SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Simplifying the Application for 
Student Aid Act''.

SEC. 2. USING DATA FROM SECOND PRECEDING YEAR.

    Section 480(a)(1)(B) of the Higher Education Act of 1965 (20 U.S.C. 
1087vv(a)(1)(B)) is amended by striking ``may'' in both places it 
appears and inserting ``shall''.

SEC. 3. CALCULATION OF ANNUAL ADJUSTMENT PERCENTAGE FOR FEDERAL PELL 
              GRANTS.

    Section 401(b)(7)(C)(iv)(I) of the Higher Education Act of 1965 (20 
U.S.C. 1070a(b)(7)(C)(iv)(I)) is amended by striking ``calendar year'' 
and inserting ``fiscal year''.

SEC. 4. FAFSA SIMPLIFICATION.

    (a) FAFSA Simplification.--Section 483 of the Higher Education Act 
of 1965 (20 U.S.C. 1090) is amended--
            (1) in subsection (a)(3), by adding at the end the 
        following:
                    ``(I) Format.--Not later than 180 days after the 
                date of the enactment of the Simplifying the 
                Application for Student Aid Act, the Secretary shall 
                make the electronic version of the forms under this 
                paragraph available through a technology tool that can 
                be used on mobile devices. Such technology tool shall, 
                at minimum, enable applicants to--
                            ``(i) save data; and
                            ``(ii) submit their FAFSA to the Secretary 
                        through such tool.
                    ``(J) Consumer testing.--In developing and 
                maintaining the electronic version of the forms under 
                this paragraph and the technology tool for mobile 
                devices under subparagraph (I), the Secretary shall 
                conduct consumer testing with appropriate persons to 
                ensure the forms and technology tool are designed to be 
                easily usable and understandable by students and 
                families. Such consumer testing shall include--
                            ``(i) current and prospective college 
                        students, family members of such students, and 
                        other individuals with expertise in student 
                        financial assistance application processes;
                            ``(ii) dependent students and independent 
                        students meeting the requirements under 
                        subsection (b) or (c) of section 479; and
                            ``(iii) dependent students and independent 
                        students who do not meet the requirements under 
                        subsection (b) or (c) of section 479.''; and
            (2) by amending subsection (f) to read as follows:
    ``(f) Use of Internal Revenue Service Data Retrieval Tool To 
Populate FAFSA.--
            ``(1) Simplification efforts.--The Secretary shall--
                    ``(A) make every effort to allow applicants to 
                utilize the current data retrieval tool to transfer 
                data available from the Internal Revenue Service to 
                reduce the amount of original data entry by applicants 
                and strengthen the reliability of data used to 
                calculate expected family contributions, including 
                through the use of technology to--
                            ``(i) allow an applicant to automatically 
                        populate the electronic version of the forms 
                        under this paragraph with data available from 
                        the Internal Revenue Service; and
                            ``(ii) direct an applicant to appropriate 
                        questions on such forms based on the 
                        applicant's answers to previous questions; and
                    ``(B) allow single taxpayers, married taxpayers 
                filing jointly, and married taxpayers filing separately 
                to utilize the current data retrieval tool to its full 
                capacity.
            ``(2) Use of tax return in application process.--The 
        Secretary shall continue to examine whether data provided by 
        the Internal Revenue Service can be used to generate an 
        expected family contribution without additional action on the 
        part of the student and taxpayer.
            ``(3) Reports on fafsa simplification efforts.--Not less 
        than once every other year, the Secretary shall report to the 
        authorizing committees on the progress of the simplification 
        efforts under this subsection.
            ``(4) Reports on fafsa access.--Not less than once every 10 
        years, the Secretary shall report to the authorizing committees 
        on the needs of limited English proficient students using the 
        FAFSA.''.
    (b) Funding.--
            (1) Use of existing funds.--Of the amount authorized to be 
        appropriated to the Department of Education to maintain the 
        Free Application for Federal Student Aid, $3,000,000 shall be 
        available to carry out this Act and the amendments made by this 
        Act.
            (2) No additional funds authorized.--No funds are 
        authorized by this Act to be appropriated to carry out this Act 
        or the amendments made by this Act.

            Passed the House of Representatives July 11, 2016.

            Attest:

                                                 KAREN L. HAAS,

                                                                 Clerk.
Simplifying the Application for Student Aid Act (Sec. 2) This bill amends title IV (Student Assistance) of the Higher Education Act of 1965 to require the Department of Education (ED) to use tax information from the second preceding tax year (the "prior, prior year") to determine a student's financial aid eligibility. It requires data sharing between ED and the Internal Revenue Service (IRS), pursuant to taxpayer consent. (Sec. 3) The bill revises the annual adjustment percentage calculation used to determine the total maximum Federal Pell Grant award by measuring inflation over the most recent fiscal year instead of calendar year. (Sec. 4) ED must develop and maintain a consumer-tested technology tool to allow a federal financial aid applicant to complete, save, and submit electronic forms (e.g., the Free Application for Federal Student Aid) using a mobile device.  Additionally, ED must make every effort to allow applicants to utilize the existing IRS data tool to automatically populate the electronic forms with tax return information. ED must report to Congress on: (1) efforts to simplify the federal financial aid application process, and (2) the needs of limited English proficient students. 
Simplifying the Application for Student Aid Act