I 

114TH CONGRESS 

2D SESSION H. R. 4385 

To amend the Higher Education Act to improve higher education programs, 

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 13, 2016 

Mr. GRAYSON introduced the following bill; which was referred to the 

Committee on Education and the Workforce 

A BILL 

To amend the Higher Education Act to improve higher 

education programs, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘College for All Act’’. 


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1 TITLE I—FEDERAL-STATE PART2 NERSHIP TO ELIMINATE TUI3 TION 

4 SEC. 101. GRANT PROGRAM TO ELIMINATE TUITION AND 

5 REQUIRED FEES AT PUBLIC INSTITUTIONS 

6 OF HIGHER EDUCATION. 

7 (a) PROGRAM AUTHORIZED.— 

8 (1) GRANTS AUTHORIZED.—From amounts ap9 propriated under subsection (f), the Secretary of 

10 Education (referred to in this section as the ‘‘Sec11 retary’’) shall award grants, from allotments under 

12 subsection (b), to States having applications ap13 proved under subsection (d), to enable the States to 

14 eliminate tuition and required fees at public institu15 tions of higher education. 

16 (2) MATCHING FUNDS REQUIREMENT.—Each 

17 State that receives a grant under this section shall 

18 provide matching funds for a fiscal year in an 

19 amount that is equal to one half the amount received 

20 under this section for the fiscal year toward the cost 

21 of reducing the cost of attendance at public institu22 tions of higher education in the State. 

23 (b) DETERMINATION OF ALLOTMENT.— 

24 (1) INITIAL ALLOTMENT.—For fiscal year 

25 2017, the Secretary shall allot to each eligible State 


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1 that submits an application under this section an 

2 amount that is equal to 67 percent of the total rev3 enue received by the State’s public system of higher 

4 education in the form of tuition and related fees for 

5 fiscal year 2017. For each of fiscal years 2018 

6 through 2020, the Secretary shall allot to each eligi7 ble State that submits an application under this sec8 tion— 

9 (A) an amount equal to the allotment the 

10 State received for fiscal year 2017, plus 

11 (B) if the State provides additional funds 

12 toward the cost of reducing the cost of attend13 ance at public institutions of higher education 

14 in the State for any of such fiscal years that is 

15 more than the matching funds requirement 

16 under subsection (a)(2), an amount equal to 

17 such additional funding provided by the State, 

18 which amount provided by the Secretary may be 

19 used for the activities described in subsection 

20 (e)(2). 

21 (2) SUBSEQUENT ALLOTMENTS.—Beginning in 

22 fiscal year 2021, the Secretary shall determine the 

23 median allotment per full-time equivalent student 

24 made to all eligible States under this section for fis25 cal year 2020 and incrementally reduce allotments 


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1 made to States under this section such that by fiscal 

2 year 2026, no State receives an allotment under this 

3 section per full-time equivalent student that exceeds 

4 the median allotment per full-time equivalent stu5 dent made under this section for fiscal year 2020. 

6 (c) STATE ELIGIBILITY REQUIREMENTS.—In order 

7 to be eligible to receive an allotment under this section 

8 for a fiscal year, a State shall— 

9 (1) ensure that public institutions of higher 

10 education in the State maintain per-pupil expendi11 tures on instruction at levels that meet or exceed the 

12 expenditures for the previous fiscal year; 

13 (2) ensure that tuition and required fees for in14 State undergraduate students in the State’s public 

15 higher education system are eliminated; 

16 (3) maintain State operating expenditures for 

17 public institutions of higher education, excluding the 

18 amount of funds provided for a fiscal year under 

19 this section, at a level that meets or exceeds the level 

20 of such support for fiscal year 2016; 

21 (4) maintain State expenditures on need-based 

22 financial aid programs for enrollment in public insti23 tutions of higher education in the State at a level 

24 that meets or exceeds the level of such support for 

25 fiscal year 2016; 


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1 (5) ensure public institutions of higher edu2 cation in the State maintain funding for institutional 

3 need-based student financial aid in an amount that 

4 is equal to or exceeds the level of such funding for 

5 the previous fiscal year; 

