Sec. 4603. FAFSA simplification
4,451 words·~20 min read·
/bill/116/hr/4674/ih/section-4603A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 483 of the Higher Education Act of 1965 ( 20 U.S.C. 1090 ) is amended— in subsection (a)— in paragraph (2)— in subparagraph (A), by striking process and all that follows through the end of clause
(ii)and inserting process a paper version of the forms described in this subsection, in accordance with subparagraph (B). ; by striking subparagraph (B); by redesignating subparagraph
(C)as subparagraph (B); and in subparagraph (B), as so redesignated, by striking subparagraphs
(A)and
(B)and inserting subparagraph
(A); in paragraph (3)— in subparagraph (A), by striking the end sentence; by striking subparagraph (B), and redesignating subparagraphs
(C)through
(H)as subparagraphs
(B)through (G), respectively; in subparagraph (D), as so redesignated— by striking The Secretary and inserting the following: The Secretary ; and by adding at the end the following: An institution of higher education may, with explicit written consent of an applicant who has completed a form developed under this section, provide such information collected from such form as is necessary to an organization described in subclause
(II)that is designated by the applicant to assist the applicant in applying for and receiving financial assistance for any component of the applicant’s cost of attendance at that institution. An organization described in this subclause— means 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 an organization assisting an applicant in applying for and receiving Federal, State, local, or tribal assistance; and shall be subject to the requirements of clause (i). ; and in subparagraph (E), as so redesignated, by striking subparagraph
(G)and inserting subparagraph
(F); in paragraph (4)— by striking academic year each place it appears and inserting award year ; in subparagraph (A), by striking clause (iv); and by adding at the end the following: The Secretary shall ensure that, on each form developed under this section for which the information is applicable, there is a single, easily understood screening question to identify an applicant for aid who is— 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. The Secretary shall streamline the forms and processes for an incarcerated individual (as defined in section 401(n)(4)) to apply for a Federal Pell Grant under section 401, which— shall be used to determine the expected family contribution for such individual as of the date of enrollment in the course for which the individual is applying for such Federal Pell Grant; and may include— flexibility in the submission of any required documentation required to verify eligibility for a Federal Pell Grant; and assistance in rehabilitating loans under section 428F. Not later than 1 year after the date of enactment of the College Affordability Act , the Secretary shall submit to the Committee on Education and Labor of the House of Representatives and the Committee on Health, Education, Labor, and Pensions of the Senate, and make publicly available on the website of the Department, a report on how the forms and processes are being streamlined under clause (i). ; in paragraph (5)— in subparagraph (A), by striking paragraphs (2)(B)(iii), (3)(B), and (4)(A)(ii) and inserting paragraph (4)(A)(ii) ; in subparagraph (B)— by striking determine and all that follows through which and inserting determine which ; and by striking clause (ii); in subparagraph (C), by striking Beginning and all that follows through of the State-specific and inserting The Secretary shall publish on an annual basis a notice in the Federal Register requiring State agencies to inform the Secretary of the State-specific ; and by striking subparagraphs
(D)through (F), and redesignating subparagraph
(G)as subparagraph (D); and by adding at the end the following: Not later than the effective date of the College Affordability Act , the Secretary shall seek to enter into a Memorandum of Understanding with the Secretary of Health and Human Services, the Secretary of Agriculture, and the Secretary of the Treasury, under which any information exchanged under an income and eligibility verification system established pursuant to section 1137 of the Social Security Act by State agencies administering a program listed in paragraph (1), (4), or
(5)of subsection
(b)of such section which may be of use in establishing or verifying eligibility or benefit amounts under such program shall be made available to the Secretary of Education to assist in determining whether the applicant (or, in the case of a dependent applicant, whether the applicant or the applicant’s parents) received a benefit at some time during the previous 24-month period under a means-tested Federal benefit program, but subject to the requirements of Federal law. For any award year for which an applicant applies for financial assistance under this title (except for any award year for which, pursuant to paragraph (14), the applicant is not required to submit a FAFSA)— the applicant shall provide on the form described in this subsection whether the applicant received (or, in the case of a dependent applicant, whether the applicant or the parents of the applicant received) a benefit at some time during the previous 24-month period under a means-tested Federal benefit program; and the Secretary, to the extent practicable and pursuant to the Memorandum of Understanding entered into under subparagraph (A), and without any further action by the applicant, shall verify the applicant’s (or, in the case of a dependent applicant, the applicant’s or the applicant’s parents’) receipt of such benefit. With respect to an applicant who received (or, in the case of a dependent applicant, an applicant who received or whose parents received) a benefit at some time during the previous 24-month period under a means-tested Federal benefit program, the applicant shall not be required to provide any further income or asset information on the form under this subsection. For purposes of this section and part F, an applicant described in clause
