II 

109TH CONGRESS 

1ST SESSION S. 1030 

To amend the Higher Education Act of 1965 to simplify and improve the 

process of applying for student assistance, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MAY 12, 2005 

Mr. REED (for himself, Ms. COLLINS, Mr. KENNEDY, and Mrs. MURRAY) introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions 

A BILL 

To amend the Higher Education Act of 1965 to simplify 

and improve the process of applying for student assistance, 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 ‘‘Financial Aid Form 

5 Simplification and Access Act’’. 
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1 SEC. 2. SIMPLIFIED NEEDS TEST AND AUTOMATIC ZERO IM2 PROVEMENTS. 

3 (a) SIMPLIFIED NEEDS TEST.—Section 479 of the 

4 Higher Education Act of 1965 (20 U.S.C. 1087ss) is 

5 amended— 

6 (1) in subsection (b)— 

7 (A) in paragraph (1)— 

8 (i) by striking subparagraph (A)(i) 

9 and inserting the following: 

10 ‘‘(i) the student’s parents— 

11 ‘‘(I) file, or are eligible to file, a 

12 form described in paragraph (3); 

13 ‘‘(II) certify that they are not re14 quired to file an income tax return; 

15 ‘‘(III) 1 of whom is a dislocated 

16 worker; or 

17 ‘‘(IV) or the student received 

18 benefits at some time during the pre19 vious 24-month period under a means20 tested Federal benefit program as de21 fined under subsection (d); and’’; and 

22 (ii) by striking subparagraph (B)(i) 

23 and inserting the following: 

24 ‘‘(i) the student (and the student’s 

25 spouse, if any)— 
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1 ‘‘(I) files, or is eligible to file, a 

2 form described in paragraph (3); 

3 ‘‘(II) certifies that the student 

4 (and the student’s spouse, if any) is 

5 not required to file an income tax re6 turn; 

7 ‘‘(III) is a dislocated worker; or 

8 ‘‘(IV) received benefits at some 

9 time during the previous 24-month 

10 period under a means-tested Federal 

11 benefit program as defined under sub12 section (d); and’’; and 

13 (B) in paragraph (3), by striking ‘‘A stu14 dent or family files a form described in this 

15 subsection, or subsection (c), as the case may 

16 be, if the student or family, respectively, files’’ 

17 and inserting ‘‘In the case of an independent 

18 student, the student, or in the case of a depend19 ent student, the family, files a form described 

20 in this subsection, or subsection (c), as the case 

21 may be, if the student or family, as appropriate, 

22 files’’; 

23 (2) in subsection (c)— 

24 (A) in paragraph (1)— 
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1 (i) by striking subparagraph (A) and 

2 inserting the following: 

3 ‘‘(A) the student’s parents— 

4 ‘‘(i) file, or are eligible to file, a form 

5 described in subsection (b)(3); 

6 ‘‘(ii) certify that they are not required 

7 to file an income tax return; 

8 ‘‘(iii) 1 of whom is a dislocated work9 er; or 

10 ‘‘(iv) or the student received benefits 

11 at some time during the previous 24-month 

12 period under a means-tested Federal ben13 efit program as defined under subsection 

14 (d); and’’; and 

15 (ii) by striking subparagraph (B) and 

16 inserting the following: 

17 ‘‘(B) the sum of the adjusted gross income 

18 of the parents is less than or equal to $25,000; 

19 or’’; 

20 (B) in paragraph (2)— 

21 (i) by striking subparagraph (A) and 

22 inserting the following: 

23 ‘‘(A) the student (and the student’s 

24 spouse, if any)— 
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1 ‘‘(i) files, or is eligible to file, a form 

2 described in subsection (b)(3); 

3 ‘‘(ii) certifies that the student (and 

4 the student’s spouse, if any) is not re5 quired to file an income tax return; 

6 ‘‘(iii) is a dislocated worker; or 

7 ‘‘(iv) received benefits at some time 

8 during the previous 24-month period under 

9 a means-tested Federal benefit program as 

10 defined under subsection (d); and’’; and 

11 (ii) by striking subparagraph (B) and 

12 inserting the following: 

13 ‘‘(B) the sum of the adjusted gross income 

14 of the student and spouse (if appropriate) is 

15 less than or equal to $25,000.’’; and 

16 (C) by striking the flush matter at the end 

17 and inserting the following: 

18 ‘‘The Secretary shall annually adjust the income level nec19 essary to qualify an applicant for the zero expected family 

20 contribution. The income level shall be adjusted according 

21 to increases in the Consumer Price Index, as defined in 

22 section 478(f).’’; and 

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

24 ‘‘(d) DEFINITIONS.—In this section: 
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1 ‘‘(1) DISLOCATED WORKER.—The term ‘dis2 located worker’ has the same meaning given the 

3 term in section 101 of the Workforce Investment 

4 Act of 1998 (29 U.S.C. 2801). 

5 ‘‘(2) MEANS-TESTED FEDERAL BENEFIT PRO6 GRAM.—The term ‘means-tested Federal benefit pro7 gram’ means a mandatory spending program of the 

8 Federal Government in which eligibility for the pro9 gram’s benefits, or the amount of such benefits, or 

10 both, are determined on the basis of income or re11 sources of the individual or family seeking the ben12 efit, and includes the supplemental security income 

13 program under title XVI of the Social Security Act 

14 (42 U.S.C. 1381 et seq.), the food stamp program 

15 under the Food Stamp Act of 1977 (7 U.S.C. 2011 

16 et seq.), and the free and reduced price school lunch 

17 program established under the Richard B. Russell 

18 National School Lunch Act (42 U.S.C. 1751 et 

19 seq.).’’. 

20 (b) DISCRETION OF STUDENT FINANCIAL AID AD21 MINISTRATORS.—Section 479A(a) of the Higher Edu22 cation Act of 1965 (20 U.S.C. 1087tt(a)) is amended in 

23 the third sentence by inserting ‘‘a family member who is 

24 a dislocated worker (as defined in section 101 of the 
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1 Workforce Investment Act of 1998 (29 U.S.C. 2801)),’’ 

2 after ‘‘recent unemployment of a family member,’’. 

3 (c) REPORTING REQUIREMENTS.— 

4 (1) ELIGIBILITY GUIDELINES.—The Secretary 

5 of Education shall regularly evaluate the impact of 

6 the eligibility guidelines in subsections (b)(1)(A)(i), 

7 (b)(1)(B)(i), (c)(1)(A), and (c)(2)(A) of section 479 

8 of the Higher Education Act of 1965 (20 U.S.C. 

9 1087ss(b)(1)(A)(i), (b)(1)(B)(i), (c)(1)(A), and 

10 (c)(2)(A)). 