6 (6) provide an assurance that not later than 5 

7 years after the date of enactment of this Act, not 

8 less than 75 percent of instruction at public institu9 tions of higher education in the State is provided by 

10 tenured or tenure-track faculty; 

11 (7) require that public institutions of higher 

12 education in the State provide, for each student en13 rolled at the institution who receives for the max14 imum Federal Pell Grant award under subpart 1 of 

15 part A of title IV of the Higher Education Act of 

16 1965 (20 U.S.C. 1070a et seq.), institutional stu17 dent financial aid in an amount equal to 100 percent 

18 of the difference between— 

19 (A) the cost of attendance at such institu20 tion (as determined in accordance with section 

21 472 of the Higher Education Act of 1965 (20 

22 U.S.C. 1087ll)), and 

23 (B) the sum of— 

24 (i) the amount of the maximum Fed25 eral Pell Grant award; and 


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1 (ii) the student’s expected family con2 tribution; and 

3 (8) ensure that public institutions of higher 

4 education in the State not adopt policies to reduce 

5 enrollment. 

6 (d) SUBMISSION AND CONTENTS OF APPLICATION.— 

7 For each fiscal year for which a State desires a grant 

8 under this section, the State agency with jurisdiction over 

9 higher education, or another agency designated by the 

10 Governor or chief executive of the State to administer the 

11 program under this section, shall submit an application 

12 to the Secretary at such time, in such manner, and con13 taining such information as the Secretary may require. 

14 (e) USE OF FUNDS.— 

15 (1) IN GENERAL.—A State that receives a 

16 grant under this section shall use the grant funds 

17 and the matching funds required under this section 

18 to eliminate tuition and required fees for students at 

19 public institutions of higher education in the State. 

20 (2) ADDITIONAL FUNDING.—Once tuition and 

21 required fees have been eliminated pursuant to para22 graph (1), a State that receives a grant under this 

23 section shall use any remaining grant funds and 

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1 crease the quality of instruction and student support 

2 services by carrying out the following: 

3 (A) Expanding academic course offerings 

4 to students. 

5 (B) Increasing the number and percentage 

6 of full-time instructional faculty. 

7 (C) Providing all faculty with professional 

8 supports to help students succeed, such as pro9 fessional development opportunities, office 

10 space, and shared governance in the institution. 

11 (D) Compensating part-time faculty for 

12 work done outside of the classroom relating to 

13 instruction, such as holding office hours. 

14 (E) Strengthening and ensuring all stu15 dents have access to student support services 

16 such as academic advising, counseling, and tu17 toring. 

18 (F) Any other additional activities that im19 prove instructional quality and academic out20 comes for students as approved by the Sec21 retary through a peer review process. 

22 (3) PROHIBITION.—A State that receives a 

23 grant under this section may not use grant funds or 

24 matching funds required under this section— 


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1 (A) for the construction of nonacademic fa2 cilities, such as student centers or stadiums; 

3 (B) for merit-based student financial aid; 

4 or 

5 (C) to pay the salaries or benefits of school 

6 administrators. 

7 (f) AUTHORIZATION AND APPROPRIATION.—There 

8 are authorized to be appropriated to carry out this section 

9 $47,000,000,000 for fiscal year 2017, and such sums as 

10 may be necessary for each of the fiscal years 2018 through 

11 2026. 

12 TITLE II—STUDENT LOANS 

13 SEC. 201. RESTORATION OF CERTAIN INTEREST RATE PRO14 VISIONS. 

15 Section 455(b) of the Higher Education Act of 1965 

16 (20 U.S.C. 1087e(b)) is amended— 

17 (1) in paragraph (8)— 

18 (A) in the heading, by striking ‘‘ON OR

19 AFTER JULY 1, 2013’’ and inserting ‘‘ON OR

20 AFTER JULY 1, 2013, AND BEFORE JULY 1, 

21 2016’’; and 

22 (B) by striking ‘‘on or after July 1, 2013’’ 

23 and inserting ‘‘on or after July 1, 2013, and 

24 before July 1, 2016’’ each place the term ap25 pears; 


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1 (2) by redesignating paragraphs (9) and (10) 