(i)shall be referred to as a pathway one applicant . With respect to an applicant who is not a pathway one applicant and who is described in clause (ii), the Secretary, to the extent practicable, shall use the data retrieval tool under section 484(p) to obtain any information for the applicant beyond the information described in subparagraph
(A)for purposes of the form under this subsection. An applicant described in this clause is an applicant who certifies that— the applicant is not required to file or, in the case of a dependent applicant, no parent of the applicant is required to file— a Federal income tax return; or with respect to Internal Revenue Service Form 1040, any of the following forms: Schedule A, Schedule B, Schedule C, Schedule C–EZ, Schedule D, Schedule E, Schedule F, Schedule H, Schedule J, and Schedule SE; and the sum of the adjusted gross income of the applicant or, in the case of a dependent applicant, the parents of the applicant, is less than or equal to $60,000. For purposes of this section and part F, an applicant described in clause
(i)shall be referred to as a pathway two applicant . With respect to an applicant who is not a pathway one applicant or a pathway two applicant, the Secretary, to the extent practicable, shall use the data retrieval tool under section 484(p) to obtain any information for the applicant beyond the information described in subparagraph
(A)for purposes of the form under this subsection. For purposes of this section and part F, an applicant described in clause
(i)shall be referred to as a pathway three applicant . For purposes of this paragraph, the term means-tested Federal benefit program has the meaning given the term in section 479(d). Notwithstanding any other provision of this section and subject to subparagraphs
(B)and (C), an applicant who submits a FAFSA for the first time for an award year for the period required for the completion of the first undergraduate baccalaureate course of study being pursued by such applicant and is eligible to receive a Federal Pell Grant for such award year, for any succeeding award year— for which the applicant does not submit a FAFSA and for which the applicant submits a certification form described in subparagraph
(D)that does not indicate a change in the dependency status of such applicant, such applicant— shall not be required to submit a FAFSA to receive financial assistance under this title; and shall have an expected family contribution for such year that is equal to the expected family contribution of the applicant determined for the award year for which the applicant submitted a FAFSA for such period, except that an adjustment may be made under section 479A that results in a change in such expected family contribution; for which the applicant submits a certification form described in subparagraph
(D)that indicates a change in the dependency status of the applicant, such applicant— shall be required to submit a FAFSA with respect to such award year to receive financial assistance under this title; and shall have an expected family contribution for such year that is determined based on such FAFSA; for which the applicant submits a FAFSA, such applicant— shall have an expected family contribution for such year that is determined based on such FAFSA; and shall be required to submit a FAFSA for any other award year for which the applicant seeks financial assistance under this title; and for which the applicant does not submit a certification form described in subparagraph (D), such applicant shall submit a FAFSA for such succeeding award year and any other award year for which the applicant seeks financial assistance under this title. With respect to an applicant described in subparagraph (A)(i) who receives an adjustment under section 479A that results in a change to the expected family contribution of the applicant, for any succeeding award year after the award year for which the adjustment was made, subclause
(II)of such subparagraph shall be applied to such applicant by substituting expected family contribution of the applicant as most recently changed as a result of an adjustment under section 479A for such applicant for the expected family contribution of the applicant determined for the award year for which the applicant submitted a FAFSA for such period . With respect to an applicant who submits a FAFSA for award year 2021–2022 and enrolls in an institution of higher education for such year, subparagraph
