II 

109TH CONGRESS 

1ST SESSION S. 1249 

To require the Secretary of Education to rebate the amount of Federal 

Pell Grant aid lost as a result of the update to the tables for State 

and other taxes used in the Federal student aid need analysis for award 

year 2005–2006. 

IN THE SENATE OF THE UNITED STATES 

JUNE 15, 2005 

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

A BILL 

To require the Secretary of Education to rebate the amount 

of Federal Pell Grant aid lost as a result of the update 

to the tables for State and other taxes used in the 

Federal student aid need analysis for award year 2005– 

2006. 

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 ‘‘Student Fairness Act’’. 

5 SEC. 2. REBATE REQUIRED. 

6 (a) CALCULATION OF EXPECTED FAMILY CONTRIBU7 TION.—Beginning 60 days after the date of enactment of 
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•S 1249 IS

1 this Act, the Secretary of Education (referred to in this 

2 Act as the ