Flexible Pell Grant for 21st Century Students Act

Summary: Flexible Pell Grant for 21st Century Students Act This bill amends title IV (Student Assistance) of the Higher Education Act of 1965 to allow an eligible student to receive more than one Federal Pell Grant award in a single award year.  An eligible student is a student who: (1) has already received a Pell Grant during an award year and is enrolled in an eligible program for one or more additional payment periods (e.g., a summer term) during the same award year, (2) continues to meet Pell Grant program eligibility requirements, and (3) is accelerating progress toward a degree or certificate.  An eligible student's total Pell Grant amount must not exceed 150% of the annual maximum Pell Grant for that award year.  An institution must notify a student that any period of additional Pell Grant receipt counts toward that student's lifetime Pell Grant eligibility period (currently 12 full-time semesters). If an additional Pell Grant spans two award years, then an institution must determine the award year to which such Pell Grant applies.  The Department of Education must provide to each Pell Grant recipient an annual status report that includes certain information related to such student's remaining lifetime Pell Grant eligibility period. 

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Flexible Pell Grant for 21st Century 
Students Act''.

SEC. 2. FLEXIBLE PELL GRANTS.

    (a) Purpose and Amount of Grants.--Section 401(b) of the Higher 
Education Act of 1965 (20 U.S.C. 1070a(b)) is amended by adding at the 
end the following:
    ``(8)(A) Notwithstanding any other provision of this subsection, an 
eligible student who has received a Federal Pell Grant during an award 
year, and is enrolled in an eligible program for one or more additional 
payment periods during the same award year, may receive an additional 
Federal Pell Grant for such additional period or periods.
    ``(B) In the case of a student receiving more than one Federal Pell 
Grant during a single award year under subparagraph (A), the total 
amount of the Federal Pell Grants awarded to such student for the award 
year shall not exceed an amount equal to 150 percent of the amount of 
the Federal Pell Grant award determined under paragraph (2)(A) for 
which such student is eligible during such award year.
    ``(C) At or before the time of disbursement of a Federal Pell Grant 
under subparagraph (A) to a student, the institution in which the 
student is enrolled shall notify the student that any payment period 
for which the student receives a Federal Pell Grant shall count towards 
the student's duration limits under subsection (c)(5).
    ``(D) In this paragraph, the term `eligible student' means a 
student who--
            ``(i) continues to meet all eligibility requirements to 
        receive a Federal Pell Grant under this section; and
            ``(ii) is accelerating progress toward a degree or 
        certificate.
    ``(E)(i) In this paragraph, except as provided in clause (ii), a 
student shall be considered accelerating progress toward a degree or 
certificate during an award year if, during such award year--
            ``(I) the student completes the credit hours (or credit 
        hour equivalencies) of an academic year of the student's 
        eligible program that are necessary for the student to enroll, 
        during such award year, in credit hours (or credit hour 
        equivalencies) that are attributable to a second academic year 
        for such program; and
            ``(II) during the payment period or periods for which the 
        student desires to receive a Federal Pell Grant under 
        subparagraph (A), the student enrolls in credit hours (or 
        credit hour equivalencies) that are attributable to a second 
        academic year for the student's eligible program.
    ``(ii) The financial aid administrator at an institution may waive 
the requirement of subparagraph (D)(ii), if the financial aid 
administrator--
            ``(I) determines that, due to circumstances beyond a 
        student's control, the student was unable to complete the 
        credit hours described in clause (i)(I) of this subparagraph; 
        and
            ``(II) makes and documents such a determination on an 
        individual basis.
    ``(iii) In this subparagraph--
            ``(I) circumstances beyond a student's control--
                    ``(aa) may include the student withdrawing from 
                classes due to illness or being unable to register for 
                classes necessary to complete the credit hours 
                described in clause (i)(I) because such classes were 
                not offered during the applicable period; and
                    ``(bb) shall not include withdrawing to avoid a 
                particular grade or failing to register for a necessary 
                class that was offered during such period to avoid a 
                particular instructor; and
            ``(II) the term `academic year', when used with respect to 
        an eligible program at an institution, has the meaning given 
        such term by the institution.
    ``(9) If a student is receiving a Federal Pell Grant for a payment 
period that spans 2 award years, the eligible institution in which the 
student is enrolled shall determine the award year to which the 
additional period shall be assigned.
    ``(10) A student may decline to receive any portion of a Federal 
Pell Grant for any payment period, except that the institution may 
establish a reasonable deadline by which the student may decline the 
Federal Pell Grant.''.
    (b) Period of Eligibility for Grants.--Section 401(c) of such Act 
(20 U.S.C. 1070a(c)) is amended by adding at the end the following new 
paragraph:
    ``(6)(A) The Secretary shall issue to each student receiving a 
Federal Pell Grant, an annual status report which shall--
            ``(i) inform the student of the remaining period during 
        which the student may receive Federal Pell Grants in accordance 
        with paragraph (5), and provide access to a calculator to 
        assist the student in making such determination;
            ``(ii) include an estimate of the Federal Pell Grant 
        amounts which may be awarded for such remaining period based on 
        the student's award amount determined under paragraph (2)(A) 
        for the most recent award year;
            ``(iii) explain how the estimate was calculated and any 
        assumptions underlying the estimate;
            ``(iv) explain that the estimate may be affected if there 
        is a change--
                    ``(I) in the student's financial circumstances; or
                    ``(II) the availability of Federal funding; and
            ``(v) describe how the remaining period during which the 
        student may receive Federal Pell Grants may be affected by 
        whether the student is enrolled as a full-time student.
    ``(B) Nothing in this paragraph shall be construed to prohibit an 
institution from offering additional counseling to a student with 
respect to Federal Pell Grants, but such counseling shall not delay or 
impede disbursement of a Federal Pell Grant award to the student.''.
    (c) Effective Date.--The amendments made by subsections (a) and (b) 
shall apply with respect to award years beginning on or after July 1, 
2017.