II 

109TH CONGRESS 

1ST SESSION S. 1261 

To simplify access to financial aid and access to information on college 

costs, to provide for more learning and less reporting, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 16, 2005 

Mr. ALEXANDER introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions 

A BILL 

To simplify access to financial aid and access to information 

on college costs, to provide for more learning and less 

reporting, 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 ‘‘Higher Education Sim5 plification and Deregulation Act of 2005’’. 

6 SEC. 2. TABLE OF CONTENTS. 

7 The table of contents for this Act is as follows: 

Sec. 1. Short title. 

Sec. 2. Table of contents. 

Sec. 3. References. 
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TITLE I—SIMPLIFICATION OF ACCESS TO FINANCIAL AID AND 

ACCESS TO INFORMATION ON COLLEGE COSTS 

Subtitle A—Simplification of the Free Application for Federal Student Aid 

(FAFSA) 

Sec. 111. Simplifying forms and regulations. 

Sec. 112. System of early financial aid information. 

Sec. 113. Simplification for students with special circumstances. 

Sec. 114. Simplifying the verification process. 

Subtitle B—Year-Round Federal Pell Grants and Flexible Loans for Year 

Round Study 

Sec. 121. Year-round Federal Pell Grants. 

Sec. 122. Flexible loan limits for year-round study. 

Subtitle C—College Best Buys 

Sec. 131. College best buys. 

Subtitle D—Graduate Education Programs 

Sec. 141. Graduate education programs. 

Subtitle E—Voter Registration Dissemination Clarification 

Sec. 151. Voter registration dissemination clarification. 

TITLE II—MORE LEARNING, LESS REPORTING 

Sec. 201. Findings. 

Subtitle A—Expert Panel To Review Regulations 

Sec. 211. Review of regulations. 

Subtitle B—One Size Does Not Fit All for Industry and Academic 

Regulations 

Sec. 221. Different standards for industry and academic regulations. 

Subtitle C—Accelerating Negotiated Rulemaking 

Sec. 231. Negotiated rulemaking. 

Subtitle D—Compliance and Master Calendars 

Sec. 241. Compliance and master calendars. 

Subtitle E—Ownership of Nonprofit Institutions 

Sec. 251. Ownership of nonprofit institutions. 

Subtitle F—Disbursement of Student Loans 

Sec. 261. Renewal of expired provisions. 
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TITLE III—ELIMINATION OF CERTAIN REPORTING 

REQUIREMENTS 

Sec. 301. Disclosures of foreign gifts. 

1 SEC. 3. REFERENCES. 

2 Except as otherwise expressly provided, whenever in 

3 this Act an amendment or repeal is expressed in terms 

4 of an amendment to, or repeal of, a section or other provi5 sion, the reference shall be considered to be made to a 

6 section or other provision of the Higher Education Act of 

7 1965 (20 U.S.C. 1001 et seq.). 

8 TITLE I—SIMPLIFICATION OF 

9 ACCESS TO FINANCIAL AID 

10 AND ACCESS TO INFORMA11 TION ON COLLEGE COSTS 

12 Subtitle A—Simplification of the 

13 Free Application for Federal 

14 Student Aid (FAFSA) 

15 SEC. 111. SIMPLIFYING FORMS AND REGULATIONS. 

16 (a) COMMON FINANCIAL AID FORM DEVELOPMENT

17 AND PROCESSING.—Section 483 (20 U.S.C. 1090) is 

18 amended— 

19 (1) in subsection (a)— 

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

21 (5); 
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1 (B) by redesignating paragraphs (3), (4), 

2 (6), and (7), as paragraphs (9), (10), (11), and 

3 (12), respectively; 

4 (C) by inserting before paragraph (9), as 

5 redesignated by subparagraph (B), the fol6 lowing: 

7 ‘‘(1) IN GENERAL.—The Secretary, in coopera8 tion with representatives of agencies and organiza9 tions involved in student financial assistance, shall 

10 produce, distribute, and process free of charge com11 mon financial reporting forms as described in this 

12 subsection to be used for application and reapplica13 tion to determine the need and eligibility of a stu14 dent for financial assistance under parts A through 

15 E (other than subpart 4 of part A). These forms 

16 shall be made available to applicants in both paper 

17 and electronic formats and shall be referred to (ex18 cept as otherwise provided in this subsection) as the 

19 ‘Free Application for Federal Student Aid’. 

20 ‘‘(2) EARLY ESTIMATES.—The Secretary shall 

21 permit an applicant to complete a form described in 

22 this subsection in the years prior to enrollment in 

23 order to obtain from the Secretary an estimate of 

24 the family contribution, as defined in section 473. 

25 Such applicant shall be permitted to update informa-
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1 tion submitted on a form described in this sub2 section using the process required under paragraph 

3 (5). 

4 ‘‘(3) PAPER FORMAT.— 

5 ‘‘(A) IN GENERAL.—Subject to subpara6 graph (C), the Secretary shall produce, dis7 tribute, and process common forms in paper 

8 format to meet the requirements of paragraph 

9 (1). The Secretary shall develop a common 

10 paper form for applicants who do not meet the 

11 requirements of subparagraph (B). 

12 ‘‘(B) EZ FAFSA.— 

13 ‘‘(i) IN GENERAL.—The Secretary 

14 shall develop and use a simplified paper 

15 application form, to be known as the ‘EZ 

16 FAFSA’, to be used for applicants meeting 

17 the requirements under section 479(c). 

18 ‘‘(ii) REDUCED DATA REQUIRE19 MENTS.—The EZ FAFSA shall permit an 

20 applicant to submit for financial assistance 

21 purposes, only the data elements required 

22 to make a determination of whether the 

23 applicant meets the requirements under 

24 section 479(c). 
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1 ‘‘(iii) STATE DATA.—The Secretary 

2 shall include on the EZ FAFSA such data 

3 items as may be necessary to award State 

4 financial assistance, as provided under 

5 paragraph (6), except the Secretary shall 

6 not include a State’s data if that State 

7 does not permit its applicants for State as8 sistance to use the EZ FAFSA. 

9 ‘‘(iv) FREE AVAILABILITY AND PROC10 ESSING.—The provisions of paragraph (7) 

11 shall apply to the EZ FAFSA, and the 

12 data collected by means of the EZ FAFSA 

13 shall be available to institutions of higher 

14 education, guaranty agencies, and States 

15 in accordance with paragraph (9). 

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

17 conduct appropriate field testing on the 

18 EZ FAFSA. 

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

20 STUDENTS WHO DO NOT MEET THE REQUIRE21 MENTS OF THE EZ FAFSA.— 

22 ‘‘(i) IN GENERAL.—The Secretary 

23 shall make all efforts to encourage all ap24 plicants to utilize the electronic forms de25 scribed in paragraph (4). 
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1 ‘‘(ii) PHASEOUT OF FULL FAFSA.— 

2 Not later than 5 years after the date of en3 actment of the Higher Education Sim4 plification and Deregulation Act of 2005, 

5 to the extent practicable, the Secretary 

6 shall phase out the long paper form cre7 ated under subparagraph (A) and used by 

8 applicants who do not meet the require9 ments under section 479(c). 

10 ‘‘(iii) MAINTENANCE OF THE FAFSA

11 IN A PRINTABLE ELECTRONIC FILE.—The 

12 Secretary shall maintain a version of the 

13 paper forms described in subparagraphs 

14 (A) and (B) in a printable electronic file 

15 that is easily portable. The printable elec16 tronic file shall be made easily accessible 

17 and downloadable to students on the same 

18 website used to provide students with the 

19 electronic application forms described in 

20 paragraph (4). The Secretary shall enable 

21 students to submit a form described in this 

22 paragraph that is downloaded and printed 

23 from an electronic file format in order to 

24 meet the filing requirements of this section 
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1 and in order to receive aid from programs 

2 under this title. 