2 as paragraphs (10) and (11), respectively; and 

3 (3) by inserting the following after paragraph 

4 (8): 

5 ‘‘(9) INTEREST RATE PROVISIONS FOR NEW

6 LOANS ON OR AFTER JULY 1, 2016.— 

7 ‘‘(A) RATES FOR FDSL AND FDUSL.—Not8 withstanding the preceding paragraphs of this 

9 subsection, for Federal Direct Stafford Loans 

10 and Federal Direct Unsubsidized Stafford 

11 Loans for which the first disbursement is made 

12 on or after July 1, 2016, the applicable rate of 

13 interest shall, during any 12-month period be14 ginning on July 1 and ending on June 30, be 

15 determined on the preceding June 1 and be 

16 equal to— 

17 ‘‘(i) the bond equivalent rate of 91- 

18 day Treasury bills auctioned at the final 

19 auction held prior to such June 1; plus 

20 ‘‘(ii) 2.3 percent, 

21 except that such rate shall not exceed 8.25 per22 cent. 

23 ‘‘(B) IN SCHOOL AND GRACE PERIOD

24 RULES.—Notwithstanding the preceding para25 graphs of this subsection, with respect to any 


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1 Federal Direct Stafford Loan or Federal Direct 

2 Unsubsidized Stafford Loan for which the first 

3 disbursement is made on or after July 1, 2016, 

4 the applicable rate of interest for interest which 

5 accrues— 

6 ‘‘(i) prior to the beginning of the re7 payment period of the loan; or 

8 ‘‘(ii) during the period in which prin9 cipal need not be paid (whether or not 

10 such principal is in fact paid) by reason of 

11 a provision described in subsection (f), 

12 shall be determined under subparagraph (A) by 

13 substituting ‘1.7 percent’ for ‘2.3 percent’. 

14 ‘‘(C) PLUS LOANS.—Notwithstanding the 

15 preceding paragraphs of this subsection, with 

16 respect to Federal Direct PLUS Loan for which 

17 the first disbursement is made on or after July 

18 1, 2016, the applicable rate of interest shall be 

19 determined under subparagraph (A)— 

20 ‘‘(i) by substituting ‘3.1 percent’ for 

21 ‘2.3 percent’; and 

22 ‘‘(ii) by substituting ‘9.0 percent’ for 

23 ‘8.25 percent’. 

24 ‘‘(D) CONSOLIDATION LOANS.—Notwith25 standing the preceding paragraphs of this subVerDate Sep 11 2014 23:35 Jan 13, 2016 Jkt 059200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H4385.IH H4385

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1 section, any Federal Direct Consolidation loan 

2 for which the application is received on or after 

3 July 1, 2016, shall bear interest at an annual 

4 rate on the unpaid principal balance of the loan 

5 that is equal to the lesser of— 

6 ‘‘(i) the weighted average of the inter7 est rates on the loans consolidated, rounded to the nearest higher 1 8 ⁄8 of 1 percent; 

9 or 

10 ‘‘(ii) 8.25 percent.’’. 

11 SEC. 202. BORROWER MODIFICATION OF INTEREST RATES 

12 UNDER TITLE IV. 

13 Section 455(b) of the Higher Education Act of 1965 

14 (20 U.S.C. 1087e(b)), as amended by section 201, is fur15 ther amended by adding at the end the following: 

16 ‘‘(12) BORROWER MODIFICATION OF INTEREST

17 RATE.— 

18 ‘‘(A) MODIFICATION.—Notwithstanding 

19 any other provision of law, the borrower of a 

20 Federal Stafford Loan under section 428, a 

21 Federal Direct Stafford Loan, a Federal Un22 subsidized Stafford Loan under section 428H, a 

23 Federal Direct Unsubsidized Stafford Loan, a 

24 Federal PLUS Loan under section 428B, a 

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1 dation Loan under section 428C, or a Federal 

