[Congressional Record Volume 151, Number 79 (Wednesday, June 15, 2005)]
[Senate]
[Pages S6660-S6661]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. CORZINE (for himself, Mr. Kennedy, Mrs. Clinton, and Mr. 
        Reed):
  S. 1249. A bill to require the Secretary of Education to rebate the 
amount of Federal Pell Grant aid lost as a result of the update to the 
tables for State and other taxes used in the Federal student aid need 
analysis for award year 2005-2006; to the Committee on Health, 
Education, Labor, and Pensions.
  Mr. CORZINE. Mr. President, I join with Senator Kennedy and others 
today in introducing an urgent and critical piece of legislation, the 
Student Fairness Act.
  This bill would provide rebates to the many college students who will 
be receiving a dramatic reduction in their Federal financial aid come 
the return of classes this September. Due to an obscure change made in 
December of 2004 to a complicated and little-known formula used by the 
Department of Education to determine Pell Grant eligibility and 
allotment, many students will see a surprising increase in their 
expected family contribution, EFC, and a decrease in their Pell Grants. 
We must act now to prevent these decreases in aid from pricing our 
students out of college, forcing them to postpone their education and 
put their career goals on hold.
  These changes to the tax tables, at the behest of the Administration, 
have the effect of cutting $300 million from the successful Pell grant 
program, upon which more than 5 million students nationwide rely. It is 
projected that, as a result of these cuts, 1.3 million students will 
see a reduction in their Pell grants and a projected 90,000 more will 
become ineligible entirely for Pell grant assistance. According to a 
survey performed by the New York Times, some students could lose up to 
$6,000 in financial aid and the average family will have to pay an 
extra $1,700 before clearing the eligibility bar.
  Although the situation is imminent, this is not the first time the 
Senate has acted to block such changes to the Pell Grant award formula. 
I successfully secured language in the FY04 Onmibus Appropriations bill 
that blocked the administration from carrying out a similar plan for 
the 2004-2005 school year. The same provision, however, was dropped 
during the conference deliberations of the FY05 Omnibus Appropriations 
bill. In response, I, along with 31 of my Senate colleagues, introduced 
S. 187, the Ensuring College Access for All Americans Act, which would 
have prevented the new calculations from reducing Pell Grants for the 
2005-2006 academic year. Alas, the Senate has not acted with enough 
haste, and by now many financial aid departments have already 
determined their student aid packages based on the new figures. 
Students are beginning to realize the harsh reality of rising college 
tuitions matched by a government unwilling to support its own future 
leaders. Our only remaining option is to provide these students with 
these rebates so that they will not lose their financial aid for the 
coming school year.
  This bill calls on the Secretary of Education to calculate the 
increase in a student's expected family contribution due to the tax 
table modifications and then provides each such student with a rebate 
equal to that increase. The legislation would hold harmless any student 
whose expected family contribution decreased or stayed the same as a 
result of the changes. Furthermore, the rebate would be treated in the 
same manner as other financial assistance for tax purposes and would 
not affect future Pell Grant eligibility.

[[Page S6661]]

  In addition, our bill has recently received the endorsement of the 
Campaign for America's Future, an organization that has been a great 
advocate for students and has been actively collecting stories from 
American students about the incredible impact of financial aid on their 
lives.
  I thank the National Association of Student Financial Aid 
Administrators for their help in crafting this bill and their support 
in helping students receive the financial aid they deserve.
  I urge my colleagues to pass the Student Fairness Act immediately to 
prevent any student from putting off college because their financial 
aid has suddenly and mysteriously disappeared.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1249

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Student Fairness Act''.

     SEC. 2. REBATE REQUIRED.