11 (2) MEANS-TESTED FEDERAL BENEFIT PRO12 GRAM.—The Secretary shall evaluate every 3 years 

13 the impact of including whether a student or parent 

14 received benefits under a means-tested Federal ben15 efit program (as defined in section 479(d) of the 

16 Higher Education Act of 1965 (20 U.S.C. 

17 1087ss(d)) as a factor in determining eligibility 

18 under subsections (b) and (c) of section 479 of the 

19 Higher Education Act of 1965 (20 U.S.C. 1087ss(b) 

20 and (c)). 

21 SEC. 3 IMPROVING PAPER AND ELECTRONIC FORMS. 

22 (a) SIMPLIFIED NEEDS TEST.—Section 479(a) of the 

23 Higher Education Act of 1965 (20 U.S.C. 1087ss(a)) is 

24 amended by adding at the end the following: 
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1 ‘‘(3) SIMPLIFIED FORMS.—The Secretary shall 

2 make special efforts to notify families meeting the 

3 requirements of subsection (c) that such families 

4 may use the EZ FAFSA described in section 

5 483(a)(2)(B) and notify families meeting the re6 quirements of subsection (b) that such families may 

7 use the simplified electronic application form de8 scribed in section 483(a)(3)(B).’’. 

9 (b) COMMON FINANCIAL AID FORM DEVELOPMENT

10 AND PROCESSING.—Section 483 of the Higher Education 

11 Act of 1965 (20 U.S.C. 1090) is amended— 

12 (1) in subsection (a)— 

13 (A) by striking paragraphs (1), (2), and 

14 (5); 

15 (B) by redesignating paragraphs (3), (4), 

16 (6), and (7), as paragraphs (8), (9), (10), and 

17 (11), respectively; 

18 (C) by inserting before paragraph (8), as 

19 redesignated by subparagraph (B), the fol20 lowing: 

21 ‘‘(1) IN GENERAL.— 

22 ‘‘(A) COMMON FINANCIAL REPORTING

23 FORMS.—The Secretary, in cooperation with 

24 representatives of agencies and organizations 

25 involved in student financial assistance, shall 
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1 produce, distribute, and process free of charge 

2 common financial reporting forms as described 

3 in this subsection to be used for application and 

4 reapplication to determine the need and eligi5 bility of a student for financial assistance under 

6 parts A through E (other than subpart 4 of 

7 part A). These forms shall be made available to 

8 applicants in both paper and electronic formats 

9 and shall be referred to (except as otherwise 

10 provided in this subsection) as the ‘Free Appli11 cation for Federal Student Aid’ or ‘FAFSA’. 

12 ‘‘(B) EARLY ANALYSIS.—The Secretary 

13 shall permit an applicant to complete a form 

14 described in this subsection prior to enrollment 

15 in order to obtain an estimate from the Sec16 retary of the applicant’s expected family con17 tribution, as defined in section 473. Such appli18 cant shall be permitted to update information 

19 submitted on a form described in this sub20 section completed prior to enrollment using the 

21 process described in paragraph (4). 

22 ‘‘(2) PAPER FORMAT.— 

23 ‘‘(A) IN GENERAL.—Subject to subpara24 graph (C), the Secretary shall produce, dis25 tribute, and process common forms in paper 
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1 format to meet the requirements of paragraph 

2 (1). The Secretary shall develop a common 

3 paper form for applicants who do not meet the 

4 requirements of subparagraph (B). 

5 ‘‘(B) EZ FAFSA.— 

6 ‘‘(i) IN GENERAL.—The Secretary 

7 shall develop and use a simplified paper 

8 application form, to be known as the ‘EZ 

9 FAFSA’, to be used for applicants meeting 

10 the requirements of section 479(c). 

11 ‘‘(ii) REDUCED DATA REQUIRE12 MENTS.—The EZ FAFSA shall permit an 

13 applicant to submit for financial assistance 

14 purposes, only the data elements required 

15 to make a determination of whether the 

16 applicant meets the requirements under 

17 section 479(c). 

18 ‘‘(iii) STATE DATA.—The Secretary 

19 shall include on the EZ FAFSA space for 

20 information that is required of an appli21 cant to be eligible for State financial as22 sistance, as provided under paragraph (5), 

23 except the Secretary shall not include a 

24 State’s data if that State does not permit 
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1 its applicants for State assistance to use 

2 the EZ FAFSA. 

3 ‘‘(iv) FREE AVAILABILITY AND PROC4 ESSING.—The provisions of paragraph (6) 

5 shall apply to the EZ FAFSA, and the 

6 data collected by means of the EZ FAFSA 

7 shall be available to institutions of higher 

8 education, guaranty agencies, and States 

9 in accordance with paragraph (8). 

10 ‘‘(v) TESTING.—The Secretary shall 

11 conduct appropriate field testing on the 

12 EZ FAFSA. 

13 ‘‘(C) PHASING OUT THE PAPER FORM FOR

14 STUDENTS WHO DO NOT MEET THE REQUIRE15 MENTS OF THE AUTOMATIC ZERO EXPECTED

16 FAMILY CONTRIBUTION.— 

17 ‘‘(i) IN GENERAL.—The Secretary 

18 shall make all efforts to encourage all ap19 plicants to utilize the electronic forms de20 scribed in paragraph (3). 

21 ‘‘(ii) PHASEOUT OF FULL PAPER

22 FAFSA.—Not later than 5 years after the 

23 date of enactment of the Financial Aid 

24 Form Simplification and Access Act, to the 

25 extent practicable, the Secretary shall 
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1 phaseout the printing of the full paper 

2 Free Application for Federal Student Aid 

3 described in subparagraph (A) and used by 

4 applicants who do not meet the require5 ments of the EZ FAFSA described in sub6 paragraph (B). 

7 ‘‘(iii) AVAILABILITY OF FULL PAPER

8 FAFSA.— 

9 ‘‘(I) IN GENERAL.—Prior to and 

10 after the phaseout described in clause 

11 (ii), the Secretary shall maintain an 

12 online printable version of the paper 

13 forms described in subparagraphs (A) 

14 and (B). 

15 ‘‘(II) ACCESSIBILITY.—The on16 line printable version described in sub17 clause (I) shall be made easily acces18 sible and downloadable to students on 

19 the same website used to provide stu20 dents with the electronic application 

21 forms described in paragraph (3). 

22 ‘‘(III) SUBMISSION OF FORMS.— 

23 The Secretary shall enable, to the ex24 tent practicable, students to submit a 

25 form described in this clause that is 
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1 downloaded and printed in order to 

2 meet the filing requirements of this 

3 section and to receive aid from pro4 grams established under this title. 

