,,ii  #aad? ,,congress  #a/ ,session    
,s4 #ajh  ,,9 ,,! ,,s5ate ,,( ,,!       
,,unit$ ,,/ates  ,janu>y #g1 #bjae ,mr4 
,alex&] 7= himself1 ,mr4 ,b5net1 ,mr4   
,burr1 ,mr4 ,k+1 ,mr4 ,isakson1 & ,mr4  
,book]7 introduc$ ! foll[+ bill2 :i* 0  
read twice & ref]r$ to ! ,committee on  
,heal?1 ,education1 ,labor1 & ,p5sions  
,a ,,bill  ,to am5d ! ,high] ,education 
,act ( #aife to improve access = /ud5ts 
to ,f$]al grants & loans to help pay =  
po/second>y1 graduate1 & pr(essional    
educational opportunities1 & = o!r      
purposes4  #a4 ,%ort title  ,?is ,act   
may be cit$ z ! ,f9ancial ,aid          
,simplification & ,transp>5cy ,act (    
#bjae4  #b4 ,ref]5ces ,except z o!rwise 
specifically provid$1 :5ev] 9 ?is ,act a
 section or o!r provision is am5d$ or   
repeal$1 su* am5dm5t or repeal %all be  
consid]$ to be made to t section or o!r 
provision ( ! ,high] ,education ,act (  
#aife 7#bj ,u4,s4,c4 #ajja et seq474    
#c4 ,/atem5t ( purpose ,! purpose ( ?is 
,act is to simplify ! ,f$]al /ud5t aid  

programs 9 ord] to provide-- 7#a7 access
 to po/second>y education = /ud5ts &    
families2 &  7#b7 in=mation t w all[    
/ud5ts & families to make bett] consum] 
*oices4  #d4 ,def9itions2 ,special rule 
= p>5t borr[]s ,"p ,a ( title ,,iv 7#bj 
,u4,s4,c4 #ajgj et seq47 is am5d$1 9 !  
matt] prec$+ subp>t #a1 by /rik+ section
 #djj & ins]t+ ! foll[+3  #djj4         
,def9itions2 ,special rule = p>5t       
borr[]s  7a7 ,def9itions ,9 "p ,a & "p  
,f3 7#a7 ,co/ ( att5dance ,! t]m co/ (  
att5dance means-- 7,a7 tuition & fees   
normally assess$ a /ud5t c>ry+ ! same   
academic workload z det]m9$ by !        
in/itution1 & includ+ co/s = r5tal or   
pur*ase ( any equipm5t1 mat]ials1 or    
supplies requir$ ( all /ud5ts 9 ! same  
c\rse ( /udy2  7,b7 an all[ance = books1
 supplies1 transportation1 &            
miscellane\s p]sonal exp5ses1 includ+ a 
reasonable all[ance = ! docum5t$ r5tal  
or pur*ase ( a p]sonal comput]1 = a     
/ud5t att5d+ ! in/itution on at lea/ a  
half-"t basis1 z det]m9$ by !           

in/itution2  7,c7 an all[ance 7z det]m9$
 by ! in/itution7 = room & bo>d co/s    
incurr$ by ! /ud5t :i*-- 7i7 %all be an 
all[ance det]m9$ by ! in/itution = a    
/ud5t )\t dep5d5ts resid+ at home )     
p>5ts2  7ii7 = /ud5ts )\t dep5d5ts      
resid+ 9 in/itutionally own$ or op]at$  
h\s+1 %all be a /&>d all[ance det]m9$ by
 ! in/itution bas$ on ! am\nt normally  
assess$ mo/ ( its resid5ts = room &     
bo>d2  7iii7 = /ud5ts :o live 9 h\s+    
locat$ on a milit>y base or = :i* a     
basic all[ance is provid$ "u section    
#djc7;b7 ( title #cg1 ,unit$ ,/ates     
,code1 %all be an all[ance bas$ on !    
exp5ses reasonably incurr$ by su* /ud5ts
 = bo>d b n = room2 &  7iv7 = all o!r   
/ud5ts %all be an all[ance bas$ on !    
exp5ses reasonably incurr$ by su* /ud5ts
 = room & bo>d2  7,d7 = less ?an half-"t
 /ud5ts 7z det]m9$ by ! in/itution71    
tuition & fees & an all[ance = only--   
7i7 books1 supplies1 & transportation 7z
 det]m9$ by ! in/itution72  7ii7 dep5d5t
 c>e exp5ses 7det]m9$ 9 accordance )    

subp>agraph 7,h772 &  7iii7 room & bo>d 
co/s 7det]m9$ 9 accordance ) subp>agraph
 7,c771 except t a /ud5t may receive an 
all[ance = su* co/s "u ?is subp>agraph =
 n m ?an #c seme/]s or ! equival5t1 (   
:i* n m ?an #b seme/]s or ! equival5t   
may be consecutive2  7,e7 = a /ud5t     
engag$ 9 a program ( /udy by            
correspond5ce1 only tuition & fees &1 if
 requir$1 books & supplies1 travel1 &   
room & bo>d co/s incurr$ specifically 9 
fulfill+ a requir$ p]iod ( resid5tial   
tra9+2  7,f7 = inc>c]at$ /ud5ts only    
tuition & fees &1 if requir$1 books &   
supplies2  7,g7 = a /ud5t enroll$ 9 an  
academic program 9 a program ( /udy     
abroad approv$ = cr$it by ! /ud5t's home
 in/itution1 reasonable co/s associat$ )
 su* /udy 7z det]m9$ by ! in/itution at 
:i* su* /ud5t is enroll$72  7,h7 = a    
/ud5t ) "o or m dep5d5ts1 an all[ance   
bas$ on ! e/imat$ actual exp5ses incurr$
 = su* dep5d5t c>e1 bas$ on ! numb] &   
age ( su* dep5d5ts1 except t-- 7i7 su*  
all[ance %all n exce$ ! reasonable co/ 9

 ! community 9 :i* su* /ud5t resides = !
 k9d ( c>e provid$2 &  7ii7 ! p]iod =   
:i* dep5d5t c>e is requir$ includes1 b  
is n limit$ to1 class-"t1 /udy-"t1 field
 "w1 int]n%ips1 & commut+ "t2  7,i7 = a 
/ud5t ) a disability1 an all[ance 7z    
det]m9$ by ! in/itution7 = ^? exp5ses   
relat$ to ! /ud5t's disability1 includ+ 
special s]vices1 p]sonal assi/ance1     
transportation1 equipm5t1 & supplies t  
are reasonably incurr$ & n provid$ = by 
o!r assi/+ ag5cies2  7,j7 = a /ud5t     
receiv+ all or "p ( ! /ud5t's in/ruction
 by means ( telecommunications          
te*nology1 no di/9ction %all be made )  
respect to ! mode ( in/ruction 9 det]m9+
 co/s2  7,k7 = a /ud5t engag$ 9 a "w    
exp]i5ce "u a coop]ative education      
program1 an all[ance = reasonable co/s  
associat$ ) su* employm5t 7z det]m9$ by 
! in/itution72  7,l7 = a /ud5t :o       
receives a loan "u ?is or any o!r ,f$]al
 law1 or1 at ! option ( ! in/itution1 a 
conv5tional /ud5t loan incurr$ by !     
/ud5t to cov] a /ud5t's co/ ( att5dance 

at ! in/itution1 an all[ance = ! actual 
co/ ( any loan fee1 orig9ation fee1 or  
insurance premium *>g$ to su* /ud5t or  
su* p>5t on su* loan1 or ! av]age co/ ( 
any su* fee or premium *>g$ by !        
,secret>y1 l5d]1 or gu>anty ag5cy mak+  
or insur+ su* loan1 z ! case may be2 &  
7,m7 at ! option ( ! in/itution1 = a    
/ud5t 9 a program requir+ pr(essional   
lic5sure or c]tification1 ! "o-"t co/ ( 
obta9+ ! fir/ pr(essional cr$5tials 7z  
det]m9$ by ! in/itution74  7#b7         
,eligible /ud5t ,! t]m eligible /ud5t   
means an individual :o-- 7,a7 is enroll$
 or accept$ = enrollm5t 9 a program (   
/udy at an eligible in/itution ( high]  
education lead+ to a degree1 c]tificate1
 or cr$5tial issu$ by su* in/itution2   
7,b7 9 ! case ( a /ud5t :o is enroll$ at
 an eligible in/itution1 is ma9ta9+     
satisfactory academic progress 9 !      
program ( /udy ! /ud5t is pursu+ :ile   
att5d+ ! in/itution 7z def9$ 9          
accordance ) section #dhd7;c772  7,c7   
does n owe a refund on grants previ\sly 

receiv$ at any in/itution "u ?is title2 
7,d7 is n 9 a default /atus on any loan 
made1 insur$1 or gu>ante$ by ! ,secret>y
 "u ?is title = att5dance at any        
in/itution2 &  7,e7 is a citiz5 or      
national ( ! ,unit$ ,/ates1 a p]man5t   
resid5t ( ! ,unit$ ,/ates1 or able to   
provide evid5ce f ,immigration & ,cu/oms
 ,en=cem5t t he or %e is 9 ! ,unit$     
,/ates = o!r ?an a tempor>y purpose ) ! 
int5tion ( becom+ a citiz5 or p]man5t   
resid5t4  7#c7 ,means-te/$ ,f$]al b5efit
 program ,! t]m means-te/$ ,f$]al b5efit
 program means any ( ! foll[+ m&atory   
sp5d+ programs ( ! ,f$]al ,gov]nm5t3    
7,a7 ,! supplem5tal security income     
program e/abli%$ "u title ,,xvi ( !     
,social ,security ,act 7#db ,u4,s4,c4   
#acha et seq474  7,b7 ,! supplem5tal    
nutrition assi/ance program e/abli%$ "u 
! ,food & ,nutrition ,act ( #bjjh 7#g   
,u4,s4,c4 #bjaa et seq474  7,c7 ,! free 
& r$uc$ price s*ool lun* program        
e/abli%$ "u ! ,ri*>d ,b4 ,russell       
,national ,s*ool ,lun* ,act 7#db        

