financial aid programs or 
                                institution-based student financial aid 
                                programs to be determined, the 
                                following:
                                            ``(aa) Information 
                                        described under section 
                                        6103(l)(13) of the Internal 
                                        Revenue Code of 1986.
                                            ``(bb) All information 
                                        provided by the applicant on 
                                        the application described by 
                                        this subsection for the 
                                        application, award, and 
                                        administration of financial aid 
                                        by a State or an institution of 
                                        higher education.
                                    ``(II) Special rule.--An 
                                institution to which an applicant 
                                selects to release and transmit 
                                information under subclause (I) shall 
                                not be disclosed to any other 
                                institution.
                            ``(iii) Authorization to release and 
                        transmit to benefits programs.--An applicant 
                        and, if necessary, the parents or spouse of the 
                        applicant may provide the Secretary with 
                        authorization to release and transmit to means-
                        tested Federal benefit programs, as defined in 
                        section 473(e), the following:
                                    ``(I) Information described under 
                                section 6103(l)(13) of the Internal 
                                Revenue Code of 1986.
                                    ``(II) All information provided by 
                                the applicant on the application 
                                described by this subsection to 
                                determine the applicant's eligibility 
                                for the application, award, and 
                                administration of such means-tested 
                                Federal benefits programs.
                    ``(E) Action by the secretary.--Upon receiving--
                            ``(i) an application under this section, 
                        the Secretary shall, as soon as practicable, 
                        perform the necessary functions with the 
                        Commissioner of Internal Revenue to calculate 
                        the applicant's student aid index and scheduled 
                        award for a Federal Pell Grant, if applicable, 
                        assuming full-time enrollment for an academic 
                        year, and note to the applicant the assumptions 
                        relationship to the scheduled award; and
                            ``(ii) an authorization under subparagraph 
                        (D), the Secretary shall, as soon as 
                        practicable, release and transmit the 
                        information described under such subparagraph 
                        to the State of residence of the applicant or 
                        an institution, as specified by the applicant, 
                        in order for the applicant's eligibility for 
                        Federal, State, or institutional student 
                        financial aid programs to be estimated or 
                        determined.
            ``(3) Information to be supplied by the secretary of 
        education.--
                    ``(A) In general.--Upon receiving and timely 
                processing a free application that contains the 
                information described in paragraph (2), the Secretary 
                shall provide to the applicant (and the parents of a 
                dependent student applicant, or spouse of the 
                independent student applicant, if applicable) the 
                following information based on full-time attendance for 
                an academic year:
                            ``(i) The estimated dollar amount of a 
                        Federal Pell Grant scheduled award for which 
                        the applicant is eligible for such award year.
                            ``(ii) Information on other types of 
                        Federal financial aid for which the applicant 
                        may be eligible (including situations in which 
                        the applicant could qualify for 150 percent of 
                        a schedule Federal Pell Grant award and loans 
                        made under this title) and how the applicant 
                        can find additional information regarding such 
                        aid.
                            ``(iii) Information regarding each 
                        institution selected by the applicant in 
                        accordance with paragraph (2)(B)(ii)(IX), 
                        including the following:
                                    ``(I) The following information, as 
                                collected through the Integrated 
                                Postsecondary Education Data System:
                                            ``(aa) Net price by income 
                                        quintile.
                                            ``(bb) Median debt of 
                                        students upon completion.
                                            ``(cc) Graduation rate.
                                            ``(dd) Retention rate.
                                            ``(ee) Transfer rate, if 
                                        available.
                                    ``(II) Institutional default rate, 
                                as calculated under section 435.
                            ``(iv) If the student is eligible for a 
                        student aid index of less than or equal to zero 
                        under section 473 but has not indicated that 
                        they receive Federal means-tested benefits, a 
                        notification of the Federal means-tested 
                        benefits for which they may be eligible.
                            ``(v) Information on education tax credits 
                        described in paragraphs (1) and (2) of section 
                        25A(a) of the Internal Revenue Code of 1986.
                            ``(vi) If applicable, the applicant's 
                        current outstanding balance of loans under this 
                        title.
                    ``(B) Information provided to the state.--
                            ``(i) In general.--The Secretary shall 
                        provide, with authorization from the applicant 
                        in accordance with paragraph (2)(D)(ii), to a 
                        State agency administering State-based 
                        financial aid and serving the applicant's State 
                        of residence, the information described under 
                        section 6103(l)(13) of the Internal Revenue 
                        Code of 1986 and information described in 
                        paragraph (2)(B) for the application, award and 
                        administration of grants and other aid provided 
                        directly from the State to be determined by 
                        such State, such information shall include the 
                        list of institutions provided by the applicant 
                        on the application.
                            ``(ii) Use of information.--A State agency 
                        administering State-based financial aid--
                                    ``(I) shall use the information 
                                provided under clause (i) solely for 
                                the application, award, and 
                                administration of State-based financial 
                                aid for which the applicant is eligible 
                                and for State agency research that does 
                                not release any individually 
                                identifiable information on any 
                                applicant to promote college 
                                attendance, persistence, and 
                                completion;
                                    ``(II) may use identifying 
                                information for student applicants to 
                                determine whether or not a graduating 
                                secondary student has filed the 
                                application in coordination with local 
                                educational agencies or secondary 
                                schools to encourage students to 
                                complete the application; and
                                    ``(III) shall be prohibited from 
                                sharing application information with 
                                any other entity without the explicit 
                                written consent of the applicant, 
                                except as provided in subclause (II).
                            ``(iii) Limitation on consent process.--A 
                        State may provide a consent process whereby an 
                        applicant may elect to share the information 
                        described in clause (i) through explicit 
                        written consent to Federal, State or local 
                        government agencies or tribal organizations to 
                        assist such applicant in applying for and 
                        receiving Federal, State, or local government 
                        assistance, or tribal assistance for any 
                        component of the applicant's cost of attendance 
                        which may include financial assistance or non-
                        monetary assistance.
                            ``(iv) Prohibition.--Any entity that 
                        receives applicant information under clause 
                        (iii) shall not sell, share, or otherwise use 
                        applicant information other than for the 
                        purposes outlined in clause (iii).
                    ``(C) Information provided to the institution.--
                            ``(i) In general.--The Secretary shall 
                        provide, with authorization from the applicant 
                        in accordance with paragraph (2)(D)(ii), to 
                        each institution selected by the applicant on 
                        the application, the information described 
                        under section 6103(l)(13) of the Internal 
                        Revenue Code of 1986 and information described 
                        in paragraph (2)(B) for the application, award 
                        and administration of grants and other aid 
                        provided directly from the institution to be 
                        determined by such institution and grants and 
                        other aid provided directly from the State or 
                        Federal Government.
                            ``(ii) Use of information.--An 
                        institution--
                                    ``(I) shall use the information 
                                provided to it under clause (i) solely 
                                for the application, award, and 
                                administration of financial aid to the 
                                applicant and for institutional 
                                research that does not release any 
                                individually identifiable information 
                                on any applicant to promote college 
                                attendance, persistence and completion; 
                                and
                                    ``(II) be prohibited from sharing 
                                such information with any other entity 
                                without the explicit written consent of 
                                the applicant.
                            ``(iii) Limitation on consent process.--An 
                        institution may provide a consent process 
                        whereby an applicant can elect to share the 
                        information described in clause (i) with 
                        explicit written consent to a scholarship 
                        granting organization, including a tribal 
                        organization (defined in section 4 of the 
                        Indian Self-Determination and Education 
                        Assistance Act (25 U.S.C. 5304)), or to 
                        Federal, State or local government agencies or 
                        tribal organizations to assist the applicant in 
                        applying for and receiving private assistance, 
                        or Federal, State, local government assistance, 
                        or tribal assistance for any component of the 
                        applicant's cost of attendance which may 
                        include financial assistance or non-monetary 
                        assistance.
                            ``(iv) Prohibition.--Any entity that 
                        receives applicant information under clause 
                        (iii) shall not sell, share, or otherwise use 
                        applicant information other than for the 
                        purposes outlined in clause (iii).
            ``(4) Development of form and information exchange.--The 
        Secretary shall, to the extent practicable, consult with 
        stakeholders, prior to the design of the free application 
        described in this subsection, to gather information about 
        innovations and technology available to--
                    ``(A) ensure an efficient and effective process;
                    ``(B) mitigate unintended consequences; and
                    ``(C) determine the best practices for outreach to 
                students and families during the transition to the 
                streamlined process for the determination of Federal 
                financial aid and Federal Pell Grant eligibility while 
                reducing the data burden on applicants and families.
            ``(5) No additional information requests permitted.--In 
        carrying out this subsection, the Secretary may not require 
        additional information to be submitted by an applicant (or the 
        parents or spouse of an applicant) for Federal financial aid 
        through other requirements or reporting.
            ``(6) State-run programs.--
                    ``(A) In general.--The Secretary shall conduct 
                outreach to States in order to research the benefits to 
                students of States relying solely on the financial data 
                made available, upon authorization by the applicant, as 
                a result of an application for aid under this 
                subsection for determining the eligibility of the 
                applicant for State provided financial aid.
                    ``(B) Secretarial review.--If a State determines 
                that there is a need for additional data elements 
                beyond those provided pursuant to this subsection for 
                determining the eligibility of an applicant for State 
                provided financial aid, the State shall forward a list 
                of those additional data elements determined necessary, 
                but not provided by virtue of the application under 
                this subsection, to the Secretary. The Secretary shall 
                make readily available to the public through its 
                websites and other means--
                            ``(i) a list of States that do not require 
                        additional financial information separate from 
                        the Free Application for Federal Student Aid 
                        and do not require asset information from 
                        students who qualify for the exemption from 
                        asset reporting under section 479 for the 
                        purposes of awarding State scholarships and 
                        grant aid;
                            ``(ii) a list of States that require asset 
                        information from students who qualify for the 
                        exemption from asset reporting under section 
                        479 for the purposes of awarding State 
                        scholarships and grant aid;
                            ``(iii) a list of States that have 
                        indicated that they require additional 
                        financial information separate from the Free 
                        Application for Federal Student Aid for 
                        purposes of awarding State scholarships and 
                        grant aid; and
                            ``(iv) with the publication of the lists 
                        under this subparagraph, information about 