5 ‘‘(iv) USE OF SAVINGS TO ADDRESS

6 THE DIGITAL DIVIDE.— 

7 ‘‘(I) IN GENERAL.—The Sec8 retary shall utilize savings accrued by 

9 phasing out the full paper Free Appli10 cation for Federal Student Aid and 

11 moving more applicants to the elec12 tronic forms, to improve access to the 

13 electronic forms for applicants meet14 ing the requirements of section 

15 479(c). 

16 ‘‘(II) REPORT.—The Secretary 

17 shall report annually to the Com18 mittee on Health, Education, Labor, 

19 and Pensions of the Senate and the 

20 Committee on Education and the 

21 Workforce of the House of Represent22 atives on steps taken to eliminate the 

23 digital divide and on the phaseout of 

24 the full paper Free Application for 

25 Federal Student Aid described in sub-
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1 paragraph (A). The report shall spe2 cifically address the impact of the dig3 ital divide on independent students, 

4 adults, and dependent students, in5 cluding students completing applica6 tions described in this paragraph and 

7 paragraphs (3) and (4). 

8 ‘‘(3) ELECTRONIC FORMAT.— 

9 ‘‘(A) IN GENERAL.— 

10 ‘‘(i) ESTABLISHMENT.—The Secretary 

11 shall produce, distribute, and process com12 mon financial reporting forms in electronic 

13 format (such as through a website called 

14 ‘FAFSA on the Web’) to meet the require15 ments of paragraph (1). The Secretary 

16 shall include an electronic version of the 

17 EZ FAFSA form for applicants who meet 

18 the requirements of paragraph (2)(B) and 

19 develop common electronic forms for appli20 cants who meet the requirements of sub21 paragraph (B) and common electronic 

22 forms for applicants who do not meet the 

23 requirements of subparagraph (B). 

24 ‘‘(ii) STATE DATA.—The Secretary 

25 shall include on the common electronic 
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1 forms described in clause (i) space for in2 formation that is required of an applicant 

3 to be eligible for State financial assistance, 

4 as provided under paragraph (5). The Sec5 retary may not require an applicant to 

6 complete data required by any State other 

7 than the applicant’s State of residence. 

8 (iii) STREAMLINED FORMAT.—The 

9 Secretary shall use, to the fullest extent 

10 practicable, all available technology to en11 sure that a student answers only the min12 imum number of questions necessary. 

13 ‘‘(B) SIMPLIFIED APPLICATION.— 

14 ‘‘(i) IN GENERAL.—The Secretary 

15 shall develop and use a simplified elec16 tronic application form to be used by appli17 cants meeting the requirements under sec18 tion 479(b). 

19 ‘‘(ii) REDUCED DATA REQUIRE20 MENTS.—The simplified electronic applica21 tion form shall permit an applicant to sub22 mit for financial assistance purposes, only 

23 the data elements required to make a de24 termination of whether the applicant meets 

25 the requirements under section 479(b). 
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1 ‘‘(iii) STATE DATA.—The Secretary 

2 shall include on the simplified electronic 

3 application form space for information that 

4 is required of an applicant to be eligible for 

5 State financial assistance, as provided 

6 under paragraph (5), except the Secretary 

7 shall not include a State’s data if that 

8 State does not permit its applicants for 

9 State assistance to use the simplified elec10 tronic application form. 

11 ‘‘(iv) FREE AVAILABILITY AND PROC12 ESSING.—The provisions of paragraph (6) 

13 shall apply to the simplified electronic ap14 plication form, and the data collected by 

15 means of the simplified electronic applica16 tion form shall be available to institutions 

17 of higher education, guaranty agencies, 

18 and States in accordance with paragraph 

19 (8). 

20 ‘‘(v) TESTING.—The Secretary shall 

21 conduct appropriate field testing on the 

22 form developed under this subparagraph. 

23 ‘‘(C) RULE OF CONSTRUCTION.—Nothing 

24 in this subsection shall be construed to prohibit 

25 the use of the form developed by the Secretary 
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1 pursuant to this paragraph by an eligible insti2 tution, eligible lender, guaranty agency, State 

3 grant agency, private computer software pro4 viders, a consortium of such entities, or such 

5 other entities as the Secretary may designate. 

6 ‘‘(D) PRIVACY.—The Secretary shall en7 sure that data collection under this paragraph 

8 complies with section 552a of title 5, United 

9 States Code, and that any entity using the elec10 tronic version of the forms developed by the 

11 Secretary pursuant to this paragraph shall 

12 maintain reasonable and appropriate adminis13 trative, technical, and physical safeguards to 

14 ensure the integrity and confidentiality of the 

15 information, and to protect against security 

16 threats, or unauthorized uses or disclosures of 

17 the information provided on the electronic 

18 version of the form. Data collected by such elec19 tronic version of the form shall be used only for 

20 the application, award, and administration of 

21 aid awarded under this title, State aid, or aid 

22 awarded by eligible institutions or such entities 

23 as the Secretary may designate. No data col24 lected by such electronic version of the form 

25 shall be used for making final aid awards under 
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1 this title until such data have been processed by 

2 the Secretary or a contractor or designee of the 

3 Secretary, except as may be permitted under 

4 this title. 

5 ‘‘(E) SIGNATURE.—Notwithstanding any 

6 other provision of this Act, the Secretary may 

7 permit an electronic form to be submitted with8 out a signature, if a signature is subsequently 

9 submitted by the applicant. 

10 ‘‘(F) PERSONAL IDENTIFICATION NUM11 BERS AUTHORIZED.—The Secretary is author12 ized to assign to applicants personal identifica13 tion numbers— 

14 ‘‘(i) to enable the applicants to use 

15 such numbers in lieu of a signature for 

16 purposes of completing a form under this 

17 paragraph; and 

18 ‘‘(ii) for any purpose determined by 

19 the Secretary to enable the Secretary to 

20 carry out this title. 

21 ‘‘(4) REAPPLICATION.— 

22 ‘‘(A) IN GENERAL.—The Secretary shall 

23 develop streamlined reapplication forms and 

24 processes, including both paper and electronic 

25 reapplication processes, consistent with the re-
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1 quirements of this subsection, for an applicant 

2 who applies for financial assistance under this 

3 title in the next succeeding academic year sub4 sequent to the year in which such applicant 

5 first applied for financial assistance under this 

6 title. 

7 ‘‘(B) UPDATED.—The Secretary shall de8 termine, in cooperation with States, institutions 

9 of higher education, and agencies and organiza10 tions involved in student financial assistance, 

11 the data elements that can be updated from the 

12 previous academic year’s application. 

