,,ii  #aad? ,,congress  #a/ ,session    
,s4 #acgc  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,may #ai1 #bjae ,mr4   
,s&]s introduc$ ! foll[+ bill2 :i* 0    
read twice & ref]r$ to ! ,committee on  
,f9ance  ,a ,,bill  ,to am5d ! ,high]   
,education ,act to improve high]        
education programs1 & = o!r purposes4   
#a4 ,%ort title  ,?is ,act may be cit$ z
 ! ,college = ,all ,act4  ,i            
,f$]al-,/ate ,p>tn]%ip to ,elim9ate     
,tuition  #aja4 ,grant program to       
elim9ate tuition & requir$ fees at      
public in/itutions ( high] education    
7a7 ,program au?oriz$  7#a7 ,grants     
au?oriz$ ,f am\nts appropriat$ "u       
subsection 7f71 ! ,secret>y ( ,education
 7ref]r$ to 9 ?is section z ! ,secret>y7
 %all aw>d grants1 f allotm5ts "u       
subsection 7b71 to ,/ates hav+          
applications approv$ "u subsection 7d71 
to enable ! ,/ates to elim9ate tuition &
 requir$ fees at public in/itutions (   
high] education4  7#b7 ,mat*+ funds     
requirem5t ,ea* ,/ate t receives a grant

 "u ?is section %all provide mat*+ funds
 = a fiscal ye> 9 an am\nt t is equal to
 "o half ! am\nt receiv$ "u ?is section 
= ! fiscal ye> t[>d ! co/ ( r$uc+ ! co/ 
( att5dance at public in/itutions (     
high] education 9 ! ,/ate4  7b7         
,det]m9ation ( allotm5t  7#a7 ,initial  
allotm5t ,= fiscal ye> #bjaf1 !         
,secret>y %all allot to ea* eligible    
,/ate t submits an application "u ?is   
section an am\nt t is equal to #fg p]c5t
 ( ! total rev5ue receiv$ by ! ,/ate's  
public sy/em ( high] education 9 ! =m ( 
tuition & relat$ fees = fiscal ye>      
#bjaf4 ,= ea* ( fiscal ye>s #bjag ?r\gh 
#bjai1 ! ,secret>y %all allot to ea*    
eligible ,/ate t submits an application 
"u ?is section--  7,a7 an am\nt equal to
 ! allotm5t ! ,/ate receiv$ = fiscal ye>
 #bjaf1 plus  7,b7 if ! ,/ate provides  
additional funds t[>d ! co/ ( r$uc+ !   
co/ ( att5dance at public in/itutions ( 
high] education 9 ! ,/ate = any ( su*   
fiscal ye>s t is m ?an ! mat*+ funds    
requirem5t "u subsection 7a77#b71 an    

am\nt equal to su* additional fund+     
provid$ by ! ,/ate1 :i* am\nt provid$ by
 ! ,secret>y may be us$ = ! activities  
describ$ 9 subsection 7e77#b74  7#b7    
,subsequ5t allotm5ts ,beg9n+ 9 fiscal   
ye> #bjbj1 ! ,secret>y %all det]m9e !   
m$ian allotm5t p] full-"t equival5t     
/ud5t made to all eligible ,/ates "u ?is
 section = fiscal ye> #bjai &           
increm5tally r$uce allotm5ts made to    
,/ates "u ?is section su* t by fiscal   
ye> #bjbe1 no ,/ate receives an allotm5t
 "u ?is section p] full-"t equival5t    
/ud5t t exce$s ! m$ian allotm5t p]      
full-"t equival5t /ud5t made "u ?is     
section = fiscal ye> #bjai4  7c7 ,/ate  
eligibility requirem5ts ,9 ord] to be   
eligible to receive an allotm5t "u ?is  
section = a fiscal ye>1 a ,/ate %all--  
7#a7 ensure t public in/itutions ( high]
 education 9 ! ,/ate ma9ta9 p]-pupil    
exp5ditures on in/ruction at levels t   
meet or exce$ ! exp5ditures = ! previ\s 
fiscal ye>2  7#b7 ensure t tuition &    
requir$ fees = 9-,/ate und]graduate     

/ud5ts 9 ! ,/ate's public high]         
education sy/em are elim9at$2  7#c7     
ma9ta9 ,/ate op]at+ exp5ditures = public
 in/itutions ( high] education1 exclud+ 
! am\nt ( funds provid$ = a fiscal ye>  
"u ?is section1 at a level t meets or   
exce$s ! level ( su* support = fiscal   
ye> #bjae2  7#d7 ma9ta9 ,/ate           
exp5ditures on ne$-bas$ f9ancial aid    
programs = enrollm5t 9 public           
in/itutions ( high] education 9 ! ,/ate 
at a level t meets or exce$s ! level (  
su* support = fiscal ye> #bjae2  7#e7   
ensure public in/itutions ( high]       
education 9 ! ,/ate ma9ta9 fund+ =      
in/itutional ne$-bas$ /ud5t f9ancial aid
 9 an am\nt t is equal to or exce$s !   
level ( su* fund+ = ! previ\s fiscal    
ye>2  7#f7 provide an assurance t n lat]
 ?an #e ye>s aft] ! date ( enactm5t (   
?is ,act1 n less ?an #ge p]c5t (        
in/ruction at public in/itutions ( high]
 education 9 ! ,/ate is provid$ by t5ur$
 or t5ure-track faculty2  7#g7 require t
 public in/itutions ( high] education 9 