,u4,s4,c4 #agea et seq474  7,d7 ,!      
program ( block grants to ,/ates =      
tempor>y assi/ance = ne$y families      
program e/abli%$ "u "p ,a ( title ,,iv (
 ! ,social ,security ,act 7#db ,u4,s4,c4
 #fja et seq474  7,e7 ,! special        
supplem5tal nutrition program = wom51   
infants1 & *ildr5 e/abli%$ by section   
#ag ( ! ,*ild ,nutrition ,act ( #aiff   
7#db ,u4,s4,c4 #aghf74  7#d7 ,graduate  
or pr(essional /ud5t ,! t]m graduate or 
pr(essional /ud5t means a /ud5t :o has  
receiv$ a baccalaureate degree & is     
enroll$ 9 a program ( /udy requir+ a    
baccalaureate degree z a condition ( t  
enrollm5t4  7b7 ,special ,rule = p>5t   
borr[]s ,:5ev] necess>y to c>ry out !   
provisions ( "p ,a or ,f1 ! t]ms /ud5t &
 borr[] %all include a p>5t borr[]4     
#djj;,a4 ,simplifi$ ,application =      
,f$]al ,pell ,grants & ,loans "u ,"p ,a 
& ,"p ,f  7a7 ,9 g5]al ,ea* individual  
desir+ to apply = ,f$]al f9ancial aid "u
 ?is title = any ye> %all file an       
application ) ! ,secret>y to det]m9e    

eligibility = aid z describ$ 9          
subsection 7b74  7b7 ,free application  
7#a7 ,9 g5]al ,! ,secret>y %all make    
available1 = ! purposes ( subsection    
7a71 a free application to det]m9e !    
eligibility ( a /ud5t = a ,f$]al ,pell  
,grant "u section #dja or a ,f$]al loan 
"u "p ,f bas$-- 7,a7 9 ! case ( a ,f$]al
 ,pell ,grant1 on ! adju/$ gross income 
& family size ( a /ud5t applicant1 z    
describ$ "u section #dja7;b72 &  7,b7 9 
! case ( a loan1 on ! maximum am\nt     
all[$ z det]m9$ "u section              
#dgj7;e77#d77;,b74  7#b7 ,in=mation     
requir$ ( ! applicant ,! ,secret>y %all 
reque/ ! foll[+ in=mation 9 ord] to     
det]m9e an applicant's eligibility =    
,f$]al /ud5t aid3 7,a7 ,= ! purposes (  
atta9+ a ,f$]al ,pell ,grant-- 7i7 !    
applicant's "n & address2  7ii7 !       
applicant's social security numb]2      
7iii7 ! applicant's date ( bir?2  7iv7 9
 ! case ( an applicant :o fil$ taxes1 or
 an applicant ^: p>5t or sp\se 7z       
applicable7 fil$ taxes1 9 ! ye> prior to

 ! curr5t prior ye> tax fil+ 7z det]m9$ 
by ! date ( enrollm5t71 income & family 
size in=mation1 :i* %all be retriev$ f !
 ,int]nal ,rev5ue ,s]vice2 &  7v7 9 !   
case ( an applicant :o did n file taxes1
 & ^: p>5t or sp\se 7z applicable7 did n
 file taxes1 9 ! ye> prior to ! curr5t  
prior ye> tax fil+ 7z det]m9$ by ! date 
( enrollm5t71 income & family size      
in=mation1 :i* %all be report$ by !     
applicant4  7,b7 ,= ! purpose ( atta9+ a
 ,f$]al loan1 ! applicant's-- 7i7 "n &  
address2  7ii7 social security numb]2   
7iii7 date ( bir?2 &  7iv7 if !         
applicant s *ooses1 a li/ ( in/itutions 
( high] education t ! applicant is      
int]e/$ 9 att5d+4  7#c7 ,in=mation to be
 suppli$ by ! ,secret>y ,^u receiv+ &   
timely process+ an application describ$ 
"u p>agraph 7#a71 ! ,secret>y w provide 
to only ! applicant1 ! foll[+ in=mation3
 7,a7 ,if ! applicant appli$ = a ,f$]al 
,pell ,grant1 ! am\nt ( ! applicant's   
,f$]al ,pell ,grant aw>d4  7,b7 ,if !   
applicant appli$ = a ,f$]al loan "u     

section #dgj1 ! am\nt ( ! ,f$]al loan t 
! applicant may receive if ! applicant  
*ooses1 & ! foll[+ in=mation3 7i7 ,if ! 
int]e/ rate on ! loan has be5 det]m9$ at
 ! "t su* in=mation is provid$1 ! int]e/
 rate on ! loan4  7ii7 ,if ! int]e/ rate
 on ! loan has n be5 det]m9$ at ! "t su*
 in=mation is provid$1 ! curr5t int]e/  
rate & a /atem5t t ! int]e/ rate is     
subject to *ange4  7iii7 ,! mon?ly am\nt
 t ! applicant w\ld be requir$ to repay 
if ! applicant *ooses to accept ! loan1 
bas$ on-- 7,i7 ! am\nt ( ! ,f$]al loan  
"u section #dgj t ! applicant may *oose 
to receive2 &  7,,ii7 paym5t ( su* loan 
on a #aj-ye> repaym5t plan4  7iv7 ,!    
mon?ly am\nt t ! applicant w\ld be      
requir$ to repay if ! applicant *ooses  
to accept a loan ( ! same am\nt & paid  
accord+ to ! same repaym5t plan z       
describ$ 9 clause 7iii7-- 7,i7 if !     
applicant 7 to att5d a program #b ye>s 9
 l5g?2 &  7,,ii7 if ! applicant 7 to    
att5d a program #d ye>s 9 l5g?4  7v7 ,! 
mon?ly am\nt t ! applicant w\ld be      

requir$ to repay if ! applicant *ooses  
to accept ! loan1 bas$ on-- 7,i7 ! am\nt
 ( ! ,f$]al loan "u section #dgj t !    
applicant may *oose to receive2 &       
7,,ii7 paym5t ( su* loan accord+ to !   
income-bas$ repaym5t plan1 reflect+ n   
less ?an #e diff]5t income levels4  7vi7
 ,! mon?ly am\nt 7bas$ on n less ?an #e 
diff]5t income levels7 t ! applicant    
w\ld be requir$ to repay if ! applicant 
*ooses to accept a loan ( ! same am\nt &
 paid accord+ to ! same repaym5t plan z 
describ$ 9 clause 7v7-- 7,i7 if !       
applicant 7 to att5d a program #b ye>s 9
 l5g?2 &  7,,ii7 if ! applicant 7 to    
att5d a program #d ye>s 9 l5g?4  4  #e4 
,"o grant program ,"p ,a ( title ,,iv ( 
! ,act 7#bj ,u4,s4,c4 #ajgj et seq47 is 
fur!r am5d$-- 7#a7 9 subp>t #a1 by /rik+
 sections #dja & #dja;,a & ins]t+ !     
foll[+3  #dja4 ,f$]al ,pell ,grants  7a7
 ,program au?ority & me?od ( di/ribution
  7#a7 ,9 g5]al ,grants made "u ?is     
subp>t %all be kn[n z ,f$]al ,pell      
,grants4  7#b7 ,program au?oriz$ ,= ea* 

( fiscal ye>s #bjaf ?r\gh #bjbb1 !      
,secret>y %all pay to ea* eligible      
in/itution su* sums z may be necess>y to
 pay to ea* eligible /ud5t1 z def9$ 9   
accordance ) section #djj7;a71 = ea*    
academic ye> dur+ :i* t /ud5t is 9      
att5dance at an in/itution ( high]      
education1 z an und]graduate1 a ,f$]al  
,pell ,grant 9 ! am\nt = :i* t /ud5t is 
eligible1 z det]m9$ pursuant to         
subsection 7b74  7#c7 ,me?od (          
di/ribution ,! ,secret>y %all provide   
funds to ea* eligible in/itution ( high]
 education 9 an accurate & timely mann] 
bas$ ^u an am\nt reque/$ by ! in/itution
 = eligible /ud5ts at t in/itution t h  
submitt$ an approv$ application 9       
accordance ) subsection 7d74  7b7       
,purpose & am\nt ( grant  7#a7 ,purpose 
,! purpose ( ?is "p is to assi/ 9 mak+  
available ! b5efits ( po/second>y       
education to eligible /ud5ts 9          
in/itutions ( high] education by provid+
 ,f$]al ,pell ,grants to all eligible   
/ud5ts4  7#b7 ,det]m9ation ( am\nt  7,a7

 ,qualification = ,f$]al ,pell ,grant   
aw>d ,an eligible /ud5t %all            
automatically qualify to receive a      
,f$]al ,pell ,grant aw>d1 :i* %all be   
det]m9$ 9 accordance ) subp>agraph      
7,b77ii7 if ! /ud5t or ! /ud5t's family 
receiv$ b5efits at "s "t dur+ ! previ\s 
#bd-mon? p]iod "u a means-te/$ ,f$]al   
b5efit program1 z def9$ 9 section #djj4 
7,b7 ,aw>d am\nt  7i7 ,aw>d ye> #bjae   
,an eligible /ud5t %all receive a ,f$]al
 ,pell ,grant aw>d = aw>d ye> #bjae 9 an
 am\nt det]m9$ 9 accordance ) clause    
7ii74  7ii7 ,calculation ( individual   
aw>d am\nt  7,i7 ,= family size ( #a3   
#bjac ,a,g,i,pell                       
,aw>d#j-aa1fgje1gcjaa1fga-ab1hcge1chjab1
hch-ad1jjdd1hijad1jje-ae1agad1djjae1agb-
af1cchc1iajaf1cci-ag1ejec1dbjag1ejf-ah1f
gbb1icjah1fgc-ai1hcib1ddjai1hdj-ba1jjfa1
iejba1jjg-bb1agca1dfjbb1agd-bc1cdjigj4  
7,,ii7 ,= family size ( #b3 #bjac       
,a,g,i,pell                             
,aw>d#j-ae1gcje1gcjae1gca-ag1cjce1ejeag1
cjd-ah1hgfe1bceah1hgg-bj1ddid1ifebj1dej-

bb1jbbd1fiebb1jbc-bc1eied1dbebc1eif-be1a
fhd1aeebe1afi-bf1gdac1hhebf1gdb-bh1cadc1
faebh1cae-bi1hhgc1cdebi1hhh-ca1dfjc1jgec
a1dfa-cc1jccc1acjcc1jcd-cd1fjfb1hijcd1fj
g-cf1agib1fejcf1ahj-cg1gebb1dajcg1gec-ci
1cbeb1agj4  7,,iii7 ,= family size ( #c3
 #bjac ,a,g,i,pell                      
,aw>d#j-ai1gije1gcjai1gia-ba1gfie1eeeba1
ggj-bc1gdhe1cdebc1gdi-be1gbge1acebe1gbh-
bg1gjfd1ibebg1gjg-bi1fhed1gaebi1fhf-ca1f
fdd1ejeca1ffe-cc1fdcd1biecc1fdd-ce1fbbd1
jhece1fbc-cg1fjac1hgecg1fjb-ci1ehjc1ffec
i1eha-da1eeic1acjda1efj-dc1echb1hijdc1ec
i-de1eagb1fejde1eah-dg1difb1dajdg1dig-di
1dgeb1agj4  7,,iv7 ,= family size ( #d3 
#bjac ,a,g,i,pell                       
,aw>d#j-bc1heje1gcjbc1hea-bf1bcee1eeebf1
bcf-bh1fbje1cdebh1fba-ca1jjee1aceca1jjf-
cc1cijd1ibecc1cia-ce1gged1gaece1ggf-ch1a
fjd1ejech1afa-dj1eded1biedj1edf-db1icjd1
jhedb1ica-de1caec1hgede1caf-dg1gjjc1ffed
g1gja-ej1jhec1acjej1jhf-eb1dgjb1hijeb1dg
a-ed1heeb1fejed1hef-eg1bdjb1dajeg1bda-ei
1fbeb1agj4  7,v7 ,= family size ( #e3   
#bjac ,a,g,i,pell                       

,aw>d#j-bg1iaje1gcjbg1iaa-cj1gjae1ecjcj1
gjb-cc1dibe1bijcc1dic-cf1bhce1jejcf1bhd-
ci1jgdd1hajci1jge-da1hfed1egjda1hff-dd1f
efd1ccjdd1feg-dg1ddgd1jijdg1ddh-ej1bchc1
hejej1bci-ec1jbic1fajec1jcj-ee1hbjc1cgje
e1hba-eh1faac1acjeh1fab-fa1djbb1hijfa1dj
c-fd1aicb1fejfd1aid-ff1ihdb1dajff1ihe-fi
1ggeb1agj4  7,,vi7 ,= family size ( #f3 
#bjac ,a,g,i,pell                       
,aw>d#j-ca1igje1gcjca1iga-ce1afge1ecjce1
afh-ch1cfde1bijch1cfe-da1efae1jejda1efb-
dd1gehd1hajdd1gei-dg1ieed1egjdg1ief-ea1a
ebd1ccjea1aec-ed1cdid1jijed1cej-eg1edfc1
hejeg1edg-fj1gdcc1fajfj1gdd-fc1idjc1cgjf
c1ida-fg1acgc1acjfg1ach-gj1ccdb1hijgj1cc
e-gc1ecab1fejgc1ecb-gf1gbhb1dajgf1gbi-gi
1ibeb1agj4  7,,vii7 ,= family size ( #g3
 #bjac ,a,g,i,pell                      
,aw>d#j-cf1jcje1gcjcf1jca-ci1fcce1ecjci1
fcd-dc1bcfe1bijdc1bcg-df1hcie1jejdf1hdj-
ej1ddbd1haj #ej1ddc-ed1jded1egj         
#ed1jdf-eg1fdhd1ccj #eg1fdi-fa1bead1jij 
#fa1beb-fd1hedc1hej #fd1hee-fh1degc1faj 
#fh1deh-gb1jfjc1cgj                     
#gb1jfa-ge1ffcc1acjge1ffd-gi1bffb1hijgi1

bfg-hb1hfib1fejhb1hgj-hf1dgbb1dajhf1dgc-
ij1jgeb1agj4  7,,viii7 ,= family size ( 
#h or m3 #bjac ,a,g,i,pell              
,aw>d#j-dj1ijie1gcjdj1iaj-de1jjje1ejede1
jja-di1jiae1bcedi1jib-ec1ahbd1idcec1ahc-
eg1bgcd1fbheg1bgd-fa1cfdd1bijfa1cfe-fe1d
edc1iecfe1dee-fi1edec1faefi1edf-gc1fcfc1
bghgc1fcg-gg1gbgb1idjgg1gbh-ha1hahb1fjch
a1hai-he1ijic1acjhe1iaj-ij1jjjb1hijij1jj
a-id1jiab1fejid1jib-ih1ahbb1dajih1ahb-aj
b1bgcb1agj4  7iii7 ,subsequ5t aw>d ye>s 
,= ea* aw>d ye> subsequ5t to #bjae1 !   
doll> am\nts 9 ! table "u clause 7ii7   
%all be adju/$ 7r\nd$ to ! ne>e/ doll>7 
by ! p]c5tage by :i*-- 7,i7 ! maximum   
,f$]al ,pell ,grant aw>d am\nt calculat$
 9 accordance ) subp>agraph 7,c77i71    
exce$s or decreases bel[  7,,ii7 #egcj4 
7,c7 ,maximum am\nt ( ,f$]al ,pell      
,grant aw>d  7i7 ,9 ,g5]al ,! maximum   
am\nt ( ! ,f$]al ,pell ,grant = a /ud5t 
eligible "u ?is "p %all be-- 7,i7 !     
maximum ,f$]al ,pell ,grant1 z specifi$ 
9 ! la/ enact$ appropriation ,act       
applicable to t aw>d ye>1 plus  7,,ii7 !

 am\nt ( ! increase calculat$ "u clause 
7ii7 = t ye>4  7ii7 ,additional funds   
,!re are au?oriz$ to be appropriat$1 &  
!re are appropriat$ 79 addition to any  
o!r am\nts appropriat$ to c>ry out ?is  
section & out ( any money 9 ! ,treasury 
n o!rwise appropriat$7 ! foll[+ am\nts--
 7,i7 to c>ry out clause 7iii71 su* sums
 z may be necess>y = fiscal ye> #bjaj & 
ea* subsequ5t fiscal ye> to provide !   
am\nt ( increase ( ! maximum ,f$]al     
,pell ,grant requir$ by clause 7iii72 & 
7,,ii7 to c>ry out ?is section-- 7aa7 #j
 = fiscal ye> #bjae2  7bb7 #j = fiscal  
ye> #bjaf2  7cc7 #a1egd1jjj1jjj = fiscal
 ye> #bjag2  7dd7 #a1chb1jjj1jjj =      
fiscal ye> #bjah2  7ee7 #a1dji1jjj1jjj =
 fiscal ye> #bjai2  7ff7 #a1dcj1jjj1jjj 
= fiscal ye> #bjbj2 &  7gg7             
#a1ade1jjj1jjj = fiscal ye> #bjba & ea* 
succe$+ fiscal ye>4  7iii7 ,increase 9  
,f$]al ,pell ,grants ,! am\nts made     
available pursuant to clause 7ii77,i7   
%all be us$ to increase ! am\nt ( !     
maximum ,f$]al ,pell ,grant = :i* a     

/ud5t %all be eligible dur+ an aw>d ye>1
 z specifi$ 9 ! la/ enact$ appropriation
 ,act applicable to t aw>d ye>1 by !    
am\nt det]m9$ "u clause 7iv7 = ea*      
succe$+ aw>d ye>4  7iv7 ,adju/m5t       
,am\nts  7,i7 ,aw>d ye>s #bjae-bjaf     
?r\gh #bjag-bjah ,= ea* ( ! aw>d ye>s   
#bjae-bjaf ?r\gh #bjag-bjah1 ! am\nt    
det]m9$ "u ?is clause = purposes (      
clause 7iii7 %all be equal to-- 7aa7 !  
total maximum ,f$]al ,pell ,grant = !   
prec$+ aw>d ye> 7z det]m9$ "u subclause 
7,,iv771 increas$ by a p]c5tage equal to
 ! annual adju/m5t p]c5tage = ! aw>d ye>
 = :i* ! am\nt "u ?is subp>agraph is be+
 det]m9$1 r$uc$ by  7bb7 #d1hfj or !    
maximum ,f$]al ,pell ,grant = :i* a     
/ud5t 0 eligible = ! prec$+ aw>d ye>1 z 
specifi$ 9 ! la/ enact$ appropriation   
,act applicable to t ye>1 :i*ev] is     
great]1 &  7cc7 r\nd$ to ! ne>e/ #e4    
7,,ii7 ,subsequ5t aw>d ye>s ,= aw>d ye> 
#bjah-bjai & ea* subsequ5t aw>d ye>1 !  
am\nt det]m9$ "u ?is clause = purposes (
 clause 7iii7 %all be equal to ! am\nt  

det]m9$ "u subclause 7,,iv7 = aw>d ye>  
#bjag-bjah4  7,,iii7 ,annual adju/m5t   
p]c5tage ,= purposes ( ?is clause1 ! t]m
 annual adju/m5t p]c5tage z appli$ to an
 aw>d ye>1 is equal to ! e/imat$        
p]c5tage *ange 9 ! ,consum] ,price      
,index 7z det]m9$ by ! ,secret>y1 us+ ! 
def9ition 9 section #dgh7;f77 = ! mo/   
rec5t cal5d> ye> end+ prior to ! beg9n+ 
( t aw>d ye>4  7,,iv7 ,total maximum    
,f$]al ,pell ,grant ,= purposes ( ?is   
clause1 ! t]m total maximum ,f$]al ,pell
 ,grant z appli$ to a prec$+ aw>d ye>1  
is equal to ! sum (-- 7aa7 ! maximum    
,f$]al ,pell ,grant = :i* a /ud5t is    
eligible dur+ an aw>d ye>1 z specifi$ 9 
! la/ enact$ appropriation ,act         
applicable to t prec$+ aw>d ye>2 &  7bb7
 ! am\nt ( ! increase 9 ! maximum ,f$]al
 ,pell ,grant requir$ by ?is subp>agraph
 = t prec$+ aw>d ye>4  7v7  ,program    
requirem5ts & op]ations o!rwise         
unaffect$ ,except z provid$ 9 clauses   
7iii7 & 7iv71 no?+ 9 ?is subp>agraph    
%all be con/ru$ to alt] ! requirem5ts & 

op]ations ( ! ,f$]al ,pell ,grant       
,program z au?oriz$ "u ?is section1 or  
au?orize ! imposition ( additional      
requirem5ts or op]ations = ! det]m9ation
 & allocation ( ,f$]al ,pell ,grants "u 
?is section4  7vi7  ,ratable increases &
 decreases  ,! am\nts specifi$ 9 clause 
7iii7 %all be ratably increas$ or       
decreas$ to ! ext5t t funds available "u
 clause 7ii7 exce$ or are less ?an      
7respectively7 ! am\nt requir$ to       
provide ! am\nts specifi$ 9 clause      
7iii74  7vii7  ,availability ( funds  ,!
 am\nts made available by clause 7ii7 = 
any fiscal ye> %all be available beg9n+ 
on ,octob] #a ( t fiscal ye>1 & %all    
rema9 available ?r\gh ,septemb] #cj ( ! 
succe$+ fiscal ye>4  7,d7 ,exception    
,no?+ 9 ?is "p %all be int]pret$ z      
limit+ ! au?ority ( ! f9ancial aid      
adm9i/rator1 on ! basis ( adequate      
docum5tation1 to make adju/m5ts on a    
case-by-case basis to ! values ( ! data 
items requir$ to calculate ! am\nt ( a  
,f$]al ,pell ,grant aw>d z describ$ "u  

subp>agraph 7,b7 to all[ only = treatm5t
 ( an individual eligible applicant ) a 
*ange 9 family income or family size4   
7,e7 ,limitations  7i7 ,"p-"t /ud5ts ,9 
any case :]e a /ud5t att5ds an          
in/itution ( high] education on less ?an
 a full-"t basis 7includ+ a /ud5t :o    
att5ds an in/itution ( high] education  
on less ?an a half-"t basis7 dur+ any   
academic ye>1 ! am\nt ( ! ,f$]al ,pell  
,grant to :i* t /ud5t is entitl$ %all be
 r$uc$ 9 proportion to ! degree to :i* t
 /ud5t is n s att5d+ on a full-"t basis 
9 accordance ) a s*$ule ( r$uctions     
e/abli%$ by ! ,secret>y = ! purposes (  
?is clause1 comput$ 9 accordance ) ?is  
subp>t4  7ii7 ,co/ ( att5dance ,no      
,f$]al ,pell ,grant "u ?is subp>t %all  
exce$ ! co/ ( att5dance at ! in/itution 
at :i* t /ud5t is 9 att5dance4  7iii7   
,inc>c]ation ,no ,f$]al ,pell ,grant    
%all be aw>d$ "u ?is subp>t to any      
individual :o is inc>c]at$ 9 any ,f$]al 
or ,/ate p5al in/itution or :o is       
subject to an involunt>y civil commitm5t

 ^u completion ( a p]iod ( inc>c]ation =
 a =cible or non=cible sexual (f5se 7z  
det]m9$ 9 accordance ) ! ,f$]al ,bureau 
( ,inve/igation's ,uni=m ,crime ,report+
 ,program74  7c7 ,p]iod ( eligibility = 
grants  7#a7 ,9 g5]al ,! p]iod dur+ :i* 
a /ud5t may receive ,f$]al ,pell ,grants
 %all be ! p]iod requir$ = ! completion 
( ! fir/ und]graduate baccalaureate     
program ( /udy be+ pursu$ by t /ud5t at 
! in/itution at :i* ! /ud5t is 9        
att5dance1 except t any p]iod dur+ :i* !
 /ud5t is enroll$ 9 a non-cr$it or      
rem$ial program ( /udy z def9$ 9        
p>agraph 7#b7 %all n be c\nt$ = !       
purpose ( ?is p>agraph4  7#b7 ,non-cr$it
 or rem$ial c\rsework & /udy abroad     
programs ,no?+ 9 ?is section %all       
exclude f eligibility-- 7,a7 programs ( 
/udy :i* are non-cr$it or rem$ial 9     
nature 7includ+ c\rses 9 ,engli%        
language in/ruction7 :i* are det]m9$ by 
! in/itution to be necess>y to help !   
/ud5t be prep>$ = ! pursuit ( a fir/    
und]graduate baccalaureate degree or    

c]tificate or1 9 ! case ( c\rses 9      
,engli% language in/ruction1 to be      
necess>y to enable ! /ud5t to utilize   
already exi/+ k1 tra9+1 or skills2 or   
7,b7 programs ( /udy abroad t are       
approv$ = cr$it by ! home in/itution at 
:i* ! /ud5t is enroll$4  7#c7           
,limitation ,no /ud5t is entitl$ to     
receive ,f$]al ,pell ,grant paym5ts     
concurr5tly f m ?an "o in/itution4  7#d7
 ,exceptions ,not)/&+ p>agraph 7#a71 !  
,secret>y may all[1 on a case-by-case   
basis1 a /ud5t to receive a basic grant 
if ! /ud5t-- 7,a7 is c>ry+ at lea/      
"o-half ! normal full-"t "w load = !    
program ( /udy ! /ud5t is pursu+1 z     
det]m9$ by ! in/itution ( high]         
education2 &  7,b7 is enroll$ or accept$
 = enrollm5t 9 a po/baccalaureate       
program t does n lead to a graduate     
degree1 & 9 c\rses requir$ by a ,/ate 9 
ord] = ! /ud5t to receive a pr(essional 
c]tification or lic5s+ cr$5tial t is    
requir$ = employm5t z a tea*] 9 an      
elem5t>y s*ool or second>y s*ool 9 t    

,/ate1 except t ?is p>agraph %all n     
apply to a /ud5t :o is enroll$ 9 an     
in/itution ( high] education t (f]s a   
baccalaureate degree 9 education4  7#e7 
,annual aw>d  7,a7 ,9 g5]al ,! p]iod    
dur+ :i* a /ud5t may receive ,f$]al     
,pell ,grants %all n exce$ #ab seme/]s1 
or ! equival5t ( #ab seme/]s1 z det]m9$ 
by ! ,secret>y by regulation4 ,su*      
regulation %all provide1 ) respect to a 
/ud5t :o receiv$ a ,f$]al ,pell ,grant =
 a seme/] & 0 enroll$ on a less ?an     
full-"t basis dur+ t seme/]1 t only a   
fraction ( su* seme/] %all c\nt t[>ds ! 
seme/] limit describ$ 9 ?is subp>agraph4
  7,b7 ,exceptions = accel]at$          
completion  7i7 ,accel]at$ ,c\rsework   
,an eligible /ud5t :o completes         
c\rsework equival5t to "o academic ye>  
be=e ! end ( an aw>d ye> & has exhau/$ !
 ,f$]al ,pell ,grant aw>d fund+ = :i* t 
/ud5t is eligible = su* aw>d ye> may    
receive all1 or a portion (1 ! ,f$]al   
,pell ,grant funds t ! /ud5t w\ld       
o!rwise be eligible to receive 9 ! next 

aw>d ye> to pay additional tuition &    
fees *>g$ to ! /ud5t due to enroll+ 9   
additional c\rses dur+ su* aw>d ye>4 ,a 
/ud5t :o receives all1 or a portion1 (  
su* ,f$]al ,pell ,grant funds = ! next  
aw>d ye> 9 accordance ) ?is clause %all 
n h ! am\nt ( ,f$]al ,pell ,grant funds 
r$uc$ 9 t next aw>d ye> due to su*      
accel]at$ c\rsework4  7ii7 #b ,pell     
,grants 9 a s+le aw>d ye>  7,i7 #b ,pell
 ,grants 9 a s+le aw>d ye> ,9 addition  
to ! exception describ$ 9 clause 7i71 ! 
,secret>y %all aw>d an eligible /ud5t :o
 has n complet$ c\rsework equival5t to  
"o academic ye> be=e ! end ( an aw>d ye>
 n m ?an #b ,f$]al ,pell ,grants dur+ a 
s+le aw>d ye> to p]mit su* /ud5t to     
complete academic progress = t aw>d ye> 
s t ! /ud5t may receive a degree or     
c]tificate on "t4 ,su* eligible /ud5t   
may e>n academic cr$its exce$+ ! m9imum 
numb] ( cr$its ne$$ to ma9ta9 academic  
progress t[>d receiv+ a degree or       
c]tificate on "t1 if ^? cr$its are e>n$ 
9 ! c\rse ( pursu+ academic progress =  

on "t completion ( a degree or          
c]tificate4  7,,ii7 ,exception to annual
 ,pell ,grant limit ,9 ! case ( a /ud5t 
receiv+ m ?an #a ,f$]al ,pell ,grant 9 a
 s+le aw>d ye> "u subclause 7,i71 !     
total am\nt ( ,f$]al ,pell ,grants aw>d$
 to su* /ud5t = ! aw>d ye> may exce$ !  
maximum basic grant level calculat$ 9   
accordance ) subsection 7b77#b77;,c77i7 
= su* aw>d ye>1 b %all n exce$ an am\nt 
equal to #aej p]c5t ( su* maximum basic 
grant level4  7,,iii7 ,inclusion 9      
duration limit ,any p]iod ( /udy cov]$  
by a ,f$]al ,pell ,grant aw>d$ "u ?is   
clause %all be includ$ 9 det]m9+ a      
/ud5t's duration limit "u subp>agraph   
7,a74  7d7 ,application = grants ,!     
,secret>y %all f "t to "t set dates by  
:i* /ud5ts %all file applications =     
,f$]al ,pell ,grants "u ?is subp>t4 ,ea*
 /ud5t desir+ a ,f$]al ,pell ,grant =   
any ye> %all file an application ) !    
,secret>y to det]m9e eligibility = an   
aw>d z describ$ 9 section #djj;,a4  7e7 
,di/ribution ( grants to /ud5ts  7#a7 ,9

 g5]al ,paym5ts "u ?is section %all be  
made 9 accordance ) regulations         
promulgat$ by ! ,secret>y = su* purpose1
 9 su* mann] z w be/ accompli% ! purpose
 ( ?is section4  7#b7 ,limitations ,any 
disbursem5t all[$ to be made by cr$it+ !
 /ud5t's acc\nt %all be limit$ to       
tuition & fees &1 9 ! case (            
in/itutionally own$ h\s+1 room & bo>d4  
7#c7 ,exception ,a /ud5t may elect to h 
! in/itution provide o!r su* goods &    
s]vices by cr$it+ ! /ud5t's acc\nt4  7f7
 ,treatm5t ( in/itutions & /ud5ts "u o!r
 laws ,any in/itution ( high] education 
:i* ent]s into an agreem5t ) ! ,secret>y
 to disburse to /ud5ts att5d+ t         
in/itution ! am\nts ^? /ud5ts are       
eligible to receive "u ?is subp>t %all n
 be deem$1 by virtue ( su* agreem5t1 a  
contractor ma9ta9+ a sy/em ( records to 
accompli% a function ( ! ,secret>y4     
,recipi5ts ( ,f$]al ,pell ,grants %all n
 be consid]$ to be individual grantees =
 purposes ( subtitle ,d ( title ,v (    
,public ,law #ajj-fij4  7g7 ,insuffici5t

 appropriations ,if1 = any fiscal ye>1 !
 funds appropriat$ = paym5ts "u ?is     
subp>t are insuffici5t to satisfy fully 
all entitlem5ts1 z calculat$ "u         
subsection 7b7 7b at ! maximum grant    
level specifi$ 9 su* appropriation71 !  
,secret>y %all promptly transmit a      
notice ( su* insuffici5cy to ea* ,h\se (
 ! ,congress1 & id5tify 9 su* notice !  
additional am\nt t w\ld be requir$ to be
 appropriat$ to satisfy fully all       
entitlem5ts 7z s calculat$ at su*       
maximum grant level74  7h7 ,use ( excess
 funds ,if1 at ! end ( a fiscal ye>1 !  
funds available = mak+ paym5ts "u ?is   
subp>t exce$ ! am\nt necess>y to make ! 
paym5ts requir$ "u ?is subp>t to        
eligible /ud5ts1 !n all ( ! excess funds
 %all rema9 available = mak+ paym5ts "u 
?is subp>t dur+ ! next succe$+ fiscal   
ye>4  2  7#b7 by /rik+ subp>ts #c1 #d1 &
 #f2 &  7#c7 by r$esignat+ subp>ts #e1  
#g1 #i1 & #aj z subp>ts #c1 #d1 #e1 &   
#f1 respectively4  #f4 ,"o loan program 
,title ,,iv ( ! ,act 7#bj ,u4,s4,c4     

#ajgj et seq47 is fur!r am5d$-- 7#a7 9  
section #dea7;a71 by ins]t+ 1 & end+ on 
! ,june #cj foll[+ ! date ( enactm5t ( !
 ,f9ancial ,aid ,simplification &       
,transp>5cy ,act ( #bjae aft] dur+ !    
p]iod beg9n+ ,july #a1 #aiid2 &  7#b7 by
 /rik+ "p ,f & ins]t+ ! foll[+3  ,f ,"o 
loan program  #dgj4 ,loans to /ud5ts &  
families = po/second>y & graduate       
education  7a7 ,program au?oriz$  7#a7  
,9 g5]al ,!re are h]eby made available1 
9 accordance ) ! provisions ( ?is "p1   
su* sums z may be necess>y to make loans
 7includ+ consolidation loans1 z        
describ$ 9 subsection 7f77 to all       
eligible /ud5ts 7& ! eligible p>5ts (   
su* /ud5ts7 9 att5dance at p>ticipat+   
in/itutions ( high] education1 to enable
 su* /ud5ts to pursue _! programs ( /udy
 at su* in/itutions dur+ ! p]iod beg9n+ 
on ! ,july #a aft] ! date ( enactm5t ( !
 ,f9ancial ,aid ,simplification &       
,transp>5cy ,act ( #bjae4  7#b7 ,loan   
orig9ation ,loans made "u ?is "p %all be
 made by p>ticipat+ in/itutions1 or     

consortia !re(1 t h agreem5ts ) !       
,secret>y to orig9ate loans1 or by      
alt]native orig9ators designat$ by !    
,secret>y to make loans = /ud5ts 9      
att5dance at p>ticipat+ in/itutions4    
7b7 ,funds = orig9ation  7#a7 ,9 ,g5]al 
,! ,secret>y %all provide1 on ! basis ( 
! e/imat$ loan am\nt det]m9$ "u         
subsection 7e77#d7 & ! eligibility (    
/ud5ts at ea* p>ticipat+ in/itution1 &  
p>5ts ( su* /ud5ts1 = su* loans1 funds =
 /ud5t & p>5t loans "u ?is "p directly  
to an in/itution ( high] education t has
 an agreem5t ) ! ,secret>y "u subsection
 7d77#a7 to p>ticipate 9 ! /ud5t loan   
programs "u ?is "p & t also has an      
agreem5t ) ! ,secret>y "u subsection    
7d77#b7 to orig9ate loans "u ?is "p4    
7#b7 ,no entitlem5t to p>ticipate or    
orig9ate ,no in/itution ( high]         
education %all h a "r to p>ticipate 9 ! 
program au?oriz$ by ?is "p1 to orig9ate 
loans1 or to p]=m any program function  
"u ?is "p4 ,no?+ 9 ?is p>agraph %all be 
con/ru$ s z to limit ! entitlem5t ( an  

eligible /ud5t att5d+ a p>ticipat+      
in/itution 7or ! eligible p>5t ( su*    
/ud5t7 to borr[ "u ?is "p4  7#c7        
,deliv]y ( ,loan ,funds ,loan funds %all
 be paid & deliv]$ to an in/itution by !
 ,secret>y prior to ! beg9n+ ( ! paym5t 
p]iod e/abli%$ by ! ,secret>y 9 a mann] 
t is consi/5t ) paym5t & deliv]y (      
,f$]al ,pell ,grants "u subp>t #a ( "p  
,a ( ?is title4  7#d7 ,in/itutions      
outside ! ,unit$ ,/ates ,loan funds =   
/ud5ts 7& p>5ts ( /ud5ts7 att5d+        
in/itutions outside ! ,unit$ ,/ates %all
 be disburs$ ?r\gh a f9ancial in/itution
 locat$ or op]at+ 9 ! ,unit$ ,/ates &   
designat$ by ! ,secret>y to s]ve z !    
ag5t ( su* in/itutions ) respect to !   
receipt ( ! disbursem5ts ( su* loan     
funds & ! transf] ( su* funds to su*    
in/itutions4 ,to be eligible to receive 
funds "u ?is "p1 an in/itution outside !
 ,unit$ ,/ates %all make arrangem5ts ) !
 ag5t designat$ by ! ,secret>y "u ?is   
p>agraph to receive funds "u ?is "p4    
7c7 ,selection ( in/itutions =          

p>ticipation & orig9ation  7#a7 ,g5]al  
,au?ority ,! ,secret>y %all ent] into   
agreem5ts pursuant to subsection 7d77#a7
 ) in/itutions ( high] education to     
p>ticipate 9 ! /ud5t loan program "u ?is
 "p1 & agreem5ts pursuant to subsection 
7d77#b7 ) in/itutions ( high] education1
 or consortia !re(1 to orig9ate loans 9 
su* program1 = academic ye>s beg9n+ on  
or aft] ! ,july #a aft] ! date (        
enactm5t ( ! ,f9ancial ,aid             
,simplification & ,transp>5cy ,act (    
#bjae4 ,su* agreem5ts = ! academic ye>  
#bjae-bjaf %all1 to ! ext5t feasible1 be
 ent]$ into n lat] ?an ,janu>y #a1      
#bjae4  7#b7 ,selection crit]ia  7,a7   
,application ,ea* in/itution ( high]    
education desir+ to p>ticipate 9 ! /ud5t
 loan program "u ?is "p %all submit an  
application satisfactory to ! ,secret>y 
conta9+ su* in=mation & assurances z !  
,secret>y may require4  7,b7 ,selection 
,proc$ure ,! ,secret>y %all select      
in/itutions = p>ticipation 9 ! /ud5t    
loan program "u ?is "p1 & %all ent] into

 agreem5ts ) su* in/itutions "u         
subsection 7d77#a71 f among ^?          
in/itutions t submit ! applications     
describ$ 9 subp>agraph 7,a71 & meet su* 
o!r eligibility requirem5ts z !         
,secret>y %all prescribe4  7#c7         
,selection crit]ia = orig9ation  7,a7 ,9
 ,g5]al ,! ,secret>y may ent] into a    
supplem5tal agreem5t ) an in/itution 7or
 a consortium ( su* in/itutions7 t--    
7i7 has an agreem5t "u subsection       
7d77#a72  7ii7 desires to orig9ate loans
 "u ?is "p2 &  7iii7 meets ! crit]ia    
describ$ 9 subp>agraph 7,b74  7,b7      
,selection crit]ia ,! ,secret>y may     
approve an in/itution to orig9ate loans 
only if su* in/itution--  7i7 is n on ! 
reimbursem5t sy/em ( paym5t = any ( !   
programs "u subp>t #a ( "p ,a or "p ,c (
 ?is title2  7ii7 is n ov]due on program
 or f9ancial reports or audits requir$  
"u ?is title2  7iii7 is n subject to an 
em]g5cy action1 or a limitation1        
susp5sion1 or t]m9ation "u section      
#dbh7;b77#a77,t71 #dcb7;h71 or #dhg7;c72

  7iv7 9 ! op9ion ( ! ,secret>y1 has n  
_h sev]e p]=mance defici5cies = any ( ! 
programs "u ?is title1 includ+ su*      
defici5cies demon/rat$ by audits or     
program reviews submitt$ or conduct$    
dur+ ! #e cal5d> ye>s imm$iately prec$+ 
! date ( application2  7v7 provides an  
assurance t su* in/itution has no       
del9qu5t out/&+ debts to ! ,f$]al       
,gov]nm5t1 unless su* debts are be+     
repaid "u or 9 accordance ) a repaym5t  
arrangem5t satisfactory to ! ,f$]al     
,gov]nm5t1 or ! ,secret>y 9 !           
,secret>y's discretion det]m9es t !     
exi/5ce or am\nt ( su* debts has n be5  
f9ally det]m9$ by ! cognizant ,f$]al    
ag5cy2 &  7vi7 meets su* o!r crit]ia z !
 ,secret>y may e/abli% to protect !     
f9ancial int]e/ ( ! ,unit$ ,/ates & to  
promote ! purposes ( ?is "p4  7#d7      
,eligible ,in/itutions ,! ,secret>y may 
n select an in/itution ( high] education
 = p>ticipation "u ?is section unless   
su* in/itution is an eligible in/itution
 "u section #dce7;a74  7#e7 ,consortia  

,subject to su* requirem5ts z !         
,secret>y may prescribe1 eligible       
in/itutions ( high] education 7z det]m9$
 "u p>agraph 7#d77 ) agreem5ts "u       
subsection 7d77#a7 may apply to !       
,secret>y z consortia to orig9ate loans 
"u ?is "p = /ud5ts 9 att5dance at su*   
in/itutions4 ,ea* su* in/itution %all be
 requir$ to meet ! requirem5ts (        
p>agraph 7#c7 ) respect to loan         
orig9ation4  7d7 ,agreem5ts )           
in/itutions  7#a7 ,p>ticipation         
,agreem5ts ,an agreem5t ) any in/itution
 ( high] education = p>ticipation 9 !   
/ud5t loan program "u ?is "p %all-- 7,a7
 provide = ! e/abli%m5t & ma9t5ance ( a 
/ud5t loan program at ! in/itution "u   
:i* ! in/itution w-- 7i7 id5tify        
eligible /ud5ts :o seek /ud5t f9ancial  
assi/ance at su* in/itution 9 accordance
 ) subsection 7e77#b72  7ii7 e/imate !  
loan am\nt ( ea* su* /ud5t 9 accordance 
) subsection 7e77#d77;,a77i72  7iii7    
provide a /atem5t t c]tifies !          
eligibility ( any /ud5t to receive a    

loan "u ?is "p t is n 9 excess ( !      
annual or aggregate limit applicable to 
su* loan1 except t ! in/itution may1 9  
exceptional circum/ances id5tifi$ by !  
,secret>y1 refuse to c]tify a /atem5t t 
p]mits a /ud5t to receive a loan "u ?is 
"p1 or c]tify a loan am\nt t is less ?an
 ! am\nt ! /ud5t may o!rwise be eligible
 to receive1 z describ$ 9 clauses 7iii7 
& 7iv7 ( subsection 7e77#d77;,b72  7iv7 
set =? a s*$ule = disbursem5t ( !       
proce$s ( ! loan 9 in/allm5ts1 consi/5t 
) ! requirem5ts ( section #dbh;,g2 &    
7v7 provide timely & accurate in=mation 
conc]n+ ! /atus ( /ud5t borr[]s 7&      
/ud5ts on ^: behalf p>5ts borr[ "u ?is  
"p7 :ile su* /ud5ts are 9 att5dance at !
 in/itution & conc]n+ any new in=mation 
( :i* ! in/itution becomes aw>e = su*   
/ud5ts 7or _! p>5ts7 aft] su* borr[]s   
leave ! in/itution1 to ! ,secret>y = !  
s]vic+ & collect+ ( loans made "u ?is   
"p2  7,b7 provide assurances t !        
in/itution w comply ) requirem5ts       
e/abli%$ by ! ,secret>y relat+ to /ud5t 

loan in=mation ) respect to loans made  
"u ?is "p2  7,c7 provide t ! in/itution 
accepts responsibility & f9ancial       
liability /emm+ f its failure to p]=m   
its functions pursuant to ! agreem5t2   
7,d7 provide = ! implem5tation ( a      
quality assurance sy/em1 z e/abli%$ by !
 ,secret>y & develop$ 9 consultation )  
in/itutions ( high] education1 to ensure
 t ! in/itution is comply+ ) program    
requirem5ts & meet+ program objectives2 
7,e7 provide t ! in/itution w n *>ge any
 fees ( any k9d1 h[ev] describ$1 to     
/ud5t or p>5t borr[]s = orig9ation      
activities or ! provision ( any         
in=mation necess>y = a /ud5t or p>5t to 
receive a loan "u ?is "p1 or any b5efits
 associat$ ) su* loan2 &  7,f7 include  
su* o!r provisions z ! ,secret>y        
reasonably det]m9es are necess>y to     
protect ! int]e/s ( ! ,unit$ ,/ates & to
 promote ! purposes ( ?is "p4  7#b7     
,orig9ation ,an agreem5t ) any          
in/itution ( high] education1 or        
consortia !re(1 = ! orig9ation ( loans  

