,,ii #aafth ,,congress #ast ,session ,s4 #beeg ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,september #bf1 #bjai,mr4 ,alexander introduced the following bill2 which was read twice and referred to the ,committee on ,health1 ,education1 ,labor1 and ,pensions ,a ,,bill ,to amend the ,higher ,education ,act of #aife to improve the financial aid process for students1 to provide continued support for minority-serving institutions1 and for other purposes4 #a4 ,short title2 references 7a7 ,short title ,this ,act may be cited as the ,student ,aid ,improvement ,act of #bjai4 7b7 ,references ,except as otherwise expressly provided1 whenever in this ,act an amendment or repeal is expressed in terms of an amendment to1 or repeal of1 a section or other provision1 the reference shall be considered to be made to a section or other provision of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajja et seq474 #b4 ,continued support for minority-serving institutions ,sec4 #cga7;b77#a77;,a7 7#bj ,u4,s4,c4 #ajfgq7b77#a77;,a77 is amended by striking for each of the fiscal years #bjjh through #bjai4 and all that follows1 and inserting the following3 for fiscal year #bjbj and each fiscal year thereafter44 #c4 ,making it easier to apply for ,federal aid and making that aid predictable 7a7 ,need analysis 7#a7 ,in general ,section #dga 7#bj ,u4,s4,c4 #ajhgkk7 is amended to read as follows3 #dga4 ,amount of need 7a7 ,in general ,except as otherwise provided therein1 beginning with award year #bjba-bjbb1 the amount of need of any student for financial assistance under this title 7except subpart #a or #b of part ,a7 is equal to-- 7#a7 the cost of attendance of such student2 minus 7#b7 the student aid index 7as defined in section #dgc7 for such student2 minus 7#c7 other financial assistance not received under this title 7as defined in section #dhj7;j774 7b7 ,effective date of changes ,the amendments made to this title under the ,student ,aid ,improvement ,act of #bjai shall take effect beginning with award year #bjba-bjbb4 ,the amounts provided under such amendments for award year #bjbj-bjba shall be used solely as a base to determine adjustments for subsequent award years4 4 7#b7 ,maximum aid under part ,d ,section #dea 7#bj ,u4,s4,c4 #ajhg;a7 is amended by adding at the end the following3 7c7 ,maximum aid ,the maximum dollar amount of financial assistance provided under this part to a student shall not exceed the cost of attendance for such student4 4 7b7 ,student aid index ,section #dgc 7#bj ,u4,s4,c4 #ajhgmm7 is amended to read as follows3 #dgc4 ,student aid index 7a7 ,in general ,for the purpose of this title1 other than subpart #a or #b of part ,a1 the term student aid index means1 with respect to a student1 an index that reflects an evaluation of a student's approximate financial resources to contribute toward the student's postsecondary education for the academic year1 as determined in accordance with this part4 7b7 ,special rule for students eligible for the total maximum pell grant ,the ,secretary shall consider an applicant to automatically have a student aid index equal to zero if the applicant is eligible for the total maximum ,federal ,pell ,grant under subpart #a of part ,a1 except if the applicant has a calculated student aid index of less than zero the ,secretary shall consider the negative number as the student aid index for the applicant4 7c7 ,special rule for nonfilers ,for an applicant 7or1 as applicable1 an applicant and spouse1 or an applicant's parents7 not required filed a ,federal tax return for the applicable tax year1 the ,secretary shall for the purposes of this title consider the student aid index as equal to #a1ejj for the applicant4 7d7 ,special rule for recipients of means-,tested benefits ,for an applicant 7including the student1 the student's parent1 or the student's spouse1 as applicable7 who at any time during the previous #bd-month period was a recipient of a means-tested ,federal benefit program1 the ,secretary shall consider an applicant to automatically have a student aid index equal to zero1 except if the applicant has a calculated student aid index of less than zero the ,secretary shall consider the negative number as the student aid index for the applicant4 7e7 ,means-,tested ,federal benefit program ,in this section1 the term means-tested ,federal benefit program means any of the following3 7#a7 ,the supplemental security income program under title ,,xvi of the ,social ,security ,act 7#db ,u4,s4,c4 #acha et seq474 7#b7 ,the supplemental nutrition assistance program under the ,food and ,nutrition ,act of #bjjh 7#g ,u4,s4,c4 #bjaa et seq474 7#c7 ,the program of block grants for ,states for temporary assistance for needy families established under part ,a of title ,,iv of the ,social ,security ,act 7#db ,u4,s4,c4 #fja et seq474 7#d7 ,the special supplemental nutrition program for women1 infants1 and children established by section #ag of the ,child ,nutrition ,act of #aiff 7#db ,u4,s4,c4 #aghf74 7#e7 ,the ,medicaid program under title ,,xix of the ,social ,security ,act 7#db ,u4,s4,c4 #acif et seq474 4 7c7 ,determination of student aid index ,section #dgd 7#bj ,u4,s4,c4 #ajhgnn7 is amended to read as follows3 #dgd4 ,determination of student aid index ,the student aid index-- 7#a7 for a dependent student shall be determined in accordance with section #dge2 7#b7 for a single independent student or a married independent student without dependents 7other than a spouse7 shall be determined in accordance with section #dgf2 and 7#c7 for an independent student with dependents other than a spouse shall be determined in accordance with section #dgg4 4 7d7 ,student aid index for dependent students ,section #dge 7#bj ,u4,s4,c4 #ajhgoo7 is amended to read as follows3 #dge4 ,student aid index for dependent students 7a7 ,computation of student aid index 7#a7 ,in general ,for each dependent student1 the student aid index is equal to 7except as provided in paragraph 7#b77 the sum of-- 7,a7 the assessment of the parents' adjusted available income 7determined in accordance with subsection 7b772 7,b7 the assessment of the student's available income 7determined in accordance with subsection 7g772 and 7,c7 the student's available assets 7determined in accordance with subsection 7h774 7#b7 ,exception ,if the sum of paragraphs 7#a71 7#b71 and 7#c7 with respect to a dependent student is less than #a1ejj1 the student aid index for the dependent student shall be #a1ejj4 7b7 ,assessment of parents' adjusted available income ,the assessment of parents' adjusted available income is equal to the amount determined by-- 7#a7 computing adjusted available income by adding-- 7,a7 the parents' available income 7determined in accordance with subsection 7c772 and 7,b7 the parents' available assets 7determined in accordance with subsection 7d772 7#b7 assessing such adjusted available income in accordance with the assessment schedule set forth in subsection 7e72 and 7#c7 considering such assessment resulting under paragraph 7#b7 as the amount determined under this subsection4 7c7 ,parents' available income 7#a7 ,in general ,the parents' available income is determined by subtracting from total income 7as defined in section #dhj7-- 7,a7 ,federal income taxes2 7,b7 an allowance for payroll taxes1 determined in accordance with paragraph 7#b72 7,c7 an income protection allowance1 determined in accordance with paragraph 7#c72 and 7,d7 an employment expense allowance1 determined in accordance with paragraph 7#d74 7#b7 ,allowance for payroll taxes ,the allowance for payroll taxes is equal to the sum of-- 7,a7 the total amount earned by the parents1 multiplied by the rate of tax under section #caja7;b7 of the ,internal ,revenue ,code of #aihf2 and 7,b7 the amount earned by the parents that does not exceed such contribution and benefit base 7twice such contribution and benefit base1 in the case of a joint return7 for the year of the earnings1 multiplied by the rate of tax applicable to such earnings under section #caja7;a7 of such ,code4 7#c7 ,income protection allowance ,the income protection allowance for award year #bjbj-bjba and each succeeding award year shall equal the amount determined in the following table1 as adjusted by the ,secretary pursuant to section #dgh7;b73 ,income ,protection ,allowance #bjbj-bjba 7to be adjusted for #bjba-bjbb and succeeding years7,family ,size 7including student7,amount#bai1jhjcbc1gfjdbi1cdjecd 1fbjfdj1dij;,for each additional add#d1gej4 7#d7 ,employment expense allowance ,the employment expense allowance is equal to the lesser of #d1jjj or #ce percent of the single parent's earned income or married parents' combined earned income 7or is equal to a successor amount as adjusted by the ,secretary pursuant to section #dgh7;g774 7d7 ,parents' available assets 7#a7 ,in general 7,a7 ,determination ,except as provided in subparagraph 7,b71 the parents' available assets are equal to-- 7i7 the difference between the parents' net assets and the education savings and asset protection allowance 7determined in accordance with paragraph 7#b772 multiplied by 7ii7 #ab percent4 7,b7 ,not less than zero ,parents' available assets under this subsection shall not be less than zero4 7#b7 ,education savings and asset protection allowance ,the education savings and asset protection allowance is calculated according to the following table 7or a successor table prescribed by the ,secretary under section #dgh7;d773 ,education ,savings and ,asset ,protection ,allowances for ,parents of ,dependent ,students ,if the age of the oldest parent is--,and there aretwo parentsone parentthen the allowance is--#be or less#jjbfcjjajjbggjjbjjbha1jjjcjjbia1cjj ejjcja1fjjfjjcab1jjjgjjcbb1cjjhjjccb1fjj ijjcdb1ijja1jjjcec1cjja1ajjcfc1fjja1bjjc gc1ijja1cjjchd1bjja1ejjcid1fjja1fjjdjd1i jja1gjjdae1ajja1gjjdbe1bjja1gjjdce1cjja1 hjjdde1djja1hjjdee1ejja1ijjdfe1gjja1ijjd ge1hjja1ijjdhf1jjjb1jjjdif1ajjb1jjjejf1c jjb1ajjeaf1djjb1ajjebf1fjjb1bjjecf1hjjb1 bjjedf1ijjb1cjjeeg1ajjb1cjjefg1cjjb1djje gg1ejjb1ejjehg1gjjb1ejjeig1ijjb1fjjfjh1b jjb1gjjfah1djjb1gjjfbh1fjjb1hjjfch1ijjb1 ijjfdi1bjjb1ijjfe or more#i1djjc1jjj4 7e7 ,assessment schedule ,the assessment of the parents' adjusted available income 7as determined under subsection 7b77#a7 and hereafter in this subsection referred to as ,,aai7 is calculated according to the following table 7or a successor table prescribed by the ,secretary under section #dgh7;e773 ,parents' ,contribution ,from ,a,a,i,if the parents' ,,aai is--,then the parents' contribution from ,,aai is--,less than -#f1hbj-a1ejj-f1hbj to #ag1jjjbb of ,,aai#ag1jja to #ba1djjc1gdj #be of ,,aai over #ag1jjjba1dja to #be1gjjd1hdj #bi of ,,aai over #ba1djjbe1gja to #cj1ajjf1jhg #cd of ,,aai over #be1gjjcj1aja to #cd1ejjg1ehc #dj of ,,aai over #cj1ajjcd1eja or more#i1cdc #dg of ,,aai over #cd1ejj4 7f7 ,consideration of parental income 7#a7 ,married parents ,parental income and assets in the case of student whose parents are married and not separated shall include the income and assets of both parents4 7#b7 ,divorced or separated parents ,parental income and assets for a student whose parents are divorced or separated1 but not remarried1 is determined3 7,a7 ,by including only the income and assets of the parent with whom the student resided for the greater portion of the #ab-month period preceding the date of the application4 7,b7 ,if the preceding criterion does not apply1 include only the income and assets of the parent who provided the greater portion of the student's support for the #ab-month period preceding the date of application4 7,c7 ,if neither of the preceding criteria apply1 include only the income and assets of the parent who provided the greater support during the most recent calendar year for which parental support was provided4 7#c7 ,death of a parent ,parental income and assets in the case of the death of any parent is determined as follows3 7,a7 ,if either of the parents has died1 the surviving parent shall be considered a single parent1 until that parent has remarried4 7,b7 ,if both parents have died1 the student shall not report any parental income or assets4 7#d7 ,remarried parents ,if a parent whose income and assets are taken into account under paragraph 7#b71 or if a parent who is a widow or widower and whose income is taken into account under paragraph 7#c71 has remarried1 the income of that parent's spouse shall be included in determining the parent's assessment of adjusted available income if the student's parent and the stepparent are married as of the date of application for the award year concerned4 7#e7 ,single parent who is not divorced or separated ,parental income and assets in the case of a student whose parent is a single parent but who is not divorced1 separated1 or remarried1 shall include the income and assets of such single parent4 7g7 ,student's available income 7#a7 ,in general ,the student's available income is equal to-- 7,a7 the difference between the student's total income 7determined in accordance with section #dhj7 and the adjustment to student income 7determined in accordance with paragraph 7#b772 multiplied by 7,b7 #ej percent4 7#b7 ,adjustment to student income ,the adjustment to student income is equal to the sum of-- 7,a7 the ,federal income taxes of the student2 7,b7 an allowance for payroll taxes determined in accordance with paragraph 7#c72 7,c7 an income protection allowance that is equal to-- 7i7 #i1aaj for award year #bjbj-bjba2 and 7ii7 for each succeeding award year1 the amount adjusted pursuant to section #dgh7;b72 and 7,d7 an allowance for parents' negative available income1 determined in accordance with paragraph 7#d74 7#c7 ,allowance for payroll taxes ,the allowance for payroll taxes is equal to the sum of-- 7,a7 the total amount earned by the student1 multiplied by the rate of tax under section #caja7;b7 of the ,internal ,revenue ,code of #aihf2 and 7,b7 the amount earned by the student that does not exceed such contribution and benefit base for the year of the earnings1 multiplied by the rate of tax applicable to such earnings under section #caja7;a7 of such ,code4 7#d7 ,allowance for parents' negative available income ,the allowance for parents' negative available income is the amount1 if any1 by which the sum of the amounts deducted under subparagraphs 7,a7 through 7,d7 of subsection 7c77#a7 exceeds the sum of the parents' total income 7as defined in section #dhj7 and the parents' available assets 7as determined in accordance with subsection 7d774 7h7 ,student's assets ,the student's assets are determined by calculating the net assets of the student and multiplying such amount by #bj percent1 except that the result shall not be less than zero4 4 7e7 ,student aid index for independent students without dependents other than a spouse ,section #dgf 7#bj ,u4,s4,c4 #ajhgpp7 is amended to read as follows3 #dgf4 ,student aid index for independent students without dependents other than a spouse 7a7 ,computation of student aid index 7#a7 ,in general ,for each independent student without dependents other than a spouse1 the student aid index is equal to 7except as provided in paragraph 7#b77 the sum of-- 7,a7 the family's available income 7determined in accordance with subsection 7b772 and 7,b7 the family's available assets 7determined in accordance with subsection 7c774 7#b7 ,exception ,if the sum of paragraphs 7#a7 and 7#b7 with respect to a independent student without dependents other than a spouse is less than #a1ejj1 the student aid index for the independent student shall be #a1ejj4 7b7 ,family's available income 7#a7 ,in general ,the family's available income is determined by-- 7,a7 deducting from total income 7as defined in section #dhj7-- 7i7 ,federal income taxes2 7ii7 an allowance for payroll taxes1 determined in accordance with paragraph 7#b72 7iii7 an income protection allowance that is equal to-- 7,i7 in the case of a single independent student without dependents-- 7aa7 #ad1aij for award year #bjbj-bjba2 and 7bb7 for each succeeding award year1 the amount adjusted pursuant to section #dgh7;b72 and 7,,ii7 in the case of a married independent student without dependents-- 7aa7 #bb1gej for award year #bjbj-bjba2 and 7bb7 for each succeeding award year1 the amount adjusted pursuant to section #dgh7;b72 and 7iv7 in the case of a married independent student1 an employment expense allowance1 as determined in accordance with paragraph 7#c72 and 7,b7 multiplying the amount determined under subparagraph 7,a7 by #ej percent4 7#b7 ,allowance for payroll taxes ,the allowance for payroll taxes is equal to the sum of-- 7,a7 the total amount earned by the student 7and spouse1 if appropriate71 multiplied by the rate of tax under section #caja7;b7 of the ,internal ,revenue ,code of #aihf2 and 7,b7 the amount earned by the student 7and spouse1 if appropriate7 that does not exceed such contribution and benefit base 7twice such contribution and benefit base1 in the case of a joint return7 for the year of the earnings1 multiplied by the rate of tax applicable to such earnings under section #caja7;a7 of such ,code4 7#c7 ,employment expenses allowance ,the employment expense allowance is equal to the following3 7,a7 ,if the student is married1 such allowance is equal to the lesser of #d1jjj or #ce percent of the couple's combined earned income 7or is equal to a successor amount as adjusted by the ,secretary pursuant to section #dgh7;g774 7,b7 ,if the student is not married1 the employment expense allowance is zero4 7c7 ,family's available assets 7#a7 ,in general 7,a7 ,determination ,except as provided in subparagraph 7,b71 the family's available assets are equal to-- 7i7 the difference between the family's assets 7as defined in section #dhj7;f77 and the asset protection allowance 7determined in accordance with paragraph 7#b772 multiplied by 7ii7 #bj percent4 7,b7 ,not less than zero ,family's available assets under this subsection shall not be less than zero4 7#b7 ,asset protection allowance ,the asset protection allowance is calculated according to the following table 7or a successor table prescribed by the ,secretary under section #dgh7;d773 ,asset ,protection ,allowances for ,families and ,students ,if the age of the student is--,and the student ismarriedsinglethen the allowance is--#be or less#jjbfcjjajjbggjjbjjbha1jjjcjjbia1cjj ejjcja1fjjfjjcab1jjjgjjcbb1cjjhjjccb1fjj ijjcdb1ijja1jjjcec1cjja1ajjcfc1fjja1bjjc gc1ijja1djjchd1bjja1ejjcid1fjja1fjjdjd1i jja1gjjdae1ajja1gjjdbe1bjja1gjjdce1cjja1 hjjdde1djja1hjjdee1ejja1ijjdfe1gjja1ijjd ge1hjja1ijjdhf1jjjb1jjjdif1ajjb1jjjejf1c jjb1ajjeaf1djjb1ajjebf1fjjb1bjjecf1hjjb1 bjjedf1ijjb1cjjeeg1ajjb1cjjefg1cjjb1djje gg1ejjb1ejjehg1gjjb1ejjeig1ijjb1fjjfjh1b jjb1gjjfah1djjb1gjjfbh1fjjb1hjjfch1ijjb1 ijjfdi1bjjb1ijjfe or more#i1djjc1jjj4 7d7 ,computations in case of separation1 divorce1 or death ,in the case of a student who is divorced or separated1 or whose spouse has died1 the spouse's income and assets shall not be considered in determining the family's available income or assets4 4 7f7 ,student aid index for independent students with dependents other than a spouse ,section #dgg 7#bj ,u4,s4,c4 #ajhgqq7 is amended to read as follows3 #dgg4 ,student aid index for independent students with dependents other than a spouse 7a7 ,computation of student aid index ,for each independent student with dependents other than a spouse1 the student aid index is equal to the amount determined by-- 7#a7 computing adjusted available income by adding-- 7,a7 the family's available income 7determined in accordance with subsection 7b772 and 7,b7 the family's available assets 7determined in accordance with subsection 7c772 7#b7 assessing such adjusted available income in accordance with an assessment schedule set forth in subsection 7d72 and 7#c7 considering such assessment resulting under paragraph 7#b7 as the amount determined under this subsection4 7b7 ,family's available income 7#a7 ,in general ,the family's available income is determined by deducting from total income 7as defined in section #dhj7-- 7,a7 ,federal income taxes2 7,b7 an allowance for payroll taxes1 determined in accordance with paragraph 7#b72 7,c7 an income protection allowance1 determined in accordance with paragraph 7#c72 and 7,d7 an employment expense allowance1 determined in accordance with paragraph 7#d74 7#b7 ,allowance for payroll taxes ,the allowance for payroll taxes is equal to the sum of-- 7,a7 the amount earned by the student 7and spouse1 if appropriate71 multiplied by the rate of tax under section #caja7;b7 of the ,internal ,revenue ,code of #aihf2 and 7,b7 the amount earned by the student 7and spouse1 if