                        additional resources available to applicants, 
                        including links to such State websites.
                    ``(C) Studies.--The Secretary shall conduct studies 
                on the effect of States requiring additional 
                information specified in clauses (ii) and (iii) of 
                subparagraph (B) on the determination of State 
                financial aid awards and whether the additional 
                information required is a barrier to college enrollment 
                by examining--
                            ``(i) how much financial aid awards would 
                        change if the additional information were not 
                        required;
                            ``(ii) the number of students who started 
                        but did not finish the Free Application for 
                        Federal Student Aid, compared to the baseline 
                        year of 2021; and
                            ``(iii) the number of students who started 
                        a Free Application for Federal Student Aid but 
                        did not enroll in an institution of higher 
                        education in the corresponding academic year.
            ``(7) Institution-run financial aid.--
                    ``(A) In general.--The Secretary shall conduct 
                outreach to institutions of higher education to 
                describe the benefits to students of relying solely on 
                the financial data made available, upon authorization 
                for release by the applicant, as a result of an 
                application for aid under this subsection for 
                determining the eligibility of the applicant for 
                institutional financial aid. The Secretary shall make 
                readily available to the public through its websites 
                and other means--
                            ``(i) a list of institutions that do not 
                        require additional financial information 
                        separate from the Free Application for Federal 
                        Student Aid and do not require asset 
                        information from students who qualify for the 
                        exemption from asset reporting under section 
                        479 for the purpose of awarding institution-run 
                        financial aid;
                            ``(ii) a list of institutions that require 
                        asset information from students who qualify for 
                        the exemption from asset reporting under 
                        section 479 for the purpose of awarding 
                        institution-run financial aid;
                            ``(iii) a list of institutions that require 
                        additional financial information separate from 
                        the Free Application for Federal Student Aid 
                        for the purpose of awarding institution-run 
                        financial aid; and
                            ``(iv) with the publication of the list in 
                        clause (iii), information about additional 
                        resources available to applicants.
            ``(8) Security of data.--The Secretary shall, in 
        consultation with the Secretary of the Treasury, take all steps 
        necessary to--
                    ``(A) safeguard the data required to be transmitted 
                for the purpose of this section between Federal 
                agencies and to States and institutions of higher 
                education;
                    ``(B) secure the transmittal of such data; and
                    ``(C) provide guidance to States and institutions 
                of higher education regarding their obligation to 
                ensure the security of the data provided under this 
                section.
            ``(9) Report to congress.--
                    ``(A) In general.--Not later than one year after 
                the date of enactment of the Student Aid Improvement 
                Act of 2019, the Secretary shall report to the 
                Committee on Health, Education, Labor, and Pensions of 
                the Senate and the Committee on Education and Labor of 
                the House of Representatives on the progress of the 
                Secretary in carrying out this subsection, including 
                planning and stakeholder consultation. Such report 
                shall include--
                            ``(i) benchmarks for implementation;
                            ``(ii) entities and organization to which 
                        the Secretary reached out for consultation;
                            ``(iii) system requirements for such 
                        implementation and how they will be addressed;
                            ``(iv) any areas of concern and potential 
                        problem issues uncovered that may hamper such 
                        implementation; and
                            ``(v) solutions determined to address such 
                        issues.
                    ``(B) Quarterly updates.--The Secretary shall 
                provide updates to the Committees described in 
                subparagraph (A)--
                            ``(i) as to the progress and planning 
                        described in subparagraph (A) prior to 
                        implementation of the Free Application for 
                        Federal Student Aid under this subsection not 
                        less often than quarterly; and
                            ``(ii) at least 6 months and 1 year post 
                        implementation of the Free Application for 
                        Federal Student Aid.
    ``(b) Adjustments and Improvements.--
            ``(1) In general.--The Secretary shall disclose in a 
        consumer-tested format, on the form notifying a student of the 
        student's Federal Pell Grant eligibility, that the student may, 
        on a case-by-case basis, qualify for an adjustment under 
        section 479A to the cost of attendance or the values of the 
        data items required to calculate the Federal Pell Grant or the 
        need analysis for the student or parent. Such disclosure shall 
        specify--
                    ``(A) examples of the special circumstances under 
                which a student or family member may qualify for such 
                adjustment or determination of independence; and
                    ``(B) additional information regarding the steps a 
                student or family member may take in order to seek an 
                adjustment under section 479A.
            ``(2) Consumer testing.--
                    ``(A) In general.--The development of the Free 
                Application for Federal Student Aid under this section 
                shall be consumer tested with prospective first-
                generation college students and families as well as 
                low-income individuals and families.
                    ``(B) Updates.--For award year 2021 and each fourth 
                succeeding award year thereafter, the design of the 
                Free Application for Federal Student Aid shall be 
                updated based on additional consumer testing with the 
                populations described in subparagraph (A) in order to 
                improve communication.
            ``(3) 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 Free Application for Federal 
        Student Aid form in each of those languages.
            ``(4) Reapplication in a succeeding academic year.--In 
        order to streamline applicant's experience applying for 
        financial aid, the Secretary shall allow an applicant who 
        electronically applies for financial assistance under this 
        title for an academic year subsequent to an academic year for 
        which such applicant applied for financial assistance under 
        this title to automatically electronically import all of the 
        applicant's (including parents, guardians, or spouses, as 
        applicable) identifying, demographic, and school data from the 
        previous application and to update such information to reflect 
        any circumstances that have changed.
            ``(5) Technology accessibility.--The Secretary shall make 
        the application under this section available through the 
        prevalent technology. Such technology shall, at a minimum, 
        enable applicants to--
                    ``(A) save data; and
                    ``(B) submit the application under this title to 
                the Secretary through such technology.
            ``(6) Verification burden.--The Secretary shall--
                    ``(A) to the maximum extent practicable, streamline 
                and simplify the process of verification for applicants 
                for Federal financial aid;
                    ``(B) in establishing policies and procedures to 
                verify applicants' eligibility for Federal financial 
                aid, consider--
                            ``(i) the burden placed on low-income 
                        applicants;
                            ``(ii) the risk to low-income applicants of 
                        failing to enroll or complete from being 
                        selected for verification;
                            ``(iii) the effectiveness of the policies 
                        and procedures in safeguarding against a net 
                        cost to taxpayers; and
                            ``(iv) the reasons for the source of any 
                        improper payments; and
                    ``(C) issue a report not less often than annually 
                sharing the percentage of applicants subject to 
                verification, whether the applicants ultimately 
                received Federal financial aid disbursements, and 
                whether the student aid index changed enough to affect 
                the applicant's award of any Federal financial aid 
                under this title.
    ``(c) Data and Information.--
            ``(1) In general.--The Secretary shall publish data in a 
        publicly accessible manner--
                    ``(A) annually on the total number of Free 
                Applications for Federal Student Aid submitted by 
                application cycle, disaggregated by demographic 
                characteristics, type of institution or institutions of 
                higher education to which the applicant applied, the 
                applicant's State of legal residence, and high school 
                and public school district;
                    ``(B) quarterly on the total number of Free 
                Applications for Federal Student Aid submitted by 
                application cycle, disaggregated by type of institution 
                or institutions of higher education to which the 
                applicant applied, the applicant's State of legal 
                residence, and high school and public school district;
                    ``(C) weekly on the total number of Free 
                Applications for Federal Student Aid submitted, 
                disaggregated by high school and public school 
                district; and
                    ``(D) annually on the number of individuals who 
                apply for Federal financial aid pursuant to this 
                section who indicated they are a homeless child or 
                youth (as defined in section 725 of the McKinney-Vento 
                Homeless Assistance Act), an unaccompanied youth, or a 
                foster care youth.
            ``(2) Contents.--The data described in paragraph (1) with 
        respect to homeless children and youth shall include, at a 
        minimum, for each application cycle--
                    ``(A) the total number of all applicants who were 
                determined to be individuals described in section 
                480(d)(1)(H); and
                    ``(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).
            ``(3) Data sharing.--The Secretary may enter into data 
        sharing agreements with the appropriate Federal or State 
        agencies to connect applicants with the means-tested Federal 
        benefit programs described in subsection (a)(2)(B)(ii)(XV) for 
        which the applicants may be eligible.
    ``(d) Ensuring Form Usability.--
            ``(1) Signature.--Notwithstanding any other provision of 
        this title, the Secretary may permit the Free Application for 
        Federal Student Aid to be submitted without a signature, if a 
        signature is subsequently submitted by the applicant, or if the 
        applicant uses an access device provided by the Secretary.
            ``(2) Free preparation authorized.--Notwithstanding any 
        provision of this title, an applicant may use a preparer for 
        consultative or preparation services for the completion of the 
        Free Application for Federal Student Aid without charging a fee 
        to the applicant if the preparer--
                    ``(A) includes, at the time the application is 
                submitted to the Department, the name, address or 
                employer's address, social security number or employer 
                identification number, and organizational affiliation 
                of the preparer on the applicant's form;
                    ``(B) is subject to the same penalties as an 
                applicant for purposely giving false or misleading 
                information in the application;
                    ``(C) clearly informs each individual upon initial 
                contact, that the Free Application for Federal Student 
                Aid is a free form that may be completed without 
                professional assistance; and
                    ``(D) does not produce, use, or disseminate any 
                other form for the purpose of applying for Federal 
                financial aid other than the Free Application for 
                Federal Student Aid form developed by the Secretary 
                under this section.
            ``(3) Charges to students and parents for use of forms 
        prohibited.--The need and eligibility of a student for 
        financial assistance under this title may be determined only by 
        using the Free Application for Federal Student Aid developed by 
        the Secretary under this section. Such application shall be 
        produced, distributed, and processed by the Secretary, and no 
        parent or student shall be charged a fee by the Secretary, a 
        contractor, a third-party servicer or private software 
        provider, or any other public or private entity for the 
        collection, processing, or delivery of Federal financial aid 
        through the use of such application. No data collected on a 
        form for which a fee is charged shall be used to complete the 
        Free Application for Federal Student Aid prescribed under this 
        section, except that a Federal or State income tax form 
        prepared by a paid income tax preparer or preparer service for 
        the primary purpose of filing a Federal or State income tax 
        return may be used to complete the Free Application for Federal 
        Student Aid prescribed under this section.
            ``(4) Application processing cycle.--The Secretary shall 
        enable students to submit a Free Application for Federal 
        Student Aid developed under this section and initiate the 
        processing of such application, not later than January 1 of the 
        student's planned year of enrollment, to the maximum extent 
        practicable, on or around October 1 prior to the student's 
        planned year of enrollment.
            ``(5) Early estimates.--The Secretary shall maintain an 
        electronic method for applicants to enter income and family 
        size information to calculate a non-binding estimate of the 
        applicant's Federal financial aid available under this title 
        and shall place such calculator on a prominent location at the 
        beginning of the Free Application for Federal Student Aid.''.
    (n) Student Eligibility.--Section 484 (20 U.S.C. 1091) is amended--
            (1) by striking subsection (q) and inserting the following:
    ``(q) Use of Income Data With IRS.--The Secretary, in cooperation 
with the Secretary of the Treasury, shall fulfill the data transfer 
requirements under section 6103(l)(13) of the Internal Revenue Code of 
1986.'';
            (2) by striking subsection (r);
            (3) by redesignating subsections (s) and (t) as subsections 
        (r) and (s), respectively; and
            (4) by adding at the end the following:
    ``(t) Exception to Required Registration With the Selective Service 
System.--Notwithstanding section 12(f) of the Military Selective 
Service Act (50 U.S.C. 3811(f)), an individual shall not be ineligible 
for assistance or a benefit provided under this title if the individual 
is required under section 3 of such Act (50 U.S.C. 3802) to present 
himself for and submit to registration under such section and fails to 
do so in accordance with any proclamation issued under such section, or 
in accordance with any rule or regulation issued under such section.''.
    (o) Institutional and Financial Assistance Information for 
Students.--Section 485 (20 U.S.C. 1092) is amended by striking 
subsection (k).
    (p) Early Awareness of Financial Aid Eligibility.--Section 485E (20 
U.S.C. 1092f) is amended to read as follows:

``SEC. 485E. EARLY AWARENESS OF FINANCIAL AID ELIGIBILITY.

    ``(a) In General.--The Secretary shall implement early outreach 
activities in order to provide prospective students and families with 
early information about financial aid and estimates of such prospective 
students' eligibility for financial aid. Such early outreach activities 
shall include the activities described in subsections (b), (c), and 
(d).
    ``(b) Pell Grant Early Awareness.--
            ``(1) In general.--The Secretary shall produce a consumer-
        tested method of estimating student eligibility for Federal 
        Pell Grants outlined in section 401(b) utilizing the variables 
        of family size and adjusted gross income, and presented in 
        electronic format. There shall be a method for students to 
        indicate whether they are, or will be in--
                    ``(A) a single parent household;
                    ``(B) a household with two parents; or
                    ``(C) a household with no children or dependents.
            ``(2) Consumer testing.--
                    ``(A) In general.--The method of estimating 
                eligibility described in paragraph (1) shall be 
                consumer tested with prospective first-generation 
                students and families as well as low-income individuals 
                and families.
                    ``(B) Updates.--For award year 2022-2023 and each 
                fourth succeeding award year thereafter, the design of 
                the method of estimating eligibility shall be updated 
                based on additional consumer testing with the 
                populations described in subparagraph (A).
            ``(3) Distribution.--The method of estimating eligibility 
        described in paragraph (1) shall be--
                    ``(A) made publicly and prominently available on 
                the Department of Education website; and
                    ``(B) actively shared by the Secretary with--
                            ``(i) institutions of higher education 
                        participating in programs under this title;
                            ``(ii) all middle and secondary schools 
                        eligible for funds under part A of title I of 
                        the Elementary and Secondary Education Act of 
                        1965; and
                            ``(iii) local educational agencies and 
                        middle schools and secondary schools that serve 
                        students not less than 25 percent of whom meet 
                        a measure of poverty as described in section 
                        1113(a)(5) of the Elementary and Secondary 
                        Education Act of 1965.
            ``(4) Electronic estimator.--In accordance with subsection 
        (d)(5) of section 483, the Secretary shall maintain an 
        electronic method for applicants to enter income and family 
        size information to calculate a non-binding estimate of the 
        applicant's Federal financial aid available under this title 
        and shall place such calculator on a prominent location on the 
        FAFSA website.
    ``(c) Early Awareness Plans.--The Secretary shall establish and 
implement early awareness plans to provide early information about the 
availability of Federal financial aid and estimates of prospective 
students' eligibility for Federal financial aid as well as to promote 
the attainment of postsecondary education specifically among 
prospective first-generation students and families as well as low-
income individuals and families, as follows:
            ``(1) Awareness plans for low-income children.--
                    ``(A) In general.--The Secretary shall develop 
                plans to disseminate information about the availability 
                of Federal financial aid under this title, in addition 
                to and in coordination with the distribution of the 
                method of estimating eligibility under subsection (b), 
                to--
                            ``(i) all middle schools and secondary 
                        schools eligible for funds under part A of 
                        title I of the Elementary and Secondary 
                        Education Act of 1965;
                            ``(ii) local educational agencies and 
                        middle schools and high schools that serve 
                        students not less than 25 percent of whom meet 
                        a measure of poverty as described in section 
                        1113(a)(5) of the Elementary and Secondary 
                        Education Act; and
                            ``(iii) households receiving assistance 
                        under the supplemental nutrition assistance 
                        program established under the Food and 
                        Nutrition Act of 2008 (7 U.S.C. 2011 et seq.).
                    ``(B) Reporting and updates.--The Secretary shall 
                post the information about the plans under subparagraph 
                (A) and associated goals publicly on the Department of 
                Education website. On an annual basis, the Secretary 
                shall report qualitative and quantitative outcomes 
                regarding the implementation of the plans under 
                subparagraph (A). The Secretary shall review and update 
                such plans not less often than every 4 award years with 
                the goal of progressively increasing the impact of the 
                activities under this paragraph.
                    ``(C) Partnership.--The Secretary may partner with 
                States, State systems of higher education, institutions 
                of higher education, or college access organizations to 
                carry out this paragraph.
            ``(2) Interagency coordination plans.--
                    ``(A) In general.--The Secretary shall develop 
                interagency coordination plans in order to inform more 
                prospective students and families, including low-income 
                individuals or families, about the availability of 
                Federal financial aid under this title through 
                participation in existing Federal programs or tax 
                benefits that serve low-income individuals or families, 
                in coordination with the following Secretaries:
                            ``(i) The Secretary of the Treasury.
                            ``(ii) The Secretary of Labor.
                            ``(iii) The Secretary of Health and Human 
                        Services.
                            ``(iv) The Secretary of Agriculture.
                            ``(v) The Secretary of Housing and Urban 
                        Development.
                            ``(vi) The Secretary of Commerce.
                            ``(vii) The Secretary of Veterans Affairs.
                    ``(B) Process, activities, and goals.--Each 
                interagency coordination plan under subparagraph (A) 
                shall--
                            ``(i) establish a process to identify 
                        opportunities in which low-income individuals 
                        and families could be informed of the 
                        availability of Federal financial aid under 
                        this title through access to other Federal 
                        programs that serve low-income individuals and 
                        families;
                            ``(ii) establish a process to identify 
                        methods to effectively inform low-income 
                        individuals and families of the availability of 
                        Federal financial aid for postsecondary 
                        education under this title;
                            ``(iii) develop early awareness activities 
                        that align with the opportunities and methods 
                        identified under clauses (ii) and (iii); and
                            ``(iv) establish goals regarding the 
                        effects of the activities to be implemented 
                        under clause (iii).
                    ``(C) Reporting and updates.--The Secretary shall 
                post the information about the interagency coordination 
                plans under subparagraph (B) and associated goals 
                publicly on the Department of Education website. On not 
                less often than a quadrennial basis, the Secretary 
                shall publicly report qualitative and quantitative 
                outcomes regarding the implementation of the plans on 
                the Department of Education website. The Secretary 
                shall review and update the plans not less often than 
                upon each change in Secretarial leadership with an 
                agency that is party to a plan. Updates to the plans 
                shall have the goal of progressively increasing the 
                impact of the activities under this paragraph by 
                increasing the number of low-income applicants for, and 
                recipients of, Federal financial aid.
            ``(3) Nationwide participation in early awareness plans.--
                    ``(A) In general.--The Secretary shall solicit 
                voluntary public commitments from entities, such as 
                States, State systems of higher education, institutions 
                of higher education, and other interested 
                organizations, to carry out early awareness plans, 
                which shall include goals, to--
                            ``(i) notify prospective and existing 
                        students who are low-income individuals and 
                        families about their eligibility for Federal 
                        aid under this title, as well as State-based 
                        financial aid, if applicable, on an annual 
                        basis;
                            ``(ii) increase the number of prospective 
                        and current students who are low-income 
                        individuals and families filing the Free 
                        Application for Federal Student Aid; and
                            ``(iii) increase the number of prospective 
                        and current students who are low-income 
                        individuals and families enrolling in 
                        postsecondary education.
                    ``(B) Reporting and updates.--Each entity that 
                makes a voluntary public commitment to carry out an 
                early awareness plan may submit quantitative and 
                qualitative data based on the entity's progress toward 
                the goals of the plan annually prior to a date selected 
                by the Secretary.
                    ``(C) Early awareness champions.--Based on data 
                submitted by entities, the Secretary shall select and 
                designate entities submitting public commitments, 
                plans, and goals, as Early Awareness Champions on an 
                annual basis. Those entities designated as Early 
                Awareness Champions shall provide one or more case 
                studies regarding the activities the entity undertook 
                under this paragraph which shall be made public by the 
                Secretary on the Department of Education website to 
                promote the spread of best practices.
    ``(d) Public Awareness Campaign.--
            ``(1) In general.--The Secretary shall develop and 
        implement a public awareness campaign designed using current 
        and relevant independent research regarding strategies and 
        media platforms found to be most effective in communicating 
        with low-income populations in order to increase national 
        awareness regarding the availability of Federal Pell Grants and 
        financial aid under this title.
            ``(2) Coordination.--The public awareness campaign 
        described in paragraph (1) shall leverage the activities in 
        subsections (b) and (c) to highlight eligibility among low-
        income populations. In developing and implementing the 
        campaign, the Secretary may work in coordination with States, 
        institutions of higher education, early intervention and 
        outreach programs under this title, other Federal agencies, 
        organizations involved in college access and student financial 
        aid, secondary schools, local educational agencies, public 
        libraries, community centers, businesses, employers, workforce 
        investment boards, and organizations that provide services to 
        individuals that are or were homeless, in foster care, or are 
        disconnected youth.
            ``(3) Reporting.--The Secretary shall report on the success 
        of the public awareness campaign described in paragraph (1) 
        annually regarding the extent to which the public and target 
        populations were reached using data commonly used to evaluate 
        advertising and outreach campaigns and data regarding whether 
        the campaign produced any increase in applicants for Federal 
        aid under this title publicly on the Department of Education 
        website.''.

SEC. 4. PROVIDING INCARCERATED INDIVIDUALS WITH FEDERAL PELL GRANTS.

    (a) In General.--Section 484 (20 U.S.C. 1091), as amended by 
section 3(n), is further amended by adding at the end the following:
    ``(u) Confined or Incarcerated Individuals.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Confined or incarcerated individual.--The 
                term `confined or incarcerated individual' means an 
                individual who is confined or incarcerated in a Federal 
                or State penal institution, a juvenile justice 
                facility, or a local or county jail.
                    ``(B) Eligible prison education program.--the term 
                `eligible prison education program' means an education 
                or training program that--
                            ``(i) is an eligible program under this 
                        title; and
                            ``(ii) has been approved to operate in a 
                        correctional facility by the appropriate State 
                        department of corrections or other entity that 
                        is responsible for overseeing correctional 
                        facilities or by the Bureau of Prisons.
            ``(2) Federal pell grant eligibility.--Notwithstanding 
        subsection (a), in order for a confined or incarcerated 
        individual who otherwise meets the eligibility requirements of 
        this title to be eligible to receive a Federal Pell Grant under 
        section 401, the individual shall--
                    ``(A) not be incarcerated with a sentence of life 
                without the possibility of parole; and
                    ``(B) be enrolled or accepted for enrollment in an 
                eligible prison education program at an institution of 
                higher education.
            ``(3) Ineligibility for other assistance under this act.--A 
        confined or incarcerated individual shall not be eligible to 
        receive any other student financial assistance under this Act 
        except a Federal Pell Grant in accordance with this subsection.
            ``(4) Evaluation.--In order to evaluate and improve the 
        impact of activities supported under this subsection, the 
        Secretary, in partnership with the Director of the Institute 
        for Education Sciences, shall award one or more grants to, or 
        enter into one or more cooperative agreements with, with 
        experienced public or private institutions and organizations to 
        enable the institutions and organizations to conduct an 
        external evaluation that shall--
                    ``(A) examine in-custody outcomes and post-release 
                outcomes relating to providing Federal Pell Grants to 
                confined or incarcerated individuals, including--
                            ``(i) progress towards credential 
                        attainment;
                            ``(ii) safety in prisons with eligible 
                        prison education programs;
                            ``(iii) the size of waiting lists for 
                        eligible prison education programs;
                            ``(iv) the extent to which individuals who 
                        were confined or incarcerated individuals 
                        receiving Federal Pell Grants continue their 
                        education post-release;
                            ``(v) employment and earnings outcomes for 
                        such individuals; and
                            ``(vi) rates of recidivism for such 
                        individuals; and
                    ``(B) track individuals who received Federal Pell 
                Grants under this subsection for 1 to 3 years after the 
                individuals' release from confinement or incarceration.
            ``(5) Report.--Not later than 1 year after the date of 
        enactment of the Student Aid Improvement Act of 2019 and on at 
        least an annual basis thereafter, the Secretary shall submit to 
        the authorizing committees, and make publicly available on the 
        website of the Department, a report on the impact of this 
        subsection which shall include, at a minimum--
                    ``(A) the names and types of institutions of higher 
                education offering eligible prison education programs 
                at which confined or incarcerated individuals are 
                enrolled and receiving Federal Pell grants;
                    ``(B) the number of confined or incarcerated 
                individuals receiving Federal Pell grants;
                    ``(C) the amount of Federal Pell grant expenditures 
                per eligible prison education program;
                    ``(D) the demographics of confined or incarcerated 
                individuals receiving Federal Pell Grants;
                    ``(E) the cost of attendance for such individuals;
                    ``(F) the mode of instruction (such as distance 
                education, in-person instruction, or a combination of 
                such modes) for each prison education program;
                    ``(G) information on the academic outcomes of such 
                individuals (such as credits attempted and earned, and 
                credential and degree completion); and
                    ``(H) to the extent practicable, information on 
                post-release outcomes of such individuals (such as 
                continued postsecondary enrollment, employment, and 
                recidivism).''.
    (b) Eliminating Federal Pell Grant Limitation.--Section 401(b) (20 
U.S.C. 1070a et seq.) is amended--
            (1) in paragraph (2)(A)(ii), by striking ``(7)(B)'' and 
        inserting ``(6)(B)'';
            (2) by striking paragraph (6); and
            (3) by redesignating paragraphs (7) and (8) as paragraphs 
        (6) and (7), respectively.
    (c) Effective Date.--This section, and the amendments made by this 
section, shall take effect on July 1, 2020.

SEC. 5. ALLOWING STUDENTS ENROLLED IN SHORT-TERM PROGRAMS TO RECEIVE 
              FEDERAL PELL GRANTS.

    (a) In General.--Section 481(b) (20 U.S.C. 1087vv(b)) is amended--
            (1) by redesignating paragraphs (3) and (4) as paragraphs 
        (4) and (5), respectively; and
            (2) by inserting after paragraph (2) the following:
    ``(3) Eligible Job Training Program.--
            ``(A) WIOA definitions.--In this paragraph, the terms `in-
        demand industry sector or occupation', `industry or sector 
        partnership', `local board', `recognized postsecondary 
        credential', and `State board' have the meanings given such 
        terms in section 3 of the Workforce Innovation and Opportunity 
        Act (29 U.S.C. 3102).
            ``(B) Eligibility of job training program.--An eligible job 
        training program is an eligible program for the purposes of 
        section 401 if it is a program--
                    ``(i) of not less than 150, and not more than 600, 
                clock hours of instruction offered by an institution of 
                higher education during a period of not less than 8 
                weeks and not more than 15 weeks; and
                    ``(ii) that--
                            ``(I) provides training aligned with the 
                        requirements of high-skill, high-wage, or in-
                        demand industry sectors or occupations in the 
                        State or local area;
                            ``(II) provides a student, upon completion 
                        of the program, with a recognized postsecondary 
                        credential that is recognized by employers in 
                        the relevant industry, including credentials 
                        recognized by industry or sector partnerships 
                        in the relevant industry in the State or local 
                        area where the industry is located and the job 
                        training program is provided;
                            ``(III) has been determined by the 
                        institution of higher education (after 
                        validation of that determination by a State 
                        board, local board, or an industry or sector 
                        partnership) to provide academic content, an 
                        amount of instructional time, and a recognized 
                        postsecondary credential that are sufficient 
                        to--
                                    ``(aa) meet the hiring requirements 
                                of potential employers; and
                                    ``(bb) satisfy any applicable 
                                educational prerequisite requirement 
                                for professional licensure or 
                                certification;
                            ``(IV) does not exceed by more than 50 
                        percent the minimum number of clock hours 
                        required for training for the occupation, if 
                        the State has established such a requirement;
                            ``(V)(aa) has published tuition and fees 
                        for each of the 3 preceding award years that 
                        have not increased above the annual rate of 
                        inflation (as determined by the Consumer Price 
                        Index of the Department of Labor) for the 
                        corresponding year; and
                            ``(bb) for each year while receiving funds 
                        under section 401, will publish tuition and 
                        fees for the year, which will not increase 
                        above the rate of inflation, as so determined, 
                        for the corresponding year; and
                            ``(VI) demonstrates outcomes for the most 
                        recent year that meet the level of performance 
                        or State adjusted level of performance for the 
                        State in which the institution of higher 
                        education is located for the following primary 
                        indicators of performance under section 116(b) 
                        of the Workforce Innovation and Opportunity Act 
                        for such year:
                                    ``(aa) The percentage of program 
                                participants who are in unsubsidized 
                                employment during the second quarter 
                                after exit from the program.
                                    ``(bb) The percentage of program 
                                participants who are in unsubsidized 
                                employment during the fourth quarter 
                                after exit from the program.
                                    ``(cc) The percentage of program 
                                participants who are in an education or 
                                training program that leads to a 
                                recognized postsecondary credential or 
                                employment and who are achieving 
                                measurable skill gains toward such a 
                                credential or employment.
            ``(C) Approval by the secretary.--In the case of a program 
        that is seeking to establish eligibility as an eligible job 
        training program under this paragraph, the Secretary shall make 
        a determination about whether the program meets the 
        requirements of subparagraph (B) not more than 60 days after 
        the date on which the institution submitted the program for 
        consideration as an eligible job training program.
            ``(D) Amount of award and inclusion in total eligibility 
        period.--
                    ``(i) Inclusion in total eligibility period.--Any 
                period during which a student receives a Federal Pell 
                Grant under this paragraph shall be included in 
                calculating the student's period of eligibility for 
                Federal Pell Grants under section 401(d)(5).
            ``(E) Interagency data sharing.--For the purposes of 
        subparagraph (B)(ii)(VI), the Secretary may coordinate and 
        enter into a data sharing agreement with the Secretary of Labor 
        to ensure access to data on indicators of performance collected 
        under section 116 of the Workforce Innovation and Opportunity 
        Act (29 U.S.C. 3141).''.
    (b) Effective Date.--This section shall take effect on July 1, 
2021.

SEC. 6. SUPPORTING STUDENT AFFORDABILITY BY INVESTING IN THE FEDERAL 
              PELL GRANT.

    Section 401 (20 U.S.C. 1070a) is amended--
            (1) in subsection (a)(1), by striking ``2017'' and 
        inserting ``2021''; and
            (2) in subsection (c)(7)(C)--
                    (A) in each of clauses (i)(I) and (ii)(I), by 
                striking ``(iv)(II)'' and inserting ``(v)(II)'';
                    (B) in clause (iii)--
                            (i) by striking the clause heading and 
                        inserting ``Award years 2018-2019 and 2019-
                        2020.--''; and
                            (ii) by striking ``and each subsequent 
                        award year'';
                    (C) by redesignating clause (iv) as clause (v); and
                    (D) by inserting after clause (iii) the following:
                            ``(iv) Award year 2020-2021 and subsequent 
                        award years.--For award year 2020-2021 and each 
                        subsequent award year, the amount determined 
                        under this subparagraph for purposes of 
                        subparagraph (B)(iii) shall be equal to 
                        $1,080.''.

SEC. 7. FEDERAL PELL GRANTS: AMOUNT AND DETERMINATIONS; APPLICATIONS.

    (a) Federal Pell Grants.--Beginning on the effective date described 
in subsection (b), section 401 (20 U.S.C. 1070a), as amended by 
sections 5 and 6, is further amended to read as follows:

``SEC. 401. FEDERAL PELL GRANTS: AMOUNT AND DETERMINATIONS; 
              APPLICATIONS.

    ``(a) Purpose; Definitions.--
            ``(1) Purpose.--The purpose of this subpart is to provide a 
        Federal Pell Grant to low-income students.
            ``(2) Definitions.--In this section--
                    ``(A) the term `adjusted gross income' means--
                            ``(i) in the case of a dependent student, 
                        the adjusted gross income (as defined in 
                        section 62 of the Internal Revenue Code of 
                        1986) of the student's parents in the second 
                        tax year preceding the academic year; and
                            ``(ii) in the case of an independent 
                        student, the adjusted gross income (as defined 
                        in section 62 of the Internal Revenue Code of 
                        1986) of the student (and the student's spouse, 
                        if applicable) in the second tax year preceding 
                        the academic year;
                    ``(B) the term `family size' has the meaning given 
                the term in section 480(l);
                    ``(C) the term `poverty line' means the poverty 
                line (as determined under the poverty guidelines 
                updated periodically in the Federal Register by the 
                Department of Health and Human Services under the 
                authority of section 673(2) of the Community Services 
                Block Grant Act (42 U.S.C. 9902(2))) applicable to the 
                student's family size and applicable to the second tax 
                year preceding the academic year;
                    ``(D) the term `single parent' means--
                            ``(i) a parent of a dependent student who 
                        was a head of household (as defined in section 
                        2(b) of the Internal Revenue Code of 1986) or a 
                        surviving spouse (as defined in section 2(a) of 
                        the Internal Revenue Code of 1986) or was an 
                        eligible individual for purposes of the credit 
                        under section 32 of such Code, in the second 
                        tax year preceding the academic year; or
                            ``(ii) an independent student who was a 
                        head of household (as defined in section 2(b) 
                        of the Internal Revenue Code of 1986) or a 
                        surviving spouse (as defined in section 2(a) of 
                        the Internal Revenue Code of 1986) or was an 
                        eligible individual for purposes of the credit 
                        under section 32 of such Code, in the second 
                        tax year preceding the academic year;
                    ``(E) the term `total maximum Federal Pell Grant' 
                means the total maximum Federal Pell Grant award per 
                student for any academic year described under paragraph 
                (5); and
                    ``(F) the term `minimum Federal Pell Grant' means 
                the minimum amount of a Federal Pell Grant that shall 
                be awarded to a student eligible under this subpart for 
                any academic year in which that student is attending 
                full time, which shall be equal to 10 percent of the 
                total maximum Federal Pell Grant for such academic 
                year.
    ``(b) Amount and Distribution of Grants.--
            ``(1) Determination of amount of a federal pell grant.--
        Subject to paragraphs (2) and (3), the amount of a Federal Pell 
        Grant for a student eligible under this subpart shall be 
        determined in accordance with the following:
                    ``(A) A student eligible under this subpart shall 
                be eligible for a total maximum Federal Pell Grant for 
                an academic year in which the student is enrolled in an 
                eligible program full time--
                            ``(i) if the student or, in the case of a 
                        dependent student, the dependent student's 
                        parent, is not required to file a Federal 
                        income tax return in the second year preceding 
                        the academic year;
                            ``(ii) if the student or, in the case of a 
                        dependent student, the dependent student's 
                        parent, is a single parent, if the adjusted 
                        gross income is equal to or less than 210 
                        percent of the poverty line; or
                            ``(iii) if the student or, in the case of a 
                        dependent student, the dependent student's 
                        parent, is not a single parent, if the adjusted 
                        gross income is equal to or less than 160 
                        percent of the poverty line.
                    ``(B) A student eligible under this subpart who is 
                not eligible for a total maximum Federal Pell Grant 
                under subparagraph (A) for an academic year, shall be 
                eligible for a Federal Pell Grant for an academic year 
                in which the student is enrolled in an eligible program 
                full time in an amount that is not more than the amount 
                determined in accordance with the following:
                            ``(i) If the student or, in the case of a 
                        dependent student, the dependent student's 
                        parent, is a single parent and the adjusted 
                        gross income is greater than 210 percent of the 
                        poverty line and is less than 310 percent of 
                        the poverty line, the amount shall be equal to 
                        the greater of--
                                    ``(I) the minimum Federal Pell 
                                Grant for the academic year; and
                                    ``(II) the total maximum Federal 
                                Pell Grant for the academic year, minus 
                                the product of--
                                            ``(aa) the adjusted gross 
                                        income, less an amount equal to 
                                        210 percent of the poverty 
                                        line; and
                                            ``(bb) the total maximum 
                                        Federal Pell Grant for the 
                                        academic year, divided by an 
                                        amount equal to 100 percent of 
                                        the poverty line.
                            ``(ii) If the student or, in the case of a 
                        dependent student, the dependent student's 
                        parent, is not a single parent and the adjusted 
                        gross income is greater than 160 percent of the 
                        poverty line and is less than 260 percent of 
                        the poverty line, the amount shall be equal to 
                        the greater of--
                                    ``(I) the minimum Federal Pell 
                                Grant for the academic year; and
                                    ``(II) the total maximum Federal 
                                Pell Grant for the academic year, minus 
                                the product of--
                                            ``(aa) the adjusted gross 
                                        income, less an amount equal to 
                                        160 percent of the poverty 
                                        line; and
                                            ``(bb) the total maximum 
                                        Federal Pell Grant for the 
                                        academic year, divided by an 
                                        amount equal to 100 percent of 
                                        the poverty line.
            ``(2) Less than full-time enrollment.--In any case where a 
        student is enrolled in an eligible program of 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 direct proportion to the degree to which that 
        student is not so enrolled on a full-time basis, rounded to the 
        nearest whole percentage point, as provided in a schedule of 
        reductions published by the Secretary computed in accordance 
        with this subpart. Such schedule of reductions shall be 
        published in the Federal Register in accordance with section 
        482 of this Act. Such reduced Federal Pell Grant for a student 
        enrolled on a less than full-time basis shall also apply 
        proportionally to students who are otherwise eligible to 
        receive the minimum Federal Pell Grant, if enrolled full-time.
            ``(3) Award may not exceed cost of attendance.--No Federal 
        Pell Grant under this subpart shall exceed the cost of 
        attendance (as defined in section 472) at the institution at 
        which that student is in attendance. If, with respect to any 
        student, it is determined that the amount of a Federal Pell 
        Grant for that student exceeds the cost of attendance for that 
        year, the amount of the Federal Pell Grant shall be reduced 
        until the Federal Pell Grant does not exceed the cost of 
        attendance at such institution.
            ``(4) Study abroad.--Notwithstanding any other provision of 
        this subpart, the Secretary shall allow the amount of the 
        Federal Pell Grant to be exceeded for students participating in 
        a program of study abroad approved for credit by the 
        institution at which the student is enrolled when the 
        reasonable costs of such program are greater than the cost of 
        attendance at the student's home institution, except that the 
        amount of such Federal Pell Grant in any fiscal year shall not 
        exceed the maximum amount of a Federal Pell Grant for which a 
        student is eligible under paragraph (1) or (2) during such 
        award year. If the preceding sentence applies, the financial 
        aid administrator at the home institution may use the cost of 
        the study abroad program, rather than the home institution's 
        cost, to determine the cost of attendance of the student.
            ``(5) Total maximum federal pell grant.--
                    ``(A) In general.--For award year 2021-2022, and 
                each subsequent award year, the total maximum Federal 
                Pell Grant award per student shall be equal to the sum 
                of--
                            ``(i) $1,080; and
                            ``(ii) the amount specified as the maximum 
                        Federal Pell Grant in the last enacted 
                        appropriation Act applicable to that award 
                        year.
                    ``(B) Rounding.--The total maximum Federal Pell 
                Grant for any award year shall be rounded to the 
                nearest $5.
            ``(6) Funds by fiscal year.--To carry out this section for 
        each of fiscal years 2021 through 2030--
                    ``(A) there are authorized to be appropriated and 
                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) such 
                sums as are necessary to carry out paragraph (5)(A)(i); 
                and
                    ``(B) such sums as may be necessary are authorized 
                to be appropriated to carry out paragraph (5)(A)(ii).
            ``(7) Appropriation.--
                    ``(A) In general.--In addition to any funds 
                appropriated under paragraph (6) and any funds made 
                available for this section under any appropriations 
                Act, there are authorized to be appropriated, and there 
                are appropriated (out of any money in the Treasury not 
                otherwise appropriated) to carry out this section, 
                $1,145,000,000 for fiscal year 2021 and each subsequent 
                award year.
                    ``(B) No effect on previous appropriations.--The 
                amendments made to this section by the Student Aid 
                Improvement Act of 2019 shall not--
                            ``(i) increase or decrease the amounts that 
                        have been appropriated or are available to 
                        carry out this section for fiscal year 2017, 
                        2018, 2019, or 2020 as of the day before the 
                        effective date of such Act; or
                            ``(ii) extend the period of availability 
                        for obligation that applied to any such amount, 
                        as of the day before such effective date.
            ``(8) Method of distribution.--
                    ``(A) In general.--For each fiscal year through 
                fiscal year 2030, the Secretary shall pay to each 
                eligible institution such sums as may be necessary to 
                pay each eligible student 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.
                    ``(B) Alternative disbursement.--Nothing in this 
                section shall be interpreted to prohibit the Secretary 
                from paying directly to students, in advance of the 
                beginning of the academic term, an amount for which 
                they are eligible, in the cases where an eligible 
                institution does not participate in the disbursement 
                system under subparagraph (A).
            ``(9) Additional payment periods in same award year.--
                    ``(A) Effective in the 2017-2018 award year and 
                thereafter, the Secretary shall award an eligible 
                student not more than one and one-half Federal Pell 
                Grants during a single award year to permit such 
                student to work toward completion of an eligible 
                program if, during that single award year, the student 
                has received a Federal Pell Grant for an award year and 
                is enrolled in an eligible program for one or more 
                additional payment periods during the same award year 
                that are not otherwise fully covered by the student's 
                Federal Pell Grant.
                    ``(B) In the case of a student receiving more than 
                one Federal Pell Grant in a single award year under 
                subparagraph (A), the total amount of Federal Pell 
                Grants awarded to such student for the award year may 
                exceed the total maximum Federal Pell Grant available 
                for an award year.
                    ``(C) Any period of study covered by a Federal Pell 
                Grant awarded under subparagraph (A) shall be included 
                in determining a student's duration limit under 
                subsection (d)(5).
                    ``(D) In any case where an eligible student is 
                receiving a Federal Pell Grant for a payment period 
                that spans 2 award years, the Secretary shall allow the 
                eligible institution in which the student is enrolled 
                to determine the award year to which the additional 
                period shall be assigned, as it determines is most 
                beneficial to students.
    ``(c) Special Rule.--
            ``(1) In general.--Notwithstanding any other provision of 
        this title, the total maximum Federal Pell Grant shall be 
        provided to a student described in paragraph (2).
            ``(2) Applicability.--Paragraph (1) shall apply to any 
        dependent or independent student--
                    ``(A) who is eligible to receive a Federal Pell 
                Grant for the award year for which the determination is 
                made;
                    ``(B) whose parent or guardian was--
                            ``(i) an individual who, on or after 
                        September 11, 2001, died in the line of duty 
                        while serving on active duty as a member of the 
                        Armed Forces; or
                            ``(ii) actively serving as a public safety 
                        officer and died in the line of duty while 
                        performing as a public safety officer; and
                    ``(C) who is less than 33 years of age.
            ``(3) Information.--Notwithstanding any other provision of 
        law, the Secretary shall establish the necessary data-sharing 
        agreements with the Secretary of Veterans Affairs and the 
        Secretary of Defense, as appropriate, to provide the 
        information necessary to determine which students meet the 
        requirements of paragraph (2).
            ``(4) Treatment of pell amount.--Notwithstanding section 
        1212 of the Omnibus Crime Control and Safe Streets Act of 1968 
        (34 U.S.C. 10302), in the case of a student who receives an 
        increased Federal Pell Grant amount under this section, the 
        total amount of such Federal Pell Grant, including the increase 
        under this subsection, shall not be considered in calculating 
        that student's educational assistance benefits under the Public 
        Safety Officers' Benefits program under subpart 2 of part L of 
        title I of such Act.
            ``(5) Definition of public safety officer.--For purposes of 
        this subsection, the term `public safety officer' means--
                    ``(A) a public safety officer, as defined in 
                section 1204 of title I of the Omnibus Crime Control 
                and Safe Streets Act of 1968 (34 U.S.C. 10284); or
                    ``(B) a fire police officer, defined as an 
                individual who--
                            ``(i) is serving in accordance with State 
                        or local law as an officially recognized or 
                        designated member of a legally organized public 
                        safety agency;
                            ``(ii) is not a law enforcement officer, a 
                        firefighter, a chaplain, or a member of a 
                        rescue squad or ambulance crew; and
                            ``(iii) provides scene security or directs 
                        traffic--
                                    ``(I) in response to any fire 
                                drill, fire call, or other fire, 
                                rescue, or police emergency; or
                                    ``(II) at a planned special event.
    ``(d) 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 course 
        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 noncredit or remedial 
        course of study, as described in paragraph (2), shall not be 
        counted for the purpose of this paragraph.
            ``(2) Noncredit or remedial courses; study abroad.--Nothing 
        in this section shall exclude from eligibility courses of study 
        which are noncredit 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. Nothing in 
        this section shall exclude from eligibility programs of study 
        abroad that are approved for credit by the home institution at 
        which the student is enrolled.
            ``(3) No concurrent payments.--No student is entitled to 
        receive Pell Grant payments concurrently from more than one 
        institution or from the Secretary and an institution.
            ``(4) Postbaccalaureate program.--Notwithstanding paragraph 
        (1), the Secretary may allow, on a case-by-case basis, a 
        student to receive a Federal Pell Grant if the student--
                    ``(A) is carrying at least one-half the normal 
                full-time work load for the course 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) Maximum period.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), 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 
                regulations shall provide, with respect to a student 
                who received a Federal Pell Grant for a term but was 
                enrolled at a fraction of full time, that only that 
                same fraction of such semester or equivalent shall 
                count towards such duration limits.
                    ``(B) Exception.--
                            ``(i) In general.--Any Federal Pell Grant 
                        that a student received during a period 
                        described in subclause (I) or (II) of clause 
                        (ii) shall not count towards the student's 
                        duration limits under this paragraph.
                            ``(ii) Applicable periods.--Clause (i) 
                        shall apply with respect to any Federal Pell 
                        Grant awarded to a student to enroll in an 
                        eligible program at an institution--
                                    ``(I) during a period of a 
                                student's attendance at an 
                                institution--
                                            ``(aa) at which the student 
                                        was unable to complete a course 
                                        of study due to the closing of 
                                        the institution; or
                                            ``(bb) for which the 
                                        student was falsely certified 
                                        as eligible for Federal aid 
                                        under this title; or
                                    ``(II) during a period--
                                            ``(aa) for which the 
                                        student received a loan under 
                                        this title; and
                                            ``(bb) for which the loan 
                                        described in item (aa) is 
                                        discharged under--