"u ?is "p %all-- 7,a7 supplem5t !       
agreem5t ent]$ into 9 accordance )      
p>agraph 7#a72  7,b7 include provisions 
e/abli%$ by ! ,secret>y t are simil> to 
! p>ticipation agreem5t provisions      
describ$ 9 subp>agraphs 7,a77v71 7,b71  
7,c71 7,d71 7,e71 & 7,f7 ( p>agraph     
7#a71 z modifi$ to relate to !          
orig9ation ( loans by ! in/itution or   
consortium2  7,c7 provide t ! in/itution
 or consortium w orig9ate loans to      
eligible /ud5ts & p>5ts 9 accordance )  
?is "p2 &  7,d7 provide t ! note or     
evid5ce ( obligation on ! loan %all be !
 prop]ty ( ! ,secret>y4  7#c7 ,)drawal &
 t]m9ation proc$ures ,! ,secret>y %all  
e/abli% proc$ures by :i* in/itutions or 
consortia may )draw or be t]m9at$ f !   
program "u ?is "p4  7e7 ,t]ms &         
,conditions ( ,loans  7#a7 ,p>allel     
,t]ms1 ,conditions1 ,b5efits1 & ,am\nts 
( ,loans ,unless o!rwise specifi$ 9 ?is 
"p1 loans made to borr[]s "u ?is "p %all
 h ! same t]ms1 conditions1 & b5efits z 
,f$]al ,direct ,unsubsidiz$ ,/af=d      

,loans "u "p ,d made to borr[]s & fir/  
disburs$ on ,july #a1 #aiid4  7#b7      
,eligibility ,9 ord] to be eligible = a 
loan "u ?is section1 an individual mu/  
be-- 7,a7 an eligible /ud5t1 z def9$ 9  
section #djj7;a71 :o is an und]graduate2
  7,b7 an eligible graduate or          
pr(essional /ud5t z def9$ 9 section     
#djj7;a72 or  7,c7 a p>5t or legal      
gu>dian ( an eligible /ud5t :o is an    
und]graduate1 z def9$ 9 section         
#djj7;a74  7#c7 ,application = loans    
,ea* eligible /ud5t 7or ! p>5t ( su*    
/ud5t7 desir+ to obta9 a ,f$]al loan "u 
?is "p = any ye> %all file an           
application ) ! ,secret>y to det]m9e    
eligibility = a loan z describ$ 9       
section #djj;,a4  7#d7 ,am\nt ( loan    
7,a7 ,9 g5]al ,! am\nt ( a loan disburs$
 by a p>ticipat+ in/itution "u ?is      
section %all be ! less] (-- 7i7 an am\nt
 t is equal to ! e/imat$ loan am\nt1 z  
det]m9$ by ! in/itution by calculat+--  
7,i7 ! e/imat$ co/ ( att5dance at !     
eligible in/itution2 m9us  7,,ii7 7aa7  

any e/imat$ f9ancial assi/ance t ! /ud5t
 w receive f a ,f$]al grant1 includ+ a  
,f$]al ,pell ,grant1 a ,/ate grant1 an  
in/itutional grant1 or a s*ol>%ip or    
grant f ano!r s\rce1 t is kn[n to !     
in/itution at ! "t ! /ud5t's det]m9ation
 ( ne$ is made2 &  7bb7 9 ! case ( a    
loan to a p>5t1 ! am\nt ( a loan aw>d$  
"u ?is "p to ! p>5t's *ild2 or  7ii7 !  
maximum ,f$]al loan am\nt = :i* su*     
/ud5t is eligible 9 accordance )        
subp>agraph 7,b74  7,b7 ,loan ,limits   
7i7 ,annual limits ,except z provid$ "u 
clause 7iv71 ! annual am\nt ( loans "u  
?is section t an eligible /ud5t may     
borr[ %all be-- 7,i7 #h1jjj1 9 ! case ( 
a /ud5t :o is an und]graduate /ud5t     
att5d+ a p>ticipat+ in/itution2 &       
7,,ii7 #cj1jjj1 9 ! case ( a graduate or
 pr(essional /ud5t att5d+ a p>ticipat+  
in/itution4  7ii7 ,aggregate limits     
,except z provid$ "u clause 7iv71 !     
maximum aggregate am\nt ( loans "u ?is  
section t an eligible /ud5t may borr[   
%all be-- 7,i7 #cg1ejj 9 ! case ( a     

/ud5t :o is an und]graduate /ud5t att5d+
 an eligible in/itution2 &  7,,ii7      
#aej1jjj 9 ! case ( a /ud5t :o is a     
graduate or pr(essional /ud5t att5d+ an 
eligible in/itution1 except t su*       
aggregate limit %all n include any debt 
t ! /ud5t incurr$ z an und]graduate4    
7iii7 ,"p-"t /ud5ts ,any eligible /ud5t 
receiv+ loans "u ?is section t is       
enroll$ 9 a program ( /udy on less ?an a
 full-"t basis %all h _! loans prorat$  
bas$ on actual enrollm5t /atus4  7iv7   
,in/itutional det]m9$ limits & increases
  7,i7 ,in/itutional det]m9$ limits     
7aa7 ,9 ,g5]al ,not)/&+ any o!r         
provision ( ?is p>agraph1 a p>ticipat+  
in/itution may limit ! annual am\nt t   
/ud5ts enroll$ 9 an id5tifi$ program (  
/udy at t in/itution may borr[ "u ?is   
section1 if-- 7,,aa7 ! in/itution c     
reasonably demon/rate1 bas$ on previ\s  
/ud5t income foll[+ su* program1 t /ud5t
 debt levels are excessive2 & 7,,bb7    
subject to item 7bb71 any proration or  
limit+ ( loan am\nts are appli$ 9 ! same

 mann] to all /ud5ts enroll$ 9 !        
in/itution or program ( /udy4  7bb7     
,exception ,not)/&+ item 7aa77,,bb71 ^u 
! reque/ ( an individual /ud5t1 an      
in/itution 7at ! discretion ( a f9ancial
 aid adm9i/rator7 may increase ! annual 
am\nt limit e/abli%$ "u ?is subclause = 
an individual /ud5t if t /ud5t          
demon/rates special circum/ances4       
7,,ii7 ,in/itutional det]m9$ increases  
,not)/&+ ! annual loan limits describ$ 9
 clause 7i7 & subject to subclause      
7,,iii71 a p>ticipat+ in/itution may    
increase ! annual am\nt t graduate &    
pr(essional /ud5ts enroll$ 9 an id5tifi$
 program ( /udy at t in/itution may     
borr[ "u ?is section & all[ ! annual    
am\nt to exce$ su* limit1 if-- 7aa7 !   
in/itution c reasonably demon/rate t    
/ud5ts enroll$ 9 a program ( /udy h an  
increas$ ne$ & %\ld n be subject to !   
loan limitations describ$ 9 clauses 7i7 
& 7iii72 &  7bb7 any increase ( loan    
am\nts are appli$ 9 ! same mann] to all 
/ud5ts enroll$ 9 ! in/itution or program

 ( /udy4  7,,iii7 ,limitation on        
in/itutional det]m9$ increases ,an      
increase 9 ! annual loan am\nt "u       
subclause 7,,ii7 %all n be = an am\nt t 
results 9 m ?an a #ej p]c5t increase to 
! aggregate loan limit am\nt e/abli%$ "u
 clause 7ii77,,ii74  7#e7 ,repaym5t     
7,a7 ,9 g5]al ,repaym5t ( pr9cipal &    
int]e/ accru$ on loans made "u ?is "p   
%all comm5ce n lat] ?an ! day aft] #f   
mon?s aft] ! date ! /ud5t1 or ! /ud5t on
 ^: behalf ! loan 0 made-- 7i7 ceases to
 c>ry at lea/ "o-half ( ! normal full-"t
 academic workload1 z det]m9$ by !      
in/itution2 or  7ii7 successfully       
completes ! program ( /udy 9 :i* ! /ud5t
 is enroll$1 z det]m9$ by ! in/itution4 
7,b7 ,repaym5t plans  7i7 ,9 g5]al ,n   
lat] ?an #b mon?s aft] a /ud5t ent]s !  
/atus describ$ "u clause 7i7 or 7ii7 (  
subp>agraph 7,a71 ! ,secret>y %all in=m 
a borr[] ( a loan made "u ?is "p ( !    
borr[]'s repaym5t options1 by provid+-- 
7,i7 ! mon?ly paym5t am\nt t ! borr[] w 
owe bas$ on ! total am\nt ( ! borr[]'s  