appropriate7 that does not exceed such contribution and benefit base 7twice such contribution and benefit base1 in the case of a joint return7 for the year of the earnings1 multiplied by the rate of tax applicable to such earnings under section #caja7;a7 of such ,code4 7#c7 ,income protection allowance ,the income protection allowance for award year #bjbj-bjba and each succeeding award year shall equal the amount determined in the following table1 as adjusted by the ,secretary pursuant to section #dgh7;b73 7,a7 ,in the case of a married independent student with dependents3 ,income ,protection ,allowance #bjbj-bjba 7to be adjusted for #bjba-bjbb and succeeding years7,family ,size 7including student7,amount#cdd1dgjdee1bfjefe1aijfgf 1bcj;,for each additional add#h1faj4 7,b7 ,in the case of a single independent student with dependents3 ,income ,protection ,allowance #bjbj-bjba 7to be adjusted for #bjba-bjbb and succeeding years7,family ,size 7including student7,amount#bdc1abhced1cfddff1cabegh 1bbhfia1dgf;,for each additional add#aj1ccb4 7#d7 ,employment expense allowance ,the employment expense allowance is equal to the lesser of #d1jjj or #ce percent of the student's earned income or the combined earned income of the student and the student's spouse 7or is equal to a successor amount as adjusted by the ,secretary under section #dgh7;g774 7c7 ,family's available assets 7#a7 ,in general 7,a7 ,determination ,except as provided in subparagraph 7,b71 the family's available assets are equal to-- 7i7 the difference between the family's assets 7as defined in #dhj7;f77 and the asset protection allowance 7determined in accordance with paragraph 7#b772 multiplied by 7ii7 #g percent4 7,b7 ,not less than zero ,family's available assets under this subsection shall not be less than zero4 7#b7 ,asset protection allowance ,the asset protection allowance is calculated according to the following table 7or a successor table prescribed by the ,secretary under section #dgh7;d773 ,asset ,protection ,allowances for ,families and ,students ,if the age of the student is--,and the student ismarriedsinglethen the allowance is--#be or less#jjbfcjjajjbggjjbjjbha1jjjcjjbia1cjj ejjcja1fjjfjjcab1jjjgjjcbb1cjjhjjccb1fjj ijjcdb1ijja1jjjcec1cjja1ajjcfc1fjja1bjjc gc1ijja1djjchd1bjja1ejjcid1fjja1fjjdjd1i jja1gjjdae1ajja1gjjdbe1bjja1gjjdce1cjja1 hjjdde1djja1hjjdee1ejja1ijjdfe1gjja1ijjd ge1hjja1ijjdhf1jjjb1jjjdif1ajjb1jjjejf1c jjb1ajjeaf1djjb1ajjebf1fjjb1bjjecf1hjjb1 bjjedf1ijjb1cjjeeg1ajjb1cjjefg1cjjb1djje gg1ejjb1ejjehg1gjjb1ejjeig1ijjb1fjjfjh1b jjb1gjjfah1djjb1gjjfbh1fjjb1hjjfch1ijjb1 ijjfdi1bjjb1ijjfe or more#i1djjc1jjj4 7d7 ,assessment schedule ,the assessment of adjusted available income 7as determined under subsection 7a77#a7 and hereafter in this subsection referred to as ,,aai7 is calculated according to the following table 7or a successor table prescribed by the ,secretary pursuant to section #dgh7;e773 ,assessment ,from ,adjusted ,available ,income,if ,,aai is--,then the assessment is--,less than -#f1hbj-a1ejj-f1hbj to #ag1jjjbb of ,,aai#ag1jja to #ba1djjc1gdj #be of ,,aai over #ag1jjjba1dja to #be1gjjd1hdj #bi of ,,aai over #ba1djjbe1gja to #cj1ajjf1jhg #cd of ,,aai over #be1gjjcj1aja to #cd1ejjg1ehc #dj of ,,aai over #cj1ajjcd1eja or more#i1cdc #dg of ,,aai over #cd1ejj4 7e7 ,computations in case of separation1 divorce1 or death ,in the case of a student who is divorced or separated1 or whose spouse has died1 the spouse's income and assets shall not be considered in determining the family's available income or assets4 4 7g7 ,regulations2 updated tables ,section #dgh 7#bj ,u4,s4,c4 #ajhgrr7 is amended to read as follows3 #dgh4 ,regulations2 updated tables 7a7 ,authority ,to prescribe regulations restricted 7#a7 ,in general ,notwithstanding any other provision of law1 the ,secretary shall not have the authority to prescribe regulations to carry out this part except-- 7,a7 to prescribe updated tables in accordance with subsections 7b7 through 7g72 7,b7 to propose modifications in the need analysis methodology required by this part2 or 7,c7 with respect to the definition of cost of attendance under section #dgb4 7#b7 ,notification and approval ,any regulation proposed by the ,secretary that updates tables in a manner that does not comply with subsections 7b7 through 7g71 or that proposes modifications under paragraph 7#a77;,b71 shall not be effective unless subject to notification and approval by the authorizing committees not less than #ij days before such regulation is published in the ,federal ,register in accordance with section #dhb4 7b7 ,income protection allowance adjustments ,for award year #bjba-bjbb and each succeeding award year1 the ,secretary shall publish in the ,federal ,register revised income protection allowances for the purposes of subsections 7c77#c7 and 7g77#b77;,c7 of section #dge1 subclauses 7,i7 and 7,,ii7 of section #dgf7;b77#a77;,a77iii71 and section #dgg7;b77#c71 by increasing the income protection allowances in each of such provisions1 by a percentage equal to the percentage increase in the ,consumer ,price ,index1 as defined in subsection 7f71 between ,april #bjai and the ,april prior to the beginning of the award year and rounding the result to the nearest #aj4 7c7 ,adjusted net worth of a farm or business 7#a7 ,table ,the table of the net worth of a business or farm 7hereafter in this subsection referred to as ,,nw7 for purposes of making determinations of assets as defined under section #dhj7;f7 for award year #bjbj-bjba is the following3 ,business_/,farm ,net ,worth ,adjustment,if the net worth of a business or farm is--,then the adjusted net worth is--,less than #aja to #ace1jjjdj of net worth of business_/farm#ace1jja to #daj1jjjed1jjj #ej of net worth over #ace1jjjdaj1jja to #fhj1jjjaia1ejj #fj of net worth over #daj1jjjfhj1jja or more#cec1ejj #ajj of net worth over #fhj1jjj4 7#b7 ,revised tables ,for each award year after award year #bjbj-bjba1 the ,secretary shall publish in the ,federal ,register a revised table of adjusted net worth of a farm or business for purposes of section #dhj7;f74 ,such revised table shall be developed-- 7,a7 by increasing each dollar amount that refers to net worth of a farm or business by a percentage equal to the percentage increase in the ,consumer ,price ,index between ,april #bjai and the ,april prior to the beginning of such award year1 and rounding the result to the nearest #e1jjj2 and 7,b7 by adjusting the dollar amounts in the column referring the adjusted net worth to reflect the changes made pursuant to subparagraph 7,a74 7d7 ,education savings and asset protection allowance ,for each award year after award year #bjbj-bjba1 the ,secretary shall publish in the ,federal ,register a revised table of allowances for the purpose of sections #dge7;d77#b71 #dgf7;c77#b71 and #dgg7;c77#b74 ,such revised table shall be developed by determining the present value cost1 rounded to the nearest #ajj1 of an annuity that would provide1 for each age cohort of #dj and above1 a supplemental income at age #fe 7adjusted for inflation7 equal to the difference between the moderate family income 7as most recently determined by the ,bureau of ,labor ,statistics71 and the current average social security retirement benefits4 ,for each age cohort below #dj1 the allowance shall be computed by decreasing the allowance for age #dj1 as updated1 by one-fifteenth for each year of age below age #dj and rounding the result to the nearest #ajj4 ,in making such determinations-- 7#a7 inflation shall be presumed to be #f percent per year2 7#b7 the rate of return of an annuity shall be presumed to be #h percent2 and 7#c7 the sales commission on an annuity shall be presumed to be #f percent4 7e7 ,assessment schedules and rates ,for each award year after award year #bjbj-bjba1 the ,secretary shall publish in the ,federal ,register a revised table of assessments from adjusted available income for the purpose of sections #dge7;e7 and #dgg7;d74 ,such revised table shall be developed-- 7#a7 by increasing each dollar amount that refers to adjusted available income by a percentage equal to the percentage increase in the ,consumer ,price ,index between ,april #bjai and the ,april prior to the beginning of such academic year1 rounded to the nearest #ajj2 and 7#b7 by adjusting the other dollar amounts to reflect the changes made pursuant to paragraph 7#a74 7f7 ,consumer ,price ,index defined ,in this section1 the term ,consumer ,price ,index means the ,consumer ,price ,index for ,all ,urban ,consumers published by the ,department of ,labor4 ,each annual update of tables to reflect changes in the ,consumer ,price ,index shall be corrected for misestimation of actual changes in such ,index in previous years4 7g7 ,employment expense allowance ,for each award year after award year #bjbj-bjba1 the ,secretary shall publish in the ,federal ,register a revised table of employment expense allowances for the purpose of sections #dge7;c77#d71 #dgf7;b77#c71 and #dgg7;b77#d74 ,such revised table shall be developed by increasing the dollar amount specified in sections #dge7;c77#d71 #dgf7;b77#c71 and #dgg7;b77#d7 to reflect the inflationary adjustment that is used for the income protection allowances in subsection 7b74 4 7h7 ,applicants exempt from asset reporting ,section #dgi 7#bj ,u4,s4,c4 #ajhgss7 is amended to read as follows3 #dgi4 ,applicants exempt from asset reporting 7a7 ,in general ,notwithstanding any other provision of law1 this section shall be effective for each individual seeking to apply for ,federal financial aid under this title1 as part of the simplified application for ,federal student financial aid under section #dhc4 7b7 ,applicants exempt from asset reporting 7#a7 ,in general ,except as provided in paragraph 7#c71 in carrying out section #dhc1 the ,secretary shall not use asset information from an eligible applicant or1 as applicable1 the parent or spouse of an eligible applicant4 7#b7 ,eligible applicants ,in this subsection1 the term eligible applicant means an applicant who meets at least one of the following criteria3 7,a7 ,is an applicant who qualifies for an automatic zero student aid index or automatic negative student aid index under subsection 7b71 7c7 or 7d7 of section #dgc4 7,b7 ,is an applicant who is a dependent student and the student's parents have a total adjusted gross income 7excluding any income of the dependent student7 that is less than #ge1jjj and do not file a ,schedule ,a1 ,b1 ,d1 ,e1 ,f1 or ,h 7or equivalent successor schedules71 with the ,federal income tax return for the second preceding tax year1 and-- 7i7 do not file a ,schedule ,c 7or the equivalent successor schedule7 with the ,federal income tax return for the second preceding tax year2 or 7ii7 file a ,schedule ,c 7or the equivalent successor schedule7 with net business income of not more than a #aj1jjj loss or gain with the ,federal income tax return for the second preceding tax year4 7,c7 ,is an applicant who is an independent student and the student 7and including the student's spouse1 if any7 has a total adjusted gross income that is less than #ge1jjj and does not file a ,schedule ,a1 ,b1 ,c1 ,d1 ,e1 ,f1 or ,h 7or equivalent successor schedules71 with the ,federal income tax return for the second preceding tax year1 and-- 7i7 does not file a ,schedule ,c 7or the equivalent successor schedule7 with the ,federal income tax return for the second preceding tax year2 or 7ii7 files a ,schedule ,c 7or the equivalent successor schedule7 with net business income of not more than a #aj1jjj loss or gain with the ,federal income tax return for the second preceding tax year4 7#c7 ,special rule ,an eligible applicant shall not be exempt from asset reporting under this section if the applicant is a dependent student and the students' parents do not-- 7,a7 reside in the ,united ,states or a ,united ,states territory2 or 7,b7 file taxes in the ,united ,states or a ,united ,states territory1 except if such nonfiling is due to not being required to file a ,federal tax return for the applicable tax year due to a low income4 4 7i7 ,discretion of student financial aid administrators ,section #dgi;,a 7#bj ,u4,s4,c4 #ajhgtt7 is amended to read as follows3 #dgi;,a4 ,discretion of student financial aid administrators 7a7 ,authority of financial aid administrator 7#a7 ,general authority ,a financial aid administrator shall have the authority to1 on the basis of documentation1 make adjustments on a case-by-case basis to the cost of attendance or the values of the data used to calculate the student aid index or ,federal ,pell ,grant award 7or both7 for an individual eligible applicant with special circumstances4 ,in making adjustments described in this paragraph1 a financial aid administrator may-- 7,a7 request and use supplementary information1 as necessary1 about the financial status or personal circumstances of eligible applicants as it relates to the special circumstances based on which the applicant is requesting an adjustment2 or 7,b7 offer a dependent student financial assistance under a ,federal ,direct ,unsubsidized ,stafford ,loan without requiring the parents of such student to file the ,free ,application for ,federal ,student ,aid if the student financial aid administrator determines that each parent of such student has ended financial support of such student and refuses to file such form4 7#b7 ,limitation relating to authority of the financial aid administrator ,in the absence of special circumstances as described in subparagraphs 7,a7 and 7,b7 of this paragraph1 the authority under paragraph 7#a7 shall not be construed to permit financial aid administrators to deviate from the cost of attendance1 the values of the data used to calculate the student aid index or the values of the data used to calculate the ,federal ,pell ,grant award 7or both7 for awarding aid under this title4 7,a7 ,special circumstances for adjustments related to pell grants ,special circumstances for adjustments to calculate a ,federal ,pell ,grant award-- 7i7 shall be conditions that differentiate an individual student from a class of students rather than conditions that exist across a class of students2 and 7ii7 may include-- 7,i7 recent unemployment of a family member or an independent student2 7,,ii7 a student or family member who is a dislocated worker 7as defined in section #c of the ,workforce ,innovation and ,opportunity ,act72 7,,iii7 a change in housing status that results in an individual being homeless 7as defined in section #ajc of the ,mc,kinney-,vento ,homeless ,assistance ,act72 7,,iv7 a recent condition of severe disability of the student1 the dependent student's parent or guardian1 or an independent student's dependent or spouse2 or 7,v7 other changes or adjustments in the income1 assets1 or size of a family1 or a student's dependency status4 7,b7 ,special circumstances for adjustments related to cost of attendance and student aid index ,special circumstances for adjustments to the cost of attendance or the values of the data used to calculate the student aid index-- 7i7 shall be conditions that differentiate an individual student from a class of students rather than conditions that exist across a class of students2 and 7ii7 may include-- 7,i7 tuition expenses at an elementary school or secondary school2 7,,ii7 medical1 dental1 or nursing home expenses not covered by insurance2 7,,iii7 unusually high child care or dependent care costs2 7,,iv7 recent unemployment of a family member or an independent student2 7,v7 a student or family member who is a dislocated worker 7as defined in section #c of the ,workforce ,innovation and ,opportunity ,act72 7,,vi7 the number of family members enrolled in a degree1 certificate1 or other program leading to a recognized educational credential at an institution with a program participation agreement under section #dhg2 7,,vii7 a change in housing status that results in an individual being homeless 7as defined in section #ajc of the ,mc,kinney-,vento ,homeless ,assistance ,act72 7,,viii7 in the case of a dependent student1 a recent condition of severe disability of the student1 the dependent student's parent or guardian1 or an independent student's dependent or spouse2 7,,ix7 exceptional circumstances of claimed losses against income on the ,federal tax return that substantially lower adjusted gross income1 such as unusual business1 investment1 or real estate losses2 or 7,x7 other changes or adjustments in the income1 assets1 or size of a family1 or a student's dependency status4 7#c7 ,use of authority ,no institution of higher education or financial aid administrator shall maintain a policy of denying all requests for adjustments under this subsection4 7#d7 ,documentation and prohibition on fees 7,a7 ,in general ,documentation for adjustments under paragraph 7#a7 shall substantiate the special circumstances of individual students1 and may include a documented interview between the student and the financial aid administrator4 7,b7 ,no additional fee ,no student or parent shall be charged a fee for a documented interview of the student by the financial aid administrator or for the review of a student or parent's request for adjustments under this subsection including the review of any supplementary information or documentation of a student or parent's special circumstance4 7,c7 ,disclosure ,each institution of higher education shall provide a public notice on the institution's financial aid website that students applying for aid under this title shall have the opportunity to pursue adjustments under this subsection4 7b7 ,provisional independent students 7#a7 ,requirements for the secretary ,the ,secretary shall-- 7,a7 enable each student who1 based on an unusual circumstance specified in accordance with section #dhj7;d77#a77;,i71 may qualify for an adjustment under subsection 7a7 that will result in a determination of independence under this section and section #dhj7;d77#a77;,i7 to complete the ,free ,application for ,federal ,student ,aid as an independent student for the purpose of a provisional determination of the student's ,federal financial aid award1 but subject to the authority under paragraph 7#b77;,e71 for the purpose of the final determination of the award2 7,b7 upon completion of the ,free ,application for ,federal ,student ,aid provide an estimate of the student's ,federal ,pell ,grant award1 based on the assumption the student is determined to be an independent student2 and 7,c7 specify1 on the ,free ,application for ,federal ,student ,aid1 the consequences under section #dij7;a7 of knowingly and willfully completing the ,free ,application for ,federal ,student ,aid as an independent student under subparagraph 7,a7 without meeting the unusual circumstances to qualify for such a determination4 7#b7 ,requirements for financial aid administrators ,with respect to a student accepted for admission who completes the ,free ,application for ,federal ,student ,aid as an independent student under paragraph 7#a77;,a71 a financial aid administrator-- 7,a7 shall notify the student of the institutional process and requirements for an adjustment under this section and section #dhj7;d77#a77;,i7 that will result in a review of the student's request for an adjustment and a determination of the student's dependency status under such sections within a reasonable time after the student completes the ,free ,application for ,federal ,student ,aid2 7,b7 shall provide the student a final determination of the student's dependency status and ,federal financial aid award within a reasonable amount of time after all requested documentation is provided2 7,c7 may consider as adequate verification that a student qualifies for an adjustment under this section and #dhj7;d77#a77;,i7-- 7i7 submission of a court order or official ,federal or ,state documentation that the student's parents or legal guardians are incarcerated in any ,federal or ,state penal institution2 7ii7 a documented phone call or a written statement1 which confirms the specific unusual circumstances with-- 7,i7 a child welfare agency authorized by a ,state or county2 7,,ii7 a ,tribal child welfare authority2 7,,iii7 an independent living case worker2 or 7,,iv7 a public or private agency1 facility1 or program serving the victims of abuse1 neglect1 assault1 or violence2 7iii7 a documented phone call or a written statement from an attorney1 a guardian ad litem1 or a court appointed special advocate1 which confirms the specific unusual circumstances and documents the person's relationship to the student2 7iv7 a documented phone call or a written statement from a representative