3 ‘‘(iv) REPORTING REQUIREMENT.— 

4 The Secretary shall report annually to 

5 Congress on the impact of the digital di6 vide on students completing applications 

7 for aid under this title using the forms de8 scribed under this paragraph and para9 graph (4). The Secretary shall also report 

10 on the steps taken to eliminate the digital 

11 divide and phase out the long paper form 

12 described in subparagraph (A). The Sec13 retary’s report shall specifically address 

14 the impact of the digital divide on inde15 pendent students, adults, and dependent 

16 students, and students meeting the re17 quirements of subsection (b) or (c) of sec18 tion 479. 

19 ‘‘(4) ELECTRONIC FORMAT.— 

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

21 produce, distribute, and process common forms 

22 in electronic format to meet the requirements of 

23 paragraph (1). The Secretary shall develop 

24 common electronic forms for applicants who do 

25 not meet the requirements of subparagraph 
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1 (B). The Secretary shall include on the common 

2 electronic forms space for information that 

3 needs to be submitted from the applicant to be 

4 eligible for State financial assistance, as pro5 vided under paragraph (6), except the Secretary 

6 shall not require applicants to complete data re7 quired by any State other than the applicant’s 

8 State of residence. 

9 ‘‘(B) SIMPLIFIED ELECTRONIC APPLICA10 TIONS.— 

11 ‘‘(i) IN GENERAL.—The Secretary 

12 shall develop and use a simplified elec13 tronic application form to be used by appli14 cants meeting the requirements under sec15 tion 479(c) and an additional, separate 

16 simplified electronic application form to be 

17 used by applicants meeting the require18 ments under section 479(b). 

19 ‘‘(ii) REDUCED DATA REQUIRE20 MENTS.—The simplified electronic applica21 tion forms shall permit an applicant to 

22 submit for financial assistance purposes, 

23 only the data elements required to make a 

24 determination of whether the applicant 
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1 meets the requirements under subsection 

2 (b) or (c) of section 479. 

3 ‘‘(iii) STATE DATA.—The Secretary 

4 shall include on the simplified electronic 

5 application forms such data items as may 

6 be necessary to award State financial as7 sistance, as provided under paragraph (6), 

8 except the Secretary shall not require ap9 plicants to complete data required by any 

10 State other than the applicant’s State of 

11 residence and shall not include a State’s 

12 data if such State does not permit its ap13 plicants for State assistance to use the 

14 simplified electronic application form de15 scribed in this subparagraph. 

16 ‘‘(iv) FREE AVAILABILITY AND PROC17 ESSING.—The provisions of paragraph (7) 

18 shall apply to the simplified electronic ap19 plication forms, and the data collected by 

20 means of the simplified electronic applica21 tion forms shall be available to institutions 

22 of higher education, guaranty agencies, 

23 and States in accordance with paragraph 

24 (9). 
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1 ‘‘(v) TESTING.—The Secretary shall 

2 conduct appropriate field testing on the 

3 forms developed under this subparagraph. 

4 ‘‘(C) USE OF FORMS.—Nothing in this 

5 subsection shall be construed to prohibit the use 

6 of the forms developed by the Secretary pursu7 ant to this paragraph by an eligible institution, 

8 eligible lender, guaranty agency, State grant 

9 agency, private computer software provider, a 

10 consortium of such entities, or such other entity 

11 as the Secretary may designate. 

12 ‘‘(D) PRIVACY.—The Secretary shall en13 sure that data collection under this paragraph 

14 complies with section 552a of title 5, United 

15 States Code, and that any entity using the elec16 tronic version of the forms developed by the 

17 Secretary pursuant to this paragraph shall 

18 maintain reasonable and appropriate adminis19 trative, technical, and physical safeguards to 

20 ensure the integrity and confidentiality of the 

21 information, and to protect against security 

22 threats, or unauthorized uses or disclosures of 

23 the information provided on the electronic 

24 version of the forms. Data collected by such 

25 electronic version of the forms shall be used 
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1 only for the application, award, and administra2 tion of aid awarded under this title, State aid, 

3 or aid awarded by eligible institutions or such 

4 entities as the Secretary may designate. No 

5 data collected by such electronic version of the 

6 forms shall be used for making final aid awards 

7 under this title until such data have been proc8 essed by the Secretary or a contractor or des9 ignee of the Secretary, except as may be per10 mitted under this title. 

11 ‘‘(E) SIGNATURE.—Notwithstanding any 

12 other provision of this Act, the Secretary may 

13 permit an electronic form under this paragraph 

14 to be submitted without a signature, if a signa15 ture is subsequently submitted by the applicant 

16 or if the applicant uses a personal identification 

17 number provided by the Secretary under sub18 paragraph (F). 

19 ‘‘(F) PERSONAL IDENTIFICATION NUM20 BERS AUTHORIZED.—The Secretary is author21 ized to assign to applicants personal identifica22 tion numbers— 

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

24 such numbers in lieu of a signature for 
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1 purposes of completing a form under this 

2 paragraph; and 

3 ‘‘(ii) for any purpose determined by 

4 the Secretary to enable the Secretary to 

5 carry out this title. 

6 ‘‘(5) STREAMLINED REAPPLICATION PROC7 ESS.— 

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

9 develop streamlined reapplication forms and 

10 processes, including both paper and electronic 

11 reapplication processes, consistent with the re12 quirements of this subsection, for an applicant 

13 who applies for financial assistance under this 

14 title in the next succeeding academic year sub15 sequent to the academic year in which such ap16 plicant first applied for financial assistance 

17 under this title. 

18 ‘‘(B) MECHANISMS FOR REAPPLICATION.— 

19 The Secretary shall develop appropriate mecha20 nisms to support reapplication. 

21 ‘‘(C) IDENTIFICATION OF UPDATED

22 DATA.—The Secretary shall determine, in co23 operation with States, institutions of higher 

24 education, and agencies and organizations in25 volved in student financial assistance, the data 
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1 elements that can be updated from the previous 

2 academic year’s application. 

3 ‘‘(D) REDUCED DATA AUTHORIZED.— 

4 Nothing in this title shall be construed as lim5 iting the authority of the Secretary to reduce 

6 the number of data elements required of re7 applicants. 

8 ‘‘(E) ZERO FAMILY CONTRIBUTION.—Ap9 plicants determined to have a zero family con10 tribution pursuant to section 479(c) shall not 

11 be required to provide any financial data in a 

12 reapplication form, except that which is nec13 essary to determine eligibility under such sec14 tion. 

15 ‘‘(6) STATE REQUIREMENTS.— 

16 ‘‘(A) IN GENERAL.—Except as provided in 

17 paragraphs (3)(B)(iii), (4)(A), and (4)(B)(iii), 

18 the Secretary shall include on the forms devel19 oped under this subsection, such State-specific 

20 data items as the Secretary determines are nec21 essary to meet State requirements for need22 based State aid. Such items shall be selected in 

23 consultation with State agencies in order to as24 sist in the awarding of State financial assist25 ance in accordance with the terms of this sub-
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1 section, except as provided in paragraphs 

2 (3)(B)(iii), (4)(A), and (4)(B)(iii). The number 

3 of such data items shall not be less than the 

4 number included on the form on October 7, 

5 1998, unless States notify the Secretary that 

6 they no longer require those data items for the 

7 distribution of State need-based aid. 

8 ‘‘(B) ANNUAL REVIEW.—The Secretary 

9 shall conduct an annual review process to deter10 mine which forms and data items the States re11 quire to award need-based State aid and other 

12 application requirements that the States may 

13 impose. 

14 ‘‘(C) ENCOURAGE USE OF FORMS.—The 

15 Secretary shall encourage States to take such 

16 steps as necessary to encourage the use of sim17 plified application forms, including those de18 scribed in paragraphs (3)(B) and (4)(B), for 

19 applicants who meet the requirements under 

20 subsection (b) or (c) of section 479. 

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

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

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

2 applicants to utilize the simplified applica3 tion forms described in paragraph (3)(B) 

4 or (4)(B); and 

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

6 the State agency requires for delivery of 

7 State need-based financial aid. 

8 ‘‘(E) STATE NOTIFICATION TO THE SEC9 RETARY.— 

10 ‘‘(i) IN GENERAL.—Each State agency 

11 shall notify the Secretary— 

12 ‘‘(I) whether the State permits 

13 an applicant to file a form described 

14 in paragraph (3)(B) or (4)(B) for 

15 purposes of determining eligibility for 

16 State need-based financial aid; and 

17 ‘‘(II) of the State-specific data 

18 that the State agency requires for de19 livery of State need-based financial 

20 aid. 

21 ‘‘(ii) ACCEPTANCE OF FORMS.—In the 

22 event that a State does not permit an ap23 plicant to file a form described in para24 graph (3)(B) or (4)(B) for purposes of de-
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1 termining eligibility for State need-based 

2 financial aid— 

3 ‘‘(I) the State shall notify the 

4 Secretary if it is not permitted to do 

5 so because of either State law or be6 cause of agency policy; and 

7 ‘‘(II) the notification under sub8 clause (I) shall include an estimate of 

9 the program cost to permit applicants 

10 to complete simplified application 

11 forms under paragraphs (3)(B) and 

12 (4)(B). 

13 ‘‘(iii) LACK OF NOTIFICATION BY THE

14 STATE.—If a State does not notify the 

15 Secretary pursuant to clause (i), the Sec16 retary shall— 

17 ‘‘(I) permit residents of that 

18 State to complete simplified applica19 tion forms under paragraphs (3)(B) 

20 and (4)(B); and 

21 ‘‘(II) not require any resident of 

22 such State to complete any data pre23 viously required by that State under 

24 this section. 
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1 ‘‘(7) CHARGES TO STUDENTS AND PARENTS

2 FOR USE OF FORMS PROHIBITED.—The common fi3 nancial reporting forms prescribed by the Secretary 

4 under this subsection shall be produced, distributed, 

5 and processed by the Secretary and no parent or 

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

7 contractor, a third-party servicer or private software 

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

9 collection, processing, or delivery of financial aid 

10 through the use of such forms. The need and eligi11 bility of a student for financial assistance under 

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

13 part A) may only be determined by using a form de14 veloped by the Secretary pursuant to this subsection. 

15 No student may receive assistance under parts A 

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

17 except by use of a form developed by the Secretary 

18 pursuant to this subsection. No data collected on a 

19 paper or electronic form, worksheet, or other docu20 ment for which a fee is charged shall be used to 

21 complete the form prescribed under this subsection. 

22 No person, commercial entity, or other entity shall 

23 request, obtain, or utilize an applicant’s Personal 

24 Identification Number for purposes of submitting an 

25 application on an applicant’s behalf except— 
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1 ‘‘(A) State agencies that have entered into 

2 an agreement with the Secretary to streamline 

3 applications; 

4 ‘‘(B) eligible institutions; or 

5 ‘‘(C) programs under this title as per6 mitted by the Secretary. 

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

8 Secretary shall— 

9 ‘‘(A) enable students to submit forms cre10 ated under this subsection in order to meet the 

11 filing requirements of this section and in order 

12 to receive aid from programs under this title; 

13 and 

14 ‘‘(B) enable students to submit forms cre15 ated under this subsection and initiate the proc16 essing of such forms under this subsection, as 

17 early as practicable prior to January 1 of the 

18 student’s planned year of enrollment.’’; 

19 (D) in paragraph (10)(C)(ii), as redesig20 nated by subparagraph (B), by striking ‘‘sub21 section (b)’’ and inserting ‘‘paragraph (5)’’; and 

22 (E) by adding at the end the following: 

23 ‘‘(13) EARLY APPLICATION AND AWARD DEM24 ONSTRATION PROGRAM.— 
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1 ‘‘(A) IN GENERAL.—Not later than 2 years 

2 after the date of enactment of this paragraph, 

3 the Secretary shall implement an early applica4 tion demonstration program enabling dependent 

5 students to— 

6 ‘‘(i) complete applications under this 

7 subsection in such students’ junior year of 

8 secondary school, or in the academic year 

9 that is 2 years prior to such students’ in10 tended year of enrollment; and 

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

12 this title and such aid as may be available 

13 from participants under this paragraph, in14 cluding State financial assistance and 

15 other aid provided by participating institu16 tions. 

17 ‘‘(B) PURPOSE.—The purpose of the dem18 onstration program is to measure the benefits, 

19 in terms of student aspirations and plans to at20 tend college, and the adverse effects, in terms 

21 of program costs, integrity, distribution, and 

22 delivery of aid under this title, of implementing 

23 an early application system for all dependent 

24 students that allows dependent students to 

25 apply for financial aid using information from 
21 

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1 the year prior to the year prior to enrollment. 

2 Additional objectives associated with implemen3 tation of the demonstration program are: 

4 ‘‘(i) Measure the feasibility of ena5 bling dependent students to apply for Fed6 eral, State, and institutional financial aid 

7 in such students’ junior year of secondary 

8 school, using information from the year 

9 prior to the year prior to enrollment, by 

10 completing any of the application forms 

11 under this subsection. 

12 ‘‘(ii) Determine the feasibility, bene13 fits, and adverse effects of implementing a 

14 data match with the Internal Revenue 

15 Service, as described in subparagraph (E). 

16 ‘‘(iii) Identify whether receiving final 

17 financial aid awards not later than the fall 

18 of the senior year provides students with 

19 additional time to compete for the limited 

20 resources available for State and institu21 tional financial aid and positively impacts 

22 the college aspirations and plans of these 

23 students. 
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1 ‘‘(iv) Measure the impact of using in2 come information from the year prior to 

3 the year prior to enrollment on— 

4 ‘‘(I) eligibility for financial aid 

5 under this title and for other State 

6 and institutional aid; and 

7 ‘‘(II) the cost of financial aid 

8 programs under this title. 

9 ‘‘(v) Effectively evaluate the benefits 

10 and adverse effects of the demonstration 

11 program on program costs, integrity, dis12 tribution, and delivery of aid. 

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

14 select States and institutions within these 

15 States to participate in the demonstration pro16 gram that are participating in the programs 

17 under this title and that are willing to make 

18 final financial aid awards to students based on 

19 such students’ application information from the 

20 year prior to the year prior to enrollment. The 

21 Secretary shall also select as participants in the 

22 demonstration program secondary schools lo23 cated in the participating States and dependent 

24 students who reside in the participating States. 
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1 ‘‘(D) APPLICATION PROCESS.—The Sec2 retary shall ensure that the following provisions 

3 are included in the demonstration program: 

4 ‘‘(i) Participating States and institu5 tions shall— 

6 ‘‘(I) allow participating students 

7 to apply for financial aid during such 

8 students’ junior year of secondary 

9 school using information from the 

10 year prior to the year prior to enroll11 ment and all provisions available 

12 under this title; and 

13 ‘‘(II) award final financial aid 

14 awards to participating students 

15 based on the applications provided 

16 under the demonstration program. 

17 ‘‘(ii) Participating States and institu18 tions shall not require students partici19 pating in the demonstration program to 

20 complete an additional application in the 

21 year prior to enrollment in order to receive 

22 State aid and any other institutional aid. 

23 ‘‘(iii) Financial aid administrators at 

24 participating institutions shall be allowed 

25 to use such administrators’ discretion in 
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1 awarding financial aid to participating stu2 dents as outlined under sections 479A and 

3 480(d). 

4 ‘‘(E) DATA MATCH WITH THE INTERNAL

5 REVENUE SERVICE.—The Secretary shall in6 clude in the demonstration project a data match 

7 with the Internal Revenue Service in order to 

8 verify data provided by participating students 

9 and gauge the feasibility of implementing such 

10 a data match for all students applying for aid 

11 under this title. 

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

13 conduct a rigorous evaluation of the demonstra14 tion program in order to measure the program’s 

15 benefits and adverse effects as indicated under 

16 subparagraph (B). 

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

18 make appropriate efforts in order to notify 

19 States of the demonstration program. Upon de20 termination of which States will participate in 

21 the demonstration program, the Secretary shall 

22 continue to make efforts to notify institutions 

23 and dependent students within such States of 

24 the opportunity to participate in the demonstra-
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1 tion program and of the participation require2 ments. 

3 ‘‘(H) CONSULTATION.—The Secretary 

4 shall consult with the Advisory Committee on 

5 Student Financial Assistance, as established 

6 under section 491, on the design and implemen7 tation of the demonstration program and on the 

8 evaluation described in subparagraph (F).’’; 

9 (2) by striking subsection (b); 

10 (3) by redesignating subsections (c), (d), and 

11 (e) as subsections (b), (c), and (d), respectively; and 

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

13 ‘‘(e) ADDRESSING THE DIGITAL DIVIDE.—The Sec14 retary shall utilize savings accrued by moving more appli15 cants to the electronic forms described in subsection (a)(4) 

16 and by phasing out the full paper form pursuant to sub17 section (a)(3)(C) to improve access to the electronic forms 

18 described in subsection (a)(4) for applicants meeting the 

19 requirements of section 479(c).’’. 

20 (b) MASTER CALENDAR.—Section 482(a)(1)(B) (20 

21 U.S.C. 1089(a)(1)(B)) is amended to read as follows: 

22 ‘‘(B) by March 1: proposed modifications, 

23 updates, and notices pursuant to sections 478 

24 and 483(a)(6) published in the Federal Reg25 ister;’’. 
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1 SEC. 112. SYSTEM OF EARLY FINANCIAL AID INFORMATION. 

2 Section 485 (20 U.S.C. 1092) is amended by adding 

3 at the end the following: 

4 ‘‘(h) EARLY AWARENESS OF FINANCIAL AID ELIGI5 BILITY.— 

6 ‘‘(1) IN GENERAL.—The Secretary shall imple7 ment, in cooperation with States, institutions of 

8 higher education, elementary schools, secondary 

9 schools, early intervention and outreach programs 

10 under this title, and other agencies and organiza11 tions involved in student financial assistance and 

12 college access, a comprehensive system of early fi13 nancial aid information to provide students and fam14 ilies with early and adequate information about fi15 nancial aid and early estimates of such students’ fi16 nancial aid eligibility from multiple sources. Such 

17 system shall include the activities described in para18 graphs (2) and (3). 

19 ‘‘(2) AVAILABILITY OF MEANS TO COMMU20 NICATE AID ELIGIBILITY.— 

21 ‘‘(A) STUDENTS WHO RECEIVE BENE22 FITS.—The Secretary shall— 

23 ‘‘(i) make special efforts to notify stu24 dents who receive or are eligible to receive 

25 benefits under Federal means-tested ben26 efit programs (including the school lunch 
27 

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1 program established under the Richard B. 

2 Russell National School Lunch Act (42 

3 U.S.C. 1751 et seq.), the food stamp pro4 gram under the Food Stamp Act of 1977 

5 (7 U.S.C. 2011 et seq.), and other such 

6 programs as determined by the Secretary) 

7 of such students’ potential eligibility for a 

8 maximum Federal Pell Grant under sub9 part 1 of part A; and 

10 ‘‘(ii) disseminate informational mate11 rials as determined necessary. 

12 ‘‘(B) MIDDLE SCHOOL STUDENTS.—The 

13 Secretary shall make, in cooperation with 

14 States, institutions of higher education, middle 

15 schools, and programs under this title that 

16 serve middle school students, special efforts to 

17 notify middle school students and their parents 

18 of the availability of financial aid under this 

19 title and, in accordance with paragraph (3)(D), 

20 of the approximate amounts of grant, work21 study, and loan aid that an individual would be 

22 eligible for under this title upon completion and 

23 verification of an application form under section 

24 483(a). The Secretary shall ensure that such 

25 information is accurate and that it is provided 
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1 in an age-appropriate format using dissemina2 tion mechanisms suitable for students in middle 

3 school. 

4 ‘‘(C) SECONDARY SCHOOL STUDENTS.— 

5 The Secretary shall make, in cooperation with 

6 States, institutions of higher education, sec7 ondary schools, and programs under this title 

8 that serve secondary school students, special ef9 forts to notify students in secondary school and 

10 their parents, as early as possible but not later 

11 than such students’ junior year of secondary 

12 school, of the availability of financial aid under 

13 this title and, in accordance with paragraph 

14 (3)(D), of the approximate amounts of grant, 

15 work-study, and loan aid that an individual 

16 would be eligible for under this title upon com17 pletion and verification of an application form 

18 under section 483(a). The Secretary shall en19 sure that such information is accurate and that 

20 it is provided in an age-appropriate format 

21 using dissemination mechanisms suitable for 

22 students in secondary school. 

23 ‘‘(D) ADULT LEARNERS.—The Secretary 

24 shall make, in cooperation with States, institu25 tions of higher education, and other organiza-
29 

•S 1261 IS 

1 tions involved in student financial aid, special 

2 efforts to provide individuals who would qualify 

3 as independent students, as defined in section 

4 480(d), with information regarding the avail5 ability of financial aid under this title and, in 

6 accordance with paragraph (3)(D), of the ap7 proximate amounts of grant, work-study, and 

8 loan aid that an individual would be eligible for 

9 under this title upon completion and verification 

10 of an application form under section 483(a). 

11 The Secretary shall ensure that such informa12 tion— 

13 ‘‘(i) is accurate; 

14 ‘‘(ii) includes specific information re15 garding the availability of financial aid for 

16 students defined as independent students 

17 under section 480(d); and 

18 ‘‘(iii) uses dissemination mechanisms 

19 suitable for adult learners. 

20 ‘‘(E) PUBLIC AWARENESS CAMPAIGN.— 

21 Not later than 3 years after the date of enact22 ment of the Higher Education Simplification 

23 and Deregulation Act of 2005, the Secretary 

24 shall implement, in consultation with States, in25 stitutions of higher education, early intervention 
30 

•S 1261 IS 

1 and outreach programs under this title, and 

2 other agencies and organizations involved in 

3 student financial aid, a public awareness cam4 paign in order to increase national awareness 

5 regarding the availability of financial aid under 

6 this title. The public awareness campaign shall 

7 disseminate accurate information regarding the 

8 availability of financial aid under this title and 

9 shall be implemented, to the extent practicable, 

10 using a variety of media, including print, tele11 vision, and radio. The Secretary shall design 

12 and implement the public awareness campaign 

13 based upon relevant independent research and 

14 the information and dissemination strategies 

15 that have been found to be the most effective 

16 in implementing subparagraphs (A) through 

17 (D). 

18 ‘‘(3) AVAILABILITY OF MEANS TO DETERMINE

19 APPROXIMATE FINANCIAL AID ELIGIBILITY.— 

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

21 provide, in cooperation with States, institutions 

22 of higher education, and other agencies and or23 ganizations involved in student financial aid, 

24 and in accordance with subparagraph (D), both 

25 via a widely disseminated printed form and the 
31 

•S 1261 IS 

1 Internet or other electronic means, the capa2 bility for individuals to determine easily, by en3 tering relevant data, the approximate amounts 

4 of grant, work-study, and loan aid an individual 

5 would be eligible for under this title upon com6 pletion and verification of an application form 

7 under section 483(a). 

8 ‘‘(B) DATA ELEMENTS.—The Secretary 

9 shall determine, in cooperation with States, in10 stitutions of higher education, and other agen11 cies and organizations involved in student fi12 nancial aid, the data elements that are nec13 essary to create a simplified form that individ14 uals can use to determine easily the approxi15 mate amounts of grant, work-study, and loan 

16 aid an individual would be eligible for under 

17 this title. 

18 ‘‘(C) QUALIFICATION TO USE SIMPLIFIED

19 APPLICATION.—The capability provided under 

20 this paragraph shall include the capability to 

21 determine whether or not the individual is eligi22 ble to submit a simplified application form 

23 under paragraph (3)(B) or (4)(B) of section 

24 483(a). 
32 

•S 1261 IS 

1 ‘‘(D) DEMONSTRATION PROGRAM TO IM2 PROVE EARLY FINANCIAL AID INFORMATION.— 

3 ‘‘(i) IN GENERAL.—The Secretary 

4 shall develop, in cooperation with States, 

5 institutions of higher education, and early 

6 intervention and outreach programs under 

7 this title, a comprehensive demonstration 

8 program to determine— 

9 ‘‘(I) the feasibility of providing 

10 individuals with accurate estimates of 

11 the approximate amount of State and 

12 institutional aid, including from pro13 grams under this title that require 

14 matching contributions from States or 

15 institutions of higher education, that 

16 an individual would be eligible for 

17 upon completion and verification of an 

18 application form under section 483(a) 

19 and any additional forms required by 

20 a State or institution; 

21 ‘‘(II) the feasibility of developing 

22 a mechanism to allow an individual to 

23 easily determine, by entering relevant 

24 data, the estimates of State and insti-
33 

•S 1261 IS 

1 tutional aid described in subclause (I); 

2 and 

3 ‘‘(III) whether the information 

4 students receive upon completion of 

5 an application form under section 

6 483(a) can be improved in order to 

7 positively influence student enrollment 

8 in higher education without adverse 

9 effects on States or institutions of 

10 higher education. 

11 ‘‘(ii) CONSULTATION.—In designing 

12 and implementing the demonstration pro13 gram under clause (i), the Secretary shall 

14 consult with the Advisory Committee on 

15 Student Financial Assistance, established 

16 under section 491. 

17 ‘‘(iii) REPORT.—Not later than 3 

18 years after the date of enactment of the 

19 Higher Education Simplification and De20 regulation Act of 2005, the Secretary shall 

21 submit a report to the Committee on 

22 Health, Education, Labor, and Pensions of 

23 the Senate and the Committee on Edu24 cation and the Workforce of the House of 

25 Representatives, describing— 
34 

•S 1261 IS 

1 ‘‘(I) the results of the demonstra2 tion program under this subpara3 graph; and 

4 ‘‘(II) any proposed statutory or 

5 regulatory changes resulting from car6 rying out the demonstration pro7 gram.’’. 

8 SEC. 113. SIMPLIFICATION FOR STUDENTS WITH SPECIAL 

9 CIRCUMSTANCES. 

10 (a) SIMPLIFYING FOR STUDENTS WITH SPECIAL

11 CIRCUMSTANCES.—Section 480(d) (20 U.S.C. 1087vv(d)) 

12 is amended to read as follows: 

13 ‘‘(d) INDEPENDENT STUDENT.— 

14 ‘‘(1) DEFINITION.—The term ‘independent’, 

15 when used with respect to a student, means any in16 dividual who— 

17 ‘‘(A) is 24 years of age or older by Decem18 ber 31 of the award year; 

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

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

21 ward of the court until the individual reached 

22 the age of 18; 

23 ‘‘(C) is a veteran of the Armed Forces of 

24 the United States (as defined in subsection 

25 (c)(1)); 
35 

•S 1261 IS 

1 ‘‘(D) is a graduate or professional student; 

2 ‘‘(E) is a married individual; 

3 ‘‘(F) has legal dependents other than a 

4 spouse; 

5 ‘‘(G) is a student for whom a financial aid 

6 administrator makes a documented determina7 tion of independence by reason of unusual cir8 cumstances; or 

9 ‘‘(H) is a member of the Armed Forces on 

10 active duty (as that term is defined in the first 

11 sentence of section 101(d)(1) of title 10, United 

12 States Code) or is a member of the National 

13 Guard performing full-time State active duty 

14 service. 

15 ‘‘(2) SIMPLIFYING THE DEPENDENCY OVER16 RIDE PROCESS.—Nothing in this section shall pro17 hibit a financial aid administrator from making a 

18 determination of independence, as described in para19 graph (1)(G), based upon a documented determina20 tion of independence, as described in paragraph 

21 (1)(G), previously made by another financial aid ad22 ministrator in the same application year.’’. 

23 (b) TAILORING ELECTRONIC APPLICATIONS FOR

24 STUDENTS WITH SPECIAL CIRCUMSTANCES.—Section 
36 

•S 1261 IS 

1 483(a) (20 U.S.C. 1090(a)), as amended by section 111, 

2 is further amended by adding at the end the following: 

3 ‘‘(14) APPLICATIONS FOR STUDENTS SEEKING

4 A DOCUMENTED DETERMINATION OF INDEPEND5 ENCE.—In the case of a dependent student seeking 

6 a documented determination of independence by a fi7 nancial aid administrator, as described in section 

8 480(d), nothing in this section shall prohibit the 

9 Secretary from— 

10 ‘‘(A) allowing such student to— 

11 ‘‘(i) indicate the student’s unusual cir12 cumstance and the student’s request for a 

13 documented determination of independence 

14 on an electronic form developed pursuant 

15 to this section; and 

16 ‘‘(ii) submit such a form for prelimi17 nary processing with only the data re18 quired for an independent student, as de19 fined in section 480(d); 

20 ‘‘(B) collecting and processing on a pre21 liminary basis data provided by such student 

22 using the electronic forms developed pursuant 

23 to this section; and 

24 ‘‘(C) distributing such data to institutions 

25 of higher education, guaranty agencies, and 
37 

•S 1261 IS 

1 States for the purposes of processing loan appli2 cations and determining need and eligibility for 

3 institutional and State financial aid awards on 

4 a preliminary basis, pending a documented de5 termination of independence by a financial aid 

6 administrator.’’. 

7 SEC. 114. SIMPLIFYING THE VERIFICATION PROCESS. 

8 Section 484 (20 U.S.C. 1091) is amended by adding 

9 at the end the following: 

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

11 ‘‘(1) REVIEW.—The Secretary shall review all 

12 Departmental regulations related to verifying the in13 formation provided on a student’s financial aid ap14 plication in order to simplify the verification process 

15 for students and institutions. 