(A)shall be applied— in the matter preceding clause (i), by substituting award year 2021–2022 for the first time for an award year ; and in clause (i)(II), by substituting award year 2021–2022 for the award year for which the applicant submitted a FAFSA for such period . The Secretary, in cooperation with representatives of agencies and organizations involved in student financial assistance, shall use behavioral science insights to produce, distribute, and process free of charge a short and simple consumer-tested certification form that uses skip logic to bypass fields that are inapplicable to an applicant. Such form shall not require an applicant to provide data that the Secretary may otherwise obtain with respect to the applicant (such as age or active duty military status), and may only contain the data elements required for purposes of subparagraph (A)(i)— to confirm whether the applicant is— a dependent student; a single independent student or a married independent student without dependents (other than a spouse); or an independent student with dependents other than a spouse; to allow the applicant to update the contact information of such applicant or the Federal School Code of the institution of higher education in which the applicant is, or will be enrolled, for the award year for which the applicant submits such form; and to ask whether the applicant’s need and eligibility for financial assistance under this title has not changed substantially since the most recent of the following: The applicant submitted a FAFSA. The applicant received an adjustment under section 479A that results in a change to the expected family contribution of the applicant. In this paragraph: The term dependency status means the status of an applicant as— a dependent student; a single independent student or a married independent student without dependents (other than a spouse); or an independent student with dependents other than a spouse. The term succeeding award year — when used with respect to an applicant who submits a FAFSA for the first time for an award year for the period required for the completion of the first undergraduate baccalaureate course of study being pursued by such applicant, means any award year for such period that follows the award year for which the applicant submits such FAFSA; and when used with respect to an applicant described in subparagraph (C), means any award year after award year 2021–2022 for the period required for the completion of the first undergraduate baccalaureate course of study being pursued by such applicant. The Secretary shall— translate the form developed under this subsection into not fewer than 11 foreign languages based on the languages most often spoken by English learner students and their parents, and make the translated form available and accessible to applicants in paper and electronic formats; and ensure that the form developed under this subsection is available in formats accessible to individuals with disabilities. ; in subsection (c), by striking the last sentence; in subsection (d)(3)— in subparagraph (A), by striking and EZ FAFSA ; and in subparagraph (B), by striking and EZ FAFSA ; in subsection (e)— in paragraph
(3)by striking or, as appropriate, an EZ FAFSA ; and in paragraph (5)(D), by striking or, as appropriate, an EZ FAFSA, ; by amending subsection
(f)to read as follows: The Secretary shall— make every effort to allow applicants to utilize the data retrieval tool to transfer data available from the Internal Revenue Service to reduce the amount of original data entry by applicants and strengthen the reliability of data used to calculate expected family contributions, including through the use of technology to— allow an applicant to automatically populate the electronic version of the forms under this paragraph with data available from the Internal Revenue Service; and direct an applicant to appropriate questions on such forms based on the applicant’s answers to previous questions; and allow taxpayers, regardless of filing status, to utilize the data retrieval tool to its full capacity. The Secretary shall continue to examine whether data provided by the Internal Revenue Service can be used to generate an expected family contribution without additional action on the part of the student and taxpayer. Not less than once every other year, the Secretary shall report to the authorizing committees and the Committees on Appropriations of the House of Representatives and the Senate on the progress of the simplification efforts under this subsection. ; by repealing subsection (g); redesignating subsection
(h)as subsection (g); and by adding at the end the following: The Secretary shall annually publish data on the number of individuals who apply for Federal student aid pursuant to this section who are homeless individuals described in section 725 of the McKinney-Vento Homeless Assistance Act ( 42 U.S.C. 11434a ), including unaccompanied youth and foster care youth. The data described in paragraph
(1)with respect to homeless individuals shall include, at a minimum, for each application cycle— the total number of all applicants who were determined to be (or to be at risk of becoming) unaccompanied homeless youth under section 480(d)(1)(H); the number of applicants described in subparagraph (A), disaggregated— by State; and by the sources of determination as described in clauses
(i)through
(iv)of section 480(d)(1)(H); and the number of undetermined requests for homelessness consideration, including statuses that remain unknown because no determination had been made in response to the applicant’s request for the institution to consider the applicant’s special circumstance of being homeless. The Secretary may not include on the forms developed under this subsection any data items relating to whether an applicant has a conviction of any offense under any Federal or State law involving the possession or sale of a controlled substance (as defined in section 102(6) of the Controlled Substances Act ( 21 U.S.C. 802(6) ). With respect to applicants who submit a FAFSA for an award year and were determined using data provided in such FAFSA to be eligible to receive a Federal Pell Grant for such award year, the Secretary shall submit to the authorizing committees, and make publicly available, a report for such award year on— the number and share of such applicants who received a Federal Pell Grant for such award year; the number and share of such applicants who did not receive a Federal Pell Grant for such year; the number and share of such applicants who were selected by the Secretary for verification of the data provided in the FAFSA; to the extent practicable, the number and share of applicants described in subparagraph