                                                    ``(AA) section 
                                                437(c)(1) or section 
                                                464(g)(1); or

                                                    ``(BB) section 
                                                432(a)(6).

    ``(e) Applications for Grants.--
            ``(1) Deadlines.--The Secretary shall from time to time set 
        dates by which students shall file the Free Application for 
        Federal Student Aid under this subpart.
            ``(2) Application.--Each student desiring a Federal Pell 
        Grant for any year shall file application the Free Application 
        for Federal Student Aid containing such information and 
        assurances as the Secretary may determine are necessary to 
        enable the Secretary to carry out the functions and 
        responsibilities of this subpart.
    ``(f) Distribution of Grants to Students.--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. Any disbursement allowed to be made by 
crediting the student's account shall be limited to tuition and fees, 
and food and housing if that food and housing is institutionally owned 
or operated. The student may elect to have the institution provide 
other such goods and services by crediting the student's account.
    ``(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.--
            ``(1) 15 percent or less.--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 by 15 percent or less, then 
        all of the excess funds shall remain available for making 
        payments under this subpart during the next succeeding fiscal 
        year.
            ``(2) More than 15 percent.--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 by more than 
        15 percent, then all of such funds shall remain available for 
        making such payments but payments may be made under this 
        paragraph only with respect to entitlements for that fiscal 
        year.
    ``(i) 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 Pell Grants shall not be considered to be individual grantees for 
purposes of subtitle D of title V of Public Law 100-690.
    ``(j) Institutional Ineligibility Based on Default Rates.--
            ``(1) In general.--No institution of higher education shall 
        be an eligible institution for purposes of this subpart if such 
        institution of higher education is ineligible to participate in 
        a loan program under part B or D as a result of a final default 
        rate determination made by the Secretary under part B or D 
        after the final publication of cohort default rates for fiscal 
        year 1996 or a succeeding fiscal year.
            ``(2) Sanctions subject to appeal opportunity.--No 
        institution may be subject to the terms of this subsection 
        unless the institution has had the opportunity to appeal the 
        institution's default rate determination under regulations 
        issued by the Secretary for the loan program authorized under 
        part B or D, as applicable. This subsection shall not apply to 
        an institution that was not participating in the loan program 
        authorized under part B or D on October 7, 1998, unless the 
        institution subsequently participates in the loan programs.''.
    (b) Effective Date.--This section, and the amendments made by this 
section, shall take effect on July 1, 2021.

SEC. 8. MAKING INSTITUTIONAL STUDENT AID AWARD LETTERS COMPARABLE AND 
              EASIER TO UNDERSTAND.