of a program under chapter #a or #b of subpart #b of part ,a1 which confirms the specific unusual circumstances and documents the person's relationship to the student2 7v7 submission of a copy of the student's parents'-- 7,i7 certificates of death2 or 7,,ii7 verified obituaries2 or 7vi7 in the absence of documentation described in this subparagraph1 other documentation the financial aid administrator determines is adequate and appropriate to confirm the unusual circumstances2 7,d7 shall retain all documents related to the adjustment under this section and section #dhj7;d77#a77;,i71 including documented interviews1 for at least the duration of the student's enrollment1 and shall abide by all other record keeping requirements of this ,act2 and 7,e7 shall presume that any student who has obtained an adjustment under this section and section #dhj7;d77#a77;,i7 and a final determination of independence for a preceding award year at an institution to be independent for a subsequent award year at the same institution unless-- 7i7 the student informs the institution that circumstances have changed2 or 7ii7 the institution has specific conflicting information about the student's independence4 7c7 ,adjustments to assets or income taken into account ,a financial aid administrator shall be considered to be making a necessary adjustment in accordance with subsection 7a7 if-- 7#a7 the administrator makes adjustments excluding from family income or assets any proceeds or losses from a sale of farm or business assets of a family if such sale results from a voluntary or involuntary foreclosure1 forfeiture1 or bankruptcy or a voluntary or involuntary liquidation2 or 7#b7 the administrator makes adjustments for a student with a disability so as to take into consideration the additional costs such student incurs as a result of such student's disability4 7d7 ,refusal or adjustment of loan certifications ,on a case-by-case basis1 an eligible institution may refuse to use the authority provided under this section1 certify a statement that permits a student to receive a loan under part ,d1 certify a loan amount1 or make a loan that is less than the student's determination of need 7as determined under this part71 if the reason for the action is documented and provided in written form to the student4 ,no eligible institution shall discriminate against any borrower or applicant in obtaining a loan on the basis of race1 national origin1 religion1 sex1 marital status1 age1 or disability status4 4 7j7 ,disregard of student aid in other programs ,section #dgi;,b 7#bj ,u4,s4,c4 #ajhguu7 is amended to read as follows3 #dgi;,b4 ,disregard of student aid in other programs ,notwithstanding any other provision of law1 student financial assistance received under this title1 or under ,bureau of ,indian ,affairs student assistance programs1 shall not be taken into account in determining the need or eligibility of any person for benefits or assistance1 or the amount of such benefits or assistance1 under any ,federal1 ,state1 or local program financed in whole or in part with ,federal funds4 4 7k7 ,native ,american students ,section #dgi;,c 7#bj ,u4,s4,c4 #ajhguu-#a7 is amended to read as follows3 #dgi;,c4 ,native ,american students ,in determining the student aid index for ,native ,american students1 computations performed pursuant to this part shall exclude-- 7#a7 any income and assets of #b1jjj or less per individual payment received by the student 7and spouse7 and student's parents under ,public ,law #ih-fd 7#be ,u4,s4,c4 #aag;a et seq42 #ig ,stat4 #cfe7 7commonly known as the ,per ,capita ,act7 or the ,indian ,tribal ,judgment ,funds ,use or ,distribution ,act 7#be ,u4,s4,c4 #adja et seq472 and 7#b7 any income received by the student 7and spouse7 and student's parents under the ,alaska ,native ,claims ,settlement ,act 7#dc ,u4,s4,c4 #afja et seq47 or the ,maine ,indian ,claims ,settlement ,act of #aihj 7#be ,u4,s4,c4 #agba et seq474 4 7l7 ,definitions ,section #dhj 7#bj ,u4,s4,c4 #ajhgvv7 is amended to read as follows3 #dhj4 ,definitions ,in this part3 7a7 ,total income ,the term total income means the amount equal to adjusted gross income for the second preceding tax year plus untaxed income and benefits for the second preceding tax year minus excludable income for the second preceding tax year4 ,the factors used to determine total income shall be derived from the ,federal income tax return1 if available1 except for the applicant's ability to indicate a qualified rollover in the second preceding tax year as outlined in section #dhc4 7b7 ,untaxed income and benefits ,the term untaxed income and benefits means-- 7#a7 deductions and payments to self-employed ,,sep1 ,,simple1 ,keogh1 and other qualified individual retirement accounts excluded from income for ,federal tax purposes1 except such term shall not include payments made to tax-deferred pension and retirement plans1 paid directly or withheld from earnings1 that are not delineated on the ,federal tax return2 7#b7 tax-exempt interest income2 7#c7 untaxed portion of individual retirement account distributions2 7#d7 untaxed portion of pensions2 and 7#e7 untaxed contributions to health savings accounts4 7c7 ,veteran ,the term veteran has the meaning given the term in section #aja7b7 of title #ch1 ,united ,states ,code4 7d7 ,independent students and determinations 7#a7 ,definition ,the term independent1 when used with respect to a student1 means any individual who-- 7,a7 is #bd years of age or older by ,december #ca of the award year2 7,b7 is an orphan1 in foster care1 or a ward of the court1 or was an orphan1 in foster care1 or a ward of the court at any time when the individual was #ac years of age or older2 7,c7 is1 or was immediately prior to attaining the age of majority1 an emancipated minor or in legal guardianship as determined by a court of competent jurisdiction in the individual's ,state of legal residence2 7,d7 is a veteran of the ,armed ,forces of the ,united ,states 7as defined in subsection 7c77 or is currently serving on active duty in the ,armed ,forces for other than training purposes2 7,e7 is a graduate or professional student2 7,f7 is a married individual2 7,g7 has legal dependents other than a spouse2 7,h7 has been verified as either an unaccompanied youth #bc years of age or younger who is a homeless child or youth 7as such term is defined in section #gbe of the ,mc,kinney-,vento ,homeless ,assistance ,act71 or as unaccompanied1 at risk of homelessness1 and self-supporting1 by-- 7i7 a local educational agency homeless liaison1 designated pursuant to section #gbb7;g77#a77;,j77ii7 of the ,mc,kinney-,vento ,homeless ,assistance ,act or a designee of the liaison2 7ii7 the director of a recognized emergency shelter1 transitional living1 street outreach program1 or other program serving individuals who are homeless or a designee of the director2 7iii7 the director of a ,federal ,,trio program or a ,gaining ,early ,awareness and ,readiness for ,undergraduate program under chapter #a or #b of subpart #b of part ,a or a designee of the director2 or 7iv7 a financial aid administrator who verified the student's circumstance in a prior award year2 or 7,i7 is a student for whom a financial aid administrator makes a documented determination of independence by reason of other unusual circumstances in which the student is unable to contact a parent or where contact with parents poses a risk to such student1 which may include circumstances of-- 7i7 human trafficking1 as described in the ,trafficking ,victims ,protection ,act of #bjjj 7#bb ,u4,s4,c4 #gaja et seq472 7ii7 legally granted refugee or asylum status2 7iii7 parental abandonment2 or 7iv7 parental imprisonment4 7#b7 ,simplifying the dependency override process ,a financial aid administrator may make a determination of independence under paragraph 7#a77;,i7 based upon a documented determination of independence that was previously made by another financial aid administrator under such paragraph in the same award year4 7#c7 ,determination process for unaccompanied youth ,a financial aid administrator shall make a case-by-case determination under paragraph 7#a77;,h7 if a student does not have1 and cannot get1 documentation from any of the other designated authorities described in such paragraph1 and1 in the absence of conflicting information1 may verify a status described in such paragraph4 ,such a determination shall be-- 7,a7 based on the definitions outlined in paragraph 7#a77;,h72 7,b7 distinct from a determination of independence under paragraph 7#a77;,i72 7,c7 based on a written statement from or a documented interview with the student which confirms the student's status as an unaccompanied youth2 7,d7 limited to whether the student's status has been verified through an individual described in paragraph 7#a77;,h72 and 7,e7 made independent from the reasons for the student's homelessness4 7#d7 ,verification process for foster care youth ,if an institution requires documentation to verify that a student was in foster care when the student was age #ac or older1 as described in paragraph 7#a77;,b71 a financial aid administrator shall consider any of the following as adequate verification1 in the absence of documented conflicting information3 7,a7 ,submission of a court order or official ,state documentation that the student received ,federal or ,state support in foster care4 7,b7 ,a documented phone call1 written statement1 or verifiable electronic data match1 which confirms the student was in foster care at an applicable age1 from-- 7i7 a ,state or tribal agency administering a program under part ,b or ,e of title ,,iv of the ,social ,security ,act 7#db ,u4,s4,c4 #fba et seq4 and #fgj et seq472 7ii7 a ,state ,medicaid agency2 or 7iii7 a public or private foster care placing agency or foster care facility or placement4 7,c7 ,a documented phone call or a written statement from an attorney1 a guardian ad litem1 or a ,court ,appointed ,special ,advocate that confirms that the student was in foster care at an applicable age1 and documents the person's relationship to the student4 7,d7 ,verification of the student's eligibility for an education and training voucher under the ,john ,h4 ,chafee ,foster ,care ,program under section #dgg of the ,social ,security ,act 7#db ,u4,s4,c4 #fgg74 7#e7 ,timing2 use of earlier determination 7,a7 ,timing ,a determination under subparagraph 7,b71 7,h7 or 7,i7 of paragraph 7#a7 for a student-- 7i7 shall be made as quickly as practicable2 7ii7 may be made as early as the year before the award year for which the student initially submits an application2 and 7iii7 shall be made not later than during the award year for which the student initially submits an application4 7,b7 ,use of earlier determination ,any student who is determined to be independent under subparagraph 7,b71 7,h7 or 7,i7 of paragraph 7#a7 for a preceding award year at an institution shall be presumed to be independent for each subsequent award year at the same institution unless-- 7i7 the student informs the institution that circumstances have changed2 or 7ii7 the institution has specific conflicting information about the student's independence1 and has informed the student of this information4 7#f7 ,retention of documents ,a financial aid administrator shall retain all documents related to the determination of independence under subparagraph 7,b7 or 7,h7 of paragraph 7#a71 including documented interviews4 7e7 ,excludable income ,the term excludable income means an amount equal to the education credits described in paragraphs 7#a7 and 7#b7 of section #be;,a7a7 of the ,internal ,revenue ,code of #aihf4 7f7 ,assets 7#a7 ,in general ,the term assets means cash on hand1 including the amount in checking and savings accounts1 time deposits1 money market funds1 trusts1 stocks1 bonds1 derivatives1 other securities1 mutual funds1 tax shelters1 qualified education benefits 7except as provided in paragraph 7#c771 the annual amount of child support received and the net value of real estate1 income producing property1 and business and farm assets1 determined in accordance with section #dgh7;c74 7#b7 ,exclusions ,with respect to determinations of need under this title1 the term assets shall not include the net value of the family's principal place of residence4 7#c7 ,qualified education benefit ,a qualified education benefit shall be considered an asset of-- 7,a7 the student if the student is an independent student2 or 7,b7 the parent if the student is a dependent student and the account is designated for the student1 regardless of whether the owner of the account is the student or the parent4 7g7 ,net assets ,the term net assets means the current market value at the time of application of the assets 7as defined in subsection 7f771 minus the outstanding liabilities or indebtedness against the assets4 7h7 ,treatment of income taxes paid to other jurisdictions 7#a7 ,the tax on income paid to the ,governments of the ,commonwealth of ,puerto ,rico1 ,guam1 ,american ,samoa1 the ,virgin ,islands1 or the ,commonwealth of the ,northern ,mariana ,islands1 the ,republic of the ,marshall ,islands1 the ,federated ,states of ,micronesia1 or ,palau under the laws applicable to those jurisdictions1 or the comparable tax paid to the central government of a foreign country1 shall be treated as ,federal income taxes4 7#b7 ,references in this part to title #bf1 ,federal income tax forms1 and the ,internal ,revenue ,service shall1 for purposes of the tax described in paragraph 7#a71 be treated as references to the corresponding laws1 tax forms1 and tax collection agencies of those jurisdictions1 respectively1 subject to such adjustments as the ,secretary may provide by regulation4 7i7 ,current balance ,the term current balance of checking and savings accounts does not include any funds over which an individual is barred from exercising discretion and control because of the actions of any ,state in declaring a bank emergency due to the insolvency of a private deposit insurance fund4 7j7 ,other financial assistance 7#a7 ,for purposes of determining a student's eligibility for funds under this title1 other financial assistance not received under this title shall include all scholarships1 grants1 loans1 or other assistance known to the institution at the time the determination of the student's need is made1 including national service educational awards or post-service benefits under title ,i of the ,national and ,community ,service ,act of #aiij 7#db ,u4,s4,c4 #abeaa et seq474 7#b7 ,notwithstanding paragraph 7#a71 a tax credit taken under section #be;,a of the ,internal ,revenue ,code of #aihf1 or a distribution that is not includable in gross income under section #ebi of such ,code1 under another prepaid tuition plan offered by a ,state1 or under a ,coverdell education savings account under section #ecj of such ,code1 shall not be treated as other financial assistance for purposes of section #dga7;a77#c74 7#c7 ,notwithstanding paragraph 7#a7 and section #dgb1 assistance not received under this title may be excluded from both other financial assistance and cost of attendance1 if that assistance is provided by a ,state and is designated by such ,state to offset a specific component of the cost of attendance4 ,if that assistance is excluded from either other financial assistance or cost of attendance1 it shall be excluded from both4 7#d7 ,notwithstanding paragraph 7#a71 payments made and services provided under part ,e of title ,,iv of the ,social ,security ,act to or on behalf of any child or youth over whom the ,state agency has responsibility for placement1 care1 or supervision1 including the value of vouchers for education and training and amounts expended for room and board for youth who are not in foster care but are receiving services under section #dgg of such ,act1 shall not be treated as other financial assistance for purposes of section #dga7;a77#c74 7k7 ,dependents 7#a7 ,except as otherwise provided1 the term dependent of the parent means the student1 dependent children of the student's parents1 including those children who are deemed to be dependent students when applying for aid under this title1 and other persons who live with and receive more than one-half of their support from the parent and will continue to receive more than half of their support from the parent during the award year4 7#b7 ,except as otherwise provided1 the term dependent of the student means the student's dependent children and other persons 7except the student's spouse7 who live with and receive more than one-half of their support from the student and will continue to receive more than half of their support from the student during the award year4 7l7 ,family size 7#a7 ,dependent student ,except as provided in paragraph 7#c71 in determining family size in the case of a dependent student-- 7,a7 if the parents are not divorced or separated1 family members include the student's parents1 and any dependent 7within the meaning of section #aeb of the ,internal ,revenue ,code of #aihf or was an eligible individual for purposes of the credit under section #cb of the ,internal ,revenue ,code of #aihf7 of the student's parents for the taxable year used in determining the amount of need of the student for financial assistance under this title2 7,b7 if the parents are divorced or separated1 family members include the parent whose income is included in computing available income and any dependent 7within the meaning of section #aeb of the ,internal ,revenue ,code of #aihf or was an eligible individual for purposes of the credit under section #cb of the ,internal ,revenue ,code of #aihf7 of that parent for the taxable year used in determining the amount of need of the student for financial assistance under this title2 7,c7 if the parents are divorced and the parents whose income is so included is remarried1 or if the parent was a widow or widower who has remarried1 family members also include1 in addition to those individuals referred to in paragraph 7,b71 and any dependent 7within the meaning of section #aeb of the ,internal ,revenue ,code of #aihf or was an eligible individual for purposes of the credit under section #cb of the ,internal ,revenue ,code of #aihf7 of the new spouse for the taxable year used in determining the amount of need of the student for financial assistance under this title1 if that spouse's income is included in determining the parent's adjusted available income2 and 7,d7 if the student is not considered as a dependent 7within the meaning of section #aeb of the ,internal ,revenue ,code of #aihf or was an eligible individual for purposes of the credit under section #cb of the ,internal ,revenue ,code of #aihf7 of any parent1 the parents' family size shall include the student and the family members applicable to the parents' situation under subparagraph 7,a71 7,b71 or 7,c74 7#b7 ,independent student ,except as provided in paragraph 7#c71 in determining family size in the case of an independent student-- 7,a7 family members include the student1 the student's spouse1 and any dependent 7within the meaning of section #aeb of the ,internal ,revenue ,code of #aihf or was an eligible individual for purposes of the credit under section #cb of the ,internal ,revenue ,code of #aihf7 of that student for the taxable year used in determining the amount of need of the student for financial assistance under this title2 and 7,b7 if the student is divorced or separated1 family members do not include the spouse 7or ex-spouse71 but do include the student and any dependent 7within the meaning of section #aeb of the ,internal ,revenue ,code of #aihf or was an eligible individual for purposes of the credit under section #cb of the ,internal ,revenue ,code of #aihf7 of that student for the taxable year used in determining the amount of need of the student for financial assistance under this title4 7#c7 ,procedures and modification ,the ,secretary shall provide procedures for determining family size in cases in which information for the taxable year used in determining the amount of need of the student for financial assistance under this title has changed or does not accurately reflect the applicant's current household size4 7m7 ,business assets ,the term business assets means property that is used in the operation of a trade or business1 including real estate1 inventories1 buildings1 machinery1 and other equipment1 patents1 franchise rights1 and copyrights4 4 7m7 ,,fafsa ,section #dhc 7#bj ,u4,s4,c4 #ajij7 is amended to read as follows3 #dhc4 ,free application for federal student aid 7a7 ,simplified application