13 ‘‘(C) RULE OF CONSTRUCTION.—Nothing 

14 in this title shall be construed as limiting the 

15 authority of the Secretary to reduce the number 

16 of data elements required of reapplicants. 

17 ‘‘(D) ZERO FAMILY CONTRIBUTION.—Ap18 plicants determined to have a zero family con19 tribution pursuant to section 479(c) shall not 

20 be required to provide any financial data in a 

21 reapplication form, except that which is nec22 essary to determine eligibility under such sec23 tion. 

24 ‘‘(5) STATE REQUIREMENTS.— 
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1 ‘‘(A) IN GENERAL.—The Secretary shall 

2 include on the forms developed under this sub3 section, such State-specific data items as the 

4 Secretary determines are necessary to meet 

5 State requirements for need-based State aid. 

6 Such items shall be selected in consultation 

7 with States to assist in the awarding of State 

8 financial assistance in accordance with the 

9 terms of this subsection. The number of such 

10 data items shall not be less than the number in11 cluded on the form on October 7, 1998, unless 

12 States notify the Secretary that they no longer 

13 require those data items for the distribution of 

14 State need-based aid. 

15 ‘‘(B) ANNUAL REVIEW.—The Secretary 

16 shall conduct an annual review process to deter17 mine which forms and data items the States re18 quire to award need-based State aid and other 

19 application requirements that the States may 

20 impose. 

21 ‘‘(C) FEDERAL REGISTER NOTICE.—The 

22 Secretary shall publish on an annual basis a no23 tice in the Federal Register requiring each 

24 State agency to inform the Secretary— 
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1 ‘‘(i) if the agency is unable to permit 

2 applicants to utilize the forms described in 

3 paragraphs (2)(B) and (3)(B); and 

4 ‘‘(ii) of the State-specific data that 

5 the agency requires for delivery of State 

6 need-based financial aid. 

7 ‘‘(D) STATE NOTIFICATION TO THE SEC8 RETARY.— 

9 ‘‘(i) IN GENERAL.—Each State shall 

10 notify the Secretary— 

11 ‘‘(I) whether the State permits 

12 an applicant to file a form described 

13 in paragraph (2)(B) or (3)(B) for 

14 purposes of determining eligibility for 

15 State need-based grant aid; and 

16 ‘‘(II) of the State-specific data 

17 that the State requires for delivery of 

18 State need-based financial aid. 

19 ‘‘(ii) NO PERMISSION.—In the event 

20 that a State does not permit an applicant 

21 to file a form described in paragraph 

22 (2)(B) or (3)(B) for purposes of deter23 mining eligibility for State need-based 

24 grant aid— 
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1 ‘‘(I) the State shall notify the 

2 Secretary if it is not permitted to do 

3 so because of either State law or be4 cause of agency policy; and 

5 ‘‘(II) the notification under sub6 clause (I) shall include an estimate of 

7 the program cost to permit applicants 

8 to complete the forms described in 

9 paragraphs (2)(B) and (3)(B). 

10 ‘‘(iii) LACK OF NOTIFICATION BY THE

11 STATE.—If a State does not notify the 

12 Secretary pursuant to clause (i), the Sec13 retary shall— 

14 ‘‘(I) permit residents of that 

15 State to complete the forms described 

16 in paragraphs (2)(B) and (3)(B); and 

17 ‘‘(II) not require any resident of 

18 that State to complete any data pre19 viously required by that State. 

20 ‘‘(E) RESTRICTION.—The Secretary shall 

21 not require applicants to complete any non22 financial data or financial data that are not re23 quired by the applicant’s State agency, except 

24 as may be required for applicants who use the 
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1 paper forms described in subparagraphs (A) 

2 and (B) of paragraph (2). 

3 ‘‘(6) CHARGES TO STUDENTS AND PARENTS

4 FOR USE OF FORMS PROHIBITED.—The common fi5 nancial reporting forms prescribed by the Secretary 

6 under this subsection shall be produced, distributed, 

7 and processed by the Secretary and no parent or 

8 student shall be charged a fee by the Secretary, a 

9 contractor, a third party servicer or private software 

10 provider, or any other public or private entity for the 

11 collection, processing, or delivery of financial aid 

12 through the use of such forms. The need and eligi13 bility of a student for financial assistance under 

14 parts A through E (other than under subpart 4 of 

15 part A) may only be determined by using a form de16 veloped by the Secretary pursuant to this subsection. 

17 No student may receive assistance under parts A 

18 through E (other than under subpart 4 of part A), 

19 except by use of a form developed by the Secretary 

20 pursuant to this subsection. No data collected on a 

21 paper or electronic form or other document, which 

22 the Secretary determines was created to replace a 

23 form prescribed under this subsection and therefore 

24 violates the integrity of a simplified and free finan25 cial aid application process, for which a fee is 
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1 charged shall be used to complete the form pre2 scribed under this subsection. No person, commer3 cial entity, or other entity shall request, obtain, or 

4 utilize an applicant’s Personal Identification Number 

5 for purposes of submitting an application on an ap6 plicant’s behalf except State agencies that have en7 tered into an agreement with the Secretary to 

8 streamline applications, eligible institutions, or pro9 grams under this title as permitted by the Secretary. 

10 ‘‘(7) APPLICATION PROCESSING CYCLE.—The 

11 Secretary shall, prior to January 1 of a student’s 

12 planned year of enrollment to the extent prac13 ticable— 

14 ‘‘(A) enable the student to submit a form 

15 described under this subsection in order to meet 

16 the filing requirements of this section and re17 ceive aid from programs under this title; and 

18 ‘‘(B) initiate the processing of a form 

19 under this subsection submitted by the stu20 dent.’’; and 

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

22 ‘‘(12) EARLY APPLICATION AND AWARD DEM23 ONSTRATION PROGRAM.— 

24 ‘‘(A) IN GENERAL.—Not later than 2 years 

25 after the date of enactment of this paragraph, 
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1 the Secretary shall implement an early applica2 tion demonstration program enabling dependent 

3 students to— 

4 ‘‘(i) complete applications under this 

5 subsection in such students’ junior year of 

6 secondary school, or in the academic year 

7 that is 2 years prior to such students’ in8 tended year of enrollment at an institution 

9 of higher education; and 

10 ‘‘(ii) be eligible to receive aid under 

11 this title, aid from participants under this 

12 paragraph, State financial assistance as 

13 provided under section 415C, and other aid 

14 provided by participating institutions 

15 through the submission of an application 

16 as described in clause (i). 