! ,/ate provide1 = ea* /ud5t enroll$ at 
! in/itution :o receives = ! maximum    
,f$]al ,pell ,grant aw>d "u subp>t #a ( 
"p ,a ( title ,,iv ( ! ,high] ,education
 ,act ( #aife 7#bj ,u4,s4,c4 #ajgj;a et 
seq471 in/itutional /ud5t f9ancial aid 9
 an am\nt equal to #ajj p]c5t ( !       
diff]5ce betwe5--  7,a7 ! co/ (         
att5dance at su* in/itution 7z det]m9$ 9
 accordance ) section #dgb ( ! ,high]   
,education ,act ( #aife 7#bj ,u4,s4,c4  
#ajhgll771 &  7,b7 ! sum (-- 7i7 ! am\nt
 ( ! maximum ,f$]al ,pell ,grant aw>d2 &
  7ii7 ! /ud5t's expect$ family         
contribution2 &  7#h7 ensure t public   
in/itutions ( high] education 9 ! ,/ate 
n adopt policies to r$uce enrollm5t4    
7d7 ,submission & cont5ts ( application 
,= ea* fiscal ye> = :i* a ,/ate desires 
a grant "u ?is section1 ! ,/ate ag5cy ) 
jurisdiction ov] high] education1 or    
ano!r ag5cy designat$ by ! ,gov]nor or  
*ief executive ( ! ,/ate to adm9i/] !   
program "u ?is section1 %all submit an  
application to ! ,secret>y at su* "t1 9 

su* mann]1 & conta9+ su* in=mation z !  
,secret>y may require4  7e7 ,use ( funds
  7#a7 ,9 g5]al ,a ,/ate t receives a   
grant "u ?is section %all use ! grant   
funds & ! mat*+ funds requir$ "u ?is    
section to elim9ate tuition & requir$   
fees = /ud5ts at public in/itutions (   
high] education 9 ! ,/ate4  7#b7        
,additional fund+ ,once tuition &       
requir$ fees h be5 elim9at$ pursuant to 
p>agraph 7#a71 a ,/ate t receives a     
grant "u ?is section %all use any rema9+
 grant funds & mat*+ funds requir$ "u   
?is section to increase ! quality (     
in/ruction & /ud5t support s]vices by   
c>ry+ out ! foll[+3  7,a7 ,exp&+        
academic c\rse (f]+s to /ud5ts4  7,b7   
,increas+ ! numb] & p]c5tage ( full-"t  
in/ructional faculty4  7,c7 ,provid+ all
 faculty ) pr(essional supports to help 
/ud5ts succe$1 su* z pr(essional        
developm5t opportunities1 (fice space1 &
 %>$ gov]nance 9 ! in/itution4  7,d7    
,comp5sat+ "p-"t faculty = "w done      
outside ( ! classroom relat+ to         

in/ruction1 su* z hold+ (fice h\rs4     
7,e7 ,/r5g!n+ & ensur+ all /ud5ts h     
access to /ud5t support s]vices su* z   
academic advis+1 c\nsel+1 & tutor+4     
7,f7 ,any o!r additional activities t   
improve in/ructional quality & academic 
outcomes = /ud5ts z approv$ by !        
,secret>y ?r\gh a pe] review process4   
7#c7 ,prohibition ,a ,/ate t receives a 
grant "u ?is section may n use grant    
funds or mat*+ funds requir$ "u ?is     
section--  7,a7 = ! con/ruction (       
non-academic facilities1 su* z /ud5t    
c5t]s or /adiums2  7,b7 = m]it-bas$     
/ud5t f9ancial aid2 or  7,c7 to pay !   
sal>ies or b5efits ( s*ool adm9i/rators4
  7f7 ,au?orization & appropriation ,!re
 are au?oriz$ to be appropriat$ to c>ry 
out ?is section #dg1jjj1jjj1jjj = fiscal
 ye> #bjaf1 & su* sums z may be necess>y
 = ea* ( ! fiscal ye>s #bjag ?r\gh      
#bjbe4  ,,ii ,/ud5t loans  #bja4        
,re/oration ( c]ta9 int]e/ rate         
provisions ,section #dee7;b7 ( ! ,high] 
,education ,act ( #aife 7#bj ,u4,s4,c4  

#ajhg;e7b77 is am5d$-- 7#a7 9 p>agraph  
7#h7--  7,a7 9 ! head+1 by /rik+ on or  
aft] ,july #a1 #bjac & ins]t+ on or aft]
 ,july #a1 #bjac1 & be=e ,july #a1      
#bjae2 &  7,b7 by /rik+ on or aft] ,july
 #a1 #bjac & ins]t+ on or aft] ,july #a1
 #bjac1 & be=e ,july #a1 #bjae ea* place
 ! t]m appe>s2  7#b7 by r$esignat+      
p>agraphs 7#i7 & 7#aj7 z p>agraphs 7#aj7
 & 7#aa71 respectively2 &  7#c7 by      
ins]t+ ! foll[+ aft] p>agraph 7#h73     
7#i7 ,int]e/ rate provisions = new loans
 on or aft] ,july #a1 #bjae  7,a7 ,rates
 = ,,fdsl & ,,fdusl ,not)/&+ ! prec$+   
p>agraphs ( ?is subsection1 = ,f$]al    
,direct ,/af=d ,loans & ,f$]al ,direct  
,unsubsidiz$ ,/af=d ,loans = :i* ! fir/ 
disbursem5t is made on or aft] ,july #a1
 #bjae1 ! applicable rate ( int]e/ %all1
 dur+ any #ab-mon? p]iod beg9n+ on ,july
 #a & end+ on ,june #cj1 be det]m9$ on !
 prec$+ ,june #a & be equal to--  7i7 ! 
bond equival5t rate ( #ia-;day ,treasury
 bills auction$ at ! f9al auction held  
prior to su* ,june #a2 plus  7ii7 #b4c  