for federal student financial aid 7#a7 ,in general ,each individual seeking to apply for ,federal financial aid under this title for any award year shall file a free application with the ,secretary1 known as the ,free ,application for ,federal ,student ,aid1 to determine eligibility for such aid1 as described in paragraph 7#b71 and in accordance with section #dgi4 7#b7 ,free application 7,a7 ,in general ,the ,secretary shall make available1 for the purposes of paragraph 7#a71 a free application to determine the eligibility of a student for ,federal financial aid under this title4 7,b7 ,information required by the applicant 7i7 ,in general ,the applicant1 and1 if necessary1 the parents or spouse of the applicant1 shall provide the ,secretary with the applicable information described in clause 7ii7 in order to be eligible for ,federal financial aid under this title4 7ii7 ,information to be provided ,the information described in this clause is the following3 7,i7 ,name4 7,,ii7 ,contact information1 including address1 phone number1 email address1 or other electronic address4 7,,iii7 ,social security number4 7,,iv7 ,date of birth4 7,v7 ,marital status4 7,,vi7 ,citizenship status1 including alien registration number1 if applicable4 7,,vii7 ,state of legal residence and date of residency4 7,,viii7 ,name and location of the high school from which the applicant received1 or will receive prior to the period of enrollment for which aid is sought1 a regular high school diploma1 name and location of the entity from which the applicant received1 or will receive prior to the period of enrollment for which aid is sought1 a recognized equivalent of a regular high school diploma1 or if the applicant completed or will complete prior to the period of enrollment for which aid is sought1 a secondary school education in a home school setting that is treated as a home school or private school under ,state law4 7,,ix7 ,name of each institution where the applicant intends to apply for enrollment or continue enrollment4 7,x7 ,year in school for period of enrollment for which aid is sought1 including whether applicant will have finished first bachelor's degree prior to the period of enrollment for which aid is sought4 7,,xi7 ,whether one or both of an applicant's parents attended college4 7,,xii7 ,any required asset information1 unless exempt under section #dgi1 in which the applicant shall indicate-- 7aa7 the annual amount of child support received1 if applicable2 and 7bb7 all required asset information not described in item 7aa74 7,,xiii7 ,the number of members of the applicant's family who will also be enrolled in an eligible institution of higher education on at least a half-time basis during the same enrollment period as the applicant4 7,,xiv7 ,if the applicant meets any of the following designations3 7aa7 ,homeless1 at risk of being homeless1 or an unaccompanied youth4 7bb7 ,emancipated minor4 7cc7 ,in legal guardianship4 7dd7 ,dependent ward of the court at any time since the applicant turned #ac4 7ee7 ,in foster care at any time since the applicant turned #ac4 7ff7 ,if both parents have died since the applicant turned #ac4 7gg7 ,is a veteran or a member of the ,armed ,forces4 7hh7 ,has a dependent child or relative and is under the age of #bd4 7ii7 ,does not have access to parental income due to an unusual circumstance4 7,,xv7 ,if the applicant receives or has received any of the following means-tested ,federal benefits within the last two years3 7aa7 ,the supplemental security income program under title ,,xvi of the ,social ,security ,act 7#db ,u4,s4,c4 #acha et seq474 7bb7 ,the supplemental nutrition assistance program under the ,food and ,nutrition ,act of #bjjh 7#g ,u4,s4,c4 #bjaa et seq474 7cc7 ,the free and reduced price school lunch program established under the ,richard ,b4 ,russell ,national ,school ,lunch ,act 7#db ,u4,s4,c4 #agea et seq474 7dd7 ,the program of block grants for ,states for temporary assistance for needy families established under part ,a of title ,,iv of the ,social ,security ,act 7#db ,u4,s4,c4 #fja et seq474 7ee7 ,the special supplemental nutrition program for women1 infants1 and children established by section #ag of the ,child ,nutrition ,act of #aiff 7#db ,u4,s4,c4 #aghf74 7ff7 ,the ,medicaid program under title ,,xix of the ,social ,security ,act 7#db ,u4,s4,c4 #acif et seq474 7gg7 ,any other means-tested program determined by the ,secretary to be appropriate4 7,,xvi7 ,if the applicant1 or1 if necessary1 the parents or spouse of the applicant1 reported receiving tax exempt payments from an ,,ira distribution or from pensions or annuities on a ,federal tax return the ,secretary shall request the applicant1 or1 if necessary1 the parents or spouse of the applicant to provide information as to how much of the ,,ira distribution or the pension or annuity disbursement was a qualified rollover and the applicant1 or1 if necessary1 the parents or spouse of the applicant shall provide such information to the ,secretary for the purpose of the need analysis4 7iii7 ,prohibition against requesting information more than once ,any information requested during the process of creating an account for completing the web-based free application under this subsection1 shall not be required a second time for the same award year1 or in a duplicative manner1 when completing such web-based free application4 7iv7 ,change in family size ,the ,secretary shall provide a process by which an applicant shall confirm the accuracy of family size or update the family size with respect to such applicant for purposes of determining the need of such applicant for financial assistance under this title based on a change in family size from the tax year data used for such determination4 7v7 ,single question for homeless status ,the ,secretary shall ensure that1 on the form developed under this section for which the information is applicable1 there is a single1 easily understood screening question to identify an applicant who is an unaccompanied homeless child or youth 7as such term is defined in section #gbe of the ,mc,kinney-,vento ,homeless ,assistance ,act7 or an unaccompanied youth who is self-supporting and at risk of homelessness4 7,c7 ,notification of request for tax return information ,the ,secretary shall advise students and borrowers who submit an application for ,federal student financial aid under this title 7as well as parents and spouses who sign such an application or request or a ,master ,promissory ,note on behalf of those students and borrowers7 of the authority of the ,secretary to request that the ,internal ,revenue ,service disclose their tax return information as described in section #did4 7,d7 ,authorizations available to the applicant 7i7 ,authorization to release and transmit to institution ,an applicant and1 if necessary1 the parents or spouse of the applicant shall provide the ,secretary with authorization to release and transmit to an institution1 as specified by the applicant1 in order for the applicant's eligibility for ,federal financial aid programs to be determined1 the following3 7,i7 ,information described under section #fajc7l77#ac7 of the ,internal ,revenue ,code of #aihf4 7,,ii7 ,all information provided by the applicant on the application described by this subsection to determine the applicant's eligibility for ,federal financial aid under this title and for the application1 award1 and administration of such ,federal financial aid4 7ii7 ,authorization to release and transmit to ,state and institution 7,i7 ,in general ,an applicant and1 if necessary1 the parents or spouse of the applicant may provide the ,secretary with authorization to release and transmit to the ,state of residence of the applicant and to any institution specified by the applicant1 in order for the applicant's eligibility for ,state student financial aid programs or institution-based student financial aid programs to be determined1 the following3 7aa7 ,information described under section #fajc7l77#ac7 of the ,internal ,revenue ,code of #aihf4 7bb7 ,all information provided by the applicant on the application described by this subsection for the application1 award1 and administration of financial aid by a ,state or an institution of higher education4 7,,ii7 ,special rule ,an institution to which an applicant selects to release and transmit information under subclause 7,i7 shall not be disclosed to any other institution4 7iii7 ,authorization to release and transmit to benefits programs ,an applicant and1 if necessary1 the parents or spouse of the applicant may provide the ,secretary with authorization to release and transmit to means-tested ,federal benefit programs1 as defined in section #dgc7;e71 the following3 7,i7 ,information described under section #fajc7l77#ac7 of the ,internal ,revenue ,code of #aihf4 7,,ii7 ,all information provided by the applicant on the application described by this subsection to determine the applicant's eligibility for the application1 award1 and administration of such means-tested ,federal benefits programs4 7,e7 ,action by the secretary ,upon receiving-- 7i7 an application under this section1 the ,secretary shall1 as soon as practicable1 perform the necessary functions with the ,commissioner of ,internal ,revenue to calculate the applicant's student aid index and scheduled award for a ,federal ,pell ,grant1 if applicable1 assuming full-time enrollment for an academic year1 and note to the applicant the assumptions relationship to the scheduled award2 and 7ii7 an authorization under subparagraph 7,d71 the ,secretary shall1 as soon as practicable1 release and transmit the information described under such subparagraph to the ,state of residence of the applicant or an institution1 as specified by the applicant1 in order for the applicant's eligibility for ,federal1 ,state1 or institutional student financial aid programs to be estimated or determined4 7#c7 ,information to be supplied by the secretary of education 7,a7 ,in general ,upon receiving and timely processing a free application that contains the information described in paragraph 7#b71 the ,secretary shall provide to the applicant 7and the parents of a dependent student applicant1 or spouse of the independent student applicant1 if applicable7 the following information based on full-time attendance for an academic year3 7i7 ,the estimated dollar amount of a ,federal ,pell ,grant scheduled award for which the applicant is eligible for such award year4 7ii7 ,information on other types of ,federal financial aid for which the applicant may be eligible 7including situations in which the applicant could qualify for #aej percent of a schedule ,federal ,pell ,grant award and loans made under this title7 and how the applicant can find additional information regarding such aid4 7iii7 ,information regarding each institution selected by the applicant in accordance with paragraph 7#b77;,b77ii77,,ix71 including the following3 7,i7 ,the following information1 as collected through the ,integrated ,postsecondary ,education ,data ,system3 7aa7 ,net price by income quintile4 7bb7 ,median debt of students upon completion4 7cc7 ,graduation rate4 7dd7 ,retention rate4 7ee7 ,transfer rate1 if available4 7,,ii7 ,institutional default rate1 as calculated under section #dce4 7iv7 ,if the student is eligible for a student aid index of less than or equal to zero under section #dgc but has not indicated that they receive ,federal means-tested benefits1 a notification of the ,federal means-tested benefits for which they may be eligible4 7v7 ,information on education tax credits described in paragraphs 7#a7 and 7#b7 of section #be;,a7a7 of the ,internal ,revenue ,code of #aihf4 7vi7 ,if applicable1 the applicant's current outstanding balance of loans under this title4 7,b7 ,information provided to the state 7i7 ,in general ,the ,secretary shall provide1 with authorization from the applicant in accordance with paragraph 7#b77;,d77ii71 to a ,state agency administering ,state-based financial aid and serving the applicant's ,state of residence1 the information described under section #fajc7l77#ac7 of the ,internal ,revenue ,code of #aihf and information described in paragraph 7#b77;,b7 for the application1 award and administration of grants and other aid provided directly from the ,state to be determined by such ,state1 such information shall include the list of institutions provided by the applicant on the application4 7ii7 ,use of information ,a ,state agency administering ,state-based financial aid-- 7,i7 shall use the information provided under clause 7i7 solely for the application1 award1 and administration of ,state-based financial aid for which the applicant is eligible and for ,state agency research that does not release any individually identifiable information on any applicant to promote college attendance1 persistence1 and completion2 7,,ii7 may use identifying information for student applicants to determine whether or not a graduating secondary student has filed the application in coordination with local educational agencies or secondary schools to encourage students to complete the application2 and 7,,iii7 shall be prohibited from sharing application information with any other entity without the explicit written consent of the applicant1 except as provided in subclause 7,,ii74 7iii7 ,limitation on consent process ,a ,state may provide a consent process whereby an applicant may elect to share the information described in clause 7i7 through explicit written consent to ,federal1 ,state or local government agencies or tribal organizations to assist such applicant in applying for and receiving ,federal1 ,state1 or local government assistance1 or tribal assistance for any component of the applicant's cost of attendance which may include financial assistance or non-monetary assistance4 7iv7 ,prohibition ,any entity that receives applicant information under clause 7iii7 shall not sell1 share1 or otherwise use applicant information other than for the purposes outlined in clause 7iii74 7,c7 ,information provided to the institution 7i7 ,in general ,the ,secretary shall provide1 with authorization from the applicant in accordance with paragraph 7#b77;,d77ii71 to each institution selected by the applicant on the application1 the information described under section #fajc7l77#ac7 of the ,internal ,revenue ,code of #aihf and information described in paragraph 7#b77;,b7 for the application1 award and administration of grants and other aid provided directly from the institution to be determined by such institution and grants and other aid provided directly from the ,state or ,federal ,government4 7ii7 ,use of information ,an institution-- 7,i7 shall use the information provided to it under clause 7i7 solely for the application1 award1 and administration of financial aid to the applicant and for institutional research that does not release any individually identifiable information on any applicant to promote college attendance1 persistence and completion2 and 7,,ii7 be prohibited from sharing such information with any other entity without the explicit written consent of the applicant4 7iii7 ,limitation on consent process ,an institution may provide a consent process whereby an applicant can elect to share the information described in clause 7i7 with explicit written consent to a scholarship granting organization1 including a tribal organization 7defined in section #d of the ,indian ,self-,determination and ,education ,assistance ,act 7#be ,u4,s4,c4 #ecjd771 or to ,federal1 ,state or local government agencies or tribal organizations to assist the applicant in applying for and receiving private assistance1 or ,federal1 ,state1 local government assistance1 or tribal assistance for any component of the applicant's cost of attendance which may include financial assistance or non-monetary assistance4 7iv7 ,prohibition ,any entity that receives applicant information under clause 7iii7 shall not sell1 share1 or otherwise use applicant information other than for the purposes outlined in clause 7iii74 7#d7 ,development of form and information exchange ,the ,secretary shall1 to the extent practicable1 consult with stakeholders1 prior to the design of the free application described in this subsection1 to gather information about innovations and technology available to-- 7,a7 ensure an efficient and effective process2 7,b7 mitigate unintended consequences2 and 7,c7 determine the best practices for outreach to students and families during the transition to the streamlined process for the determination of ,federal financial aid and ,federal ,pell ,grant eligibility while reducing the data burden on applicants and families4 7#e7 ,no additional information requests permitted ,in carrying out this subsection1 the ,secretary may not require additional information to be submitted by an applicant 7or the parents or spouse of an applicant7 for ,federal financial aid through other requirements or reporting4 7#f7 ,state-run programs 7,a7 ,in general ,the ,secretary shall conduct outreach to ,states in order to research the benefits to students of ,states relying solely on the financial data made available1 upon authorization by the applicant1 as a result of an application for aid under this subsection for determining the eligibility of the applicant for ,state provided financial aid4 7,b7 ,secretarial review ,if a ,state determines that there is a need for additional data elements beyond those provided pursuant to this subsection for determining the eligibility of an applicant for ,state provided financial aid1 the ,state shall forward a list of those additional data elements determined necessary1 but not provided by virtue of the application under this subsection1 to the ,secretary4 ,the ,secretary shall make readily available to the public through its websites and other means-- 7i7 a list of ,states that do not require additional financial information separate from the ,free ,application for ,federal ,student ,aid and do not require asset information from students who qualify for the exemption from asset reporting under section #dgi for the purposes of awarding ,state scholarships and grant aid2 7ii7 a list of ,states that require asset information from students who qualify for the exemption from asset reporting under section #dgi for the purposes of awarding ,state scholarships and grant aid2 7iii7 a list of ,states that have indicated that they require additional financial information separate from the ,free ,application for ,federal ,student ,aid for purposes of awarding ,state scholarships and grant aid2 and 7iv7 with the publication of the lists under this subparagraph1 information about additional resources available to applicants1 including links to such ,state websites4 7,c7 ,studies ,the ,secretary shall conduct studies on the effect of ,states requiring additional information specified in clauses 7ii7 and 7iii7 of subparagraph 7,b7 on the determination of ,state financial aid awards and whether the additional information required is a barrier to college enrollment by examining-- 7i7 how much financial aid awards would change if the additional information were not required2 7ii7 the number of students who started but did not finish the ,free ,application for ,federal ,student ,aid1 compared to the baseline year of #bjba2 and 7iii7 the number of students who started a ,free ,application for ,federal ,student ,aid but did not enroll in an institution of higher education in the corresponding academic year4 7#g7 ,institution-run financial aid 7,a7 ,in general ,the ,secretary shall conduct outreach to institutions of higher education to describe the benefits to students of relying solely on the financial data made available1 upon authorization for release by the applicant1 as a result of an application for aid under this subsection for determining the eligibility of the applicant for institutional financial aid4 ,the ,secretary shall make readily available to the public through its websites and other means-- 7i7 a list of institutions that do not require additional financial information separate from the ,free ,application for ,federal ,student ,aid and do not require asset information from students who qualify for the exemption from asset reporting under section #dgi for the purpose of awarding institution-run financial aid2 7ii7 a list of institutions that require asset information from students who qualify for the exemption from asset reporting under section #dgi for the purpose of awarding institution-run financial aid2 7iii7 a list of institutions that require additional financial information separate from the ,free ,application for ,federal ,student ,aid for the purpose of awarding institution-run financial aid2 and 7iv7 with the publication of the list in clause 7iii71 information about additional resources available to applicants4 7#h7 ,security of data ,the ,secretary shall1 in consultation with the ,secretary of the ,treasury1 take all steps necessary to-- 7,a7 safeguard the data required to be transmitted for the purpose of this section between ,federal agencies and to ,states and institutions of higher education2 7,b7 secure the transmittal of such data2 and 7,c7 provide guidance to ,states and institutions of higher education regarding their obligation to ensure the security of the data provided under this section4 7#i7 ,report to congress 7,a7 ,in general ,not later than one year after the date of enactment of the ,student ,aid ,improvement ,act of #bjai1 the ,secretary shall report to the ,committee on ,health1 ,education1 ,labor1 and ,pensions of the ,senate and the ,committee on ,education and ,labor of the ,house of ,representatives on the progress of the ,secretary in carrying out this subsection1 including planning and stakeholder consultation4 ,such report shall include-- 7i7 benchmarks for implementation2 7ii7 entities and organization to which the ,secretary reached out for consultation2 7iii7 system requirements for such implementation and how they will be addressed2 7iv7 any areas of concern and potential problem issues uncovered that may hamper such implementation2 and 7v7 solutions determined to address such issues4 7,b7 ,quarterly updates ,the ,secretary shall provide updates to the ,committees described in subparagraph 7,a7-- 7i7 as to the progress and planning described in subparagraph 7,a7 prior to implementation of the ,free ,application for ,federal ,student ,aid under this subsection not less often than quarterly2 and 7ii7 at least #f months and #a year post implementation of the ,free ,application for ,federal ,student ,aid4 7b7 ,adjustments and improvements 7#a7 ,in general ,the ,secretary shall disclose in a consumer-tested format1 on the form notifying a student of the student's ,federal ,pell ,grant eligibility1 that the student may1 on a case-by-case basis1 qualify for an adjustment under section #dgi;,a to the cost of attendance or the values of the data items required to calculate the ,federal ,pell ,grant or the need analysis for the student or parent4 ,such disclosure shall specify-- 7,a7 examples of the special circumstances under which a student or family member may qualify for such adjustment or determination of independence2 and 7,b7 additional information regarding the steps a student or family member may take in order to seek an adjustment under section #dgi;,a4 7#b7 ,consumer testing 7,a7 ,in general ,the development of the ,free ,application for ,federal ,student ,aid under this section shall be consumer tested with prospective first-generation college students and families as well as low-income individuals and families4 7,b7 ,updates ,for award year #bjba and each fourth succeeding award year thereafter1 the design of the ,free ,application for ,federal ,student ,aid shall be updated based on additional consumer testing with the populations described in subparagraph 7,a7 in order to improve communication4 7#c7 ,languages for fafsa ,the ,secretary1 in conjunction with the ,director of the ,census ,bureau1 shall determine the most common languages spoken at home in the ,united ,states and shall develop versions of the ,free ,application for ,federal ,student ,aid form in each of those languages4 7#d7 ,reapplication in a succeeding academic year ,in order to streamline applicant's experience applying for financial aid1 the ,secretary shall allow an applicant who electronically applies for financial assistance under this title for an academic year subsequent to an academic year for which such applicant applied for financial assistance under this title to automatically electronically import all of the applicant's 7including parents1 guardians1 or spouses1 as applicable7 identifying1 demographic1 and school data from the previous application and to update such information to reflect any circumstances that have changed4 7#e7 ,technology accessibility ,the ,secretary shall make the application under this section available through the prevalent technology4 ,such technology shall1 at a minimum1 enable applicants to-- 7,a7 save data2 and 7,b7 submit the application under this title to the ,secretary through such technology4 7#f7 ,verification burden ,the ,secretary shall-- 7,a7 to the maximum extent practicable1 streamline and simplify the process of verification for applicants for ,federal financial aid2 7,b7 in establishing policies and procedures to verify applicants' eligibility for ,federal financial aid1 consider-- 7i7 the burden placed on low-income applicants2 7ii7 the risk to low-income applicants of failing to enroll or complete from being selected for verification2 7iii7 the effectiveness of the policies and procedures in safeguarding against a net cost to taxpayers2 and 7iv7 the reasons for the source of any improper payments2 and 7,c7 issue a report not less often than annually sharing the percentage of applicants subject to verification1 whether the applicants ultimately received ,federal financial aid disbursements1 and whether the student aid index changed enough to affect the applicant's award of any ,federal financial aid under this title4 7c7 ,data and information 7#a7 ,in general ,the ,secretary shall publish data in a publicly accessible manner-- 7,a7 annually on the total number of ,free ,applications for ,federal ,student ,aid submitted by application cycle1 disaggregated by demographic characteristics1 type of institution or institutions of higher education to which the applicant applied1 the applicant's ,state of legal residence1 and high school and public school district2 7,b7 quarterly on the total number of ,free ,applications for ,federal ,student ,aid submitted by application cycle1 disaggregated by type of institution or institutions of higher education to which the applicant applied1 the applicant's ,state of legal residence1 and high school and public school district2 7,c7 weekly on the total number of ,free ,applications for ,federal ,student ,aid submitted1 disaggregated by high school and public school district2 and 7,d7 annually on the number of individuals who apply for ,federal financial aid pursuant to this section who indicated they are a homeless child or youth 7as defined in section #gbe of the ,mc,kinney-,vento ,homeless ,assistance ,act71 an unaccompanied youth1 or a foster care youth4 7#b7 ,contents ,the data described in paragraph 7#a7 with respect to homeless children and youth shall include1 at a minimum1 for each application cycle-- 7,a7 the total number of all applicants who were determined to be individuals described in section #dhj7;d77#a77;,h72 and 7,b7 the number of applicants described in subparagraph 7,a71 disaggregated-- 7i7 by ,state2 and 7ii7 by the sources of determination as described in clauses 7i7 through 7iv7 of section #dhj7;d77#a77;,h74 7#c7 ,data sharing ,the ,secretary may enter into data sharing agreements with the appropriate ,federal or ,state agencies to connect applicants with the means-tested ,federal benefit programs described in subsection 7a77#b77;,b77ii77,,xv7 for which the applicants may be eligible4 7d7 ,ensuring form usability 7#a7 ,signature ,notwithstanding any other provision of this title1 the ,secretary may permit the ,free ,application for ,federal ,student ,aid to be submitted without a signature1 if a signature is subsequently submitted by the applicant1 or if the applicant uses an access device provided by the ,secretary4 7#b7 ,free preparation authorized ,notwithstanding any provision of this title1 an applicant may use a preparer for consultative or preparation services for the completion of the ,free ,application for ,federal ,student ,aid without charging a fee to the applicant if the preparer-- 7,a7 includes1 at the time the application is submitted to the ,department1 the name1 address or employer's address1 social security number or employer identification number1 and organizational affiliation of the preparer on the applicant's form2 7,b7 is subject to the same penalties as an applicant for purposely giving false or misleading information in the application2 7,c7 clearly informs each individual upon initial contact1 that the ,free ,application for ,federal ,student ,aid is a free form that may be completed without professional assistance2 and 7,d7 does not produce1 use1 or disseminate any other form for the purpose of applying for ,federal financial aid other than the ,free ,application for ,federal ,student ,aid form developed by the ,secretary under this section4 7#c7 ,charges to students and parents for use of forms prohibited ,the need and eligibility of a student for financial assistance under this title may be determined only by using the ,free ,application for ,federal ,student ,aid developed by the ,secretary under this section4 ,such application shall be produced1 distributed1 and processed by the ,secretary1 and no parent or student shall be charged a fee by the ,secretary1 a contractor1 a third-party servicer or private software provider1 or any other public or private entity for the collection1 processing1 or delivery of ,federal financial aid through the use of such application4 ,no data collected on a form for which a fee is charged shall be used to complete the ,free ,application for ,federal ,student ,aid prescribed under this section1 except that a ,federal or ,state income tax form prepared by a paid income tax preparer or preparer service for the primary purpose of filing a ,federal or ,state income tax return may be used to complete the ,free ,application for ,federal ,student ,aid prescribed under this section4 7#d7 ,application processing cycle ,the ,secretary shall enable students to submit a ,free ,application for ,federal ,student ,aid developed under this section and initiate the processing of such application1 not later than ,january #a of the student's planned year of enrollment1 to the maximum extent practicable1 on or around ,october #a prior to the student's planned year of enrollment4 7#e7 ,early estimates ,the ,secretary shall maintain an electronic method for applicants to enter income and family size information to calculate a non-binding estimate of the applicant's ,federal financial aid available under this title and shall place such calculator on a prominent location at the beginning of the ,free ,application for ,federal ,student ,aid4 4 7n7 ,student eligibility ,section #dhd 7#bj ,u4,s4,c4 #ajia7 is amended-- 7#a7 by striking subsection 7q7 and inserting the following3 7q7 ,use of income data with ,,irs ,the ,secretary1 in cooperation with the ,secretary of the ,treasury1 shall fulfill the data transfer requirements under section #fajc7l77#ac7 of the ,internal ,revenue ,code of #aihf4 2 7#b7 by striking subsection 7r72 7#c7 by redesignating subsections 7s7 and 7t7 as subsections 7r7 and 7s71 respectively2 and 7#d7 by adding at the end the following3 7t7 ,exception to required registration with the selective service system ,notwithstanding section #ab7;f7 of the ,military ,selective ,service ,act 7#ej ,u4,s4,c4 #chaa7;f771 an individual shall not be ineligible for assistance or a benefit provided under this title if the individual is required under section #c of such ,act 7#ej ,u4,s4,c4 #chjb7 to present himself for and submit to registration under such section and fails to do so in accordance with any proclamation issued under such section1 or in accordance with any rule or regulation issued under such section4 4 7o7 ,institutional and financial assistance information for students ,section #dhe 7#bj ,u4,s4,c4 #ajib7 is amended by striking subsection 7k74 7p7 ,early awareness of financial aid eligibility ,section #dhe;,e 7#bj ,u4,s4,c4 #ajib;f7 is amended to read as follows3 #dhe;,e4 ,early awareness of financial aid eligibility 7a7 ,in general ,the ,secretary shall implement early outreach activities in order to provide prospective students and families with early information about financial aid and estimates of such prospective students' eligibility for financial aid4 ,such early outreach activities shall include the activities described in subsections 7b71 7c71 and 7d74 7b7 ,pell grant early awareness 7#a7 ,in general ,the ,secretary shall produce a consumer-tested method of estimating student eligibility for ,federal ,pell ,grants outlined in section #dja7;b7 utilizing the variables of family size and adjusted gross income1 and presented in electronic format4 ,there shall be a method for students to indicate whether they are1 or will be in-- 7,a7 a single parent household2 7,b7 a household with two parents2 or 7,c7 a household with no children or dependents4 7#b7 ,consumer testing 7,a7 ,in general ,the method of estimating eligibility described in paragraph 7#a7 shall be consumer tested with prospective first-generation students and families as well as low-income individuals and families4 7,b7 ,updates ,for award year #bjbb-bjbc and each fourth succeeding award year thereafter1 the design of the method of estimating eligibility shall be updated based on additional consumer testing with the populations described in subparagraph 7,a74 7#c7 ,distribution ,the method of estimating eligibility described in paragraph 7#a7 shall be-- 7,a7 made publicly and prominently available on the ,department of ,education website2 and 7,b7 actively shared by the ,secretary with-- 7i7 institutions of higher education participating in programs under this title2 7ii7 all middle and secondary schools eligible for funds under part ,a of title ,i of the ,elementary and ,secondary ,education ,act of #aife2 and 7iii7 local educational agencies and middle schools and secondary schools that serve students not less than #be percent of whom meet a measure of poverty as described in section #aaac7;a77#e7 of the ,elementary and ,secondary ,education ,act of #aife4 7#d7 ,electronic estimator ,in accordance with subsection 7d77#e7 of section #dhc1 the ,secretary shall maintain an electronic method for applicants to enter income and family size information to calculate a non-binding estimate of the applicant's ,federal financial aid available under this title and shall place such calculator on a prominent location on the ,,fafsa website4 7c7 ,early awareness plans ,the ,secretary shall establish and implement early awareness plans to provide early information about the availability of ,federal financial aid and estimates of prospective students' eligibility for ,federal financial aid as well as to promote the attainment of postsecondary education specifically among prospective first-generation students and families as well as low-income individuals and families1 as follows3 7#a7 ,awareness plans for low-income children 7,a7 ,in general ,the ,secretary shall develop plans to disseminate information about the availability of ,federal financial aid under this title1 in addition to and in coordination with the distribution of the method of estimating eligibility under subsection 7b71 to-- 7i7 all middle schools and secondary schools eligible for funds under part ,a of title ,i of the ,elementary and ,secondary ,education ,act of #aife2 7ii7 local educational agencies and middle schools and high schools that serve students not less than #be percent of whom meet a measure of poverty as described in section #aaac7;a77#e7 of the ,elementary and ,secondary ,education ,act2 and 7iii7 households receiving assistance under the supplemental nutrition assistance program established under the ,food and ,nutrition ,act of #bjjh 7#g ,u4,s4,c4 #bjaa et seq474 7,b7 ,reporting and updates ,the ,secretary shall post the information about the plans under subparagraph 7,a7 and associated goals publicly on the ,department of ,education website4 ,on an annual basis1 the ,secretary shall report qualitative and quantitative outcomes regarding the implementation of the plans under subparagraph 7,a74 ,the ,secretary shall review and update such plans not less often than every #d award years with the goal of progressively increasing the impact of the activities under this paragraph4 7,c7 ,partnership ,the ,secretary may partner with ,states1 ,state systems of higher education1 institutions of higher education1 or college access organizations to carry out this paragraph4 7#b7 ,interagency coordination plans 7,a7 ,in general ,the ,secretary shall develop interagency coordination plans in order to inform more prospective students and families1 including low-income individuals or families1 about the availability of ,federal financial aid under this title through participation in existing ,federal programs or tax benefits that serve low-income individuals or families1 in coordination with the following ,secretaries3 7i7 ,the ,secretary of the ,treasury4 7ii7 ,the ,secretary of ,labor4 7iii7 ,the ,secretary of ,health and ,human ,services4 7iv7 ,the ,secretary of ,agriculture4 7v7 ,the ,secretary of ,housing and ,urban ,development4 7vi7 ,the ,secretary of ,commerce4 7vii7 ,the ,secretary of ,veterans ,affairs4 7,b7 ,process1 activities1 and goals ,each interagency coordination plan under subparagraph 7,a7 shall-- 7i7 establish a process to identify opportunities in which low-income individuals and families could be informed of the availability of ,federal financial aid under this title through access to other ,federal programs that serve low-income individuals and families2 7ii7 establish a process to identify methods to effectively inform low-income individuals and families of the availability of ,federal financial aid for postsecondary education under this title2 7iii7 develop early awareness activities that align with the opportunities and methods identified under clauses 7ii7 and 7iii72 and 7iv7 establish goals regarding the effects of the activities to be implemented under clause 7iii74 7,c7 ,reporting and updates ,the ,secretary shall post the information about the interagency coordination plans under subparagraph 7,b7 and associated goals publicly on the ,department of ,education website4 ,on not less often than a quadrennial basis1 the ,secretary shall publicly report qualitative and quantitative outcomes regarding the implementation of the plans on the ,department of ,education website4 ,the ,secretary shall review and update the plans not less often than upon each change in ,secretarial leadership with an agency that is party to a plan4 ,updates to the plans shall have the goal of progressively increasing the impact of the activities under this paragraph by increasing the number of low-income applicants for1 and recipients of1 ,federal financial aid4 7#c7 ,nationwide participation in early awareness plans 7,a7 ,in general ,the ,secretary shall solicit voluntary public commitments from entities1 such as ,states1 ,state systems of higher education1 institutions of higher education1 and other interested organizations1 to carry out early awareness plans1 which shall include goals1 to-- 7i7 notify prospective and existing students who are low-income individuals and families about their eligibility for ,federal aid under this title1 as well as ,state-based financial aid1 if applicable1 on an annual basis2 7ii7 increase the number of prospective and current students who are low-income individuals and families filing the ,free ,application for ,federal ,student ,aid2 and 7iii7 increase the number of prospective and current students who are low-income individuals and families enrolling in postsecondary education4 7,b7 ,reporting and updates ,each entity that makes a voluntary public commitment to carry out an early awareness plan may submit quantitative and qualitative data based on the entity's progress toward the goals of the plan annually prior to a date selected by the ,secretary4 7,c7 ,early awareness champions ,based on data submitted by entities1 the ,secretary shall select and designate entities submitting public commitments1 plans1 and goals1 as ,early ,awareness ,champions on an annual basis4 ,those entities designated as ,early ,awareness ,champions shall provide one or more case studies regarding the activities the entity undertook under this paragraph which shall be made public by the ,secretary on the ,department of ,education website to promote the spread of best practices4 7d7 ,public awareness campaign 7#a7 ,in general ,the ,secretary shall develop and implement a public