16 ‘‘(2) REPORT.—The Secretary shall, not later 

17 than 2 years after the date of enactment of the 

18 Higher Education Simplification and Deregulation 

19 Act of 2005, prepare and submit a final report to 

20 the Committee on Health, Education, Labor, and 

21 Pensions of the Senate and the Committee on Edu22 cation and the Workforce of the House of Rep23 resentatives on steps taken, to the extent prac24 ticable, to simplify the verification process. The re25 port shall specifically address steps taken to— 
38 

•S 1261 IS 

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

2 students, particularly on students who may be 

3 selected for verification at multiple institutions; 

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

5 that are required to be verified for applicants 

6 meeting the requirements of subsection (b) or 

7 (c) of section 479 so that only those data ele8 ments required to determine eligibility for the 

9 formulas defined in subsection (b) or (c) of sec10 tion 479 are subject to verification; 

11 ‘‘(C) reduce the burden and costs associ12 ated with verification for institutions that are 

13 eligible to participate in Federal student aid 

14 programs under this title; and 

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

16 verification process.’’. 

17 Subtitle B—Year-Round Federal 

18 Pell Grants and Flexible Loans 

19 for Year Round Study 

20 SEC. 121. YEAR-ROUND FEDERAL PELL GRANTS. 

21 Section 401(b)(6) of the Higher Education Act 

22 of 1965 (20 U.S.C. 1070a(b)(6)) is amended to read 

23 as follows: 

24 ‘‘(6) The Secretary shall, for students enrolled 

25 full-time in an associate or baccalaureate degree pro-
39 

•S 1261 IS 

1 gram of study at an eligible institution, award such 

2 students 2 Federal Pell Grants during a single 

3 award year to permit such students to accelerate 

4 progress toward their degree objectives by enrolling 

5 in academic programs for more than 9 months of an 

6 academic year.’’. 

7 SEC. 122. FLEXIBLE LOAN LIMITS FOR YEAR-ROUND STUDY. 

8 (a) FEDERAL INSURANCE LIMITS.— 

9 (1) ANNUAL LIMITS.—Section 425(a)(1) (20 

10 U.S.C. 1075(a)(1)) is amended by adding at the end 

11 the following: 

12 ‘‘(D) Notwithstanding subparagraph (A), the 

13 total of loans made to a student in any academic 

14 year or its equivalent (as determined by the Sec15 retary) which may be covered by Federal loan insur16 ance under this part may exceed the annual limits 

17 contained in clauses (i), (ii), (iii), and (iv) of sub18 paragraph (A), if— 

19 ‘‘(i) the student is enrolled in academic 

20 programs for more than 9 months of an aca21 demic year; and 

22 ‘‘(ii) the aggregate insured unpaid prin23 cipal amount for all such insured loans made to 

24 the student does not exceed the aggregate limits 

25 described in paragraph (2).’’. 
40 

•S 1261 IS 

1 (2) AGGREGATE LIMITS.—Section 425(a)(2) 

2 (20 U.S.C. 1075(a)(2)) is amended by adding at the 

3 end the following: 

4 ‘‘(C)(i) Notwithstanding subparagraph (A)(ii), 

5 the aggregate insured unpaid principal amount de6 scribed in subparagraph (A)(ii) for all such insured 

7 loans made to any graduate or professional student 

8 (as defined by the Secretary) shall not at any time 

9 exceed the sum of— 

10 ‘‘(I) $65,500; and 

11 ‘‘(II) the amount by which— 

12 ‘‘(aa) the cumulative undergraduate 

13 maximum annual limit described in clauses 

14 (i), (ii), and (iii) of paragraph (1)(A) that 

15 is applicable to the student for preceding 

16 undergraduate years; exceeds 

17 ‘‘(bb) the total amount of loans made 

18 to the student and covered by Federal loan 

19 insurance under this part. 

20 ‘‘(ii) The additional amounts made available to 

21 a student under clause (i) shall be made available to 

22 the student in equal amounts over the course of the 

23 student’s graduate or professional program of 

24 study.’’. 

25 (b) GUARANTEE LIMITS.— 
41 

•S 1261 IS 

1 (1) ANNUAL LIMITS.—The matter following 

2 subclause (II) of section 428(b)(1)(A)(vi) (20 U.S.C. 

3 1078(b)(1)(A)(vi)) is amended— 

4 (A) by striking the semicolon and inserting 

5 ’’, and’’; and 

6 (B) by adding at the end the following: 

7 ‘‘except that notwithstanding any other provision of 

8 this subparagraph, the total of loans made to a stu9 dent in any academic year or its equivalent (as de10 termined by the Secretary) which may be covered by 

11 Federal loan insurance under this part may exceed 

12 the annual limits contained in clauses (i), (ii), (iii), 

13 (iv), (v), and (vi), if the student is enrolled in aca14 demic programs for more than 9 months of an aca15 demic year and the aggregate insured unpaid prin16 cipal amount for all such insured loans made to the 

17 student does not exceed the aggregate limits de18 scribed in subparagraph (B);’’. 

19 (2) AGGREGATE LIMITS.—Section 428(b)(1)(B) 

20 (20 U.S.C. 1078(b)(1)(B)) is amended— 

21 (A) in clause (i), by striking ‘‘and’’ after 

22 the semicolon; 

23 (B) in clause (ii), by striking ‘‘428B,’’ and 

24 inserting ‘‘428B; and’’; and 
42 

•S 1261 IS 

1 (C) by inserting before the matter fol2 lowing clause (ii) the following: 

3 ‘‘(iii) in the case of a graduate or pro4 fessional student (as defined by the Sec5 retary) and notwithstanding clause (ii), the 

6 sum of (I) $65,500 and (II) the amount by 

7 which the cumulative undergraduate max8 imum annual limit described in clauses (i), 

9 (ii), (iii), (iv), (v), and (vi) of subpara10 graph (A) that is applicable to the student 

11 for preceding undergraduate years, exceeds 

12 the total amount of loans made to the stu13 dent and covered by Federal loan insur14 ance under this part, which amount de15 scribed in subclause (II) of this clause 

16 shall be made available to the student in 

17 equal amounts over the course of the stu18 dent’s graduate or professional program of 

19 study,’’. 

20 Subtitle C—College Best Buys 

21 SEC. 131. COLLEGE BEST BUYS. 

22 Part C of title I (20 U.S.C. 1015) is amended by 

23 adding at the end the following: 
43 

•S 1261 IS 

1 ‘‘SEC. 132. COLLEGE BEST BUYS. 

2 ‘‘(a) LIST PUBLISHED.—The Secretary shall annu3 ally publish in the Federal Register a list of the top 200 

4 institutions of higher education, for each sector described 

5 in subsection (c)(2), that are the best buy for the academic 

6 year in order to help students decipher institutional ex7 pense and financial aid data. 

8 ‘‘(b) REQUIREMENTS.—In publishing the list de9 scribed in subsection (a), the Secretary— 

10 ‘‘(1) shall only use the most recent data avail11 able to the Secretary from the National Center for 

12 Education Statistics; and 

13 ‘‘(2) shall publish the data in a user friendly 

14 manner. 

15 ‘‘(c) CONTENTS.— 

16 ‘‘(1) CONTENTS.—The list described in sub17 section (a) shall identify, for each sector described in 

18 paragraph (2), the following: 

19 ‘‘(A) The 200 institutions of higher edu20 cation with the lowest tuition and required fees. 

21 ‘‘(B) The 200 institutions of higher edu22 cation with the lowest cost of attendance. 

23 ‘‘(C) The 200 institutions of higher edu24 cation with the largest percentage of incoming 

25 full-time students who receive financial aid. 
44 

•S 1261 IS 

1 ‘‘(D) The 200 institutions of higher edu2 cation with the largest average amount of in3 coming full-time student financial aid on a per 

4 student basis. 

5 ‘‘(E) The 200 institutions of higher edu6 cation with the largest percentage of students 

7 who receive institutional grants and scholar8 ships. 

