Sec. 3. Family contribution

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Section 473(b) of the Higher Education Act of 1965 ( 20 U.S.C. 1087mm(b) ) is amended— by striking the subsection heading and inserting ; Zero family contribution in paragraph (1), by adding or

(3)after paragraph

(2); in paragraph (2)— by striking the paragraph heading and inserting ; Children of certain deceased veterans in each of subparagraphs

(B)and (C), by redesignating clauses

(i)and

(ii)as subclauses

(I)and (II), respectively and adjusting the margins accordingly; by redesignating subparagraphs (A), (B), and (C), as clauses (i), (ii), and (iii), respectively; and by striking Paragraph

(1)shall and inserting the following: Paragraph

(1)shall ; in paragraph (3)— in subparagraph (A), by striking subparagraphs (A), (B)(i), and

(C)of paragraph

(2)and inserting clause (i), (ii)(I), and

(iii)of subparagraph

(A); in subparagraph (B)— by striking subparagraphs (A), (B)(ii), and

(C)of paragraph

(2)and inserting clause (i), (ii)(II), and

(iii)of subparagraph

(A); and by redesignating clauses

(i)through

(iii)as subclauses

(I)through (III), respectively, and adjusting the margins accordingly; and by redesignating subparagraphs

(A)and

(B)as clauses

(i)and (ii), respectively, and adjusting the margins accordingly; by redesignating paragraph

(3)as subparagraph (B), and adjusting the margins accordingly; and by inserting after paragraph (2)(B), as redesignated by paragraph (5), the following: Paragraph

(1)shall apply to a student if— that student is a dependent student whose parent participated in a means-tested Federal benefits program at any time during the period encompassed from the beginning of the second prior calendar year through the date of filing; or that student is independent and the student or spouse of that student participated in a means-tested Federal benefits program at any time during the period encompassed from the beginning of the second prior calendar year through the date of filing. In this paragraph, the term means-tested Federal benefits program means— the supplemental security income program 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 Medicaid program under title XIX of the Social Security Act ( 42 U.S.C. 1396 et seq.); a State program funded under the temporary assistance for needy families program under part A of title IV of the Social Security Act ( 42 U.S.C. 601 et seq.); the special supplemental nutrition program for women, infants, and children established by section 17 of the Child Nutrition Act of 1966 ( 42 U.S.C. 1786 ); and any other program determined by the Secretary to be appropriate based on— the reliability under which the need for benefits from the program is established; and the feasibility of data linkages. . Section 479 of the Higher Education Act of 1965 ( 20 U.S.C. 1087ss ) is amended to read as follows: The Secretary shall develop and use an easily identifiable simplified application section as part of the common financial reporting form prescribed under section 483(a) for families described in subsections

(b)and

(c)of this section. The simplified application form shall— in the case of a family meeting the requirements of subsection (b)(1), permit such family to submit only the data elements required under subsection (b)(2) for the purposes of establishing eligibility for student financial aid under this part; and in the case of a family meeting the requirements of subsection (c), permit such family to be treated as having an expected family contribution equal to zero for purposes of establishing such eligibility and to submit only the data elements required to make a determination under subsection (c). An applicant is eligible to file a simplified form containing the elements required by paragraph

(2)if— the applicant did not file and was not required to file any Federal tax return during the 24-month period preceding the date of the determination of eligibility; the applicant, or, in the case of an applicant who is a dependent student, the applicant's parent, participated in a means-tested Federal benefits program, as described in section 473(b)(3)(B), during the 24-month period preceding the date of the determination of eligibility; the applicant, or, in the case of an applicant who is a dependent student, the applicant's parent, filed a form 1040A, 1040EZ, or 1040 (including any prepared or electronic version of such form) required pursuant to the Internal Revenue Code of 1986, with no forms or schedules, during the 24-month period preceding the date of the determination of eligibility; in the case of an applicant who is a dependent student— the student's parents include at least one parent who is a dislocated worker; and the total adjusted gross income of the parents (excluding any income of the dependent student) is less than $50,000; or in the case of an applicant who is an independent student— the student is a dislocated worker or has a spouse who is a dislocated worker; and the adjusted gross income of the student (and the student's spouse, if any) is less than $50,000. The six elements to be used for the simplified needs analysis are— adjusted gross income; Federal taxes paid; untaxed income and benefits; the number of family members; the number of family members in postsecondary education; and an allowance

(A)for State and other taxes, as defined in section 475(c)(2) for dependent students and in section 477(b)(2) for independent students with dependents other than a spouse, or

(B)for State and other income taxes, as defined in section 476(b)(2) for independent students without dependents other than a spouse. In the case of an independent student, the student, or in the case of a dependent student, the family, files a form described in this subsection, or subsection (c), as the case may be, if the student or family, as appropriate, files— a form 1040A or 1040EZ (including any prepared or electronic version of such form) required pursuant to the Internal Revenue Code of 1986; a form 1040 (including any prepared or electronic version of such form) required pursuant to the Internal Revenue Code of 1986, except that such form shall be considered a qualifying form only if the student or family files such form in order to take a tax credit under section 25A of the Internal Revenue Code of 1986, and would otherwise be eligible to file a form described in subparagraph (A); or an income tax return (including any prepared or electronic version of such return) required pursuant to the tax code of the Commonwealth of Puerto Rico, Guam, American Samoa, the Virgin Islands, the Republic of the Marshall Islands, the Federated States of Micronesia, or Palau. The Secretary shall consider an applicant to have an expected family contribution equal to zero if— in the case of a dependent student— the student's parents include at least one parent who is a dislocated worker; and the sum of the adjusted gross annual income of the parents is less than or equal to $36,000; or in the case of an independent student with dependents other than a spouse— the student (and the student's spouse, if any) is a dislocated worker or has a spouse who is a dislocated worker; and the sum of the adjusted gross annual income of the student and spouse (if appropriate) is less than or equal to $36,000. An individual is not required to qualify or file for the earned income credit in order to be eligible under this subsection. The Secretary shall annually adjust the income level necessary to qualify an applicant for the zero expected family contribution. The income level shall be adjusted according to increases in the Consumer Price Index, as defined in section 478(f). In this section, the term dislocated worker has the meaning given the term in section 3 of the Workforce Innovation and Opportunity Act. .

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Sec. 3

Family contribution

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