p]c5t1  except t su* rate %all n exce$  
#h4be p]c5t4  7,b7 ,9 s*ool & grace     
p]iod rules ,not)/&+ ! prec$+ p>agraphs 
( ?is subsection1 ) respect to any      
,f$]al ,direct ,/af=d ,loan or ,f$]al   
,direct ,unsubsidiz$ ,/af=d ,loan = :i* 
! fir/ disbursem5t is made on or aft]   
,july #a1 #bjae1 ! applicable rate (    
int]e/ = int]e/ :i* accrues--  7i7 prior
 to ! beg9n+ ( ! repaym5t p]iod ( !     
loan2 or  7ii7 dur+ ! p]iod 9 :i*       
pr9cipal ne$ n be paid 7:e!r or n su*   
pr9cipal is 9 fact paid7 by reason ( a  
provision describ$ 9 subsection 7f71    
%all be det]m9$ "u subp>agraph 7,a7 by  
sub/itut+ #a4g p]c5t = #b4c p]c5t4  7,c7
 ,,plus loans ,not)/&+ ! prec$+         
p>agraphs ( ?is subsection1 ) respect to
 ,f$]al ,direct ,,plus ,loan = :i* !    
fir/ disbursem5t is made on or aft]     
,july #a1 #bjae1 ! applicable rate (    
int]e/ %all be det]m9$ "u subp>agraph   
7,a7--  7i7 by sub/itut+ #c4a p]c5t =   
#b4c p]c5t2 &  7ii7 by sub/itut+ #i4j   
p]c5t = #h4be p]c5t4  7,d7              

,consolidation loans ,not)/&+ ! prec$+  
p>agraphs ( ?is subsection1 any ,f$]al  
,direct ,consolidation loan = :i* !     
application is receiv$ on or aft] ,july 
#a1 #bjae1 %all be> int]e/ at an annual 
rate on ! unpaid pr9cipal balance ( !   
loan t is equal to ! less] (--  7i7 !   
weight$ av]age ( ! int]e/ rates on !    
loans consolidat$1 r\nd$ to ! ne>e/     
high] #a_/h ( #a p]c5t2 or  7ii7 #h4be  
p]c5t4  4  #bjb4 ,borr[] modification ( 
int]e/ rates "u title ,,iv ,section     
#dee7;b7 ( ! ,high] ,education ,act (   
#aife 7#bj ,u4,s4,c4 #ajhg;e7b771 z     
am5d$ by section #bja1 is fur!r am5d$ by
 add+ at ! end ! foll[+3  7#ab7 ,borr[] 
modification ( int]e/ rate  7,a7        
,modification ,not)/&+ any o!r provision
 ( law1 ! borr[] ( a ,f$]al ,/af=d ,loan
 "u section #dbh1 a ,f$]al ,direct      
,/af=d ,loan1 a ,f$]al ,unsubsidiz$     
,/af=d ,loan "u section #dbh;,h1 a      
,f$]al ,direct ,unsubsidiz$ ,/af=d      
,loan1 a ,f$]al ,,plus ,loan "u section 
#dbh;,b1 a ,f$]al ,direct ,,plus ,loan1 

a ,f$]al ,consolidation ,loan "u section
 #dbh;,c1 or a ,f$]al ,direct           
,consolidation ,loan may elect to modify
 ! int]e/ rate ( ! loan to be equal to--
  7i7 9 ! case ( a ,f$]al ,direct ,/af=d
 ,loan1 a ,f$]al ,direct ,unsubsidiz$   
,/af=d ,loan1 a ,f$]al ,direct ,,plus   
,loan1 or a ,f$]al ,direct              
,consolidation ,loan1 ! int]e/ rate t   
w\ld be applicable to su* loan if su*   
loan 7 fir/ disburs$ 7or 9 ! case ( a   
,f$]al ,direct ,consolidation ,loan1    
fir/ appli$ =7 on ! date on :i* su*     
borr[] elects to modify ! int]e/ rate ( 
su* loan2 &  7ii7 9 ! case ( a ,f$]al   
,/af=d ,loan1 a ,f$]al ,unsubsidiz$     
,/af=d ,loan1 a ,f$]al ,,plus ,loan1 or 
a ,f$]al ,consolidation ,loan1 ! weight$
 av]age ( ! int]e/ rates applicable to  
loans "u "p ,b on ! date ! loan 0 fir/  
disburs$ 7or 9 ! case ( a ,f$]al        
,consolidation ,loan1 fir/ appli$ =74   
7,b7 ,fix$ rate ,except z provid$ 9     
subp>agraph 7,c71 an int]e/ rate elect$ 
"u subp>agraph 7,a7 = a loan %all be    

fix$ = ! life ( ! loan4  7,c7 ,cont9u+  
au?ority to modify ,a borr[] may elect  
to modify ! int]e/ rate ( a loan 9      
accordance ) subp>agraph 7,a7 at any "t 
dur+ ! life ( ! loan4  4  ,,iii ,f$]al  
,"w-,/udy ,programs  #cja4 ,au?orization
 ( appropriations ,section #dda7;b7 ( ! 
,high] ,education ,act ( #aife 7#db     
,u4,s4,c4 #bgea7;b77 is am5d$ to read z 
foll[s3  7b7 ,au?orization (            
appropriations ,!re are au?oriz$ to be  
appropriat$ to c>ry out ?is "p-- 7#a7   
#ige1jjj1jjj = fiscal ye> #bjaf2  7#b7  
#a1ejj1jjj1jjj = fiscal ye> #bjag2  7#c7
 #b1jjj1jjj1jjj = fiscal ye> #bjah2     
7#d7 #b1ejj1jjj1jjj = fiscal ye> #bjai2 
&  7#e7 #c1jjj1jjj1jjj = fiscal ye>     
#bjbj4  4  #cjb4 ,f$]al ,"w-,/udy       
allocation ( funds ,section #ddb ( !    
,high] ,education ,act ( #aife 7#db     
,u4,s4,c4 #bgeb7 is am5d$-- 7#a7 by     
/rik+ subsection 7a7 & ins]t+ ! foll[+3 
7a7 ,revision to ! f$]al "w /udy        
allocation ,! ,secret>y %all allocate   
funds "u ?is section solely on ! basis (