17 ‘‘(B) PURPOSE.—The purpose of the dem18 onstration program under this paragraph is to 

19 measure the benefits, in terms of student aspi20 rations and plans to attend college, and the ad21 verse effects, in terms of program costs, integ22 rity, distribution, and delivery of aid under this 

23 title, of implementing an early application sys24 tem for all dependent students that allows de25 pendent students to apply for financial aid 
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1 using information from the year prior to the 

2 year prior to enrollment at an institution of 

3 higher education. Additional objectives associ4 ated with implementation of the demonstration 

5 program are the following: 

6 ‘‘(i) Measure the feasibility of ena7 bling dependent students to apply for Fed8 eral, State, and institutional financial aid 

9 in such students’ junior year of secondary 

10 school, using information from the year 

11 prior to the year prior to enrollment, by 

12 completing any of the application forms 

13 under this subsection. 

14 ‘‘(ii) Determine the feasibility, bene15 fits, and adverse effects of implementing a 

16 data match with the Internal Revenue 

17 Service. 

18 ‘‘(iii) Identify whether receiving final 

19 financial aid awards not later than the fall 

20 of a student’s senior year positively im21 pacts the college aspirations and plans of 

22 such student. 

23 ‘‘(iv) Measure the impact of using in24 come information from the year prior to 

25 the year prior to enrollment on— 
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1 ‘‘(I) eligibility for financial aid 

2 under this title and for other institu3 tional aid; and 

4 ‘‘(II) the cost of financial aid 

5 programs under this title. 

6 ‘‘(v) Effectively evaluate the benefits 

7 and adverse effects of the demonstration 

8 program on program costs, integrity, dis9 tribution, and delivery of aid. 

10 ‘‘(C) PARTICIPANTS.—The Secretary shall 

11 select, in consultation with States and institu12 tions of higher education, States and institu13 tions within the States interested in partici14 pating in the demonstration program under this 

15 paragraph. The States and institutions of high16 er education shall participate in programs 

17 under this title and be willing to make final fi18 nancial aid awards to students based on such 

19 students’ application information from the year 

20 prior to the year prior to enrollment. Such 

21 awards may be contingent on the student being 

22 admitted to and enrolling in the participating 

23 institution the following year. The Secretary 

24 shall also select as participants in the dem25 onstration program secondary schools that are 
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1 located in the participating States and depend2 ent students who reside in the participating 

3 States. 

4 ‘‘(D) APPLICATION PROCESS.—The Sec5 retary shall ensure that the following provisions 

6 are included in the demonstration program: 

7 ‘‘(i) Participating States and institu8 tions of higher education shall— 

9 ‘‘(I) allow participating students 

10 to apply for financial aid as provided 

11 under this title during such students’ 

12 junior year of secondary school using 

13 information from the year prior to the 

14 year prior to enrollment; and 

15 ‘‘(II) award final financial aid 

16 awards to participating students 

17 based on the applications provided 

18 under the demonstration program. 

19 ‘‘(ii) Participating States and institu20 tions of higher education shall not require 

21 students participating in the demonstration 

22 program to complete an additional applica23 tion in the year prior to enrollment in 

24 order to receive State aid under section 

25 415C and any other institutional aid. 
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1 ‘‘(iii) Financial aid administrators at 

2 participating institutions of higher edu3 cation shall be allowed to use such admin4 istrators’ discretion in awarding financial 

5 aid to participating students, as outlined 

6 under sections 479A and 480(d). 

7 ‘‘(E) DATA MATCH WITH THE INTERNAL

8 REVENUE SERVICE.—The Secretary shall in9 clude in the demonstration project a data match 

10 with the Internal Revenue Service in order to 

11 verify data provided by participating students 

12 and gauge the feasibility of implementing such 

13 a data match for all students applying for aid 

14 under this title. 

15 ‘‘(F) EVALUATION.—The Secretary shall 

16 conduct a rigorous evaluation of the demonstra17 tion program in order to measure the program’s 

18 benefits and adverse effects as required under 

19 subparagraph (B). 

20 ‘‘(G) OUTREACH.—The Secretary shall 

21 make appropriate efforts in order to notify 

22 States of the demonstration program. Upon de23 termination of which States will be partici24 pating in the demonstration program, the Sec25 retary shall continue to make efforts to notify 
30 

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1 institutions of higher education and dependent 

2 students within such participating States of the 

3 opportunity to participate in the demonstration 

4 program and of the participation requirements. 

5 ‘‘(H) CONSULTATION.—The Secretary 

6 shall consult with the Advisory Committee on 

7 Student Financial Assistance, established under 

8 section 491, on the design and implementation 

9 of the demonstration program and on the eval10 uation described in paragraph (F).’’; 

11 (2) by striking subsection (b) and inserting the 

12 following: 

13 ‘‘(b) EARLY AWARENESS OF AID ELIGIBILITY.— 

14 ‘‘(1) IN GENERAL.—The Secretary shall make 

15 every effort to provide students with early informa16 tion about potential financial aid eligibility. 

17 ‘‘(2) AVAILABILITY OF MEANS TO DETERMINE

18 ELIGIBILITY.— 

19 ‘‘(A) IN GENERAL.—The Secretary shall 

20 provide, in cooperation with States, institutions 

21 of higher education, agencies, and organizations 

22 involved in student financial assistance, both 

23 through a widely disseminated printed form and 

24 the Internet or other electronic means, a system 

25 for individuals to determine easily, by entering 
31 

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1 relevant data, approximately the amount of 

2 grant, work-study, and loan assistance for 

3 which an individual would be eligible under this 

4 title upon completion and verification of a form 

5 under subsection (a). 

6 ‘‘(B) DETERMINATION OF WHETHER TO

7 USE SIMPLIFIED APPLICATION.—The system es8 tablished under this paragraph shall also permit 

9 an individual to determine whether or not the 

10 individual may apply for aid using an EZ 

11 FAFSA described in subsection (a)(2)(B) or a 

12 simplified electronic application form described 

13 in subsection (a)(3)(B). 

14 ‘‘(3) AVAILABILITY OF MEANS TO COMMU15 NICATE ELIGIBILITY.— 

16 ‘‘(A) LOWER-INCOME STUDENTS.—The 

17 Secretary shall— 

18 ‘‘(i) make special efforts to notify stu19 dents who qualify for a free or reduced 

20 price lunch under the school lunch pro21 gram established under the Richard B. 