2 Direct Consolidation Loan may elect to modify 

3 the interest rate of the loan to be equal to— 

4 ‘‘(i) in the case of a Federal Direct 

5 Stafford Loan, a Federal Direct Unsub6 sidized Stafford Loan, a Federal Direct 

7 PLUS Loan, or a Federal Direct Consoli8 dation Loan, the interest rate that would 

9 be applicable to such loan if such loan were 

10 first disbursed (or in the case of a Federal 

11 Direct Consolidation Loan, first applied 

12 for) on the date on which such borrower 

13 elects to modify the interest rate of such 

14 loan; and 

15 ‘‘(ii) in the case of a Federal Stafford 

16 Loan, a Federal Unsubsidized Stafford 

17 Loan, a Federal PLUS Loan, or a Federal 

18 Consolidation Loan, the weighted average 

19 of the interest rates applicable to loans 

20 under part B on the date the loan was first 

21 disbursed (or in the case of a Federal Con22 solidation Loan, first applied for). 

23 ‘‘(B) FIXED RATE.—Except as provided in 

24 subparagraph (C), an interest rate elected 


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1 under subparagraph (A) for a loan shall be 

2 fixed for the life of the loan. 

3 ‘‘(C) CONTINUING AUTHORITY TO MOD4 IFY.—A borrower may elect to modify the inter5 est rate of a loan in accordance with subpara6 graph (A) at any time during the life of the 

7 loan.’’. 

8 TITLE III—FEDERAL WORK9 STUDY PROGRAMS 

10 SEC. 301. AUTHORIZATION OF APPROPRIATIONS. 

11 Section 441(b) of the Higher Education Act of 1965 

12 (42 U.S.C. 2751(b)) is amended to read as follows: 

13 ‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—There 

14 are authorized to be appropriated to carry out this part— 

15 ‘‘(1) $975,000,000 for fiscal year 2017; 

16 ‘‘(2) $1,500,000,000 for fiscal year 2018; 

17 ‘‘(3) $2,000,000,000 for fiscal year 2019; 

18 ‘‘(4) $2,500,000,000 for fiscal year 2020; and 

19 ‘‘(5) $3,000,000,000 for fiscal year 2021.’’. 

20 SEC. 302. FEDERAL WORK-STUDY ALLOCATION OF FUNDS. 

21 Section 442 of the Higher Education Act of 1965 (42 

22 U.S.C. 2752) is amended— 

23 (1) by striking subsection (a) and inserting the 

24 following: 


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1 ‘‘(a) REVISION TO THE FEDERAL WORK STUDY AL2 LOCATION.—The Secretary shall allocate funds under this 

3 section solely on the basis of the self-help need determina4 tion described under subsection (c).’’; 

5 (2) in subsection (c)— 

6 (A) in paragraph (2), by striking ‘‘To de7 termine the self-help need of an institution’s eli8 gible undergraduate students,’’ and inserting 

9 ‘‘Until such time as the Secretary establishes a 

10 revised method to determine the self-help need 

11 of an institution’s eligible undergraduate stu12 dents, in accordance with paragraph (5),’’; 

13 (B) in paragraph (3), by striking ‘‘To de14 termine the self-help need of an institution’s eli15 gible graduate and professional students,’’ and 

16 inserting ‘‘Until such time as the Secretary es17 tablishes a revised method to determine the 

18 self-help need of an institution’s eligible grad19 uate and professional students, in accordance 

20 with paragraph (5),’’; and 

21 (C) by adding at the end the following: 

22 ‘‘(5) Not later than 1 year after the date of en23 actment of the College for All Act, the Secretary 

24 shall establish revised methods for determining the 

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1 graduate students, as described in paragraph (2), 

2 and eligible graduate and professional students, as 

3 described in paragraph (3), that shall take into ac4 count the number of Federal Pell Grant eligible low5 and moderate-income students that an eligible insti6 tution serves and provide considerations for eligible 

7 institutions that successfully demonstrate improved 

8 employment outcomes. The Secretary shall promul9 gate any regulations necessary to carry out the re10 vised methods of determining an eligible institution’s 

11 self-help need under this subsection.’’; and 

12 (3) by adding at the end the following: 

13 ‘‘(f) FUNDS TO EXPAND JOB LOCATION DEVELOP14 MENT PROGRAMS.—Notwithstanding any other provision 

15 of this part, to promote career readiness and improve the 

16 employment skills of Federal Pell Grant-eligible students, 

17 the Secretary is authorized to enter into agreements with 

18 eligible institutions under which such institution may not 

19 use more than 20 percent or $150,000 of its allotment 

20 under this section, whichever amount is less, to expand 

21 job location development programs, which can be coordi22 nated with State and local workforce development 

23 boards.’’. 


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1 TITLE IV—OFFERING NEC2 ESSARY ELIGIBILITY FOR 

3 TIMELY INSTITUTIONAL MA4 TRICULATION AND ENROLL5 MENT 

6 SEC. 401. FAFSA PILOT PROGRAM. 

7 Part G of title IV of the Higher Education Act of 

8 1965 (20 U.S.C. 1088 et seq.) is amended by inserting 

9 after section 483 the following: 

10 ‘‘SEC. 483A. FAFSA PILOT PROGRAM. 

11 ‘‘(a) PURPOSES.—The purposes of this section are— 

12 ‘‘(1) to streamline the annual process by which 

13 students apply for Federal financial assistance; 

14 ‘‘(2) to reduce the need for students to reapply 

15 for such assistance each year; 

16 ‘‘(3) to lower the cost of student borrowing by 

17 maintaining important student loan protections, 

18 such as the in-school interest subsidy; 

19 ‘‘(4) to strengthen the middle class and reduce 

20 income inequality by targeting financial aid to low21 and middle-income students; and 

22 ‘‘(5) to ensure that the financial aid application 

23 uses income data from prior tax years readily avail24 able to students and families to facilitate the wide25 spread and increased use of automated processes, 


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1 such as at the IRS–Data Retrieval Tool (IRS– 

2 DRT), with the goal of reducing errors and easing 

3 the time and rigor of the application process. 

4 ‘‘(b) PILOT PROGRAM AUTHORIZED.—The Secretary 

5 is authorized to establish a pilot program and select 5 eli6 gible States— 

7 ‘‘(1) in which a student who attends an institu8 tion of higher education in the eligible State may 

9 submit a single Free Application for Federal Stu10 dent Aid, as described in section 483 and modified 

11 under subsection (d) (referred to in this section as 

12 the ‘FAFSA’), to be used as the application to de13 termine the need and eligibility of the student for fi14 nancial assistance under this title during the official 

15 length of the student’s proposed postsecondary de16 gree program; and 

17 ‘‘(2) that shall each receive a grant in accord18 ance with subsection (e). 

19 ‘‘(c) ELIGIBLE STATES.—The Secretary shall select 

20 5 eligible States that are determined by the Secretary to 

21 have a strong record of increasing college access and af22 fordability, especially for low-income students, to partici23 pate in the pilot program described in subsection (b). The 

24 selection of eligible States shall be based on the extent 

25 to which the State has— 


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1 ‘‘(1) invested, and continues to invest, signifi2 cantly in public higher education, resulting in a com3 paratively lower net price for low-income students; 

4 ‘‘(2) allocated State financial aid primarily on 

5 the basis of need; and 

6 ‘‘(3) agreed, as a condition of the State’s appli7 cation for the pilot program under this section, to 

8 provide all in-State students (as determined by the 

9 State) with an offer for State financial aid that— 

10 ‘‘(A) is valid for not less than 2 years and 

11 not more than 4 years, as determined by the 

12 State; and 

13 ‘‘(B) shall be subject to change only upon 

14 certain conditions, such as significant changes 

15 in a student’s financial circumstances. 

16 ‘‘(d) SINGLE FAFSA SUBMISSION.—The Secretary 

17 shall implement, in consultation with the 5 selected eligible 

18 States, a pilot program to streamline the process of appli19 cation to determine the need and eligibility of a student 

20 for financial assistance under this title that incorporates 

21 the following: 

22 ‘‘(1) An option for students that are enrolled in 

23 an institution of higher education in a selected eligi24 ble State to submit a single FAFSA at the begin25 ning of the student’s postsecondary degree program 


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1 and receive a determination of financial assistance 

2 under this title that shall, on a contingent basis, be 

3 valid for not less than 2 years and not more than 

4 4 years, as determined by the State. 

5 ‘‘(2) The determination of financial assistance 

6 under paragraph (1) shall be made in accordance 

7 with part F, except that relevant calculations shall 

8 be made using a multi-year average, of 2 or 3 years, 

9 from the most recent tax years for which data are 

10 available. A student may use previously submitted 

11 student and parent taxpayer data to prepopulate the 

12 electronic version of the FAFSA, as described in sec13 tion 483(f). 

14 ‘‘(3) As a condition of the continued receipt of 

15 financial assistance under this section, the Secretary 

16 may require a student who submits the single 

17 FAFSA to respond to a short number of questions 

18 (which may be determined by the Secretary), on an 

19 annual basis, to determine if there is a change in the 

20 financial status of the student (such as whether the 

21 student or the student’s parent has experienced a 

22 substantial increase in annual income) in order to 

23 ensure that the student continues to receive the ap24 propriate amount of financial assistance under this 

25 title. 


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1 ‘‘(4) Notwithstanding paragraph (1), a require2 ment that students who experience significant 

3 changes in their financial circumstances, as deter4 mined by the Secretary, will be required to resubmit 

5 the FAFSA in order to receive a new determination 

6 of financial assistance under this title. 

7 ‘‘(5) An income verification process— 

8 ‘‘(A) which the Secretary, through the es9 tablishment of a memorandum of under10 standing with the Secretary of the Treasury, 

11 will develop to share the income tax data of a 

12 random sample of students who have received 

13 Federal assistance under this title, including 

14 Federal Pell Grants under section 401 and 

15 loans made under part D; 

16 ‘‘(B) to ensure that students who have not 

17 resubmitted a FAFSA in accordance with para18 graph (3) did not have a significant change in 

19 financial circumstances that would have re20 quired them to do so; 

21 ‘‘(C) that shall be carried out in a way so 

22 as to ensure that no personally identifiable in23 formation is made public through the income 

24 verification process; and 


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1 ‘‘(D) that will be carried out only with the 

2 consent of students, whose consent will be re3 quested as part of the annual response required 

4 under paragraph (3). 

5 ‘‘(6) An option for students to request profes6 sional judgment or resubmit their FAFSA each 

7 year, to receive a new determination of eligibility for 

8 financial assistance under this title. 

9 ‘‘(e) GRANT AMOUNT.—Each eligible State selected 

10 under this section shall receive a grant to increase public 

11 awareness of, and promote the use of, the single FAFSA 

12 that may be submitted under the pilot program to be used 

13 as the application to determine the need and eligibility of 

14 the student for financial assistance under this title during 

15 the official length of the student’s proposed postsecondary 

16 degree program. 

17 ‘‘(f) SUPPLEMENT NOT SUPPLANT.—Grants pro18 vided under this section shall be used to supplement, and 

19 not supplant, State funds that are used to improve college 

20 access and affordability. 

21 ‘‘(g) EVALUATION.—Not later than 3 years after the 

22 date of enactment of the College for All Act, and 5 years 

23 thereafter, the Secretary shall prepare and submit to the 

24 authorizing committees a report that contains an evalua25 tion of the effectiveness of the pilot program under this 


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1 section in improving college access, increasing FAFSA 

2 submission rates, and increasing postsecondary education 

3 credit and course accumulation.’’. 

4 SEC. 402. PRIOR, PRIOR YEAR. 

5 Section 480(a)(1) of the Higher Education Act of 

6 1965 (20 U.S.C. 1087vv(a)(1)) is amended by striking 

7 subparagraph (B) and inserting the following: 

8 ‘‘(B) Notwithstanding section 478(a) and beginning 

9 not later than 180 days after the date of enactment of 

10 the College for All Act, the Secretary shall provide for the 

11 use of data from the second preceding tax year when and 

12 to the extent necessary to carry out the simplification of 

13 applications (including simplification for a subset of appli14 cations) used for the estimation and determination of fi15 nancial aid eligibility. Such simplification shall include the 

16 sharing of data between the Internal Revenue Service and 

17 the Department, pursuant to the consent of the tax18 payer.’’. 

Æ 


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