    Section 485 (20 U.S.C. 1092), as amended by section 3(o), is 
amended by inserting after subsection (j) the following:
    ``(k) Consumer Information for Financial Aid Recipients.--
            ``(1) Standard format and terminology for financial aid 
        offers.--The Secretary of Education, in consultation with the 
        heads of relevant Federal agencies, shall develop standard 
        terminology and a standard format for financial aid offers 
        (including a uniform title used to describe the applicable 
        document) based on recommendations from representatives of 
        students, veterans, servicemembers, students' families, 
        institutions of higher education (including community colleges, 
        for-profit institutions, 4-year public institutions, and 4-year 
        private nonprofit institutions), financial aid experts, 
        secondary school and postsecondary counselors, nonprofit 
        organizations, and consumer groups.
            ``(2) Key required contents for financial aid offer.--The 
        standard format developed under paragraph (1) shall be 
        presented in a consumer-friendly manner that is simple and 
        understandable. The standard format shall include the following 
        items clearly separated from each other with separate headings, 
        and, if in a format designed for paper shall be listed on the 
        first page of the financial aid offer and if in a format 
        designed for digital viewing shall be listed first:
                    ``(A) Cost information.--
                            ``(i) Information on the student's 
                        estimated annual cost of attendance, including 
                        the following:
                                    ``(I) Total direct costs, including 
                                the component annual totals each for--
                                            ``(aa) tuition and fees, as 
                                        determined under section 472; 
                                        and
                                            ``(bb) institutionally 
                                        owned or operated housing and 
                                        food costs (as determined based 
                                        on the costs for housing and 
                                        food under section 472).
                                    ``(II) Total estimated other annual 
                                expenses, including--
                                            ``(aa) the component totals 
                                        each for housing and food costs 
                                        for students who do not reside 
                                        on campus, as determined under 
                                        section 472(3)(D); and
                                            ``(bb) for all students, 
                                        books, supplies, 
                                        transportation, miscellaneous 
                                        personal expenses, health 
                                        insurance (if applicable), and 
                                        child care (if applicable), as 
                                        determined under section 472.
                            ``(ii) An indication of the academic period 
                        covered by the financial aid offer relative to 
                        the published program length, and an 
                        explanation that the financial aid offered may 
                        change for academic periods not covered by the 
                        aid offer.
                            ``(iii) An indication of whether cost and 
                        aid estimates are based on full-time or part-
                        time enrollment.
                            ``(iv) An indication, as applicable, about 
                        whether the tuition and fees are estimated 
                        based on the previous year, or are set, for the 
                        academic period covered by the financial aid 
                        offer indicated in accordance with clause (ii).
                    ``(B) Grant and scholarship aid.--The amount and 
                source of financial aid that the student does not have 
                to repay, such as scholarships, grant aid offered under 
                this title, grant aid offered through other Federal 
                programs, or grant aid offered by the institution, a 
                State, or, if known, an outside source to the student 
                for such academic period, including--
                            ``(i) a disclosure that the financial aid 
                        does not have to be repaid; and
                            ``(ii) if institutional aid is included--
                                    ``(I) the conditions under which 
                                the student can expect to receive 
                                similar amounts of such financial aid 
                                for each academic period the student is 
                                enrolled at the institution; and
                                    ``(II) whether the institutional 
                                aid offer may change if grants or 
                                scholarships from outside sources are 
                                applied after the student receives the 
                                offer, and, if applicable, how that aid 
                                will change.
                    ``(C) Annual net price.--
                            ``(i) The net price that the student, or 
                        the student's family on behalf of the student, 
                        is estimated to have to pay for the student to 
                        attend the institution for such academic 
                        period, equal to--
                                    ``(I) the cost of attendance as 
                                described in subparagraph (A)(i) for 
                                the student for the period indicated in 
                                subparagraph (A)(ii); and
                                    ``(II) minus the amount of grant 
                                aid described in subparagraph (B) that 
                                is included in the financial aid offer.
                            ``(ii) A disclosure that the net price is 
                        an estimate of the total expenses for the year 
                        and not the amount that the student will owe 
                        directly to the institution.
                    ``(D) Work-study.--Information on work-study 
                employment opportunities, offered in accordance with 
                part C.
                            ``(i) This information shall include--
                                    ``(I) the amount of work-study 
                                offered;
                                    ``(II) a disclosure that the work-
                                study aid offered is subject to the 
                                availability of qualified employment 
                                opportunities;
                                    ``(III) a statement that work-study 
                                aid does not need to be repaid and can 
                                offset the need to borrow; and
                                    ``(IV) a disclosure that work-study 
                                is disbursed over time as earned by the 
                                student.
                            ``(ii) Work-study employment opportunities 
                        (or a student's potential income based on those 
                        opportunities) shall not be included in the 
                        category of financial aid described under 
                        subparagraph (B).
                    ``(E) Loans.--
                            ``(i) Information on the amount of loans 
                        under part D (except a Federal Direct PLUS Loan 
                        under part D) that the institution recommends 
                        for the student for the academic period covered 
                        by the offer, which shall be made--
                                    ``(I) with clear use of the word 
                                `loan' to describe the recommended loan 
                                amounts; and
                                    ``(II) with clear labeling of 
                                subsidized and unsubsidized loans.
                            ``(ii) A disclosure that such loans have to 
                        be repaid and a disclosure that the student can 
                        borrow a lesser or, if applicable, greater 
                        amount than the recommended loan amount.
                            ``(iii) If an institution's recommended 
                        Federal student loan amount is less than the 
                        Federal maximum available to the student, the 
                        institution shall clearly state the applicable 
                        loan limit for Federal student loans for which 
                        the student is eligible and a prominent 
                        recommendation that students should exhaust any 
                        Federal student loan eligibility before taking 
                        out private education loans.
                            ``(iv) A disclosure that the interest rates 
                        and fees on such loans are set annually and 
                        affect total cost over time, and a link to 
                        electronic information by the Department of 
                        Education that includes current information on 
                        interest rates and fees.
                            ``(v) A link to the Department of 
                        Education's electronic repayment calculator for 
                        students with instruction that this calculator 
                        contains customizable estimates of expected 
                        repayment costs under different loan repayment 
                        plans.
                            ``(vi) If the institution does not 
                        participate in the loan program under part D, 
                        an explanation of why the institution does not 
                        participate, and a disclosure that students may 
                        have the option to borrower Federal student 
                        loans at another institution.
                    ``(F) Process for accepting or declining aid and 
                next steps.--
                            ``(i) The deadlines and a summary of the 
                        process (including the next steps) for--
                                    ``(I) accepting the financial aid 
                                offered in the financial aid offer;
                                    ``(II) requesting different loan 
                                amounts than the recommended loan 
                                amounts; and
                                    ``(III) declining aid offered.
                            ``(ii) Information on when and how direct 
                        costs to the institution must be paid.
                            ``(iii) A disclosure that verification of 
                        financial circumstances may require the student 
                        to submit further documentation.
                            ``(iv) Information about where a student or 
                        the student's family can seek additional 
                        information regarding the financial aid 
                        offered, including contact information for the 
                        institution's financial aid office and the 
                        Department of Education's website on financial 
                        aid.
                    ``(G) Additional information.--If in consultation 
                with the heads of relevant Federal agencies, including 
                the Secretary of the Treasury and the Director of the 
                Bureau of Consumer Financial Protection, the Secretary 
                determines the inclusion of additional information is 
                necessary (based on the results of the consumer testing 
                under paragraph (7)(B)) so that students and parents 
                can make informed loan borrowing decisions, this 
                information shall be included. Such information may 
                include--
                            ``(i) the most recent cohort default rate, 
                        as defined in section 435(m) with respect to an 
                        institution where more than 30 percent of 
                        enrolled students borrow loans to pay for their 
                        education, and a comparison to the national 
                        average cohort default rate;
                            ``(ii) the percentage of students at the 
                        institution who borrow student loans;
                            ``(iii) the median loan debt at graduation 
                        for students at the institution (clearly marked 
                        as including only Federal loans if private loan 
                        data are not available to be included);
                            ``(iv) the estimated monthly loan payment 
                        based on--
                                    ``(I) the median loan debt at 
                                graduation calculated under clause 
                                (iii) and the standard repayment plan; 
                                and
                                    ``(II) the median loan debt at 
                                graduation calculated under clause 
                                (iii) and the median payment for 
                                various example salaries under the 
                                Income Contingent Repayment plan known 
                                as Revised Pay As You Earn; and
                            ``(v) the estimated institutional charges 
                        that the student, or the student's family on 
                        behalf of the student, will have to pay 
                        directly to the institution for the student to 
                        attend the institution for the academic period 
                        described in subparagraph (A)(ii), equal to--
                                    ``(I) the total direct costs 
                                described in subparagraph (A)(i)(I) for 
                                the student for the period indicated in 
                                subparagraph (A)(ii); minus
                                    ``(II) the amount of grant aid 
                                described in subparagraph (B) that is 
                                included on the financial aid offer.
            ``(3) Other required contents for the financial aid 
        offer.--The standard financial aid offer developed under 
        paragraph (1) shall include, in addition to the information 
        described in paragraph (2), the following information in a 
        concise format located after the requirements of paragraph (2), 
        where the format shall be designed by the Secretary of 
        Education in consultation with the heads of relevant Federal 
        agencies:
                    ``(A) Information at the institution's 
                discretion.--At the institution's discretion--
                            ``(i) additional options and potential 
                        resources for paying for the amount listed in 
                        paragraph (2)(C), such as tuition payment 
                        plans;
                            ``(ii) for an undergraduate student, a 
                        disclosure that Federal Direct Parent PLUS 
                        Loans borrowed on behalf of the student or 
                        private education loans may be available to 
                        cover unmet financial need, except that the 
                        institution must include a disclosure that such 
                        loans are subject to an additional application 
                        process, have to be repaid by the borrower or 
                        the borrower's parents, as applicable, include 
                        the applicable interest rate in the case of 
                        Federal Direct PLUS Loans, and that such loans 
                        may not be eligible for all the benefits 
                        available for Federal Direct Subsidized Loans 
                        or Federal Direct Unsubsidized Loans; and
                            ``(iii) for a graduate student, a 
                        disclosure that private education loans may be 
                        available to cover unmet financial need, except 
                        that the institution must include a disclosure 
                        that such loans are subject to an additional 
                        application process, have to be repaid by the 
                        borrower, and are not eligible for all the 
                        benefits available for Federal Direct Loans or 
                        Federal PLUS Loans.
                    ``(B) Disclosures regarding private education 
                loans.--If the institution includes private education 
                loans in the financial aid offer, as allowed under 
                subparagraph (A), the following information shall be 
                included:
                            ``(i) A statement that students considering 
                        borrowing to cover unmet need should exhaust 
                        available Federal financial aid, including 
                        Federal student loans, prior to applying for or 
                        taking out private education loans, including 
                        an explanation that Federal student loans offer 
                        generally more favorable terms and beneficial 
                        repayment options than private education loans.
                            ``(ii) The impact of private education 
                        loans on the student's potential eligibility 
                        for other financial assistance, including 
                        Federal financial assistance under this title.
                            ``(iii) A statement explaining the 
                        student's ability to select a private 
                        educational lender of the student's choice.
                            ``(iv) For any dependent student, 
                        information about the availability of, and 
                        terms and conditions associated with, Federal 
                        Direct PLUS Loans under section 455 for the 
                        student's parents regardless of family income.
                            ``(v) For any dependent student, a 
                        notification of the student's increased 
                        eligibility for Federal student loans under 
                        this title if the student's parents apply for a 
                        Federal Direct PLUS loan and are denied.
                    ``(C) Total cost of degree or certificate program 
                information.--The following information regarding the 
                total cost of a degree or certificate program:
                            ``(i) Total cost of attendance.--
                        Information on the student's estimated total 
                        cost of attendance, based on the published 
                        program length, including the following:
                                    ``(I) Total estimated direct costs 
                                based on the published program length, 
                                including the component totals each 
                                for--
                                            ``(aa) tuition and fees, as 
                                        determined under section 472; 
                                        and
                                            ``(bb) institutionally 
                                        owned or operated housing and 
                                        food costs (as determined based 
                                        on the costs for housing and 
                                        food under section 472).
                                    ``(II) Total estimated other 
                                expenses based on the published program 
                                length, including--
                                            ``(aa) the component totals 
                                        each for housing and food costs 
                                        for students who reside off-
                                        campus; and
                                            ``(bb) for all students, 
                                        books, supplies, 
                                        transportation, miscellaneous 
                                        personal expenses, health 
                                        insurance (if applicable), and 
                                        child care (if applicable), as 
                                        determined under section 472.
                            ``(ii) Total net price.--
                                    ``(I) The estimated total net price 
                                that the student, or the student's 
                                family on behalf of the student, is 
                                estimated to have to pay for the 
                                student to attend the institution for 
                                the published program length, equal 
                                to--
                                            ``(aa) the estimated total 