(C)who enrolled in an institution of higher education in a year after such selection; the number and share of applicants described in subparagraph
(C)who completed the verification process; of the applicants described in subparagraph (E)— the average of the expected family contribution for all such applicants as determined using data provided in the FAFSA; the average of the expected family contribution difference for all such applicants; the average of the expected family contribution difference for all such applicants whose expected family contribution as determined using data provided in the verification process was greater than the expected family contribution as determined using data provided in the FAFSA; and the average of the expected family contribution difference for all such applicants whose expected family contribution as determined using data provided in the FAFSA was greater than the expected family contribution as determined using data provided in the verification process; of the applicants described in subparagraph (E)— the average Federal Pell Grant amount for all such applicants as determined using data provided in the FAFSA; the average of the Federal Pell Grant difference for all such applicants; the average of the Federal Pell Grant difference for all such applicants whose Federal Pell Grant amount as determined using data provided in the verification process was greater than the Federal Pell Grant amount as determined using data provided in the FAFSA; the average of the Federal Pell Grant difference for all such applicants whose Federal Pell Grant amount as determined using data provided in the FAFSA was greater than the Federal Pell Grant amount as determined using data provided in the verification process; and the number and share of such applicants who were determined using the data provided in the verification process to be ineligible for a Federal Pell Grant; the number and share of applicants described in subparagraph
(C)who received a Federal Pell Grant for such award year; and the number and share of applicants described in subparagraph
(C)who did not receive a Federal Pell Grant for such award year. The data provided in a report under paragraph
(1)shall be disaggregated— by applicants who were pathway one applicants for such year; by applicants who were pathway two applicants for such year; by applicants who were pathway three applicants for such year; and with respect to applicants described in subparagraphs
(C)and (E), the verification tracking groups of such applicants. In this subsection: The term expected family contribution difference means, with respect to an applicant who completed a verification process with respect to the FAFSA, the difference between— the expected family contribution of such applicant as determined using data provided in the FAFSA; and the expected family contribution of such applicant as determined using data provided in the verification process. The term Federal Pell Grant difference means, with respect to an applicant who completed a verification process with respect to the FAFSA, the difference between— the amount of the Federal Pell Grant of such applicant as determined using data provided in the FAFSA; and the amount of the Federal Pell Grant of such applicant as determined using data provided in the verification process. Not later than 18 months after the date of enactment of the College Affordability Act , the Secretary shall, based on the consumer testing conducted under subparagraph (E), publish requirements for financial aid offers that shall— include a requirement that financial aid offers shall serve as the primary source for Federal, State, and institutional financial aid information provided by an institution of higher education participating in any program under this title to each prospective student accepted for admission and each enrolled student at such institution; include a requirement that such offers include a standardized quick reference box described in subparagraph (D); establish standardized terms and definitions, including for the elements listed in subparagraph (C), that shall be included in each such offer; establish formatting requirements with respect to the organization of the elements listed in subparagraph (C), which shall include a requirement that prohibits such offers from displaying loans in a manner that indicates or implies that such loans reduce the amount owed to the institution or reduce the net price; and specify the simple, plain-language, and consumer-friendly information to be included in each such offer with respect to the financial aid being offered to a student, which shall include— an explanation of differences among each such type of financial aid, including clear explanations that— grants and scholarships do not have to be repaid; loans (including loans made under part D and private education loans (as defined in section 140 of the Truth in Lending Act)) must be repaid with interest; and payments under Federal-work study programs under part C are contingent on finding qualified employment and are typically disbursed incrementally in paychecks; information encouraging