SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Creating Higher Education 
Affordability Necessary to Compete Economically Act'' or the ``Middle 
Class CHANCE Act''.

SEC. 2. INCREASE IN THE MAXIMUM AMOUNT OF A FEDERAL PELL GRANT.

    Section 401(b)(7)(C) of the Higher Education Act of 1965 (20 U.S.C. 
1070a(b)(7)(C)) is amended--
            (1) in clause (i)(I), by striking ``clause (iv)(II)'' and 
        inserting ``clause (v)(II)'';
            (2) in clause (ii)--
                    (A) in the heading, by striking ``through 2017-
                2018'' and inserting ``and 2015-2016'';
                    (B) in the matter preceding subclause (I), by 
                striking ``through 2017-2018'' and inserting ``and 
                2015-2016''; and
                    (C) in subclause (I), by striking ``clause 
                (iv)(II)'' and inserting ``clause (v)(II)'';
            (3) by redesignating clauses (iii) and (iv) as clauses (iv) 
        and (v), respectively;
            (4) by inserting after clause (ii) the following:
                            ``(iii) Award year 2016-2017.--For award 
                        year 2016-2017, the amount determined under 
                        this subparagraph for purposes of subparagraph 
                        (B)(iii) shall be equal to--
                                    ``(I) $9,140, reduced by
                                    ``(II) the maximum Federal Pell 
                                Grant for which a student was eligible, 
                                as specified in the last enacted 
                                appropriation Act applicable to award 
                                year 2016-2017; and
                                    ``(III) rounded to the nearest 
                                $5.''; and
            (5) by striking clause (iv), as redesignated by paragraph 
        (3), and inserting the following:
                            ``(iv) Subsequent award years.--For award 
                        year 2017-2018 and each subsequent award year, 
                        the amount determined under this subparagraph 
                        for purposes of subparagraph (B)(iii) shall be 
                        equal to--
                                    ``(I) the amount determined under 
                                this subparagraph for the preceding 
                                award year; increased by
                                    ``(II) a percentage equal to the 
                                annual adjustment percentage for the 
                                award year for which the amount under 
                                this subparagraph is being determined; 
                                and
                                    ``(III) rounded to the nearest 
                                $5.''.

SEC. 3. YEAR-ROUND FEDERAL PELL GRANT STUDENTS.

    (a) In General.--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) In this paragraph, the term `eligible student' means a 
student who--
            ``(i) has received a Federal Pell Grant for an award year 
        and is enrolled in an eligible program for 1 or more additional 
        payment periods during the same award year that are not 
        otherwise fully covered by the student's Federal Pell Grant;
            ``(ii) continues to meets all eligibility requirements to 
        receive a Federal Pell Grant under this section; and
            ``(iii) attends an institution of higher education on 
        average, not less than a half-time basis.
    ``(B) Notwithstanding any other provision of this subsection, the 
Secretary shall award an additional Federal Pell Grant to an eligible 
student for the additional payment periods during an award year that 
are not otherwise fully covered by the student's Federal Pell Grant for 
the award year.
    ``(C) In the case of a student receiving more than one Federal Pell 
Grant in a single award year under subparagraph (B), 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 total maximum 
Federal Pell Grant for such award year calculated in accordance with 
paragraph (7)(C)(v)(II).
    ``(D) Any period of study covered by a Federal Pell Grant awarded 
under subparagraph (B) shall be included in determining a student's 
duration limit under subsection (c)(5).
    ``(9) In any case where an eligible student is receiving a Federal 
Pell Grant for a payment period that spans 2 award years, 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 
assigned.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on July 1, 2015.

SEC. 4. PELL GRANT DURATION LIMIT.

    Section 401(c)(5) of the Higher Education Act of 1965 (20 U.S.C. 
1070a(c)(5)) is amended by striking ``12 semesters'' and inserting ``15 
semesters'' each place the term appears.
Creating Higher Education Affordability Necessary to Compete Economically Act or the Middle Class CHANCE Act   This bill amends title IV (Student Assistance) of the Higher Education Act of 1965 to modify provisions related to the Federal Pell Grant program.  Specifically, it increases the maximum Federal Pell Grant award for academic year 2016-2017 and adjusts it in subsequent award years to account for changes in the Consumer Price Index.  The bill also increases from one to two the number of Pell Grants an eligible student may receive in a single award year (i.e., it restores year-round Pell Grants). An eligible student is a student who has already received one Pell Grant for an award year and is enrolled in an eligible program for an additional payment period (e.g., a summer term) during the same award year. A student's total amount of Pell Grants must not exceed 150% of the maximum Pell Grant for that award year. Also, any period during which a student receives an additional Pell Grant counts toward that student's lifetime Pell Grant eligibility period.  The bill increases from 12 to 15 semesters a student's lifetime Federal Pell Grant eligibility period. 
Middle Class CHANCE Act