awareness campaign designed using current and relevant independent research regarding strategies and media platforms found to be most effective in communicating with low-income populations in order to increase national awareness regarding the availability of ,federal ,pell ,grants and financial aid under this title4 7#b7 ,coordination ,the public awareness campaign described in paragraph 7#a7 shall leverage the activities in subsections 7b7 and 7c7 to highlight eligibility among low-income populations4 ,in developing and implementing the campaign1 the ,secretary may work in coordination with ,states1 institutions of higher education1 early intervention and outreach programs under this title1 other ,federal agencies1 organizations involved in college access and student financial aid1 secondary schools1 local educational agencies1 public libraries1 community centers1 businesses1 employers1 workforce investment boards1 and organizations that provide services to individuals that are or were homeless1 in foster care1 or are disconnected youth4 7#c7 ,reporting ,the ,secretary shall report on the success of the public awareness campaign described in paragraph 7#a7 annually regarding the extent to which the public and target populations were reached using data commonly used to evaluate advertising and outreach campaigns and data regarding whether the campaign produced any increase in applicants for ,federal aid under this title publicly on the ,department of ,education website4 4 #d4 ,providing incarcerated individuals with ,federal ,pell ,grants 7a7 ,in general ,section #dhd 7#bj ,u4,s4,c4 #ajia71 as amended by section #c7n71 is further amended by adding at the end the following3 7u7 ,confined or incarcerated individuals 7#a7 ,definitions ,in this subsection3 7,a7 ,confined or incarcerated individual ,the term confined or incarcerated individual means an individual who is confined or incarcerated in a ,federal or ,state penal institution1 a juvenile justice facility1 or a local or county jail4 7,b7 ,eligible prison education program the term eligible prison education program means an education or training program that-- 7i7 is an eligible program under this title2 and 7ii7 has been approved to operate in a correctional facility by the appropriate ,state department of corrections or other entity that is responsible for overseeing correctional facilities or by the ,bureau of ,prisons4 7#b7 ,federal pell grant eligibility ,notwithstanding subsection 7a71 in order for a confined or incarcerated individual who otherwise meets the eligibility requirements of this title to be eligible to receive a ,federal ,pell ,grant under section #dja1 the individual shall-- 7,a7 not be incarcerated with a sentence of life without the possibility of parole2 and 7,b7 be enrolled or accepted for enrollment in an eligible prison education program at an institution of higher education4 7#c7 ,ineligibility for other assistance under this act ,a confined or incarcerated individual shall not be eligible to receive any other student financial assistance under this ,act except a ,federal ,pell ,grant in accordance with this subsection4 7#d7 ,evaluation ,in order to evaluate and improve the impact of activities supported under this subsection1 the ,secretary1 in partnership with the ,director of the ,institute for ,education ,sciences1 shall award one or more grants to1 or enter into one or more cooperative agreements with1 with experienced public or private institutions and organizations to enable the institutions and organizations to conduct an external evaluation that shall-- 7,a7 examine in-custody outcomes and post-release outcomes relating to providing ,federal ,pell ,grants to confined or incarcerated individuals1 including-- 7i7 progress towards credential attainment2 7ii7 safety in prisons with eligible prison education programs2 7iii7 the size of waiting lists for eligible prison education programs2 7iv7 the extent to which individuals who were confined or incarcerated individuals receiving ,federal ,pell ,grants continue their education post-release2 7v7 employment and earnings outcomes for such individuals2 and 7vi7 rates of recidivism for such individuals2 and 7,b7 track individuals who received ,federal ,pell ,grants under this subsection for #a to #c years after the individuals' release from confinement or incarceration4 7#e7 ,report ,not later than #a year after the date of enactment of the ,student ,aid ,improvement ,act of #bjai and on at least an annual basis thereafter1 the ,secretary shall submit to the authorizing committees1 and make publicly available on the website of the ,department1 a report on the impact of this subsection which shall include1 at a minimum-- 7,a7 the names and types of institutions of higher education offering eligible prison education programs at which confined or incarcerated individuals are enrolled and receiving ,federal ,pell grants2 7,b7 the number of confined or incarcerated individuals receiving ,federal ,pell grants2 7,c7 the amount of ,federal ,pell grant expenditures per eligible prison education program2 7,d7 the demographics of confined or incarcerated individuals receiving ,federal ,pell ,grants2 7,e7 the cost of attendance for such individuals2 7,f7 the mode of instruction 7such as distance education1 in-person instruction1 or a combination of such modes7 for each prison education program2 7,g7 information on the academic outcomes of such individuals 7such as credits attempted and earned1 and credential and degree completion72 and 7,h7 to the extent practicable1 information on post-release outcomes of such individuals 7such as continued postsecondary enrollment1 employment1 and recidivism74 4 7b7 ,eliminating ,federal ,pell ,grant limitation ,section #dja7;b7 7#bj ,u4,s4,c4 #ajgj;a et seq47 is amended-- 7#a7 in paragraph 7#b77;,a77ii71 by striking 7#g77;,b7 and inserting 7#f77;,b72 7#b7 by striking paragraph 7#f72 and 7#c7 by redesignating paragraphs 7#g7 and 7#h7 as paragraphs 7#f7 and 7#g71 respectively4 7c7 ,effective date ,this section1 and the amendments made by this section1 shall take effect on ,july #a1 #bjbj4 #e4 ,allowing students enrolled in short-term programs to receive ,federal ,pell ,grants 7a7 ,in general ,section #dha7;b7 7#bj ,u4,s4,c4 #ajhgvv7b77 is amended-- 7#a7 by redesignating paragraphs 7#c7 and 7#d7 as paragraphs 7#d7 and 7#e71 respectively2 and 7#b7 by inserting after paragraph 7#b7 the following3 7#c7 ,eligible job training program 7,a7 ,,wioa definitions ,in this paragraph1 the terms in-demand industry sector or occupation1 industry or sector partnership1 local board1 recognized postsecondary credential1 and ,state board have the meanings given such terms in section #c of the ,workforce ,innovation and ,opportunity ,act 7#bi ,u4,s4,c4 #cajb74 7,b7 ,eligibility of job training program ,an eligible job training program is an eligible program for the purposes of section #dja if it is a program-- 7i7 of not less than #aej1 and not more than #fjj1 clock hours of instruction offered by an institution of higher education during a period of not less than #h weeks and not more than #ae weeks2 and 7ii7 that-- 7,i7 provides training aligned with the requirements of high-skill1 high-wage1 or in-demand industry sectors or occupations in the ,state or local area2 7,,ii7 provides a student1 upon completion of the program1 with a recognized postsecondary credential that is recognized by employers in the relevant industry1 including credentials recognized by industry or sector partnerships in the relevant industry in the ,state or local area where the industry is located and the job training program is provided2 7,,iii7 has been determined by the institution of higher education 7after validation of that determination by a ,state board1 local board1 or an industry or sector partnership7 to provide academic content1 an amount of instructional time1 and a recognized postsecondary credential that are sufficient to-- 7aa7 meet the hiring requirements of potential employers2 and 7bb7 satisfy any applicable educational prerequisite requirement for professional licensure or certification2 7,,iv7 does not exceed by more than #ej percent the minimum number of clock hours required for training for the occupation1 if the ,state has established such a requirement2 7,v7 7aa7 has published tuition and fees for each of the #c preceding award years that have not increased above the annual rate of inflation 7as determined by the ,consumer ,price ,index of the ,department of ,labor7 for the corresponding year2 and 7bb7 for each year while receiving funds under section #dja1 will publish tuition and fees for the year1 which will not increase above the rate of inflation1 as so determined1 for the corresponding year2 and 7,,vi7 demonstrates outcomes for the most recent year that meet the level of performance or ,state adjusted level of performance for the ,state in which the institution of higher education is located for the following primary indicators of performance under section #aaf7;b7 of the ,workforce ,innovation and ,opportunity ,act for such year3 7aa7 ,the percentage of program participants who are in unsubsidized employment during the second quarter after exit from the program4 7bb7 ,the percentage of program participants who are in unsubsidized employment during the fourth quarter after exit from the program4 7cc7 ,the percentage of program participants who are in an education or training program that leads to a recognized postsecondary credential or employment and who are achieving measurable skill gains toward such a credential or employment4 7,c7 ,approval by the secretary ,in the case of a program that is seeking to establish eligibility as an eligible job training program under this paragraph1 the ,secretary shall make a determination about whether the program meets the requirements of subparagraph 7,b7 not more than #fj days after the date on which the institution submitted the program for consideration as an eligible job training program4 7,d7 ,amount of award and inclusion in total eligibility period 7i7 ,inclusion in total eligibility period ,any period during which a student receives a ,federal ,pell ,grant under this paragraph shall be included in calculating the student's period of eligibility for ,federal ,pell ,grants under section #dja7;d77#e74 7,e7 ,interagency data sharing ,for the purposes of subparagraph 7,b77ii77,,vi71 the ,secretary may coordinate and enter into a data sharing agreement with the ,secretary of ,labor to ensure access to data on indicators of performance collected under section #aaf of the ,workforce ,innovation and ,opportunity ,act 7#bi ,u4,s4,c4 #cada74 4 7b7 ,effective date ,this section shall take effect on ,july #a1 #bjba4 #f4 ,supporting student affordability by investing in the ,federal ,pell ,grant ,section #dja 7#bj ,u4,s4,c4 #ajgj;a7 is amended-- 7#a7 in subsection 7a77#a71 by striking #bjag and inserting #bjba2 and 7#b7 in subsection 7c77#g77;,c7-- 7,a7 in each of clauses 7i77,i7 and 7ii77,i71 by striking 7iv77,,ii7 and inserting 7v77,,ii72 7,b7 in clause 7iii7-- 7i7 by striking the clause heading and inserting ,award years #bjah-bjai and #bjai-bjbj4--2 and 7ii7 by striking and each subsequent award year2 7,c7 by redesignating clause 7iv7 as clause 7v72 and 7,d7 by inserting after clause 7iii7 the following3 7iv7 ,award year #bjbj-bjba and subsequent award years ,for award year #bjbj-bjba and each subsequent award year1 the amount determined under this subparagraph for purposes of subparagraph 7,b77iii7 shall be equal to #a1jhj4 4 #g4 ,federal ,pell ,grants3 amount and determinations2 applications 7a7 ,federal ,pell ,grants ,beginning on the effective date described in subsection 7b71 section #dja 7#bj ,u4,s4,c4 #ajgj;a71 as amended by sections #e and #f1 is further amended to read as follows3 #dja4 ,federal ,pell ,grants3 amount and determinations2 applications 7a7 ,purpose2 definitions 7#a7 ,purpose ,the purpose of this subpart is to provide a ,federal ,pell ,grant to low-income students4 7#b7 ,definitions ,in this section-- 7,a7 the term adjusted gross income means-- 7i7 in the case of a dependent student1 the adjusted gross income 7as defined in section #fb of the ,internal ,revenue ,code of #aihf7 of the student's parents in the second tax year preceding the academic year2 and 7ii7 in the case of an independent student1 the adjusted gross income 7as defined in section #fb of the ,internal ,revenue ,code of #aihf7 of the student 7and the student's spouse1 if applicable7 in the second tax year preceding the academic year2 7,b7 the term family size has the meaning given the term in section #dhj7l72 7,c7 the term poverty line means the poverty line 7as determined under the poverty guidelines updated periodically in the ,federal ,register by the ,department of ,health and ,human ,services under the authority of section #fgc7b7 of the ,community ,services ,block ,grant ,act 7#db ,u4,s4,c4 #iijb7b777 applicable to the student's family size and applicable to the second tax year preceding the academic year2 7,d7 the term single parent means-- 7i7 a parent of a dependent student who was a head of household 7as defined in section #b7;b7 of the ,internal ,revenue ,code of #aihf7 or a surviving spouse 7as defined in section #b7;a7 of the ,internal ,revenue ,code of #aihf7 or was an eligible individual for purposes of the credit under section #cb of such ,code1 in the second tax year preceding the academic year2 or 7ii7 an independent student who was a head of household 7as defined in section #b7;b7 of the ,internal ,revenue ,code of #aihf7 or a surviving spouse 7as defined in section #b7;a7 of the ,internal ,revenue ,code of #aihf7 or was an eligible individual for purposes of the credit under section #cb of such ,code1 in the second tax year preceding the academic year2 7,e7 the term total maximum ,federal ,pell ,grant means the total maximum ,federal ,pell ,grant award per student for any academic year described under paragraph 7#e72 and 7,f7 the term minimum ,federal ,pell ,grant means the minimum amount of a ,federal ,pell ,grant that shall be awarded to a student eligible under this subpart for any academic year in which that student is attending full time1 which shall be equal to #aj percent of the total maximum ,federal ,pell ,grant for such academic year4 7b7 ,amount and distribution of grants 7#a7 ,determination of amount of a ,federal ,pell ,grant ,subject to paragraphs 7#b7 and 7#c71 the amount of a ,federal ,pell ,grant for a student eligible under this subpart shall be determined in accordance with the following3 7,a7 ,a student eligible under this subpart shall be eligible for a total maximum ,federal ,pell ,grant for an academic year in which the student is enrolled in an eligible program full time-- 7i7 if the student or1 in the case of a dependent student1 the dependent student's parent1 is not required to file a ,federal income tax return in the second year preceding the academic year2 7ii7 if the student or1 in the case of a dependent student1 the dependent student's parent1 is a single parent1 if the adjusted gross income is equal to or less than #baj percent of the poverty line2 or 7iii7 if the student or1 in the case of a dependent student1 the dependent student's parent1 is not a single parent1 if the adjusted gross income is equal to or less than #afj percent of the poverty line4 7,b7 ,a student eligible under this subpart who is not eligible for a total maximum ,federal ,pell ,grant under subparagraph 7,a7 for an academic year1 shall be eligible for a ,federal ,pell ,grant for an academic year in which the student is enrolled in an eligible program full time in an amount that is not more than the amount determined in accordance with the following3 7i7 ,if the student or1 in the case of a dependent student1 the dependent student's parent1 is a single parent and the adjusted gross income is greater than #baj percent of the poverty line and is less than #caj percent of the poverty line1 the amount shall be equal to the greater of-- 7,i7 the minimum ,federal ,pell ,grant for the academic year2 and 7,,ii7 the total maximum ,federal ,pell ,grant for the academic year1 minus the product of-- 7aa7 the adjusted gross income1 less an amount equal to #baj percent of the poverty line2 and 7bb7 the total maximum ,federal ,pell ,grant for the academic year1 divided by an amount equal to #ajj percent of the poverty line4 7ii7 ,if the student or1 in the case of a dependent student1 the dependent student's parent1 is not a single parent and the adjusted gross income is greater than #afj percent of the poverty line and is less than #bfj percent of the poverty line1 the amount shall be equal to the greater of-- 7,i7 the minimum ,federal ,pell ,grant for the academic year2 and 7,,ii7 the total maximum ,federal ,pell ,grant for the academic year1 minus the product of-- 7aa7 the adjusted gross income1 less an amount equal to #afj percent of the poverty line2 and 7bb7 the total maximum ,federal ,pell ,grant for the academic year1 divided by an amount equal to #ajj percent of the poverty line4 7#b7 ,less than full-time enrollment ,in any case where a student is enrolled in an eligible program of an institution of higher education on less than a full-time basis 7including a student who attends an institution of higher education on less than a half-time basis7 during any academic year1 the amount of the ,federal ,pell ,grant to which that student is entitled shall be reduced in direct proportion to the degree to which that student is not so enrolled on a full-time basis1 rounded to the nearest whole percentage point1 as provided in a schedule of reductions published by the ,secretary computed in accordance with this subpart4 ,such schedule of reductions shall be published in the ,federal ,register in accordance with section #dhb of this ,act4 ,such reduced ,federal ,pell ,grant for a student enrolled on a less than full-time basis shall also apply proportionally to students who are otherwise eligible to receive the minimum ,federal ,pell ,grant1 if enrolled full-time4 7#c7 ,award may not exceed cost of attendance ,no ,federal ,pell ,grant under this subpart shall exceed the cost of attendance 7as defined in section #dgb7 at the institution at which that student is in attendance4 ,if1 with respect to any student1 it is determined that the amount of a ,federal ,pell ,grant for that student exceeds the cost of attendance for that year1 the amount of the ,federal ,pell ,grant shall be reduced until the ,federal ,pell ,grant does not exceed the cost of attendance at such institution4 7#d7 ,study abroad ,notwithstanding any other provision of this subpart1 the ,secretary shall allow the amount of the ,federal ,pell ,grant to be exceeded for students participating in a program of study abroad approved for credit by the institution at which the student is enrolled when the reasonable costs of such program are greater than the cost of attendance at the student's home institution1 except that the amount of such ,federal ,pell ,grant in any fiscal year shall not exceed the maximum amount of a ,federal ,pell ,grant for which a student is eligible under paragraph 7#a7 or 7#b7 during such award year4 ,if the preceding sentence applies1 the financial aid administrator at the home institution may use the cost of the study abroad program1 rather than the home institution's cost1 to determine the cost of attendance of the student4 7#e7 ,total maximum federal pell grant 7,a7 ,in ,general ,for award year #bjba-bjbb1 and each subsequent award year1 the total maximum ,federal ,pell ,grant award per student shall be equal to the sum of-- 7i7 #a1jhj2 and 7ii7 the amount specified as the maximum ,federal ,pell ,grant in the last enacted appropriation ,act applicable to that award year4 7,b7 ,rounding ,the total maximum ,federal ,pell ,grant for any award year shall be rounded to the nearest #e4 7#f7 ,funds by fiscal year ,to carry out this section for each of fiscal years #bjba through #bjcj-- 7,a7 there are authorized to be appropriated and are appropriated 7in addition to any other amounts appropriated to carry out this section and out of any money in the ,treasury not otherwise appropriated7 such sums as are necessary to carry out paragraph 7#e77;,a77i72 and 7,b7 such sums as may be necessary are authorized to be appropriated to carry out paragraph 7#e77;,a77ii74 7#g7 ,appropriation 7,a7 ,in general ,in addition to any funds appropriated under paragraph 7#f7 and any funds made available for this section under any appropriations ,act1 there are authorized to be