 ! self-help ne$ det]m9ation describ$ "u
 subsection 7c74  2  7#b7 9 subsection  
7c7-- 7,a7 9 p>agraph 7#b71 by /rik+ ,to
 det]m9e ! self-help ne$ ( an           
in/itution's eligible und]graduate      
/ud5ts1 & ins]t+ ,until su* "t z !      
,secret>y e/abli%es a revis$ me?od to   
det]m9e ! self-help ne$ ( an            
in/itution's eligible und]graduate      
/ud5ts1 9 accordance ) p>agraph 7#e712  
7,b7 9 p>agraph 7#c71 by /rik+ ,to      
det]m9e ! self-help ne$ ( an            
in/itution's eligible graduate &        
pr(essional /ud5ts1 & ins]t+ ,until su* 
"t z ! ,secret>y e/abli%es a revis$     
me?od to det]m9e ! self-help ne$ ( an   
in/itution's eligible graduate &        
pr(essional /ud5ts1 9 accordance )      
p>agraph 7#e712 &  7,c7 by add+ at ! end
 ! foll[+3  7#e7 ,n lat] ?an #a ye> aft]
 ! date ( enactm5t ( ! ,college = ,all  
,act1 ! ,secret>y %all e/abli% revis$   
me?ods = det]m9+ ! self-help ne$ ( an   
in/itution's eligible und]graduate      
/ud5ts1 z describ$ 9 p>agraph 7#b71 &   

eligible graduate & pr(essional /ud5ts1 
z describ$ 9 p>agraph 7#c71 t %all take 
into acc\nt ! numb] ( ,f$]al ,pell      
,grant eligible l[- & mod]ate-income    
/ud5ts t an eligible in/itution s]ves & 
provide consid]ations = eligible        
in/itutions t successfully demon/rate   
improv$ employm5t outcomes4 ,! ,secret>y
 %all promulgate any regulations        
necess>y to c>ry out ! revis$ me?ods (  
det]m9+ an eligible in/itution's        
self-help ne$ "u ?is subsection4  2 &   
7#c7 by add+ at ! end ! foll[+3  7f7    
,funds ,to exp& job location developm5t 
programs ,not)/&+ any o!r provision (   
?is "p1 to promote c>e] read9ess &      
improve ! employm5t skills ( ,f$]al     
,pell ,grant-eligible /ud5ts1 !         
,secret>y is au?oriz$ to ent] into      
agreem5ts ) eligible in/itutions "u :i* 
su* in/itution may n use m ?an #bj p]c5t
 or #aej1jjj ( its allotm5t "u ?is      
section1 :i*ev] am\nt is less1 to exp&  
job location developm5t programs1 :i* c 
be coord9at$ ) ,/ate & local work=ce    

developm5t bo>ds4  4  ,,iv ,(f]+        
,necess>y ,eligibility = ,timely        
,in/itutional ,matriculation &          
,enrollm5t  #dja4 ,,fafsa pilot program 
,"p ,g ( title ,,iv ( ! ,high]          
,education ,act ( #aife 7#bj ,u4,s4,c4  
#ajhh et seq47 is am5d$ by ins]t+ aft]  
section #dhc ! foll[+3  #dhc;,a4 ,,fafsa
 pilot program  7a7 ,purposes ,!        
purposes ( ?is section are-- 7#a7 to    
/reaml9e ! annual process by :i* /ud5ts 
apply = ,f$]al f9ancial assi/ance2  7#b7
 to r$uce ! ne$ = /ud5ts to re-apply =  
su* assi/ance ea* ye>2  7#c7 to l[] !   
co/ ( /ud5t borr[+ by ma9ta9+ important 
/ud5t loan protections1 su* z ! 9-s*ool 
int]e/ subsidy2  7#d7 to /r5g!n ! middle
 class & r$uce income inequality by     
t>get+ f9ancial aid to l[- &            
middle-income /ud5ts2 &  7#e7 to ensure 
t ! f9ancial aid application uses income
 data f prior tax ye>s readily available
 to /ud5ts & families to facilitate !   
widespread & increas$ use ( automat$    
processes1 su* z at ! ,,irs-,data       

,retrieval ,tool 7,,irs-,,drt71 ) ! goal
 ( r$uc+ errors & eas+ ! "t & rigor ( ! 
application process4  7b7 ,pilot program
 au?oriz$ ,! ,secret>y is au?oriz$ to   
e/abli% a pilot program & select #e     
eligible ,/ates-- 7#a7 9 :i* a /ud5t :o 
att5ds an in/itution ( high] education 9
 ! eligible ,/ate may submit a s+le     
,free ,application = ,f$]al ,/ud5t ,aid1
 z describ$ 9 section #dhc & modifi$ "u 
subsection 7d7 7ref]r$ to 9 ?is section 
z ! ,,fafsa71 to be us$ z ! application 
to det]m9e ! ne$ & eligibility ( ! /ud5t
 = f9ancial assi/ance "u ?is title dur+ 
! (ficial l5g? ( ! /ud5t's propos$      
po/second>y degree program2 &  7#b7 t   
%all ea* receive a grant 9 accordance ) 
subsection 7e74  7c7 ,eligible ,/ates ,!
 ,secret>y %all select #e eligible      
,/ates t are det]m9$ by ! ,secret>y to h
 a /rong record ( increas+ college      
access & af=dability1 especially =      
l[-income /ud5ts1 to p>ticipate 9 !     
pilot program describ$ 9 subsection 7b74
 ,! selection ( eligible ,/ates %all be 