22 Russell National School Lunch Act (42 

23 U.S.C. 1751 et seq.), benefits under the 

24 food stamp program under the Food 

25 Stamp Act of 1977 (7 U.S.C. 2011 et 
32 

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1 seq.), or benefits under such programs as 

2 the Secretary shall determine, of such stu3 dents’ potential eligibility for a maximum 

4 Federal Pell Grant under subpart 1 of part 

5 A; and 

6 ‘‘(ii) disseminate informational mate7 rials regarding the linkage between eligi8 bility for means-tested Federal benefit pro9 grams and eligibility for a Federal Pell 

10 Grant, as determined necessary by the Sec11 retary. 

12 ‘‘(B) MIDDLE SCHOOL STUDENTS.—The 

13 Secretary shall, in cooperation with States, mid14 dle schools, programs under this title that serve 

15 middle school students, and other cooperating 

16 independent outreach programs, make special 

17 efforts to notify middle school students of the 

18 availability of financial assistance under this 

19 title and of the approximate amounts of grant, 

20 work-study, and loan assistance an individual 

21 would be eligible for under this title. 

22 ‘‘(C) SECONDARY SCHOOL STUDENTS.— 

23 The Secretary shall, in cooperation with States, 

24 secondary schools, programs under this title 

25 that serve secondary school students, and co-
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1 operating independent outreach programs, 

2 make special efforts to notify students in their 

3 junior year of secondary school the approximate 

4 amounts of grant, work-study, and loan assist5 ance an individual would be eligible for under 

6 this title upon completion and verification of an 

7 application form under subsection (a).’’; 

8 (3) in subsection (c), by striking ‘‘Labor and 

9 Human Resources’’ and inserting ‘‘Health, Edu10 cation, Labor, and Pensions’’; 

11 (4) by striking subsection (d); 

12 (5) by redesignating subsection (e) as sub13 section (d); and 

14 (6) by amending subsection (d), as redesignated 

15 by paragraph (5), to read as follows: 

16 ‘‘(d) ASSISTANCE IN PREPARATION OF FINANCIAL

17 AID APPLICATION.— 

18 ‘‘(1) PREPARATION AUTHORIZED.—Nothing in 

19 this Act shall limit an applicant from using a pre20 parer for consultative or preparation services for the 

21 completion of the common financial reporting forms 

22 described in subsection (a). 

23 ‘‘(2) PREPARER IDENTIFICATION.—Any com24 mon financial reporting form required to be made 

25 under this title shall include the name, signature, 
34 

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1 address or employer’s address, social security num2 ber or employer identification number, and organiza3 tional affiliation of the preparer of such common fi4 nancial reporting form. 

5 ‘‘(3) SPECIAL RULE.—Nothing in this Act shall 

6 limit preparers of common financial reporting forms 

7 required to be made under this title from collecting 

8 source information, including Internal Revenue Serv9 ice tax forms, in providing consultative and prepara10 tion services in completing the forms. 

11 ‘‘(4) ADDITIONAL REQUIREMENTS.—A preparer 

12 that provides consultative or preparation services 

13 pursuant to this subsection shall— 

14 ‘‘(A) clearly inform individuals upon initial 

15 contact (including advertising in clear and con16 spicuous language on the website of the pre17 parer, including by providing a link directly to 

18 the website described in subsection (a)(3), if the 

19 preparer provides such services through a 

20 website) that the common financial reporting 

21 forms that are required to determine eligibility 

22 for financial assistance under parts A through 

23 E (other than subpart 4 of part A) may be 

24 completed for free via paper or electronic forms 

25 provided by the Secretary; 
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1 ‘‘(B) refrain from producing or dissemi2 nating any form other than the forms produced 

3 by the Secretary under subsection (a); and 

4 ‘‘(C) not charge any fee to any individual 

5 seeking such services who meets the require6 ments under subsection (b) or (c) of section 

7 479.’’. 

8 (c) TOLL-FREE APPLICATION AND INFORMATION.— 

9 Section 479 of the Higher Education Act of 1965 (20 

10 U.S.C. 1087ss), as amended by section 2, is further 

11 amended by adding at the end the following: 

12 ‘‘(e) TOLL-FREE APPLICATION AND INFORMA13 TION.—The Secretary shall contract for, or establish, and 

14 publicize a toll-free telephone service to provide an applica15 tion mechanism and timely and accurate information to 

16 the general public. The information provided shall include 

17 specific instructions on completing the application form 

18 for assistance under this title. Such service shall also in19 clude a service accessible by telecommunications devices 

20 for the deaf (TDD’s) and shall, in addition to the services 

21 provided for in the previous sentence, refer such students 

22 to the national clearinghouse on postsecondary education 

23 or another appropriate provider of technical assistance 

24 and information on postsecondary educational services, 

25 that is supported under section 663 of the Individuals with 
36 

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1 Disabilities Education Act. Not later than 2 years after 

2 the date of enactment of the Financial Aid Form Sim3 plification and Access Act, the Secretary shall test and im4 plement, to the extent practicable, a toll-free telephone5 based application system to permit applicants who are eli6 gible to utilize the EZ FAFSA described in section 483(a) 

7 over such system.’’. 

8 (d) MASTER CALENDAR.—Section 482(a)(1)(B) of 

9 the Higher Education Act of 1965 (20 U.S.C. 

10 1089(a)(1)(B)) is amended to read as follows: 

11 ‘‘(B) by March 1: proposed modifications 

12 and updates pursuant to sections 478, 479(c), 

13 and 483(a)(5) published in the Federal Reg14 ister;’’. 

15 (e) SIMPLIFYING THE VERIFICATION PROCESS.— 

16 Section 484 of the Higher Education Act of 1965 (20 

17 U.S.C. 1091) is amended by adding at the end the fol18 lowing: 

19 ‘‘(s) VERIFICATION OF STUDENT ELIGIBILITY.— 

20 ‘‘(1) REGULATORY REVIEW.—The Secretary 

21 shall review all regulations of the Department re22 lated to verifying the information provided on a stu23 dent’s financial aid application in order to simplify 

24 the verification process for students and institutions. 
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1 ‘‘(2) REPORT.—Not later than 2 years after the 

2 date of enactment of this subsection, the Secretary 

3 shall prepare and submit a final report to the Com4 mittee on Health, Education, Labor, and Pensions 

5 of the Senate and the Committee on Education and 

6 the Workforce of the House of Representatives on 

7 steps taken, to the extent practicable, to simplify the 

8 verification process. The report shall specifically ad9 dress steps taken to— 

10 ‘‘(A) reduce the burden of verification on 

11 students who are selected for verification at 

12 multiple institutions; 

13 ‘‘(B) reduce the number of data elements 

14 that are required to be verified for applicants 

15 meeting the requirements of subsection (b) or 

16 (c) of section 479, so that only those data ele17 ments required to determine eligibility under 

18 subsection (b) or (c) of section 479 are subject 

19 to verification; 

20 ‘‘(C) reduce the burden and costs associ21 ated with verification for institutions that are 

22 eligible to participate in Federal student aid 

23 programs under this title; and 

24 ‘‘(D) increase the use of technology in the 

25 verification process.’’. 
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1 SEC. 4. ALLOWANCE FOR STATE AND OTHER TAXES. 