9 ‘‘(F) The 200 institutions of higher edu10 cation with the slowest percentage increase in 

11 tuition and required fees during the preceding 

12 5 years. 

13 ‘‘(G) The 200 institutions of higher edu14 cation with the slowest percentage increase in 

15 total cost of attendance during the preceding 5 

16 years. 

17 ‘‘(2) SECTORS.—The sectors referred to in 

18 paragraph (1) are as follows: 

19 ‘‘(A) 4-year public, degree-granting, insti20 tutions of higher education. 

21 ‘‘(B) 2-year public, degree-granting, insti22 tutions of higher education. 

23 ‘‘(C) 4-year, nonprofit, private, degree24 granting, institutions of higher education. 
45 

•S 1261 IS 

1 ‘‘(D) 2-year, nonprofit, private, degree2 granting, institutions of higher education. 

3 ‘‘(E) 4-year, for-profit, private, degree4 granting, institutions of higher education. 

5 ‘‘(F) 2-year, for-profit, private, degree6 granting, institutions of higher education. 

7 ‘‘(G) Public, non-degree-granting, institu8 tions of higher education. 

9 ‘‘(H) Private, nonprofit, non-degree-grant10 ing, institutions of higher education. 

11 ‘‘(I) Private, for-profit, non-degree-grant12 ing, institutions of higher education. 

13 ‘‘(d) DATE.—The list described in this section shall 

14 be published on June 1, 2006, and each June 1 there15 after.’’. 

16 Subtitle D—Graduate Education 

17 Programs 

18 SEC. 141. GRADUATE EDUCATION PROGRAMS. 

19 (a) JAVITS FELLOWSHIPS.—Section 701(a) (20 

20 U.S.C. 1134(a)) is amended by striking ‘‘financial need,’’. 

21 (b) JAVITS STIPENDS.—Section 703(a) (20 U.S.C. 

22 1134b(a)) is amended by striking ‘‘, except’’ and all that 

23 follows through ‘‘title IV’’. 

24 (c) GRADUATE ASSISTANCE APPLICATIONS.—Section 

25 713(b)(5) (20 U.S.C. 1135b(b)(5)) is amended— 
46 

•S 1261 IS 

1 (1) by striking subparagraph (A); and 

2 (2) by redesignating subparagraphs (B) and 

3 (C) as subparagraphs (A) and (B), respectively. 

4 (d) GRADUATE ASSISTANCE STIPENDS.—Section 

5 714(b) (20 U.S.C. 1135c(b)) is amended by striking ‘‘, 

6 except’’ and all that follows through ‘‘title IV’’. 

7 Subtitle E—Voter Registration 

8 Dissemination Clarification 

9 SEC. 151. VOTER REGISTRATION DISSEMINATION CLARI10 FICATION. 

11 Section 487(a)(23) (20 U.S.C. 1094(a)(23)) is 

12 amended by adding at the end the following: 

13 ‘‘(D) An institution shall be considered in com14 pliance with the requirements of subparagraph (A) 

15 for any student to whom the institution electroni16 cally transmits a message containing a voter reg17 istration form acceptable for use in the State in 

18 which the institution is located, or an Internet ad19 dress where such a form can be downloaded, if such 

20 information is in an electronic message devoted sole21 ly to voter registration.’’. 

22 TITLE II—MORE LEARNING, 

23 LESS REPORTING 

24 SEC. 201. FINDINGS. 

25 Congress makes the following findings: 
47 

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1 (1) Institutions of higher education are among 

2 the most heavily regulated entities in the United 

3 States. 

4 (2) With the exception of the Consumer Prod5 uct Safety Commission and the Federal Trade Com6 mission, all Federal agencies are involved in regu7 lating some aspect of higher education. 

8 (3) There are more than 7,000 regulations as9 sociated with the student aid programs under title 

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

11 1070 et seq.). 

12 Subtitle A—Expert Panel To 

13 Review Regulations 

14 SEC. 211. REVIEW OF REGULATIONS. 

15 Section 498B (20 U.S.C. 1099c–2) is amended to 

16 read as follows: 

17 ‘‘SEC. 498B. REVIEW OF REGULATIONS. 

18 ‘‘(a) REVIEW REQUIRED.—The Secretary shall re19 view each regulation issued under this title that is in effect 

20 at the time of the review and applies to the operations 

21 or activities of any participant in the programs assisted 

22 under this title. The review shall include a determination 

23 of whether the regulation is duplicative, is no longer nec24 essary, is inconsistent with other Federal requirements, is 

25 easily understood, is feasible, is cost effective, is narrowly 
48 

•S 1261 IS 

1 tailored, and is based on an assessment of risk. The review 

2 may involve 1 or more of the following: 

3 ‘‘(1) An assurance of the uniformity of inter4 pretation and application of such regulations. 

5 ‘‘(2) The establishment of a process for ensur6 ing that eligibility and compliance issues, such as in7 stitutional audit, program review, and recertification, 

8 are considered simultaneously. 

9 ‘‘(3) A determination of the extent to which un10 necessary costs are imposed on institutions of higher 

11 education as a consequence of the applicability to 

12 the facilities and equipment of such institutions of 

13 regulations prescribed for purposes of regulating in14 dustrial and commercial enterprises. 

15 ‘‘(b) REGULATORY AND STATUTORY RELIEF FOR

16 SMALL VOLUME INSTITUTIONS.—The Secretary shall re17 view and evaluate ways in which regulations under and 

18 provisions of this Act affecting institutions of higher edu19 cation (other than institutions described in section 

20 102(a)(1)(C)), that have received in each of the 2 most 

21 recent award years prior to the date of enactment of the 

22 Higher Education Simplification and Deregulation Act of 

23 2005 less than $200,000 in funds through this title, may 

24 be improved, streamlined, or eliminated. 
49 

•S 1261 IS 

1 ‘‘(c) CONSULTATION.—In carrying out subsections 

2 (a) and (b), the Secretary shall consult with relevant rep3 resentatives of institutions of higher education partici4 pating in the programs authorized by this title, as follows: 

5 ‘‘(1) PANELS.—The Secretary shall convene not 

6 less than 4 review panels of representatives of the 

7 groups involved in student financial assistance pro8 grams under this title to provide advice and rec9 ommendations on the regulations under this title re10 lated to the areas of— 

11 ‘‘(A) the operations of the financial assist12 ance programs; 

13 ‘‘(B) the institutional eligibility require14 ments for the financial assistance programs; 

15 ‘‘(C) regulations not directly related to the 

16 operations or the institutional eligibility require17 ments of the financial assistance programs; and 

18 ‘‘(D) regulations for dissemination of in19 formation to students about the financial assist20 ance programs. 

21 ‘‘(2) NOMINATIONS.—The Secretary shall seek 

22 nominations for individuals with expertise in each 

23 area described in subparagraphs (A) through (D) of 

24 paragraph (1) to serve on a panel for that area. 
50 

•S 1261 IS 

1 ‘‘(3) GOALS AND RECOMMENDATIONS.—Each 

2 panel shall identify the goals to be achieved by the 

3 regulations applicable to the appropriate area and 

4 shall recommend appropriate alternatives identified 

5 as the most effective and efficient means to achieve 

6 the goals with minimal burden and cost. 

7 ‘‘(d) REPORTS TO CONGRESS.— 

8 ‘‘(1) IN GENERAL.—The Secretary shall submit, 

9 not later than 2 years after the date of enactment 

10 of the Higher Education Simplification and Deregu11 lation Act of 2005, a report to the Committee on 

12 Health, Education, Labor, and Pensions of the Sen13 ate and the Committee on Education and the Work14 force of the House of Representatives detailing the 

15 Secretary’s findings and recommendations based on 

16 the reviews conducted under subsections (a) and (b), 

17 including a timetable for implementation of any rec18 ommended changes in regulations and a description 

19 of any recommendations for legislative changes. 

