Sec. 122. Facilitating access to financial aid for recently unemployed students

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Notwithstanding section 479(d)(1) of the Higher Education Act of 1965 ( 20 U.S.C. 1087ss(d)(1) ), any individual who has applied for, or who is receiving, unemployment benefits at the time of the submission of a FAFSA for a covered award year shall be treated as a dislocated worker for purposes of the need analysis under part F of title IV such Act ( 20 U.S.C. 1087kk et seq.) applicable to such award year. The Secretary— for each covered award year, shall ensure that— any question on the FAFSA used to determine whether an applicant (or, as applicable, a spouse or parent of an applicant) is a dislocated worker includes an express reference to individuals who have been laid off; any help text associated with a question described in clause

(i)includes a description of an applicant’s treatment as a dislocated worker under paragraph (1); and the FAFSA includes a prominent notification, appearing immediately before questions related to tax returns or income that, if the applicant (or, as applicable, a spouse or parent of an applicant) has lost significant income earned from work due to a qualifying emergency, the applicant should contact the financial aid administrator at the institution where the applicant plans to enroll to provide current income information; in consultation with institutions of higher education, shall carry out activities to inform applicants for Federal student financial aid under the Higher Education Act of 1965 ( 20 U.S.C. 1001 et seq.)— of the treatment of individuals who have applied for, or who are receiving, unemployment benefits as dislocated workers under paragraph (1); of the availability of means-tested Federal benefits for which such applicants may be eligible; and of the ability of a financial aid administrator of an institution of higher education to use professional judgment as authorized under section 479A of the Higher Education Act of 1965 ( 20 U.S.C. 1087tt ) and in accordance with subsection (b), to determine, where appropriate, that income earned from work is zero and consider unemployment benefits to be zero, if the applicant (or, as applicable, a spouse or parent of an applicant) has applied for or is receiving unemployment benefits; shall carry out activities to inform institutions of higher education of the authority of such institutions, with explicit written consent of an applicant for Federal student financial aid under the Higher Education Act of 1965 ( 20 U.S.C. 1001 et seq.), to provide information collected from such applicant’s FAFSA to an organization assisting the applicant in applying for and receiving Federal, State, local, or tribal assistance in accordance with section 312 of the Department of Defense and Labor, Health and Human Services, and Education Appropriations Act, 2019 and Continuing Appropriations Act, 2019 (Public Law 115– 245); and in consultation with the Secretary of Labor, shall carry out activities to inform applicants for, and recipients of, unemployment benefits of the availability of Federal student financial aid under the Higher Education Act of 1965 ( 20 U.S.C. 1001 et seq.) and the treatment of such applicants and recipients as dislocated workers under paragraph (1). The Secretary shall implement this subsection not later than 30 days after the date of enactment of this Act. Paragraph

(1)shall apply with respect to a FAFSA submitted on or after the earlier of— the date on which the Secretary implements this subsection under paragraph (3); or the date that is 30 days after the date of enactment of this Act. For the purposes of making a professional judgment as authorized under section 479A of the Higher Education Act of 1965 ( 20 U.S.C. 1087tt ), a financial aid administrator may, during a covered award year— determine that the income earned from work for a student, or a parent or spouse of a student, as applicable, is zero, if the student, parent, or spouse provides paper or electronic documentation of receipt of unemployment benefits or confirmation that an application for unemployment benefits was submitted; consider the value of unemployment benefits for such student, parent, or spouse to be zero; and make appropriate adjustments to the data items on the FAFSA for a student, parent, or spouse, as applicable, based on the totality of the family’s situation. For the purposes of documenting unemployment benefits or application for such benefits under subsection (b), such documentation shall be accepted if such documentation is submitted not more than 90 days from the date on which such documentation was issued, unless a financial aid administrator knows that the student, parent, or spouse, as applicable, has already obtained other employment. The Secretary shall make adjustments to the model used to select institutions of higher education participating in title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1070 et seq.) for program reviews, in order to— account for any rise in the use of professional judgment as authorized under section 479A of such Act ( 20 U.S.C. 1087tt ) during the 2020–2021 and 2021–2022 award years; and ensure that institutions are not penalized for an increase in the use of professional judgment during such award years. In this section: The term covered award year means— an award year during which there is a qualifying emergency; and the first award year beginning after the end of such qualifying emergency. The term means-tested Federal benefit includes the following: 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 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 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.). 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 Medicaid program under title XIX of the Social Security Act ( 42 U.S.C. 1396 et seq.). The tax credits provided under the following sections of the Internal Revenue Code of 1986 (title 26, United States Code): Section 25A (relating to American Opportunity and Lifetime Learning credits). Section 32 (relating to earned income). Section 36B (relating to refundable credit for coverage under a qualified health plan). Section 6428 (relating to 2020 recovery rebates for individuals). Federal housing assistance programs, including tenant-based assistance under section 8(o) of the United States Housing Act of 1937 ( 42 U.S.C. 1437f(o) ), and public housing, as defined in section 3(b)(1) of such Act ( 42 U.S.C. 1437a(b)(1) ). Such other Federal means-tested benefits as may be identified by the Secretary.

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