2 Section 478(g) of the Higher Education Act of 1965 

3 (20 U.S.C. 1087rr(g)) is amended to read as follows: 

4 ‘‘(g) STATE AND OTHER TAX ALLOWANCE.— 

5 ‘‘(1) HOLD HARMLESS.—Notwithstanding any 

6 other provision of law, the annual updates to the al7 lowance for State and other taxes in the tables used 

8 in the Federal Need Analysis Methodology to deter9 mine a student’s expected family contribution for the 

10 award year 2005–2006 under part F of title IV, 

11 published in the Federal Register on Thursday, De12 cember 23, 2004 (69 Fed. Reg. 76926), shall not 

13 apply to a student to the extent the updates will re14 duce the amount of Federal student assistance for 

15 which the student is eligible. 

16 ‘‘(2) PUBLICATION IN THE FEDERAL REG17 ISTER.—For each award year after award year 

18 2005–2006, the Secretary shall publish in the Fed19 eral Register a revised table of State and other tax 

20 allowances for the purpose of sections 475(c)(2), 

21 475(g)(3), 476(b)(2), and 477(b)(2). The Secretary 

22 shall develop such revised table after review of the 

23 Department of the Treasury’s Statistics of Income 

24 file and determination of the percentage of income 

25 that each State’s taxes represent. The Secretary 

26 shall phase-in the State and other tax allowances 
39 

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1 from the revised table for an award year proportion2 ately over a period of time of not less than 2 years 

3 if a revised table was not published in the Federal 

4 Register during the previous award year. 

5 ‘‘(3) AGREEMENT.—The Secretary is author6 ized to enter into agreement with the Commissioner 

7 of the Internal Revenue Service to develop the data 

8 required to revise the table of State and other tax 

9 allowances for the purpose of sections 475(c)(2), 

10 475(g)(3), 476(b)(2), and 477(b)(2).’’. 

11 SEC. 5. SUPPORT FOR WORKING STUDENTS. 

12 (a) DEPENDENT STUDENTS.—Section 475(g)(2)(D) 

13 of the Higher Education Act of 1965 (20 U.S.C. 

14 1087oo(g)(2)(D)) is amended to read as follows: 

15 ‘‘(D) $9,000;’’. 

16 (b) INDEPENDENT STUDENTS WITHOUT DEPEND17 ENTS OTHER THAN A SPOUSE.—Section 476(b)(1)(A)(iv) 

18 of the Higher Education Act of 1965 (20 U.S.C. 

19 1087pp(b)(1)(A)(iv)) is amended to read as follows: 

20 ‘‘(iv) an income protection allowance 

21 of the following amount (or a successor 

22 amount prescribed by the Secretary under 

23 section 478)— 

24 ‘‘(I) $10,000 for single or sepa25 rated students; 
40 

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1 ‘‘(II) $10,000 for married stu2 dents where both are enrolled pursu3 ant to subsection (a)(2); and 

4 ‘‘(III) $13,000 for married stu5 dents where 1 is enrolled pursuant to 

6 subsection (a)(2);’’. 

7 (c) INDEPENDENT STUDENTS WITH DEPENDENTS

8 OTHER THAN A SPOUSE.—Section 477(b)(4) of the High9 er Education Act of 1965 (20 U.S.C. 1087qq(b)(4)) is 

10 amended to read as follows: 

11 ‘‘(4) INCOME PROTECTION ALLOWANCE.—The 

12 income protection allowance is determined by the fol13 lowing table (or a successor table prescribed by the 

14 Secretary under section 478): 

‘‘Income Protection Allowance 

Family Size 

Number in College 

1 2 3 4 5 

2 $17,580 $15,230 

3 20,940 17,610 $16,260 

4 24,950 22,600 20,270 $17,930 

5 28,740 26,390 24,060 21,720 $19,390 

6 32,950 30,610 28,280 25,940 23,610 

NOTE: For each additional family member, add $3,280. 

For each additional college student, subtract $2,330.’’. 

15 SEC. 6. SIMPLIFICATION FOR STUDENTS WITH SPECIAL 

16 CIRCUMSTANCES. 

17 (a) INDEPENDENT STUDENT.—Section 480(d) of the 

18 Higher Education Act of 1965 (20 U.S.C. 1087vv(d)) is 

19 amended to read as follows: 

20 ‘‘(d) INDEPENDENT STUDENT.— 
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1 ‘‘(1) DEFINITION.—The term ‘independent’, 

2 when used with respect to a student, means any in3 dividual who— 

4 ‘‘(A) is 24 years of age or older by Decem5 ber 31 of the award year; 

6 ‘‘(B) is an orphan, in foster care, or a 

7 ward of the court, or was in foster care or a 

8 ward of the court until the individual reached 

9 the age of 18; 

10 ‘‘(C) is an emancipated minor or is in legal 

11 guardianship as determined by a court of com12 petent jurisdiction in the individual’s State of 

13 legal residence; 

14 ‘‘(D) is a veteran of the Armed Forces of 

15 the United States (as defined in subsection 

16 (c)(1)) or is currently serving on active duty in 

17 the Armed Forces; 

18 ‘‘(E) is a graduate or professional student; 

19 ‘‘(F) is a married individual; 

20 ‘‘(G) has legal dependents other than a 

21 spouse; or 

22 ‘‘(H) is a student for whom a financial aid 

23 administrator makes a documented determina24 tion of independence by reason of other unusual 

25 circumstances. 
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1 ‘‘(2) SIMPLIFYING THE DEPENDENCY OVER2 RIDE PROCESS.—Nothing in this section shall pro3 hibit a financial aid administrator from making a 

4 determination of independence, as described in para5 graph (1)(H), based upon a determination of inde6 pendence previously made by another financial aid 

7 administrator in the same application year.’’. 

8 (b) TAILORING ELECTRONIC APPLICATIONS FOR

9 STUDENTS WITH SPECIAL CIRCUMSTANCES.—Section 

10 483(a) of the Higher Education Act of 1965 (20 U.S.C. 