,f$]al loan "u ?is section if su* loan  
is paid "u a #aj-ye> repaym5t plan2 &   
7,,ii7 e/imates ( ! mon?ly paym5t am\nts
 t ! borr[] may owe "u ! income-bas$    
repaym5t plan1 bas$ on ! total am\nt ( !
 borr[]'s ,f$]al loan "u ?is section & a
 s*$ule ( diff]5t income levels4  7ii7  
,repaym5t options ,a borr[] ( a loan    
made "u ?is "p may *oose f-- 7,i7 a     
repaym5t plan ) a fix$ mon?ly repaym5t  
am\nt paid ov] a fix$ p]iod ( "t1 n to  
exce$ #aj ye>s2 or  7,,ii7 an           
income-bas$ repaym5t plan "u section    
#dic;,c4  7f7 ,consolidation ,loans     
7#a7 ,9 ,g5]al ,a borr[] ( a loan made  
"u ?is "p may consolidate su* loan )--  
7,a7 ano!r loan made "u ?is "p2  7,b7 a 
loan describ$ 9 section #dbh;,c7a77#d7 t
 0 fir/ disburs$ be=e ,july #a1 #bjaj2  
or  7,c7 a loan made "u section #dee t 0
 fir/ disburs$ be=e ! ,july #a prior to 
! date ( enactm5t ( ?is ,act4  7#b7     
,eligibility ,to be eligible = a        
consolidation loan "u ?is "p1 a borr[]  
%all meet ! eligibility crit]ia set =? 9

 section #dbh;,c7a77#c74  7#c7 ,t]ms &  
,conditions ,a consolidation loan "u ?is
 subsection %all h ! same t]ms &        
conditions z a consolidation loan made  
"u section #dee7;g74  4  #g4 ,e>ly      
aw>5ess ( f9ancial aid eligibility      
,section #dhe;,e ( ! ,act 7#bj ,u4,s4,c4
 #ajib;f7 is am5d$ by add+ at ! end !   
foll[+3  7c7 ,e>ly aw>5ess  7#a7 ,9     
,g5]al ,n lat] ?an #ahj days aft] ! date
 ( enactm5t ( ! ,f9ancial ,aid          
,simplification & ,transp>5cy ,act (    
#bjae1 ! ,secret>y %all develop &       
implem5t a plan to dissem9ate in=mation 
ab\t eligibility = ,f$]al f9ancial aid  
"u title ,,iv to local educational      
ag5cies & to middle & second>y s*ools t 
s]ve /ud5ts at lea/ #be p]c5t ( :om are 
eligible = a free or r$uc$ price s*ool  
lun* "u ! ,ri*>d ,b4 ,russell ,national 
,s*ool ,lun* ,act 7#db ,u4,s4,c4 #agea  
et seq474  7#b7 ,recomm5dations to      
,congress ,n lat] ?an #cfe days aft] !  
date ( enactm5t ( ! ,f9ancial ,aid      
,simplification & ,transp>5cy ,act (    

#bjae1 ! ,secret>y1 9 consultation )    
,/ate educational ag5cies1 local        
educational ag5cies1 & ! ,secret>y (    
,agriculture1 %all make recomm5dations  
to ,congress on ways to provide         
individualiz$ in=mation ab\t eligibility
 = ,f$]al f9ancial aid "u title ,,iv to 
elem5t>y s*ool & second>y s*ool /ud5ts  
:o are eligible = a free or r$uc$ price 
s*ool lun* "u ! ,ri*>d ,b4 ,russell     
,national ,s*ool ,lun* ,act 7#db        
,u4,s4,c4 #agea et seq474  4  #h4       
,am5dm5ts to ,g5]al ,provisions ,"p ,g (
 ! ,act 7#bj ,u4,s4,c4 #ajhh et seq47 is
 am5d$-- 7#a7 by repeal+ section #dhc2  
7#b7 9 section #dhd-- 7,a7 9 subsection 
7a71 by /rik+ "u ?is title & ins]t+ "u  
p>ts ,a ?r\gh ,e ( ?is title2  7,b7 9   
subsection 7b71 by /rik+ o!r ?an a loan 
"u section #dbh;,b & ins]t+ o!r ?an a   
loan "u "p ,f1 section #dbh;,b12  7,c7 9
 subsection 7c71 by /rik+ subsection    
7a77#b7 & ins]t+ subsection 7a77#b7 or  
section #djj7;a77#b7 ea* place ! t]m    
appe>s2  7,d7 9 subsection 7d71 by /rik+

 "u subp>ts #a1 #c1 & #d ( "p ,a & p>ts 
,b1 ,c1 ,d1 & ,e ( ?is title & ins]t+ "u
 subp>t #a ( "p ,a & p>ts ,b1 ,c1 ,d1   
,e1 & ,f ( ?is title2  7,e7 9 subsection
 7f77#a71 by /rik+ "p ,b1 "p ,d1 or "p  
,e & ins]t+ "p ,b1 "p ,d1 "p ,e1 or "p  
,f ea* place ! t]m appe>s2  7,f7 9      
subsection 7g77#a71 by ins]t+ or section
 #djj7;a77#b7 aft] subsection 7a77#e72  
7,g7 9 subsection 7m71 by /rik+ "u p>ts 
,b1 ,c1 ,d1 & ,e & ins]t+ "u p>ts ,b1   
,c1 ,d1 ,e1 & ,f2  7,h7 9 subsection    
7p71 by ins]t+ or section #djj;,a aft]  
"u subsection 7a77#d72 &  7,i7 9        
subsection 7q77#a71 by /rik+ ,f$]al     
/ud5t f9ancial aid application & all t  
foll[s ?r\gh ! end ( t p>agraph & ins]t+
 application describ$ "u section #djj;,a
 79 ! case ( a /ud5t apply+ = a ,f$]al  
,pell ,grant7 z ! ,secret>y det]m9es is 
necess>y = ! purpose ( prepopulat+ or   
v]ify+ ! in=mation on su* /ud5t f9ancial
 aid applications42  7#c7 9 section     
#dhd;,a7a77#b77;,c7 by /rik+ made "u "p 
,d or ,e & ins]t+ made "u "p ,d1 ,e1 or 

,f2  7#d7 9 section #dhd;,b-- 7,a7 9    
subsection 7a77#c77;,c77i71 by /rik+    
p>ts ,b1 ,d1 & ,e & ins]t+ p>ts ,b1 ,d1 
,e1 & ,f2  7,b7 9 subsection            
7b77#b77;,b71 by /rik+ "u "p ,b or ,d & 
ins]t+ "u "p ,b1 ,d1 or ,f2 &  7,c7 9   
subsection 7b77#c77;,a7-- 7i7 by        
r$esignat+ clauses 7v7 ?r\gh 7vii7 z    
clauses 7vi7 ?r\gh 7viii72 &  7ii7 by   
ins]t+ aft] clause 7iv7 ! foll[+3  7v7  
,to out/&+ balances on loans made "u "p 
,f = ! paym5t p]iod or p]iod ( enrollm5t
 = :i* a return ( funds is requir$4  2  
7#e7 9 section #dhe-- 7,a7 9 subsection 
7a7-- 7i7 by /rik+ "u p>ts ,b1 ,d1 & ,e 
& ins]t+ "u p>ts ,b1 ,d1 ,e1 & ,f ea*   
place ! t]m appe>s2 &  7ii7 by /rik+ "p 
,b or ,d & ins]t+ "p ,b1 ,d1 or ,f ea*  
place ! t]m appe>s2  7,b7 9 subsection  
7b7-- 7i7 9 p>agraph 7#a77;,a7-- 7,i7 9 
! matt] prec$+ clause 7i71 by ins]t+ or 
"p ,f aft] or made "u "p ,e2 &  7,,ii7 9
 clause 7vii71 by /rik+ p>ts ,b1 ,d1 &  
,e & ins]t+ p>ts ,b1 ,d1 ,e1 & ,f2 &    
7ii7 9 p>agraph 7#b77;,a71 9 ! matt]    

prec$+ clause 7i71 by /rik+ "p ,b1 ,d1  
or ,e & ins]t+ "p ,b1 ,d1 ,e1 or ,f2    
7,c7 9 subsection 7d77#a71 by ins]t+ or 
"p ,f aft] repaym5t plans = loans made  
"u "p ,d2 &  7,d7 9 subsection 7l77#a7--
 7i7 9 subp>agraph 7,a71 9 ! matt]      
prec$+ clause 7i71 by /rik+ or made "u  
"p ,d 7o!r ?an a ,f$]al ,direct         
,consolidation ,loan or a ,f$]al ,direct
 ,,plus loan made on behalf ( a /ud5t71 
& ins]t+ 1 made "u "p ,d 7o!r ?an a     
,f$]al ,direct ,consolidation ,loan or a
 ,f$]al ,direct ,,plus loan made on     
behalf ( a /ud5t71 or made "u "p ,f 7o!r
 ?an a consolidation loan made "u "p    
,f72 &  7ii7 9 subp>agraph 7,b71 by     
/rik+ "p ,b or ,d & ins]t+ "p ,b1 ,d1 or
 ,f2  7#f7 9 section #dhe;,b-- 7,a7 by  
/rik+ p>ts ,d & ,e & ins]t+ p>ts ,d1 ,e1
 & ,f ea* place ! t]m appe>s2 &  7,b7 by
 /rik+ "p ,b1 ,d1 or ,e & ins]t+ "p ,b1 
,d1 ,e1 or ,f ea* place ! t]m appe>s2   
7#g7 9 section #dhg1 by /rik+ "p ,b or  
,d & ins]t+ "p ,b1 ,d1 or ,f ea* place !
 t]m appe>s2 &  7#h7 9 section #dic;,c  

by /rik+ "p ,b or ,d & ins]t+ "p ,b1 ,d1
 or ,f ea* place ! t]m appe>s4  #i4     
,transition provision ,! ,secret>y (    
,education %all take su* actions z !    
,secret>y det]m9es to be appropriate to 
provide = ! ord]ly transition f any     
au?ority to issue loans "u "p ,d ( !    
,high] ,education ,act ( #aife 7#bj     
,u4,s4,c4 #ajhg;a et seq47 to any       
au?ority to issue loans "u "p ,f ( !    
,high] ,education ,act ( #aife1 z am5d$ 
by ?is ,act4