Sec. 5. Calculation of student aid index

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Section 473 ( 20 U.S.C. 1087mm ) is amended— in the section heading, by striking and inserting Family contribution ; and Student aid index in subsection (b)— by striking the subsection heading and inserting ; Student Aid Index equal to or less than zero 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); and 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); 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)of paragraph (2), and adjusting the margins accordingly; by redesignating paragraphs

(4)and

(5)as paragraphs

(5)and (6), respectively; and by inserting after paragraph (2)(B), as redesignated by subparagraph (E), the following: Paragraph

(1)shall apply to a student if— that student is a dependent student whose parent participated in a means-tested 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 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.); 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.); 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. For each student whose student aid index is deemed to be zero under paragraph (1), the Secretary shall also calculate the student aid index for the student, using the simplified version of the Free Application for Federal Student Aid form in accordance with section 479, to identify students who have a negative student aid index and may be eligible for additional State or institutional aid. . Section 479 ( 20 U.S.C. 1087ss ) is amended to read as follows: The Secretary shall develop and use a simplified version of the Free Application for Federal Student Aid form prescribed under section 483(a) for families described in subsections

(b)and

(c)of this section. The simplified version 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 a student aid index equal to or less than 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 version containing the elements required by paragraph

(2)if— 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 (and the student's spouse, if any) 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 1040 (including any prepared or electronic version of such form) required pursuant to the Internal Revenue Code of 1986; 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 a student aid index equal to or less than zero if— in the case of a dependent student— the student's parents— certify that the parents are not required to file a Federal income tax return; and include at least one parent who is a dislocated worker; or the sum of the adjusted gross annual income of the parents is less than or equal to $36,000; in the case of an independent student with dependents other than a spouse— the student (and the student’s spouse, if any)— certifies that the student (and the student’s spouse, if any) is not required to file a Federal income tax return; and is a dislocated worker or has a spouse who is a dislocated worker; or the sum of the adjusted gross annual income of the student and spouse (if appropriate) is less than or equal to $36,000; or in the case of an independent students without dependents— the student— certifies that the student is not required to file a Federal income tax return; and is a dislocated worker; or the sum of the adjusted gross annual income of the student is less than or equal to $23,000. 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 student aid index of equal to or less than zero. The income level shall be adjusted by a percentage equal to increases in the Consumer Price Index between the calendar year preceding the beginning of such academic year, and the second preceding year, rounding the result to the nearest $1,000. 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. 5

Calculation of student aid index

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