11 1090(a)), as amended by section 3, is further amended 

12 by adding at the end the following: 

13 ‘‘(13) APPLICATIONS FOR STUDENTS SEEKING

14 A DOCUMENTED DETERMINATION OF INDEPEND15 ENCE.—In the case of a dependent student seeking 

16 a documented determination of independence by a fi17 nancial aid administrator, as described in section 

18 480(d), nothing in this section shall prohibit the 

19 Secretary from— 

20 ‘‘(A) allowing such student to— 

21 ‘‘(i) indicate the student’s request for 

22 a documented determination of independ23 ence on an electronic form developed pur24 suant to this subsection; and 
43 

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1 ‘‘(ii) submit such form for preliminary 

2 processing that only contains those data 

3 elements required of independent students, 

4 as defined in section 480(d); 

5 ‘‘(B) collecting and processing on a pre6 liminary basis data provided by such a student 

7 using the electronic forms developed pursuant 

8 to this subsection; and 

9 ‘‘(C) distributing such data to institutions 

10 of higher education, guaranty agencies, and 

11 States for the purposes of processing loan appli12 cations and determining need and eligibility for 

13 institutional and State financial aid awards on 

14 a preliminary basis, pending a documented de15 termination of independence by a financial aid 

16 administrator.’’. 

17 SEC. 7. TREATMENT OF PREPAYMENT AND SAVINGS PLANS 

18 UNDER STUDENT FINANCIAL AID NEEDS 

19 ANALYSIS. 

20 (a) DEFINITION OF ASSETS.—Section 480(f) of the 

21 Higher Education Act of 1965 (20 U.S.C. 1087vv(f)) is 

22 amended— 

23 (1) in paragraph (1), by inserting ‘‘qualified 

24 education benefits, except as provided in subpara25 graph (2),’’ after ‘‘tax shelters,’’; 
44 

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1 (2) by redesignating paragraph (2) as para2 graph (4); and 

3 (3) by inserting after paragraph (1) the fol4 lowing: 

5 ‘‘(2) A qualified education benefit shall not be 

6 considered an asset of a dependent student for pur7 poses of section 475. The value of a qualified edu8 cation benefit for purposes of determining the assets 

9 of parents or an independent student shall be— 

10 ‘‘(A) the refund value of any tuition credits 

11 or certificates purchased under a qualified edu12 cation benefit; or 

13 ‘‘(B) the current balance of any account 

14 that is established as a qualified education ben15 efit for the purpose of meeting the qualified 

16 higher education expenses of the designated 

17 beneficiary of the account. 

18 ‘‘(3) In this subsection, the term ‘qualified edu19 cation benefit’ means— 

20 ‘‘(A) a qualified tuition program (as de21 fined in section 529(b)(1) of the Internal Rev22 enue Code of 1986) or another prepaid tuition 

23 plan offered by a State; or 
45 

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1 ‘‘(B) a Coverdell education savings account 

2 (as defined in section 530(b)(1) of the Internal 

3 Revenue Code of 1986).’’. 

4 (b) DEFINITION OF OTHER FINANCIAL ASSIST5 ANCE.—Section 480(j) of the Higher Education Act of 

6 1965 (20 U.S.C. 1087vv(j)) is amended— 

7 (1) in the heading, by striking ‘‘; TUITION PRE8 PAYMENT PLANS’’; 

9 (2) by striking paragraph (2); 

10 (3) in paragraph (3), by inserting ‘‘, or a dis11 tribution that is not includable in gross income 

12 under section 529 of such Code, under another pre13 paid tuition plan offered by a State, or under a 

14 Coverdell education savings account under section 

15 530 of such Code’’ after ‘‘1986’’; and 

16 (4) by redesignating paragraph (3) as para17 graph (2). 

18 (c) TOTAL INCOME.—Section 480(a)(2) of the High19 er Education Act of 1965 (20 U.S.C. 1087vv(a)(2)) is 

20 amended to read as follows: 

21 ‘‘(2) No portion of any student financial assist22 ance received from any program by an individual, no 

23 portion of a national service educational award or 

24 post-service benefit received by an individual under 

25 title I of the National and Community Service Act 
46 

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1 of 1990 (42 U.S.C. 12571 et seq.), no portion of any 

2 tax credit taken under section 25A of the Internal 

3 Revenue Code of 1986, and no distribution from any 

4 qualified education benefit defined in subsection 

5 (f)(3) that is not subject to Federal income tax, 

6 shall be included as income or assets in the com7 putation of expected family contribution for any pro8 gram funded in whole or in part under this Act.’’. 

9 SEC. 8. ADVISORY COMMITTEE ON STUDENT FINANCIAL AS10 SISTANCE. 

11 Section 491 of the Higher Education Act of 1965 (20 

12 U.S.C. 1098) is further amended— 

13 (1) in subsection (a)(2)— 

14 (A) in subparagraph (B), by striking 

15 ‘‘and’’ after the semicolon; 

16 (B) in subparagraph (C), by striking the 

17 period at the end and inserting a semicolon; 

18 and 

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

20 ‘‘(D) to provide knowledge and under21 standing of early intervention programs and 

22 make recommendations that will result in early 

23 awareness by low- and moderate-income stu24 dents and families of their eligibility for assist25 ance under this title, and, to the extent prac-
47 

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1 ticable, their eligibility for other forms of State 

2 and institutional need-based student assistance; 

3 and 

4 ‘‘(E) to make recommendations that will 

5 expand and improve partnerships among the 

6 Federal Government, States, institutions, and 

7 private entities to increase the awareness and 

8 total amount of need-based student assistance 

9 available to low- and moderate-income stu10 dents.’’; 

11 (2) in subsection (d)— 

12 (A) in paragraph (6), by striking ‘‘, but 

13 nothing in this section shall authorize the com14 mittee to perform such studies, surveys, or 

15 analyses’’; 

16 (B) in paragraph (8), by striking ‘‘and’’ 

17 after the semicolon; 

18 (C) by redesignating paragraph (9) as 

19 paragraph (10); and 

20 (D) by inserting after paragraph (8) the 

21 following: 

22 ‘‘(9) monitor the adequacy of total need-based 

23 aid available to low- and moderate-income students 

24 from all sources, assess the implications for access 
48 

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1 and persistence, and report those implications annu2 ally to Congress and the Secretary; and’’; 

3 (3) in subsection (j)— 

4 (A) in paragraph (4), by striking ‘‘and’’ 

5 after the semicolon; 

6 (B) in paragraph (5), by striking the pe7 riod at the end and inserting ‘‘; and’’; and 

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

9 ‘‘(6) monitor and assess implementation of im10 provements called for under this title, make rec11 ommendations to the Secretary that ensure the time12 ly design, testing, and implementation of the im13 provements, and report annually to Congress and 

14 the Secretary on progress made toward simplifying 

15 overall delivery, reducing data elements and ques16 tions, incorporating the latest technology, aligning 

17 Federal, State, and institutional eligibility, enhanc18 ing partnerships, and improving early awareness of 

19 total student aid eligibility for low- and moderate-in20 come students and families.’’; and 

21 (4) in subsection (k), by striking ‘‘2004’’ and 

22 inserting ‘‘2011’’. 

Æ