appropriated1 and there are appropriated 7out of any money in the ,treasury not otherwise appropriated7 to carry out this section1 #a1ade1jjj1jjj for fiscal year #bjba and each subsequent award year4 7,b7 ,no effect on previous appropriations ,the amendments made to this section by the ,student ,aid ,improvement ,act of #bjai shall not-- 7i7 increase or decrease the amounts that have been appropriated or are available to carry out this section for fiscal year #bjag1 #bjah1 #bjai1 or #bjbj as of the day before the effective date of such ,act2 or 7ii7 extend the period of availability for obligation that applied to any such amount1 as of the day before such effective date4 7#h7 ,method of distribution 7,a7 ,in general ,for each fiscal year through fiscal year #bjcj1 the ,secretary shall pay to each eligible institution such sums as may be necessary to pay each eligible student for each academic year during which that student is in attendance at an institution of higher education as an undergraduate1 a ,federal ,pell ,grant in the amount for which that student is eligible4 7,b7 ,alternative disbursement ,nothing in this section shall be interpreted to prohibit the ,secretary from paying directly to students1 in advance of the beginning of the academic term1 an amount for which they are eligible1 in the cases where an eligible institution does not participate in the disbursement system under subparagraph 7,a74 7#i7 ,additional payment periods in same award year 7,a7 ,effective in the #bjag-bjah award year and thereafter1 the ,secretary shall award an eligible student not more than one and one-half ,federal ,pell ,grants during a single award year to permit such student to work toward completion of an eligible program if1 during that single award year1 the student has received a ,federal ,pell ,grant for an award year and is enrolled in an eligible program for one or more additional payment periods during the same award year that are not otherwise fully covered by the student's ,federal ,pell ,grant4 7,b7 ,in the case of a student receiving more than one ,federal ,pell ,grant in a single award year under subparagraph 7,a71 the total amount of ,federal ,pell ,grants awarded to such student for the award year may exceed the total maximum ,federal ,pell ,grant available for an award year4 7,c7 ,any period of study covered by a ,federal ,pell ,grant awarded under subparagraph 7,a7 shall be included in determining a student's duration limit under subsection 7d77#e74 7,d7 ,in any case where an eligible student is receiving a ,federal ,pell ,grant for a payment period that spans #b award years1 the ,secretary shall allow the eligible institution in which the student is enrolled to determine the award year to which the additional period shall be assigned1 as it determines is most beneficial to students4 7c7 ,special rule 7#a7 ,in general ,notwithstanding any other provision of this title1 the total maximum ,federal ,pell ,grant shall be provided to a student described in paragraph 7#b74 7#b7 ,applicability ,paragraph 7#a7 shall apply to any dependent or independent student-- 7,a7 who is eligible to receive a ,federal ,pell ,grant for the award year for which the determination is made2 7,b7 whose parent or guardian was-- 7i7 an individual who1 on or after ,september #aa1 #bjja1 died in the line of duty while serving on active duty as a member of the ,armed ,forces2 or 7ii7 actively serving as a public safety officer and died in the line of duty while performing as a public safety officer2 and 7,c7 who is less than #cc years of age4 7#c7 ,information ,notwithstanding any other provision of law1 the ,secretary shall establish the necessary data-sharing agreements with the ,secretary of ,veterans ,affairs and the ,secretary of ,defense1 as appropriate1 to provide the information necessary to determine which students meet the requirements of paragraph 7#b74 7#d7 ,treatment of ,pell amount ,notwithstanding section #abab of the ,omnibus ,crime ,control and ,safe ,streets ,act of #aifh 7#cd ,u4,s4,c4 #ajcjb71 in the case of a student who receives an increased ,federal ,pell ,grant amount under this section1 the total amount of such ,federal ,pell ,grant1 including the increase under this subsection1 shall not be considered in calculating that student's educational assistance benefits under the ,public ,safety ,officers' ,benefits program under subpart #b of part ,l of title ,i of such ,act4 7#e7 ,definition of public safety officer ,for purposes of this subsection1 the term public safety officer means-- 7,a7 a public safety officer1 as defined in section #abjd of title ,i of the ,omnibus ,crime ,control and ,safe ,streets ,act of #aifh 7#cd ,u4,s4,c4 #ajbhd72 or 7,b7 a fire police officer1 defined as an individual who-- 7i7 is serving in accordance with ,state or local law as an officially recognized or designated member of a legally organized public safety agency2 7ii7 is not a law enforcement officer1 a firefighter1 a chaplain1 or a member of a rescue squad or ambulance crew2 and 7iii7 provides scene security or directs traffic-- 7,i7 in response to any fire drill1 fire call1 or other fire1 rescue1 or police emergency2 or 7,,ii7 at a planned special event4 7d7 ,period of eligibility for grants 7#a7 ,in ,general ,the period during which a student may receive ,federal ,pell ,grants shall be the period required for the completion of the first undergraduate baccalaureate course of study being pursued by that student at the institution at which the student is in attendance1 except that any period during which the student is enrolled in a noncredit or remedial course of study1 as described in paragraph 7#b71 shall not be counted for the purpose of this paragraph4 7#b7 ,noncredit or remedial courses2 study abroad ,nothing in this section shall exclude from eligibility courses of study which are noncredit or remedial in nature 7including courses in ,english language instruction7 which are determined by the institution to be necessary to help the student be prepared for the pursuit of a first undergraduate baccalaureate degree or certificate or1 in the case of courses in ,english language instruction1 to be necessary to enable the student to utilize already existing knowledge1 training1 or skills4 ,nothing in this section shall exclude from eligibility programs of study abroad that are approved for credit by the home institution at which the student is enrolled4 7#c7 ,no concurrent payments ,no student is entitled to receive ,pell ,grant payments concurrently from more than one institution or from the ,secretary and an institution4 7#d7 ,postbaccalaureate program ,notwithstanding paragraph 7#a71 the ,secretary may allow1 on a case-by-case basis1 a student to receive a ,federal ,pell ,grant if the student-- 7,a7 is carrying at least one-half the normal full-time work load for the course of study the student is pursuing1 as determined by the institution of higher education2 and 7,b7 is enrolled or accepted for enrollment in a postbaccalaureate program that does not lead to a graduate degree1 and in courses required by a ,state in order for the student to receive a professional certification or licensing credential that is required for employment as a teacher in an elementary school or secondary school in that ,state1 except that this paragraph shall not apply to a student who is enrolled in an institution of higher education that offers a baccalaureate degree in education4 7#e7 ,maximum period 7,a7 ,in ,general ,except as provided in subparagraph 7,b71 the period during which a student may receive ,federal ,pell ,grants shall not exceed #ab semesters1 or the equivalent of #ab semesters1 as determined by the ,secretary by regulation4 ,such regulations shall provide1 with respect to a student who received a ,federal ,pell ,grant for a term but was enrolled at a fraction of full time1 that only that same fraction of such semester or equivalent shall count towards such duration limits4 7,b7 ,exception 7i7 ,in general ,any ,federal ,pell ,grant that a student received during a period described in subclause 7,i7 or 7,,ii7 of clause 7ii7 shall not count towards the student's duration limits under this paragraph4 7ii7 ,applicable periods ,clause 7i7 shall apply with respect to any ,federal ,pell ,grant awarded to a student to enroll in an eligible program at an institution-- 7,i7 during a period of a student's attendance at an institution-- 7aa7 at which the student was unable to complete a course of study due to the closing of the institution2 or 7bb7 for which the student was falsely certified as eligible for ,federal aid under this title2 or 7,,ii7 during a period-- 7aa7 for which the student received a loan under this title2 and 7bb7 for which the loan described in item 7aa7 is discharged under-- 7,,aa7 section #dcg7;c77#a7 or section #dfd7;g77#a72 or 7,,bb7 section #dcb7;a77#f74 7e7 ,applications for grants 7#a7 ,deadlines ,the ,secretary shall from time to time set dates by which students shall file the ,free ,application for ,federal ,student ,aid under this subpart4 7#b7 ,application ,each student desiring a ,federal ,pell ,grant for any year shall file application the ,free ,application for ,federal ,student ,aid containing such information and assurances as the ,secretary may determine are necessary to enable the ,secretary to carry out the functions and responsibilities of this subpart4 7f7 ,distribution of grants to students ,payments under this section shall be made in accordance with regulations promulgated by the ,secretary for such purpose1 in such manner as will best accomplish the purpose of this section4 ,any disbursement allowed to be made by crediting the student's account shall be limited to tuition and fees1 and food and housing if that food and housing is institutionally owned or operated4 ,the student may elect to have the institution provide other such goods and services by crediting the student's account4 7g7 ,insufficient appropriations ,if1 for any fiscal year1 the funds appropriated for payments under this subpart are insufficient to satisfy fully all entitlements1 as calculated under subsection 7b7 7but at the maximum grant level specified in such appropriation71 the ,secretary shall promptly transmit a notice of such insufficiency to each ,house of the ,congress1 and identify in such notice the additional amount that would be required to be appropriated to satisfy fully all entitlements 7as so calculated at such maximum grant level74 7h7 ,use of excess funds 7#a7 #ae percent or less ,if1 at the end of a fiscal year1 the funds available for making payments under this subpart exceed the amount necessary to make the payments required under this subpart to eligible students by #ae percent or less1 then all of the excess funds shall remain available for making payments under this subpart during the next succeeding fiscal year4 7#b7 ,more than #ae percent ,if1 at the end of a fiscal year1 the funds available for making payments under this subpart exceed the amount necessary to make the payments required under this subpart to eligible students by more than #ae percent1 then all of such funds shall remain available for making such payments but payments may be made under this paragraph only with respect to entitlements for that fiscal year4 7i7 ,treatment of institutions and students under other laws ,any institution of higher education which enters into an agreement with the ,secretary to disburse to students attending that institution the amounts those students are eligible to receive under this subpart shall not be deemed1 by virtue of such agreement1 a contractor maintaining a system of records to accomplish a function of the ,secretary4 ,recipients of ,pell ,grants shall not be considered to be individual grantees for purposes of subtitle ,d of title ,v of ,public ,law #ajj-fij4 7j7 ,institutional ineligibility based on default rates 7#a7 ,in general ,no institution of higher education shall be an eligible institution for purposes of this subpart if such institution of higher education is ineligible to participate in a loan program under part ,b or ,d as a result of a final default rate determination made by the ,secretary under part ,b or ,d after the final publication of cohort default rates for fiscal year #aiif or a succeeding fiscal year4 7#b7 ,sanctions subject to appeal opportunity ,no institution may be subject to the terms of this subsection unless the institution has had the opportunity to appeal the institution's default rate determination under regulations issued by the ,secretary for the loan program authorized under part ,b or ,d1 as applicable4 ,this subsection shall not apply to an institution that was not participating in the loan program authorized under part ,b or ,d on ,october #g1 #aiih1 unless the institution subsequently participates in the loan programs4 4 7b7 ,effective date ,this section1 and the amendments made by this section1 shall take effect on ,july #a1 #bjba4 #h4 ,making institutional student aid award letters comparable and easier to understand ,section #dhe 7#bj ,u4,s4,c4 #ajib71 as amended by section #c7o71 is amended by inserting after subsection 7j7 the following3 7k7 ,consumer information for financial aid recipients 7#a7 ,standard format and terminology for financial aid offers ,the ,secretary of ,education1 in consultation with the heads of relevant ,federal agencies1 shall develop standard terminology and a standard format for financial aid offers 7including a uniform title used to describe the applicable document7 based on recommendations from representatives of students1 veterans1 servicemembers1 students' families1 institutions of higher education 7including community colleges1 for-profit institutions1 #d-year public institutions1 and #d-year private nonprofit institutions71 financial aid experts1 secondary school and postsecondary counselors1 nonprofit organizations1 and consumer groups4 7#b7 ,key required contents for financial aid offer ,the standard format developed under paragraph 7#a7 shall be presented in a consumer-friendly manner that is simple and understandable4 ,the standard format shall include the following items clearly separated from each other with separate headings1 and1 if in a format designed for paper shall be listed on the first page of the financial aid offer and if in a format designed for digital viewing shall be listed first3 7,a7 ,cost information 7i7 ,information on the student's estimated annual cost of attendance1 including the following3 7,i7 ,total direct costs1 including the component annual totals each for-- 7aa7 tuition and fees1 as determined under section #dgb2 and 7bb7 institutionally owned or operated housing and food costs 7as determined based on the costs for housing and food under section #dgb74 7,,ii7 ,total estimated other annual expenses1 including-- 7aa7 the component totals each for housing and food costs for students who do not reside on campus1 as determined under section #dgb7c77;,d72 and 7bb7 for all students1 books1 supplies1 transportation1 miscellaneous personal expenses1 health insurance 7if applicable71 and child care 7if applicable71 as determined under section #dgb4 7ii7 ,an indication of the academic period covered by the financial aid offer relative to the published program length1 and an explanation that the financial aid offered may change for academic periods not covered by the aid offer4 7iii7 ,an indication of whether cost and aid estimates are based on full-time or part-time enrollment4 7iv7 ,an indication1 as applicable1 about whether the tuition and fees are estimated based on the previous year1 or are set1 for the academic period covered by the financial aid offer indicated in accordance with clause 7ii74 7,b7 ,grant and scholarship aid ,the amount and source of financial aid that the student does not have to repay1 such as scholarships1 grant aid offered under this title1 grant aid offered through other ,federal programs1 or grant aid offered by the institution1 a ,state1 or1 if known1 an outside source to the student for such academic period1 including-- 7i7 a disclosure that the financial aid does not have to be repaid2 and 7ii7 if institutional aid is included-- 7,i7 the conditions under which the student can expect to receive similar amounts of such financial aid for each academic period the student is enrolled at the institution2 and 7,,ii7 whether the institutional aid offer may change if grants or scholarships from outside sources are applied after the student receives the offer1 and1 if applicable1 how that aid will change4 7,c7 ,annual net price 7i7 ,the net price that the student1 or the student's family on behalf of the student1 is estimated to have to pay for the student to attend the institution for such academic period1 equal to-- 7,i7 the cost of attendance as described in subparagraph 7,a77i7 for the student for the period indicated in subparagraph 7,a77ii72 and 7,,ii7 minus the amount of grant aid described in subparagraph 7,b7 that is included in the financial aid offer4 7ii7 ,a disclosure that the net price is an estimate of the total expenses for the year and not the amount that the student will owe directly to the institution4 7,d7 ,work-study ,information on work-study employment opportunities1 offered in accordance with part ,c4 7i7 ,this information shall include-- 7,i7 the amount of work-study offered2 7,,ii7 a disclosure that the work-study aid offered is subject to the availability of qualified employment opportunities2 7,,iii7 a statement that work-study aid does not need to be repaid and can offset the need to borrow2 and 7,,iv7 a disclosure that work-study is disbursed over time as earned by the student4 7ii7 ,work-study employment opportunities 7or a student's potential income based on those opportunities7 shall not be included in the category of financial aid described under subparagraph 7,b74 7,e7 ,loans 7i7 ,information on the amount of loans under part ,d 7except a ,federal ,direct ,,plus ,loan under part ,d7 that the institution recommends for the student for the academic period covered by the offer1 which shall be made-- 7,i7 with clear use of the word loan to describe the recommended loan amounts2 and 7,,ii7 with clear labeling of subsidized and unsubsidized loans4 7ii7 ,a disclosure that such loans have to be repaid and a disclosure that the student can borrow a lesser or1 if applicable1 greater amount than the recommended loan amount4 7iii7 ,if an institution's recommended ,federal student loan amount is less than the ,federal maximum available to the student1 the institution shall clearly state the applicable loan limit for ,federal student loans for which the student is eligible and a prominent recommendation that students should exhaust any ,federal student loan eligibility before taking out private education loans4 7iv7 ,a disclosure that the interest rates and fees on such loans are set annually and affect total cost over time1 and a link to electronic information by the ,department of ,education that includes current information on interest rates and fees4 7v7 ,a link to the ,department of ,education's electronic repayment calculator for students with instruction that this calculator contains customizable estimates of expected repayment costs under different loan repayment plans4 7vi7 ,if the institution does not participate in the loan program under part ,d1 an explanation of why the institution does not participate1 and a disclosure that students may have the option to borrower ,federal student loans at another institution4 7,f7 ,process for accepting or declining aid and next steps 7i7 ,the deadlines and a summary of the process 7including the next steps7 for-- 7,i7 accepting the financial aid offered in the financial aid offer2 7,,ii7 requesting different loan amounts than the recommended loan amounts2 and 7,,iii7 declining aid offered4 7ii7 ,information on when and how direct costs to the institution must be paid4 7iii7 ,a disclosure that verification of financial circumstances may require the student to submit further documentation4 7iv7 ,information about where a student or the student's family can seek additional information regarding the financial aid offered1 including contact information for the institution's financial aid office and the ,department of ,education's website on financial aid4 7,g7 ,additional information ,if in consultation with the heads of relevant ,federal agencies1 including the ,secretary of the ,treasury and the ,director of the ,bureau of ,consumer ,financial ,protection1 the ,secretary determines the inclusion of additional