20 ‘‘(2) ADDITIONAL REPORTS.—Not later than 

21 January 1, 2009, the Secretary shall submit a re22 port to the Committee on Health, Education, Labor, 

23 and Pensions of the Senate and the Committee on 

24 Education and the Workforce of the House of Rep25 resentatives detailing the Secretary’s findings and 
51 

•S 1261 IS 

1 recommendations based on the review conducted 

2 under subsection (a), including a timetable for im3 plementation of any recommended changes in regu4 lations and a description of any recommendations 

5 for legislative changes.’’. 

6 Subtitle B—One Size Does Not Fit 

7 All for Industry and Academic 

8 Regulations 

9 SEC. 221. DIFFERENT STANDARDS FOR INDUSTRY AND ACA10 DEMIC REGULATIONS. 

11 (a) DEVELOPMENT OF STANDARDS.—The Secretary 

12 of Education shall award a grant to the National Research 

13 Council to enable the National Research Council to de14 velop different standards, in environmental, health, and 

15 safety areas, for the regulation of— 

16 (1) industrial facilities; and 

17 (2) research and teaching laboratories and fa18 cilities at institutions of higher education. 

19 (b) REPORT.—The National Research Council shall 

20 report to Congress regarding the different standards de21 veloped under subsection (a). Such report shall contain 

22 recommendations for statutory or regulatory changes 

23 needed to implement the different standards described in 

24 subsection (a). 
52 

•S 1261 IS 

1 (c) AUTHORIZATION OF APPROPRIATIONS.—There 

2 are authorized to be appropriated to carry out this section 

3 $500,000 for fiscal year 2006. 

4 Subtitle C—Accelerating 

5 Negotiated Rulemaking 

6 SEC. 231. NEGOTIATED RULEMAKING. 

7 Section 492(b) (20 U.S.C. 1098a(b)) is amended by 

8 adding at the end the following: 

9 ‘‘(3) NEW TIMEFRAME.—Notwithstanding any 

10 other provision of this section, all negotiated rule11 making described in this section that commences 

12 after the date of enactment of the Higher Education 

13 Simplification and Deregulation Act of 2005 shall be 

14 completed not later than 1 year after the date of en15 actment of the provision of law for which the nego16 tiated rulemaking is undertaken.’’. 

17 Subtitle D—Compliance and 

18 Master Calendars 

19 SEC. 241. COMPLIANCE AND MASTER CALENDARS. 

20 Section 482 (20 U.S.C. 1089) is amended by adding 

21 at the end the following: 

22 ‘‘(e) COMPLIANCE CALENDAR.—Prior to the begin23 ning of each award year, the Secretary shall provide to 

24 eligible institutions a list of all the reports and disclosures 

25 required under this Act. The list shall include— 
53 

•S 1261 IS 

1 ‘‘(1) the date each report is required to be com2 pleted and to be submitted, made available, or dis3 seminated; 

4 ‘‘(2) the required recipients of each report; 

5 ‘‘(3) any required method for transmittal or 

6 dissemination; 

7 ‘‘(4) a description of the content of each report 

8 sufficient to allow the institution to identify the ap9 propriate individuals to be assigned the responsi10 bility for such report; 

11 ‘‘(5) references to the statutory authority, ap12 plicable regulations, and current guidance issued by 

13 the Secretary regarding each report; and 

14 ‘‘(6) any other information which is pertinent to 

15 the content or distribution of the report or disclo16 sure. 

17 ‘‘(f) INITIAL EFFECTIVE DATE OF NEW DISCLOSURE

18 OR REPORTING.— 

19 ‘‘(1) IN GENERAL.—For any new or revised re20 quirement for institutional disclosure or reporting 

21 under this Act enacted after July 1, 2006, the pe22 riod for which data shall be collected shall begin not 

23 earlier than 270 days after the publication of final 

24 regulations or guidance. The final regulations or 
54 

•S 1261 IS 

1 guidance shall include any required data elements or 

2 method of collection. 

3 ‘‘(2) TIMING.—The Secretary shall take reason4 able and appropriate steps to ensure that institu5 tions have adequate time, before public disclosure or 

6 reporting to the Secretary, for the establishment of 

7 systems for the collection of the required data, for 

8 data collection and analysis, and for the preparation 

9 of the data report in the required format.’’. 

10 Subtitle E—Ownership of 

11 Nonprofit Institutions 

12 SEC. 251. OWNERSHIP OF NONPROFIT INSTITUTIONS. 

13 (a) DEFAULT MANAGEMENT PLAN.—Section 

14 487(a)(14)(B) (20 U.S.C. 1094(a)(14)(B)) is amended by 

15 adding at the end the following: ‘‘This subparagraph shall 

16 not apply to an institution that meets the definition of 

17 an institution of higher education under section 101.’’. 

18 (b) ELIGIBILITY AND CERTIFICATION PROCE19 DURES.—Section 498 (20 U.S.C. 1099c) is amended— 

20 (1) in subsection (e), by adding at the end the 

21 following: 

22 ‘‘(7) This subsection shall not apply to an institution 

23 that meets the definition of an institution of higher edu24 cation under section 101.’’; 
55 

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1 (2) in subsection (h), by adding at the end the 

2 following: 

3 ‘‘(4) This subsection shall not apply to an institution 

4 that meets the definition of an institution of higher edu5 cation under section 101.’’; and 

6 (3) in subsection (i), by adding at the end the 

7 following: 

8 ‘‘(5) This subsection shall not apply to an institution 

9 that meets the definition of an institution of higher edu10 cation under section 101.’’. 

11 Subtitle F—Disbursement of 

12 Student Loans 

13 SEC. 261. RENEWAL OF EXPIRED PROVISIONS. 

14 (a) AMENDMENT.—Section 422(d) of the Higher 

15 Education Amendments of 1998 (20 U.S.C. 1078–7 note) 

16 is amended by striking ‘‘period beginning’’ and all that 

17 follows through the period, and inserting the following: 

18 ‘‘periods— 

19 ‘‘(1) beginning on October 1, 1998, and ending 

20 on September 30, 2002; and 

21 ‘‘(2) beginning on the date of enactment of the 

22 Higher Education Simplification and Deregulation 

23 Act of 2005.’’. 

24 (b) CLARIFICATION.—Sections 428G(a)(3) and 

25 428G(b)(1) (as amended by section 422 of the Higher 
56 

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1 Education Amendments of 1998) shall be effective begin2 ning on the date of enactment of the Higher Education 

3 Simplification and Deregulation Act of 2005. 

4 TITLE III—ELIMINATION OF 

5 CERTAIN REPORTING RE6 QUIREMENTS 

7 SEC. 301. DISCLOSURES OF FOREIGN GIFTS. 

8 Section 117 (20 U.S.C. 1011f) is amended— 

9 (1) in subsection (a), by striking ‘‘file a disclo10 sure report with the Secretary’’ and inserting ‘‘make 

11 available to the public a disclosure report’’; 

12 (2) in the matter preceding paragraph (1) of 

13 subsection (b), by striking ‘‘to the Secretary’’; and 

14 (3) in subsection (d)— 

15 (A) in paragraph (1), by striking ‘‘filed 

16 with the Secretary’’ and inserting ‘‘made avail17 able to the public’’; and 

18 (B) in paragraph (2), by striking ‘‘filed 

19 with the Secretary’’ and inserting ‘‘made avail20 able to the public’’. 

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