bas$ on ! ext5t to :i* ! ,/ate has--    
7#a7 inve/$1 & cont9ues to inve/1       
significantly 9 public high] education1 
result+ 9 a comp>atively l[] net price =
 l[-income /ud5ts2  7#b7 allocat$ ,/ate 
f9ancial aid prim>ily on ! basis ( ne$2 
&  7#c7 agre$1 z a condition ( ! ,/ate's
 application = ! pilot program "u ?is   
section1 to provide all 9-,/ate /ud5ts  
7z det]m9$ by ! ,/ate7 ) an (f] = ,/ate 
f9ancial aid t--  7,a7 is valid = n less
 ?an #b ye>s & n m ?an #d ye>s1 z       
det]m9$ by ! ,/ate2 &  7,b7 %all be     
subject to *ange only ^u c]ta9          
conditions1 su* z significant *anges 9 a
 /ud5t's f9ancial circum/ances4  7d7    
,s+le ,,fafsa submission ,! ,secret>y   
%all implem5t1 9 consultation ) ! #e    
select$ eligible ,/ates1 a pilot program
 to /reaml9e ! process ( application to 
det]m9e ! ne$ & eligibility ( a /ud5t = 
f9ancial assi/ance "u ?is title t       
incorporates ! foll[+3  7#a7 ,an option 
= /ud5ts t are enroll$ 9 an in/itution (
 high] education 9 a select$ eligible   

,/ate to submit a s+le ,,fafsa at !     
beg9n+ ( ! /ud5t's po/second>y degree   
program & receive a det]m9ation (       
f9ancial assi/ance "u ?is title t %all1 
on a cont+5t basis1 be valid = n less   
?an #b ye>s & n m ?an #d ye>s1 z det]m9$
 by ! ,/ate4  7#b7 ,! det]m9ation (     
f9ancial assi/ance "u p>agraph 7#a7 %all
 be made 9 accordance ) "p ,f1 except t 
relevant calculations %all be made us+ a
 multi-ye> av]age1 ( #b or #c ye>s1 f ! 
mo/ rec5t tax ye>s = :i* data are       
available4 ,a /ud5t may use previ\sly   
submitt$ /ud5t & p>5t taxpay] data to   
prepopulate ! electronic v]sion ( !     
,,fafsa1 z describ$ 9 section #dhc7;f74 
7#c7 ,z a condition ( ! cont9u$ receipt 
( f9ancial assi/ance "u ?is section1 !  
,secret>y may require a /ud5t :o submits
 ! s+le ,,fafsa to respond to a %ort    
numb] ( que/ions 7:i* may be det]m9$ by 
! ,secret>y71 on an annual basis1 to    
det]m9e if !re is a *ange 9 ! f9ancial  
/atus ( ! /ud5t 7su* z :e!r ! /ud5t or !
 /ud5t's p>5t has exp]i5c$ a sub/antial 

increase 9 annual income7 9 ord] to     
ensure t ! /ud5t cont9ues to receive !  
appropriate am\nt ( f9ancial assi/ance  
"u ?is title4  7#d7 ,not)/&+ p>agraph   
7#a71 a requirem5t t /ud5ts :o exp]i5ce 
significant *anges 9 _! f9ancial        
circum/ances1 z det]m9$ by ! ,secret>y1 
w be requir$ to resubmit ! ,,fafsa 9    
ord] to receive a new det]m9ation (     
f9ancial assi/ance "u ?is title4  7#e7  
,an income v]ification process-- 7,a7   
:i* ! ,secret>y1 ?r\gh ! e/abli%m5t ( a 
memor&um ( und]/&+ ) ! ,secret>y ( !    
,treasury1 w develop to %>e ! income tax
 data ( a r&om sample ( /ud5ts :o h     
receiv$ ,f$]al assi/ance "u ?is title1  
includ+ ,f$]al ,pell ,grants "u section 
#dja & loans made "u "p ,d2  7,b7 to    
ensure t /ud5ts :o h n resubmitt$ a     
,,fafsa 9 accordance ) p>agraph 7#c7 did
 n h a significant *ange 9 f9ancial     
circum/ances t w\ld h requir$ !m to d s2
  7,c7 t %all be c>ri$ out 9 a way s z  
to ensure t no p]sonally id5tifiable    
in=mation is made public ?r\gh ! income 

v]ification process2 &  7,d7 t w be     
c>ri$ out only ) ! cons5t ( /ud5ts1 ^:  
cons5t w be reque/$ z "p ( ! annual     
response requir$ "u p>agraph 7#c74  7#f7
 ,an option = /ud5ts to reque/          
pr(essional judgm5t or resubmit _!      
,,fafsa ea* ye>1 to receive a new       
det]m9ation ( eligibility = f9ancial    
assi/ance "u ?is title4  7e7 ,grant     
am\nt ,ea* eligible ,/ate select$ "u ?is
 section %all receive a grant to        
increase public aw>5ess (1 & promote !  
use (1 ! s+le ,,fafsa t may be submitt$ 
"u ! pilot program to be us$ z !        
application to det]m9e ! ne$ &          
eligibility ( ! /ud5t = f9ancial        
assi/ance "u ?is title dur+ ! (ficial   
l5g? ( ! /ud5t's propos$ po/second>y    
degree program4  7f7 ,supplem5t n       
supplant ,grants provid$ "u ?is section 
%all be us$ to supplem5t1 & n supplant1 
,/ate funds t are us$ to improve college
 access & af=dability4  7g7 ,evaluation 
,n lat] ?an #c ye>s aft] ! date (       
enactm5t ( ! ,college = ,all ,act1 & #e 

ye>s !reaft]1 ! ,secret>y %all prep>e & 
submit to ! au?oriz+ committees a report
 t conta9s an evaluation ( !            
effectiv5ess ( ! pilot program "u ?is   
section 9 improv+ college access1       
increas+ ,,fafsa submission rates1 &    
increas+ po/second>y education cr$it &  
c\rse accumulation4  4  #djb4 ,prior1   
prior ye> ,section #dhj7;a77#a7 ( !     
,high] ,education ,act ( #aife 7#bj     
,u4,s4,c4 #ajhgvv7a77#a77 is am5d$ by   
/rik+ subp>agraph 7,b7 & ins]t+ !       
foll[+3  7,b7 ,not)/&+ section #dgh7;a7 
& beg9n+ n lat] ?an #ahj days aft] !    
date ( enactm5t ( ! ,college = ,all     
,act1 ! ,secret>y %all provide = ! use (
 data f ! second prec$+ tax ye> :5 & to 
! ext5t necess>y to c>ry out !          
simplification ( applications 7includ+  
simplification = a subset (             
applications7 us$ = ! e/imation &       
det]m9ation ( f9ancial aid eligibility4 
,su* simplification %all include ! %>+ (
 data betwe5 ! ,int]nal ,rev5ue ,s]vice 
& ! ,dep>tm5t1 pursuant to ! cons5t ( ! 