students to consider loans made under part D before such private education loans; information clarifying that students may— decline to accept a loan made under part D; or accept an amount of such loan that is less than the amount of such loan included in the financial aid offer; and in a case in which the institution offers a student such a loan in an amount that is less than the maximum amount for which the student is eligible, an explanation that the student is eligible for additional loans under part D. Beginning with the award year that begins not less than 1 year after the Secretary publishes requirements under subparagraph (A), each institution of higher education described in subparagraph (A)(i) shall provide a financial aid offer to each student described in such subparagraph prior to each academic year that— shall comply with the requirements published by the Secretary under subparagraph (A); and may be supplemented by the institution with additional, non-contradictory information related to financial aid as long as such supplementary information uses the standardized terms and definitions described in subparagraph (A)(iii). A financial aid offer provided by an institution of higher education shall include the following elements with respect to the academic year for which the offer is being provided: The cost of attendance, which shall include separately calculated subtotals of— an itemized list of estimated direct costs owed to the institution; and an itemized list of anticipated student expenses not covered under subclause (I). Federal, State, and institutional financial aid available to the student, which shall include separately calculated subtotals of— grants and scholarships; loans made under part D (excluding Federal Direct Parent PLUS Loans) and part E; and Federal-work study programs under part C and other on-campus employment. Other options that may be available to students to cover the cost of attendance (including Federal Direct Parent PLUS Loans, tuition payment plans, savings, and earnings from other employment). The net price, which shall be determined by calculating the difference between— the cost of attendance described in clause (i); and the grants and scholarships described in clause (ii)(I). Next step instructions, including— the process and deadlines for accepting the financial aid; and information about where to find additional information on the financial aid offered. Any other information determined necessary by the Secretary based on the consumer testing conducted under subparagraph (E), which may include the following: An estimate of the net direct cost, which shall be determined by calculating the difference between— the direct costs owed to the institution described in clause (i)(I); and the grants and scholarships described in clause (ii)(I). Information on average student debt, loan repayment and default rates, loan repayment options, and graduation rates. In the case of a prospective student, the process and deadlines for enrolling at the institution. Information regarding the enrollment period covered by the aid offer, and whether the cost and aid estimates are based on full-time or part-time enrollment. A financial aid offer provided by an institution of higher education shall include a standardized quick reference box to enable students to quickly and easily compare key information on college costs and financial aid— that shall be included in an identical fashion for each student receiving a financial aid offer from the institution on the first page of such offer; the contents and structure of which shall be developed through consumer testing conducted under paragraph (E); and that shall include not more than 8 elements, which, at a minimum, shall include— the cost of attendance; grants and scholarships; and net price (as calculated under subparagraph (C)(iv)). The Secretary shall— conduct consumer testing that shall serve as the basis in determining the requirements for financial aid offers published under subparagraph (A), which shall include students (including low-income students, English learners, first generation college students, veteran students, graduate students, and undergraduate students (including prospective students and returning students)), students’ families (including low-income families, families of English learners, and families with first generation college students), institutions of higher education (including representatives from two- and four-year institutions, public and private institutions, and minority-serving institutions), secondary school and postsecondary counselors, financial aid administrators, nonprofit college access organizations, and nonprofit consumer groups; and not later than 60 days after the publication of the requirements under subparagraph (A)— issue a report on the findings of the consumer testing under this subparagraph; and specify ways in which the findings are reflected in such requirements. In this subsection— the term English learner has the meaning given the term in section 8101(20) of the Elementary and Secondary Education Act of 1965 ( 20 U.S.C. 7801(20) ), except that such term does not include individuals described in subparagraph
(B)of such section; the term first generation college student has the meaning given the term in section 402A(h); the term low-income student has the meaning given the term in section 419N(b)(7); and the term minority-serving institution means an institution of higher education described in section 371(a). .
Connectionstraces to 5
Traces to 5 documents
Citation graph
cites case law
Cites 5Cited by 0 across 0 sources