Sec. 4. Definitions; Special rule for parent borrowers
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Part A of title IV ( 20 U.S.C. 1070 et seq. ) is amended, in the matter preceding subpart 1, by striking section 400 and inserting the following: In part A and part F: The term cost of attendance means— tuition and fees normally assessed a student carrying the same academic workload as determined by the institution, and including costs for rental or purchase of any equipment, materials, or supplies required of all students in the same course of study; an allowance for books, supplies, transportation, and miscellaneous personal expenses, including a reasonable allowance for the documented rental or purchase of a personal computer, for a student attending the institution on at least a half-time basis, as determined by the institution; an allowance (as determined by the institution) for room and board costs incurred by the student which— shall be an allowance determined by the institution for a student without dependents residing at home with parents; for students without dependents residing in institutionally owned or operated housing, shall be a standard allowance determined by the institution based on the amount normally assessed most of its residents for room and board; for students who live in housing located on a military base or for which a basic allowance is provided under section 403(b) of title 37, United States Code, shall be an allowance based on the expenses reasonably incurred by such students for board but not for room; and for all other students shall be an allowance based on the expenses reasonably incurred by such students for room and board; for less than half-time students (as determined by the institution), tuition and fees and an allowance for only— books, supplies, and transportation (as determined by the institution); dependent care expenses (determined in accordance with subparagraph (H)); and room and board costs (determined in accordance with subparagraph (C)), except that a student may receive an allowance for such costs under this subparagraph for not more than 3 semesters or the equivalent, of which not more than 2 semesters or the equivalent may be consecutive; for a student engaged in a program of study by correspondence, only tuition and fees and, if required, books and supplies, travel, and room and board costs incurred specifically in fulfilling a required period of residential training; for incarcerated students only tuition and fees and, if required, books and supplies; for a student enrolled in an academic program in a program of study abroad approved for credit by the student's home institution, reasonable costs associated with such study (as determined by the institution at which such student is enrolled); for a student with one or more dependents, an allowance based on the estimated actual expenses incurred for such dependent care, based on the number and age of such dependents, except that— such allowance shall not exceed the reasonable cost in the community in which such student resides for the kind of care provided; and the period for which dependent care is required includes, but is not limited to, class-time, study-time, field work, internships, and commuting time; for a student with a disability, an allowance (as determined by the institution) for those expenses related to the student's disability, including special services, personal assistance, transportation, equipment, and supplies that are reasonably incurred and not provided for by other assisting agencies; for a student receiving all or part of the student's instruction by means of telecommunications technology, no distinction shall be made with respect to the mode of instruction in determining costs; for a student engaged in a work experience under a cooperative education program, an allowance for reasonable costs associated with such employment (as determined by the institution); for a student who receives a loan under this or any other Federal law, or, at the option of the institution, a conventional student loan incurred by the student to cover a student's cost of attendance at the institution, an allowance for the actual cost of any loan fee, origination fee, or insurance premium charged to such student or such parent on such loan, or the average cost of any such fee or premium charged by the Secretary, lender, or guaranty agency making or insuring such loan, as the case may be; and at the option of the institution, for a student in a program requiring professional licensure or certification, the one-time cost of obtaining the first professional credentials (as determined by the institution).
The term eligible student means an individual who— is enrolled or accepted for enrollment in a program of study at an eligible institution of higher education leading to a degree, certificate, or credential issued by such institution; in the case of a student who is enrolled at an eligible institution, is maintaining satisfactory academic progress in the program of study the student is pursuing while attending the institution (as defined in accordance with section 484(c)); does not owe a refund on grants previously received at any institution under this title; is not in a default status on any loan made, insured, or guaranteed by the Secretary under this title for attendance at any institution; and is a citizen or national of the United States, a permanent resident of the United States, or able to provide evidence from Immigration and Customs Enforcement that he or she is in the United States for other than a temporary purpose with the intention of becoming a citizen or permanent resident.
The term means-tested Federal benefit program means any of the following mandatory spending programs of the Federal Government: The supplemental security income program established under title XVI of the Social Security Act ( 42 U.S.C. 1381 et seq. ). The supplemental nutrition assistance program established under the Food and Nutrition Act of 2008 ( 7 U.S.C. 2011 et seq. ). 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. ).
The program of block grants to States for temporary assistance for needy families program established under part A of title IV of the Social Security Act ( 42 U.S.C. 601 et seq. ). 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 ). The term graduate or professional student means a student who has received a baccalaureate degree and is enrolled in a program of study requiring a baccalaureate degree as a condition of that enrollment.
Whenever necessary to carry out the provisions of part A or F, the terms student and borrower shall include a parent borrower. Each individual desiring to apply for Federal financial aid under this title for any year shall file an application with the Secretary to determine eligibility for aid as described in subsection (b). The Secretary shall make available, for the purposes of subsection (a), a free application to determine the eligibility of a student for a Federal Pell Grant under section 401 or a Federal loan under part F based— in the case of a Federal Pell Grant, on the adjusted gross income and family size of a student applicant, as described under section 401(b); and in the case of a loan, on the maximum amount allowed as determined under section 470(e)(4)(B).
The Secretary shall request the following information in order to determine an applicant's eligibility for Federal student aid: For the purposes of attaining a Federal Pell Grant— the applicant's name and address; the applicant's social security number; the applicant's date of birth; in the case of an applicant who filed taxes, or an applicant whose parent or spouse (as applicable) filed taxes, in the year prior to the current prior year tax filing (as determined by the date of enrollment), income and family size information, which shall be retrieved from the Internal Revenue Service; and in the case of an applicant who did not file taxes, and whose parent or spouse (as applicable) did not file taxes, in the year prior to the current prior year tax filing (as determined by the date of enrollment), income and family size information, which shall be reported by the applicant.
For the purpose of attaining a Federal loan, the applicant's— name and address; social security number; date of birth; and if the applicant so chooses, a list of institutions of higher education that the applicant is interested in attending. Upon receiving and timely processing an application described under paragraph (1), the Secretary will provide to only the applicant, the following information: If the applicant applied for a Federal Pell Grant, the amount of the applicant's Federal Pell Grant award.
If the applicant applied for a Federal loan under section 470, the amount of the Federal loan that the applicant may receive if the applicant chooses, and the following information: If the interest rate on the loan has been determined at the time such information is provided, the interest rate on the loan. If the interest rate on the loan has not been determined at the time such information is provided, the current interest rate and a statement that the interest rate is subject to change.
The monthly amount that the applicant would be required to repay if the applicant chooses to accept the loan, based on— the amount of the Federal loan under section 470 that the applicant may choose to receive; and payment of such loan on a 10-year repayment plan. The monthly amount that the applicant would be required to repay if the applicant chooses to accept a loan of the same amount and paid according to the same repayment plan as described in clause (iii)— if the applicant were to attend a program 2 years in length; and if the applicant were to attend a program 4 years in length.
The monthly amount that the applicant would be required to repay if the applicant chooses to accept the loan, based on— the amount of the Federal loan under section 470 that the applicant may choose to receive; and payment of such loan according to the income-based repayment plan, reflecting not less than 5 different income levels. The monthly amount (based on not less than 5 different income levels) that the applicant would be required to repay if the applicant chooses to accept a loan of the same amount and paid according to the same repayment plan as described in clause (v)— if the applicant were to attend a program 2 years in length; and if the applicant were to attend a program 4 years in length. .
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Sec. 4
Definitions; Special rule for parent borrowers
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