taxpay]4  4  ,v ,(fset  #eja4 ,%ort     
title ,?is title may be cit$ z !        
,inclusive ,prosp]ity ,act ( #bjae4     
#ejb4 ,transaction tax  7a7 ,9 g5]al    
,*apt] #cf ( ! ,int]nal ,rev5ue ,code ( 
#aihf is am5d$ by ins]t+ aft] sub*apt]  
,b ! foll[+ new sub*apt]3  ,c ,tax on   
,trad+ ,transactions  ,sec4 #ddge4 ,tax 
on trad+ transactions4  #ddge4 ,tax on  
trad+ transactions  7a7 ,imposition (   
tax ,!re is h]eby impos$ a tax on !     
transf] ( own]%ip 9 ea* cov]$           
transaction ) respect to any security4  
7b7 ,rate ( tax ,! tax impos$ "u        
subsection 7a7 ) respect to any cov]$   
transaction %all be ! applicable        
p]c5tage ( ! specifi$ base am\nt )      
respect to su* cov]$ transaction4 ,!    
applicable p]c5tage %all be--  7#a7 #j4e
 p]c5t 9 ! case ( a security describ$ 9 
subp>agraph 7,a7 or 7,b7 ( subsection   
7e77#a71  7#b7 #j4aj p]c5t 9 ! case ( a 
security describ$ 9 subp>agraph 7,c7 (  
subsection 7e77#a71 &  7#c7 #j4jje p]c5t
 9 ! case ( a security describ$ 9       

subp>agraph 7,d71 7,e71 or 7,f7 (       
subsection 7e77#a74  7c7 ,specifi$ base 
am\nt ,= purposes ( ?is section1 ! t]m  
specifi$ base am\nt means-- 7#a7 except 
z provid$ 9 p>agraph 7#b71 ! fair m>ket 
value ( ! security 7det]m9$ z ( ! "t ( !
 cov]$ transaction71 &  7#b7 9 ! case ( 
any paym5t describ$ 9 subsection 7h71 ! 
am\nt ( su* paym5t4  7d7 ,cov]$         
transaction ,= purposes ( ?is section1 !
 t]m cov]$ transaction means--  7#a7    
except z provid$ 9 p>agraph 7#b71 any   
pur*ase ( a security if-- 7,a7 su*      
pur*ase occurs or is cle>$ on a facility
 locat$ 9 ! ,unit$ ,/ates1 or  7,b7 !   
pur*as] or sell] is a ,unit$ ,/ates     
p]son1 &  7#b7 any transaction ) respect
 to a security describ$ 9 subp>agraph   
7,d71 7,e71 or 7,f7 ( subsection        
7e77#a71 if--  7,a7 su* security is     
trad$ or cle>$ on a facility locat$ 9 ! 
,unit$ ,/ates1 or  7,b7 any p>ty )      
rights "u su* security is a ,unit$      
,/ates p]son4  7e7 ,security & o!r      
def9itions ,= purposes ( ?is section--  

7#a7 ,9 g5]al ,! t]m security means--   
7,a7 any %>e ( /ock 9 a corporation1    
7,b7 any p>tn]%ip or b5eficial own]%ip  
int]e/ 9 a p>tn]%ip or tru/1  7,c7 any  
note1 bond1 deb5ture1 or o!r evid5ce (  
indebt$ness1 o!r ?an a ,/ate or local   
bond ! int]e/ ( :i* is exclud$ f gross  
income "u section #ajc7;a71  7,d7 any   
evid5ce ( an int]e/ 91 or a d]ivative   
f9ancial in/rum5t ) respect to1 any     
security or securities describ$ 9       
subp>agraph 7,a71 7,b71 or 7,c71  7,e7  
any d]ivative f9ancial in/rum5t )       
respect to any curr5cy or commodity     
includ+ notional pr9cipal contracts1 &  
7,f7 any o!r d]ivative f9ancial in/rum5t
 any paym5t ) respect to :i* is         
calculat$ by ref]5ce to any specifi$    
index4  7#b7 ,d]ivative f9ancial        
in/rum5t ,! t]m d]ivative f9ancial      
in/rum5t includes any option1 =w>d      
contract1 futures contract1 notional    
pr9cipal contract1 or any simil>        
f9ancial in/rum5t4  7#c7 ,specifi$ index
 ,! t]m specifi$ index means any #a or m

 ( any comb9ation (-- 7,a7 a fix$ rate1 
price1 or am\nt1 or  7,b7 a v>iable     
rate1 price1 or am\nt1 :i* is bas$ on   
any curr5t objectively det]m9able       
in=mation :i* is n )9 ! control ( any ( 
! p>ties to ! contract or in/rum5t & is 
n unique to any ( ! p>ties'             
circum/ances4  7#d7 ,treatm5t ( ex*anges
  7,a7 ,9 g5]al ,an ex*ange %all be     
treat$ z ! sale ( ! prop]ty transf]r$ & 
a pur*ase ( ! prop]ty receiv$ by ea*    
p>ty to ! ex*ange4  7,b7 ,c]ta9 deem$   
ex*anges ,9 ! case ( a di/ribution      
treat$ z an ex*ange = /ock "u section   
#cjb or #cca1 ! corporation mak+ su*    
di/ribution %all be treat$ z hav+       
pur*as$ su* /ock = purposes ( ?is       
section4  7f7 ,exceptions  7#a7         
,exception = initial issues ,no tax %all
 be impos$ "u subsection 7a7 on any     
cov]$ transaction ) respect to ! initial
 issuance ( any security describ$ 9     
subp>agraph 7,a71 7,b71 or 7,c7 (       
subsection 7e77#a74  7#b7 ,exception =  
c]ta9 trad$ %ort-t]m indebt$ness ,a     