                                        cost of attendance as described 
                                        in clause (i) for the student 
                                        based on the published program 
                                        length; minus
                                            ``(bb) the estimated total 
                                        amount of grant aid described 
                                        in paragraph (2)(B) that is 
                                        estimated to continue for the 
                                        program length and is included 
                                        in the financial aid offer, 
                                        based on the published program 
                                        length.
                                    ``(II) A disclosure that the 
                                estimated total net price is an 
                                estimate of the total expenses for the 
                                published program length and not 
                                equivalent to the amount the student 
                                will owe directly to the institution 
                                over the published program length.
            ``(4) Additional requirements for financial aid offer.--The 
        financial aid offer shall meet the following requirements:
                    ``(A) Include, in addition to the requirements 
                described in paragraphs (2) and (3), a concise summary, 
                in plain language, of--
                            ``(i) the terms and conditions of financial 
                        aid recommended under subparagraphs (B), (D), 
                        and (E) of paragraph (2), and a method to 
                        provide students with additional information 
                        about such terms and conditions, such as links 
                        to the supplementary information; and
                            ``(ii) Federal, State, or institutional 
                        conditions required to receive and renew 
                        financial aid and a method to provide students 
                        with additional information about these 
                        conditions, such as links to the supplementary 
                        information.
                    ``(B) Clearly distinguish between the aid offered 
                in subparagraphs (B), (D), and (E) of paragraph (2), by 
                including a subtotal for the aid offered in each of 
                such subparagraphs which shall not combine the 
                different types of aid described in such subparagraphs.
                    ``(C) Use standard terminology and definitions, as 
                required in paragraph (5)(A), and use plain language 
                where possible.
                    ``(D) Use the standard financial aid offer 
                described in paragraph (5)(B).
                    ``(E) Include the standardized statement regarding 
                the possible availability of Federal education 
                benefits, as established by the Secretary in accordance 
                with paragraph (5)(C).
                    ``(F) Include a delivery confirmation for 
                electronic financial aid offer, except that receipt of 
                the financial aid offer shall not be considered an 
                acceptance or rejection of aid by the student.
            ``(5) Standard information established by the secretary.--
                    ``(A) Standard terminology.--The Secretary of 
                Education shall use the standard terminology developed 
                under paragraph (8).
                    ``(B) Standard financial aid offer.--
                            ``(i) In general.--The Secretary of 
                        Education shall develop multiple draft 
                        financial aid offers for consumer testing, 
                        carry out consumer testing for such offers, and 
                        establish a finalized standard financial aid 
                        offer or offers, in accordance with the process 
                        established in paragraph (7) and the 
                        requirements of this subsection.
                            ``(ii) Standard financial aid offer forms 
                        for different types of students.--Subject to 
                        the requirements for consumer testing and 
                        development described in paragraph (7), the 
                        Secretary may develop separate financial aid 
                        offer formatting for each of the following 
                        individual types of students that must follow a 
                        standard format within each such individual 
                        type of students:
                                    ``(I) New undergraduate students.
                                    ``(II) Returning undergraduate 
                                students.
                                    ``(III) New graduate and 
                                professional students.
                                    ``(IV) Returning graduate and 
                                professional students.
                    ``(C) Additional education benefits.--The Secretary 
                of Education, in consultation with the heads of 
                relevant Federal agencies, including the Secretary of 
                the Treasury, the Secretary of Veterans Affairs, the 
                Secretary of Defense, and the Director of the Consumer 
                Financial Protection Bureau, shall establish standard 
                language notifying students that they may be eligible 
                for education benefits (and where students can locate 
                more information about such benefits), including 
                benefits in accordance with each of the following:
                            ``(i) Chapter 30, 31, 32, 33, 34, or 35 of 
                        title 38, United States Code.
                            ``(ii) Chapter 101, 105, 106A, 1606, 1607, 
                        or 1608 of title 10, United States Code.
                            ``(iii) Section 1784a, 2005, or 2007 of 
                        title 10, United States Code.
                    ``(D) Additional means-tested benefits.--The 
                Secretary of Education, in consultation with the heads 
                of relevant Federal agencies, shall establish standard 
                language notifying students that they may be eligible 
                for means-tested benefits (and where students can 
                locate more information about such benefits) including 
                benefits from--
                            ``(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 under the Food and Nutrition 
                        Act of 2008 (7 U.S.C. 2011 et seq.);
                            ``(iii) the program of block grants for 
                        States for temporary assistance for needy 
                        families established under part A of title IV 
                        of the Social Security Act (42 U.S.C. 601 et 
                        seq.);
                            ``(iv) 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);
                            ``(v) the Medicaid program under title XIX 
                        of the Social Security Act (42 U.S.C. 1396 et 
                        seq.); and
                            ``(vi) any other means-tested program 
                        determined by the Secretary to be appropriate.
            ``(6) Supplemental information; removal of information.--
                    ``(A) Supplemental information.--Nothing in this 
                section shall preclude an institution from 
                supplementing the financial aid offer with additional 
                information if such additional information supplements 
                the financial aid offer and is not located on the 
                financial aid offer, and provided such information 
                utilizes the same standard terminology identified in 
                paragraph (5)(A).
                    ``(B) Removal of information.--Nothing in this 
                section shall preclude an institution from deleting a 
                required item if the borrower is ineligible for such 
                aid.
            ``(7) Development of standardized financial aid offer.--
                    ``(A) Draft standardized offer.--Not later than 13 
                months after the date of enactment of the Student Aid 
                Improvement Act of 2019, the Secretary of Education, in 
                consultation with the heads of relevant Federal 
                agencies, including the Secretary of the Treasury and 
                the Director of the Consumer Financial Protection 
                Bureau, representatives of institutions of higher 
                education, nonprofit consumer groups, students, and 
                secondary school and higher education guidance 
                counselors, shall design and produce multiple draft 
                financial aid offers for consumer testing with 
                postsecondary students or prospective students. In 
                developing that offer or those offers, the Secretary 
                shall ensure--
                            ``(i) that the information described in 
                        subparagraphs (A) through (E) of paragraph (2) 
                        is in the same font, appears in the same order, 
                        and is displayed prominently on the first page 
                        of the financial aid offer, if in paper format, 
                        or in a similarly prominent place if in 
                        electronic format, such that none of that 
                        information is inappropriately omitted or de-
                        emphasized;
                            ``(ii) that the other information required 
                        in paragraph (2) appears in a standard format 
                        and design on the financial aid offer; and
                            ``(iii) that the institution may include a 
                        logo or brand alongside the title of the 
                        financial aid offer.
                    ``(B) Consumer testing.--
                            ``(i) In general.--The Secretary of 
                        Education, in consultation with the heads of 
                        relevant Federal agencies, shall establish a 
                        process to submit the financial aid offer 
                        drafts developed under subparagraph (A) for 
                        consumer testing among representatives of 
                        students (including low-income students, first 
                        generation college students, adult students, 
                        veterans, servicemembers, and prospective 
                        students), students' families (including low-
                        income families, families with first generation 
                        college students, and families with prospective 
                        students), institutions of higher education, 
                        secondary school and postsecondary counselors, 
                        and nonprofit consumer groups.
                            ``(ii) Pilot.--During such consumer 
                        testing, the Secretary shall ensure that not 
                        less than 25 and not more than 50 eligible 
                        institutions use the draft offers developed 
                        under subparagraph (A), including 
                        institutions--
                                    ``(I) that reflect a proportionate 
                                representation (based on the total 
                                number of students enrolled in 
                                postsecondary education) of community 
                                colleges, for-profit institutions, 4-
                                year public institutions, and 4-year 
                                private nonprofit institutions; and
                                    ``(II) that reflect geographic 
                                diversity.
                    ``(C) Final offer format.--
                            ``(i) In general.--The results of consumer 
                        testing under subparagraph (B) shall be used in 
                        the final development of the financial aid 
                        offer.
                            ``(ii) Reporting requirement.--Not later 
                        than 2 years after the date of enactment of the 
                        Student Aid Improvement Act of 2019, the 
                        Secretary of Education shall submit to Congress 
                        and publish on its website the final standard 
                        financial aid offer and a report detailing the 
                        results of such testing, including whether the 
                        Secretary of Education added any additional 
                        items to the standard financial aid offer 
                        pursuant to paragraph (2)(G) or whether the 
                        Secretary of Education is recommending the use 
                        of multiple formats under paragraph (5)(B).
                            ``(iii) Special rule for different 
                        formats.--If, based on the consumer testing 
                        under subparagraph (B), there is strong 
                        evidence for the use of different offers that 
                        follow a standard format for individual types 
                        of students as described in paragraph 
                        (5)(B)(ii), the Secretary shall release more 
                        than one standardized final financial aid offer 
                        so long as each form follows a standard format 
                        for each individual type of student.
                    ``(D) Authority to modify.--The Secretary of 
                Education may modify the definitions, terms, 
                formatting, and design of the financial aid offer based 
                on the results of consumer testing required under this 
                subsection and before finalizing the offer, or in 
                subsequent consumer testing. The Secretary may also 
                recommend additional changes to Congress.
                    ``(E) Use by institutions.--As soon as practicable, 
                and not later than for the 2023-2024 award year, each 
                eligible institution shall use the final standard 
                financial aid offer, as published in accordance with 
                subparagraph (C) (which may include different 
                standardized final financial aid offers if established 
                under subparagraph (C)(iii)).
            ``(8) Development of standard terminology for federal 
        student aid.--
                    ``(A) In general.--Not later than 180 days after 
                the date of enactment of the Student Aid Improvement 
                Act of 2019, the Secretary, in consultation with other 
                relevant Federal agencies, representatives of 
                institutions of higher education, nonprofit consumer 
                groups, students, and secondary school and 
                postsecondary school guidance counselors, shall develop 
                or identify and release for notice and comment for a 
                period of 60 days--
                            ``(i) standard terms and definitions for 
                        each term listed in subparagraphs (A) through 
                        (E) of paragraph (2);
                            ``(ii) standard names and a summary of the 
                        terms and conditions of each individual Federal 
                        grant and work-study program under this title, 
                        including general information about 
                        eligibility; and
                            ``(iii) standard names and a summary of the 
                        terms and conditions of each Federal loan 
                        program under this title, including general 
                        information about eligibility, current interest 
                        rates, the ability to make payments based on 
                        income, forgiveness, cancellation, and any 
                        other available benefits of the Federal loan 
                        program.
                    ``(B) Consumer testing.--
                            ``(i) In general.--The Secretary shall 
                        conduct consumer testing on the items developed 
                        under this paragraph among representatives of 
                        students (including low-income students, first 
                        generation college students, adult students, 
                        and prospective students), students' families 
                        (including low-income families, families of 
                        first generation college students, and families 
                        of prospective students), institutions of 
                        higher education, secondary school and 
                        postsecondary school counselors, and nonprofit 
                        consumer groups.
                            ``(ii) Use of results.--The Secretary 
                        shall--
                                    ``(I) use the results of the 
                                consumer testing under this clause in 
                                the final establishment of each of the 
                                items listed in subparagraph (A); and
                                    ``(II) share the results of that 
                                testing with relevant stakeholders.
                    ``(C) Report to congress.--Not later than 1 year 
                after the date of enactment of the Student Aid 
                Improvement Act of 2019, and after the consideration of 
                public comments received pursuant to subparagraph (A), 
                the Secretary shall submit a report to Congress 
                containing--
                            ``(i) the final names, definitions, 
                        summaries, terms, conditions, and other 
                        information described in subparagraph (A) 
                        determined necessary by the Secretary; and
                            ``(ii) the results of the consumer testing 
                        under subparagraph (B).
                    ``(D) Issuance, use, updates.--
                            ``(i) Issuance.--Not later than 1 year 
                        after the date of enactment of the Student Aid 
                        Improvement Act of 2019, the Secretary shall 
                        publish in the Federal Register and make 
                        publicly available the final established names, 
                        definitions, summaries, terms, and conditions, 
                        as described in subparagraph (A) and contained 
                        in the report under subparagraph (C).
                            ``(ii) Use by institutions.--As soon as 
                        practicable, and not later than for the 2022-
                        2023 award year, each eligible institution 
                        shall use the final established names, 
                        definitions, summaries, and terms and 
                        conditions, as published in accordance with 
                        clause (i), for any communication that is 
                        required under this subsection.
                            ``(iii) Use by the department.--As soon as 
                        practicable, the Department of Education shall 
                        use the final established names, definitions, 
                        summaries, terms, and conditions, as published 
                        in accordance with clause (i), for any 
                        communication regarding programs under this 
                        title.
                            ``(iv) Updates.--The Secretary shall--
                                    ``(I) issue updates to the items 
                                listed in subparagraph (A) as necessary 
                                and appropriate;
                                    ``(II) issue such updates in a 
                                manner that is consistent with and 
                                sensitive to established institutional 
                                financial aid processes;
                                    ``(III) issue significant updates 
                                only after conducting additional 
                                consumer testing in accordance with 
                                subparagraph (B); and
                                    ``(IV) publish any such updates in 
                                the Federal Register and make them 
                                publicly available.''.

SEC. 9. CREATING FAIRNESS IN LOAN REPAYMENT.

    Section 455(d) (20 U.S.C. 1087e(d)) is amended--
            (1) by redesignating paragraphs (2) through (5) as 
        paragraphs (3) through (6), respectively;
            (2) in paragraph (4), as redesignated by paragraph (1), by 
        striking ``paragraph (2)'' and inserting ``paragraph (3)''; and
            (3) by inserting after paragraph (1) the following:
            ``(2) Fairness in loan repayment.--With respect to any new 
        borrower on or after July 1, 2020, who elects a repayment plan 
        that is authorized, created under the authority of, or 
        otherwise offered by the Secretary under subparagraph (D) or 
        (E) of paragraph (1), the borrower shall not be subject to a 
        maximum monthly payment based on a 10-year standard repayment 
        plan as described in section 493C(b)(6)(A) or any other maximum 
        monthly payment.''.
                                 <all>