       (a) Calculation of Expected Family Contribution.--Beginning 
     60 days after the date of enactment of this Act, the 
     Secretary of Education (referred to in this Act as the 
     ``Secretary'') shall, for each student who submits a 
     completed Free Application for Federal Student Aid described 
     in section 483 of the Higher Education Act of 1965 (20 U.S.C. 
     1090) for the 2005-2006 award year, calculate--
       (1) the expected family contribution, as determined for 
     such student for such award year on the basis of the 
     allowance for State and other taxes as adjusted by the 
     updated tax tables published in the Federal Register on 
     Thursday, December 23, 2004 (69 Fed. Reg. 76926-76927); and
       (2) the expected family contribution that would apply to 
     such student if such calculation was based upon the allowance 
     for State and other taxes used for the 2004-2005 award year.
       (b) Rebate the Difference in the Pell Grant Award.--
       (1) In general.--For each student for whom the amount 
     determined under subsection (a)(1) exceeds the amount 
     determined under subsection (a)(2), the Secretary shall--
       (A) determine the amount (if any) by which--
       (i) the Federal Pell Grant aid under subpart 1 of part A of 
     title IV of the Higher Education Act of 1965 (20 U.S.C. 1070a 
     et seq.) that would have been provided to such student if 
     such calculation was based upon the allowance for State and 
     other taxes for the 2004-2005 award year, exceeds
       (ii) the Federal Pell Grant aid provided to such student 
     for award year 2005-2006, based upon the updated tax tables 
     described in subsection (a)(1); and
       (B) not later than 30 days after the date of the 
     determination under subparagraph (A), provide directly to 
     such student a rebate equal to the amount of such excess.
       (2) No reduction.--If the amount determined under 
     subsection (a)(1) for a student is equal to or less than the 
     amount determined under subsection (a)(2), the Secretary 
     shall not reduce the amount of the Federal Pell Grant under 
     subpart 1 of part A of title IV of the Higher Education Act 
     of 1965 (20 U.S.C. 1070a et seq.) available for such student 
     based on the updated tax tables described in subsection 
     (a)(1) for award year 2005-2006.
       (c) Treatment of Rebate.--Any rebate amount provided to a 
     student under this section shall not be--
       (1) treated as a resource or estimated financial aid for 
     determining an overaward;
       (2) adjusted based upon the student's attendance status 
     during the 2005-2006 payment period;
       (3) included as assistance provided to such student under 
     section 484B of the Higher Education Act of 1965 (20 U.S.C. 
     1091b);
       (4) considered as income received when completing any form 
     required by the Secretary under section 483 of the Higher 
     Education Act of 1965 (20 U.S.C. 1090); and
       (5) treated as other financial aid, assets, or income for 
     purposes of determining the need for financial assistance for 
     any award year subsequent to award year 2005-2006.
       (d) Authority to Use Contractors for Administration.--
       (1) In general.--Except as provided in paragraph (2), the 
     Secretary may provide by contract for the administration of 
     the requirements of this section.
       (2) Institutions not required to perform administrative 
     tasks.--Any institution that is eligible to participate in 
     programs under subpart 1 of part A of title IV of the Higher 
     Education Act of 1965 (20 U.S.C. 1070a et seq.) shall not be 
     required to perform any administrative requirement under this 
     Act.
       (e) Use of Fafsa Data Permitted.--The Secretary may use 
     information provided on the Free Application for Federal 
     Student Aid to comply with the requirements of this section.
       (f) Required Payments of Rebate.--The Secretary shall 
     transfer any unobligated funds available to the Secretary 
     under the Consolidated Appropriations Act, 2005 (Public Law 
     108-447) as may be necessary to carry out this Act.

  Mr. KENNEDY. Mr. President, today I join Senators Corzine, Clinton, 
and Reed to introduce legislation to ease the harsh effects of the 
implementation of changes in the State and local tax tables on college 
students receiving need-based financial aid.
  When a decision is made by any administration that affects what 
families pay for college, it is important for Congress to understand 
the factors that led to the decision and the impact of the decision on 
the Nation's families.
  In light of the slumping economy, State budget crises, and rising 
college costs, the Department's proposed changes come at a very 
difficult time for students and their families. Raising the cost of 
tuition by a few hundred dollars may force a student to leave school, 
and it is our responsibility to ensure that these changes are being 
made for sound reasons.
  The Department is authorized to make annual revisions in the State 
and local tax tables, but for years the lag in the data has made 
administrations reconsider making changes. We need to look for better 
ways to make sure that the data reflect the taxes that are currently 
being paid by families before we adjust the tables.
  I urge the Department of Education to work with Congress to decide if 
these data are indeed the best information that we have. We can use the 
opportunity of the reauthorization of the Higher Education Act this 
year to find a data source that provides timely, accurate information. 
Until we have done so, I urge my colleagues to support the Kennedy-
Corzine bill, so that thousands of students who are harmed by these 
changes can retain their grants of aid and continue their college 
education.
                                 ______