note1 bond1 deb5ture1 or o!r evid5ce (  
indebt$ness :i*-- 7,a7 is trad$ on a    
trad+ facility locat$ 9 ! ,unit$ ,/ates1
 &  7,b7 has a fix$ maturity ( n m ?an  
#fj days1  %all n be treat$ z describ$ 9
 subsection 7e77#a77;,c74  7#c7         
,exception = securities l5d+ arrangem5ts
 ,no tax %all be impos$ "u subsection   
7a7 on any cov]$ transaction ) respect  
to :i* ga9 or loss is n recogniz$ by    
reason ( section #ajeh4  7g7 ,by :om    
paid  7#a7 ,9 g5]al ,! tax impos$ by ?is
 section %all be paid by-- 7,a7 9 ! case
 ( a transaction :i* occurs or is cle>$ 
on a facility locat$ 9 ! ,unit$ ,/ates1 
su* facility1 &  7,b7 9 ! case ( a      
pur*ase n describ$ 9 subp>agraph 7,a7   
:i* is execut$ by a brok] 7z def9$ 9    
section #fjde7;c77#a771 ! brok]4  7#b7  
,special rules = direct1 etc41          
transactions ,9 ! case ( any transaction
 to :i* p>agraph 7#a7 does n apply1 !   
tax impos$ by ?is section %all be paid  
by--  7,a7 9 ! case ( a transaction     
describ$ 9 subsection 7d77#a7-- 7i7 !   

pur*as] if ! pur*as] is a ,unit$ ,/ates 
p]son1 &  7ii7 ! sell] if ! pur*as] is n
 a ,unit$ ,/ates p]son1 &  7,b7 9 ! case
 ( a transaction describ$ 9 subsection  
7d77#b7--  7i7 ! payor if ! payor is a  
,unit$ ,/ates p]son1 &  7ii7 ! payee if 
! payor is n a ,unit$ ,/ates p]son4  7h7
 ,c]ta9 paym5ts treat$ z sep>ate        
transactions ,except z o!rwise provid$  
by ! ,secret>y1 any paym5t ) respect to 
a security describ$ 9 subp>agraph 7,d71 
7,e71 or 7,f7 ( subsection 7e77#a7 %all 
be treat$ z a sep>ate transaction =     
purposes ( ?is section1 includ+--  7#a7 
any net initial paym5t1 net f9al or     
t]m9at+ paym5t1 or net p]iodical paym5t 
) respect to a notional pr9cipal        
contract 7or simil> f9ancial in/rum5t71 
7#b7 any paym5t ) respect to any =w>d   
contract 7or simil> f9ancial in/rum5t71 
&  7#c7 any premium paid ) respect to   
any option 7or simil> f9ancial          
in/rum5t74  7i7 ,adm9i/ration ,!        
,secret>y %all c>ry out ?is section 9   
consultation ) ! ,securities & ,ex*ange 

,commission & ! ,commodity ,futures     
,trad+ ,commission4  7j7 ,guidance2     
regulations ,! ,secret>y %all-- 7#a7    
provide guidance reg>d+ su* in=mation   
report+ conc]n+ cov]$ transactions z !  
,secret>y deems appropriate1 includ+    
report+ by ! payor ( ! tax 9 cases :]e !
 payor is n ! pur*as]1 &  7#b7 prescribe
 su* regulations z are necess>y or      
appropriate to prev5t avoidance ( !     
purposes ( ?is section1 includ+ ! use ( 
non-,unit$ ,/ates p]sons 9 su*          
transactions4  7k7 ,:i/lebl[]s ,see     
section #gfbc = provisions relat+ to    
:i/lebl[]s4  4  7b7 ,p5alty = failure   
,to include cov]$ transaction in=mation 
) return ,"p ,i ( sub*apt] ,b ( *apt]   
#fh ( ! ,int]nal ,rev5ue ,code ( #aihf  
is am5d$ by ins]t+ aft] section #fgjg;,a
 ! foll[+ new section3  #fgjg;,b4       
,p5alty = failure to include cov]$      
transaction in=mation ) return  7a7     
,imposition ( p5alty ,any p]son :o fails
 to include on any return or /atem5t any
 in=mation ) respect to a cov]$         

transaction :i* is requir$ pursuant to  
section #ddge7;j77#a7 to be includ$ )   
su* return or /atem5t %all pay a p5alty 
9 ! am\nt det]m9$ "u subsection 7b74    
7b7 ,am\nt ( p5alty ,except z o!rwise   
provid$ 9 ?is subsection1 ! am\nt ( !   
p5alty "u subsection 7a7 ) respect to   
any cov]$ transaction %all be det]m9$ by
 ! ,secret>y4  7c7 ,cov]$ transaction ,=
 purposes ( ?is section1 ! t]m cov]$    
transaction has ! mean+ giv5 su* t]m by 
section #ddge7;d74  7d7 ,au?ority ,to   
resc9d p5alty  7#a7 ,9 g5]al ,!         
,commission] ( ,int]nal ,rev5ue may     
resc9d all or any portion ( any p5alty  
impos$ by ?is section ) respect to any  
violation if resc9d+ ! p5alty w\ld      
promote compliance ) ! requirem5ts ( ?is
 title & effective tax adm9i/ration4    
7#b7 ,no judicial appeal ,not)/&+ any   
o!r provision ( law1 any det]m9ation "u 
?is subsection may n be review$ 9 any   
judicial proce$+4  7#c7 ,records ,if a  
p5alty is resc9d$ "u p>agraph 7#a71 !   
,commission] %all place 9 ! file 9 !    