information is necessary 7based on the results of the consumer testing under paragraph 7#g77;,b77 so that students and parents can make informed loan borrowing decisions1 this information shall be included4 ,such information may include-- 7i7 the most recent cohort default rate1 as defined in section #dce7m7 with respect to an institution where more than #cj percent of enrolled students borrow loans to pay for their education1 and a comparison to the national average cohort default rate2 7ii7 the percentage of students at the institution who borrow student loans2 7iii7 the median loan debt at graduation for students at the institution 7clearly marked as including only ,federal loans if private loan data are not available to be included72 7iv7 the estimated monthly loan payment based on-- 7,i7 the median loan debt at graduation calculated under clause 7iii7 and the standard repayment plan2 and 7,,ii7 the median loan debt at graduation calculated under clause 7iii7 and the median payment for various example salaries under the ,income ,contingent ,repayment plan known as ,revised ,pay ,as ,you ,earn2 and 7v7 the estimated institutional charges that the student1 or the student's family on behalf of the student1 will have to pay directly to the institution for the student to attend the institution for the academic period described in subparagraph 7,a77ii71 equal to-- 7,i7 the total direct costs described in subparagraph 7,a77i77,i7 for the student for the period indicated in subparagraph 7,a77ii72 minus 7,,ii7 the amount of grant aid described in subparagraph 7,b7 that is included on the financial aid offer4 7#c7 ,other required contents for the financial aid offer ,the standard financial aid offer developed under paragraph 7#a7 shall include1 in addition to the information described in paragraph 7#b71 the following information in a concise format located after the requirements of paragraph 7#b71 where the format shall be designed by the ,secretary of ,education in consultation with the heads of relevant ,federal agencies3 7,a7 ,information at the institution's discretion ,at the institution's discretion-- 7i7 additional options and potential resources for paying for the amount listed in paragraph 7#b77;,c71 such as tuition payment plans2 7ii7 for an undergraduate student1 a disclosure that ,federal ,direct ,parent ,,plus ,loans borrowed on behalf of the student or private education loans may be available to cover unmet financial need1 except that the institution must include a disclosure that such loans are subject to an additional application process1 have to be repaid by the borrower or the borrower's parents1 as applicable1 include the applicable interest rate in the case of ,federal ,direct ,,plus ,loans1 and that such loans may not be eligible for all the benefits available for ,federal ,direct ,subsidized ,loans or ,federal ,direct ,unsubsidized ,loans2 and 7iii7 for a graduate student1 a disclosure that private education loans may be available to cover unmet financial need1 except that the institution must include a disclosure that such loans are subject to an additional application process1 have to be repaid by the borrower1 and are not eligible for all the benefits available for ,federal ,direct ,loans or ,federal ,,plus ,loans4 7,b7 ,disclosures regarding private education loans ,if the institution includes private education loans in the financial aid offer1 as allowed under subparagraph 7,a71 the following information shall be included3 7i7 ,a statement that students considering borrowing to cover unmet need should exhaust available ,federal financial aid1 including ,federal student loans1 prior to applying for or taking out private education loans1 including an explanation that ,federal student loans offer generally more favorable terms and beneficial repayment options than private education loans4 7ii7 ,the impact of private education loans on the student's potential eligibility for other financial assistance1 including ,federal financial assistance under this title4 7iii7 ,a statement explaining the student's ability to select a private educational lender of the student's choice4 7iv7 ,for any dependent student1 information about the availability of1 and terms and conditions associated with1 ,federal ,direct ,,plus ,loans under section #dee for the student's parents regardless of family income4 7v7 ,for any dependent student1 a notification of the student's increased eligibility for ,federal student loans under this title if the student's parents apply for a ,federal ,direct ,,plus loan and are denied4 7,c7 ,total cost of degree or certificate program information ,the following information regarding the total cost of a degree or certificate program3 7i7 ,total cost of attendance ,information on the student's estimated total cost of attendance1 based on the published program length1 including the following3 7,i7 ,total estimated direct costs based on the published program length1 including the component totals each for-- 7aa7 tuition and fees1 as determined under section #dgb2 and 7bb7 institutionally owned or operated housing and food costs 7as determined based on the costs for housing and food under section #dgb74 7,,ii7 ,total estimated other expenses based on the published program length1 including-- 7aa7 the component totals each for housing and food costs for students who reside off-campus2 and 7bb7 for all students1 books1 supplies1 transportation1 miscellaneous personal expenses1 health insurance 7if applicable71 and child care 7if applicable71 as determined under section #dgb4 7ii7 ,total net price 7,i7 ,the estimated total net price that the student1 or the student's family on behalf of the student1 is estimated to have to pay for the student to attend the institution for the published program length1 equal to-- 7aa7 the estimated total cost of attendance as described in clause 7i7 for the student based on the published program length2 minus 7bb7 the estimated total amount of grant aid described in paragraph 7#b77;,b7 that is estimated to continue for the program length and is included in the financial aid offer1 based on the published program length4 7,,ii7 ,a disclosure that the estimated total net price is an estimate of the total expenses for the published program length and not equivalent to the amount the student will owe directly to the institution over the published program length4 7#d7 ,additional requirements for financial aid offer ,the financial aid offer shall meet the following requirements3 7,a7 ,include1 in addition to the requirements described in paragraphs 7#b7 and 7#c71 a concise summary1 in plain language1 of-- 7i7 the terms and conditions of financial aid recommended under subparagraphs 7,b71 7,d71 and 7,e7 of paragraph 7#b71 and a method to provide students with additional information about such terms and conditions1 such as links to the supplementary information2 and 7ii7 ,federal1 ,state1 or institutional conditions required to receive and renew financial aid and a method to provide students with additional information about these conditions1 such as links to the supplementary information4 7,b7 ,clearly distinguish between the aid offered in subparagraphs 7,b71 7,d71 and 7,e7 of paragraph 7#b71 by including a subtotal for the aid offered in each of such subparagraphs which shall not combine the different types of aid described in such subparagraphs4 7,c7 ,use standard terminology and definitions1 as required in paragraph 7#e77;,a71 and use plain language where possible4 7,d7 ,use the standard financial aid offer described in paragraph 7#e77;,b74 7,e7 ,include the standardized statement regarding the possible availability of ,federal education benefits1 as established by the ,secretary in accordance with paragraph 7#e77;,c74 7,f7 ,include a delivery confirmation for electronic financial aid offer1 except that receipt of the financial aid offer shall not be considered an acceptance or rejection of aid by the student4 7#e7 ,standard information established by the secretary 7,a7 ,standard terminology ,the ,secretary of ,education shall use the standard terminology developed under paragraph 7#h74 7,b7 ,standard financial aid offer 7i7 ,in general ,the ,secretary of ,education shall develop multiple draft financial aid offers for consumer testing1 carry out consumer testing for such offers1 and establish a finalized standard financial aid offer or offers1 in accordance with the process established in paragraph 7#g7 and the requirements of this subsection4 7ii7 ,standard financial aid offer forms for different types of students ,subject to the requirements for consumer testing and development described in paragraph 7#g71 the ,secretary may develop separate financial aid offer formatting for each of the following individual types of students that must follow a standard format within each such individual type of students3 7,i7 ,new undergraduate students4 7,,ii7 ,returning undergraduate students4 7,,iii7 ,new graduate and professional students4 7,,iv7 ,returning graduate and professional students4 7,c7 ,additional education benefits ,the ,secretary of ,education1 in consultation with the heads of relevant ,federal agencies1 including the ,secretary of the ,treasury1 the ,secretary of ,veterans ,affairs1 the ,secretary of ,defense1 and the ,director of the ,consumer ,financial ,protection ,bureau1 shall establish standard language notifying students that they may be eligible for education benefits 7and where students can locate more information about such benefits71 including benefits in accordance with each of the following3 7i7 ,chapter #cj1 #ca1 #cb1 #cc1 #cd1 or #ce of title #ch1 ,united ,states ,code4 7ii7 ,chapter #aja1 #aje1 #ajf;,a1 #afjf1 #afjg1 or #afjh of title #aj1 ,united ,states ,code4 7iii7 ,section #aghd;a1 #bjje1 or #bjjg of title #aj1 ,united ,states ,code4 7,d7 ,additional means-tested benefits ,the ,secretary of ,education1 in consultation with the heads of relevant ,federal agencies1 shall establish standard language notifying students that they may be eligible for means-tested benefits 7and where students can locate more information about such benefits7 including benefits from-- 7i7 the supplemental security income program under title ,,xvi of the ,social ,security ,act 7#db ,u4,s4,c4 #acha et seq472 7ii7 the supplemental nutrition assistance program under the ,food and ,nutrition ,act of #bjjh 7#g ,u4,s4,c4 #bjaa et seq472 7iii7 the program of block grants for ,states for temporary assistance for needy families established under part ,a of title ,,iv of the ,social ,security ,act 7#db ,u4,s4,c4 #fja et seq472 7iv7 the special supplemental nutrition program for women1 infants1 and children established by section #ag of the ,child ,nutrition ,act of #aiff 7#db ,u4,s4,c4 #aghf72 7v7 the ,medicaid program under title ,,xix of the ,social ,security ,act 7#db ,u4,s4,c4 #acif et seq472 and 7vi7 any other means-tested program determined by the ,secretary to be appropriate4 7#f7 ,supplemental information2 removal of information 7,a7 ,supplemental information ,nothing in this section shall preclude an institution from supplementing the financial aid offer with additional information if such additional information supplements the financial aid offer and is not located on the financial aid offer1 and provided such information utilizes the same standard terminology identified in paragraph 7#e77;,a74 7,b7 ,removal of information ,nothing in this section shall preclude an institution from deleting a required item if the borrower is ineligible for such aid4 7#g7 ,development of standardized financial aid offer 7,a7 ,draft standardized offer ,not later than #ac months after the date of enactment of the ,student ,aid ,improvement ,act of #bjai1 the ,secretary of ,education1 in consultation with the heads of relevant ,federal agencies1 including the ,secretary of the ,treasury and the ,director of the ,consumer ,financial ,protection ,bureau1 representatives of institutions of higher education1 nonprofit consumer groups1 students1 and secondary school and higher education guidance counselors1 shall design and produce multiple draft financial aid offers for consumer testing with postsecondary students or prospective students4 ,in developing that offer or those offers1 the ,secretary shall ensure-- 7i7 that the information described in subparagraphs 7,a7 through 7,e7 of paragraph 7#b7 is in the same font1 appears in the same order1 and is displayed prominently on the first page of the financial aid offer1 if in paper format1 or in a similarly prominent place if in electronic format1 such that none of that information is inappropriately omitted or de-emphasized2 7ii7 that the other information required in paragraph 7#b7 appears in a standard format and design on the financial aid offer2 and 7iii7 that the institution may include a logo or brand alongside the title of the financial aid offer4 7,b7 ,consumer testing 7i7 ,in general ,the ,secretary of ,education1 in consultation with the heads of relevant ,federal agencies1 shall establish a process to submit the financial aid offer drafts developed under subparagraph 7,a7 for consumer testing among representatives of students 7including low-income students1 first generation college students1 adult students1 veterans1 servicemembers1 and prospective students71 students' families 7including low-income families1 families with first generation college students1 and families with prospective students71 institutions of higher education1 secondary school and postsecondary counselors1 and nonprofit consumer groups4 7ii7 ,pilot ,during such consumer testing1 the ,secretary shall ensure that not less than #be and not more than #ej eligible institutions use the draft offers developed under subparagraph 7,a71 including institutions-- 7,i7 that reflect a proportionate representation 7based on the total number of students enrolled in postsecondary education7 of community colleges1 for-profit institutions1 #d-year public institutions1 and #d-year private nonprofit institutions2 and 7,,ii7 that reflect geographic diversity4 7,c7 ,final offer format 7i7 ,in general ,the results of consumer testing under subparagraph 7,b7 shall be used in the final development of the financial aid offer4 7ii7 ,reporting requirement ,not later than #b years after the date of enactment of the ,student ,aid ,improvement ,act of #bjai1 the ,secretary of ,education shall submit to ,congress and publish on its website the final standard financial aid offer and a report detailing the results of such testing1 including whether the ,secretary of ,education added any additional items to the standard financial aid offer pursuant to paragraph 7#b77;,g7 or whether the ,secretary of ,education is recommending the use of multiple formats under paragraph 7#e77;,b74 7iii7 ,special rule for different formats ,if1 based on the consumer testing under subparagraph 7,b71 there is strong evidence for the use of different offers that follow a standard format for individual types of students as described in paragraph 7#e77;,b77ii71 the ,secretary shall release more than one standardized final financial aid offer so long as each form follows a standard format for each individual type of student4 7,d7 ,authority to modify ,the ,secretary of ,education may modify the definitions1 terms1 formatting1 and design of the financial aid offer based on the results of consumer testing required under this subsection and before finalizing the offer1 or in subsequent consumer testing4 ,the ,secretary may also recommend additional changes to ,congress4 7,e7 ,use by institutions ,as soon as practicable1 and not later than for the #bjbc-bjbd award year1 each eligible institution shall use the final standard financial aid offer1 as published in accordance with subparagraph 7,c7 7which may include different standardized final financial aid offers if established under subparagraph 7,c77iii774 7#h7 ,development of standard terminology for federal student aid 7,a7 ,in general ,not later than #ahj days after the date of enactment of the ,student ,aid ,improvement ,act of #bjai1 the ,secretary1 in consultation with other relevant ,federal agencies1 representatives of institutions of higher education1 nonprofit consumer groups1 students1 and secondary school and postsecondary school guidance counselors1 shall develop or identify and release for notice and comment for a period of #fj days-- 7i7 standard terms and definitions for each term listed in subparagraphs 7,a7 through 7,e7 of paragraph 7#b72 7ii7 standard names and a summary of the terms and conditions of each individual ,federal grant and work-study program under this title1 including general information about eligibility2 and 7iii7 standard names and a summary of the terms and conditions of each ,federal loan program under this title1 including general information about eligibility1 current interest rates1 the ability to make payments based on income1 forgiveness1 cancellation1 and any other available benefits of the ,federal loan program4 7,b7 ,consumer testing 7i7 ,in general ,the ,secretary shall conduct consumer testing on the items developed under this paragraph among representatives of students 7including low-income students1 first generation college students1 adult students1 and prospective students71 students' families 7including low-income families1 families of first generation college students1 and families of prospective students71 institutions of higher education1 secondary school and postsecondary school counselors1 and nonprofit consumer groups4 7ii7 ,use of results ,the ,secretary shall-- 7,i7 use the results of the consumer testing under this clause in the final establishment of each of the items listed in subparagraph 7,a72 and 7,,ii7 share the results of that testing with relevant stakeholders4 7,c7 ,report to congress ,not later than #a year after the date of enactment of the ,student ,aid ,improvement ,act of #bjai1 and after the consideration of public comments received pursuant to subparagraph 7,a71 the ,secretary shall submit a report to ,congress containing-- 7i7 the final names1 definitions1 summaries1 terms1 conditions1 and other information described in subparagraph 7,a7 determined necessary by the ,secretary2 and 7ii7 the results of the consumer testing under subparagraph 7,b74 7,d7 ,issuance1 use1 updates 7i7 ,issuance ,not later than #a year after the date of enactment of the ,student ,aid ,improvement ,act of #bjai1 the ,secretary shall publish in the ,federal ,register and make publicly available the final established names1 definitions1 summaries1 terms1 and conditions1 as described in subparagraph 7,a7 and contained in the report under subparagraph 7,c74 7ii7 ,use by institutions ,as soon as practicable1 and not later than for the #bjbb-bjbc award year1 each eligible institution shall use the final established names1 definitions1 summaries1 and terms and conditions1 as published in accordance with clause 7i71 for any communication that is required under this subsection4 7iii7 ,use by the department ,as soon as practicable1 the ,department of ,education shall use the final established names1 definitions1 summaries1 terms1 and conditions1 as published in accordance with clause 7i71 for any communication regarding programs under this title4 7iv7 ,updates ,the ,secretary shall-- 7,i7 issue updates to the items listed in subparagraph 7,a7 as necessary and appropriate2 7,,ii7 issue such updates in a manner that is consistent with and sensitive to established institutional financial aid processes2 7,,iii7 issue significant updates only after conducting additional consumer testing in accordance with subparagraph 7,b72 and 7,,iv7 publish any such updates in the ,federal ,register and make them publicly available4 4 #i4 ,creating fairness in loan repayment ,section #dee7;d7 7#bj ,u4,s4,c4 #ajhg;e7d77 is amended-- 7#a7 by redesignating paragraphs 7#b7 through 7#e7 as paragraphs 7#c7 through 7#f71 respectively2 7#b7 in paragraph 7#d71 as redesignated by paragraph 7#a71 by striking paragraph 7#b7 and inserting paragraph 7#c72 and 7#c7 by inserting after paragraph 7#a7 the following3 7#b7 ,fairness in loan repayment ,with respect to any new borrower on or after ,july #a1 #bjbj1 who elects a repayment plan that is authorized1 created under the authority of1 or otherwise offered by the ,secretary under subparagraph 7,d7 or 7,e7 of paragraph 7#a71 the borrower shall not be subject to a maximum monthly payment based on a #aj-year standard repayment plan as described in section #dic;,c7b77#f77;,a7 or any other maximum monthly payment4 4