,(fice ( ! ,commission] ! op9ion ( !    
,commission] ) respect to ! det]m9ation1
 includ+--  7,a7 a /atem5t ( ! facts &  
circum/ances relat+ to ! violation1     
7,b7 ! reasons = ! rescission1 &  7,c7 !
 am\nt ( ! p5alty resc9d$4  7e7         
,coord9ation ) o!r p5alties ,! p5alty   
impos$ by ?is section %all be 9 addition
 to any o!r p5alty impos$ by ?is title4 
4  7c7 ,cl]ical am5dm5ts  7#a7 ,! table 
( sections = "p ,i ( sub*apt] ,b ( *apt]
 #fh ( su* ,code is am5d$ by ins]t+ aft]
 ! item relat+ to section #fgjg;,a !    
foll[+ new item3  ,sec4 #fgjg;,b4       
,p5alty = failure to include cov]$      
transaction in=mation ) return4  4  7#b7
 ,! table ( sub*apt]s = *apt] #cf ( !   
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by ins]t+ aft] ! item relat+ to sub*apt]
 ,b ! foll[+ new item3  ,sub*apt] ,c4   
,tax on ,trad+ ,transactions  4  7d7    
,effective date ,! am5dm5ts made by ?is 
section %all apply to transactions aft] 
,decemb] #ca1 #bjae4  #ejc4 ,(fsett+    
cr$it = f9ancial transaction tax  7a7 ,9

 g5]al ,subp>t ,a ( "p ,,iv ( sub*apt]  
,a ( *apt] #a ( ! ,int]nal ,rev5ue ,code
 ( #aihf 7relat+ to nonrefundable       
p]sonal cr$its7 is am5d$ by ins]t+ aft] 
section #be;,d ! foll[+ new section3    
#be;,e4 ,f9ancial transaction tax       
paym5ts  7a7 ,all[ance ( cr$it ,9 ! case
 ( an individual1 !re %all be all[$ z a 
cr$it aga9/ ! tax impos$ by ?is *apt] = 
! taxable ye> an am\nt equal to ! tax   
paid dur+ ! taxable ye> "u section      
#ddge4  7b7 ,limitation bas$ on modifi$ 
adju/$ gross income  7#a7 ,9 g5]al      
,subsection 7a7 %all n apply to a       
taxpay] = ! taxable ye> if ! modifi$    
adju/$ gross income ( ! taxpay] = !     
taxable ye> exce$s #ej1jjj 7#ge1jjj 9 ! 
case ( a jo9t return & "o-half ( su*    
am\nt 9 ! case ( a m>ri$ individual fil+
 a sep>ate return74  7#b7 ,modifi$      
adju/$ gross income ,= purposes (       
p>agraph 7#a71 ! t]m modifi$ adju/$     
gross income means adju/$ gross income--
 7,a7 det]m9$ )\t reg>d to sections #hf1
 #hic1 #iaa1 #ica1 & #icc1 &  7,b7      

increas$ by ! am\nt ( int]e/ receiv$ or 
accru$ by ! taxpay] dur+ ! taxable ye>  
:i* is exempt f tax4  7#c7 ,inflation   
adju/m5t  7,a7 ,9 g5]al ,9 ! case ( any 
taxable ye> beg9n+ aft] #bjaf1 ea* doll>
 am\nt ref]r$ to 9 p>agraph 7#a7 %all be
 increas$ by an am\nt equal to--  7i7   
su* doll> am\nt1 multipli$ by  7ii7 !   
co/-(-liv+ adju/m5t det]m9$ "u section  
#a7;f77#c7 ( ! ,int]nal ,rev5ue ,code ( 
#aihf = ! cal5d> ye> 9 :i* ! taxable ye>
 beg9s1 by sub/itut+ #bjae = #aiib4     
7,b7 ,r\nd+ ,if any am\nt z adju/$ "u   
clause 7i7 is n a multiple ( #ej1 su*   
am\nt %all be r\nd$ to ! ne>e/ multiple 
( #ej4  7c7 ,eligible individual  7#a7  
,9 g5]al ,! t]m eligible individual     
means1 ) respect to any taxable ye>1 an 
individual :o-- 7,a7 has atta9$ ! age ( 
#ah z ( ! la/ day ( su* taxable ye>1 &  
7,b7 is a citiz5 or lawful p]man5t      
resid5t 7)9 ! mean+ ( section           
#ggja7;b77#f77 z ( ! la/ day ( su*      
taxable ye>4  7#b7 ,c]ta9 individuals n 
eligible ,= purposes ( p>agraph 7#a71 an

 individual describ$ 9 any ( ! foll[+   
provisions ( ?is title = ! prec$+       
taxable ye> %all n be treat$ z an       
eligible individual = ! taxable ye>3    
7,a7 ,an individual :o is a /ud5t 7z    
def9$ 9 section #aeb7;f77#b77 = !       
taxable ye> or ! imm$iately prec$+      
taxable ye>4  7,b7 ,an individual :o is 
a taxpay] describ$ 9 subsection 7c71    
7d71 or 7e7 ( section #fdjb = !         
imm$iately prec$+ taxable ye>4  7,c7 ,a 
m>ri$ individual :o files a sep>ate     
return = ! taxable ye>4  4  7b7 ,cl]ical
 am5dm5t ,! table ( sections = subp>t ,a
 ( "p ,,iv ( sub*apt] ,a ( *apt] #a (   
su* ,code is am5d$ by ins]t+ aft] ! item
 relat+ to section #be;,d ! foll[+ new  
item3  ,sec4 #be;,e4 ,f9ancial          
transaction tax paym5ts4  4  7c7        
,effective date ,! am5dm5ts made by ?is 
section %all apply to taxable ye>s      
beg9n+ aft] ,decemb] #ca1 #bjae4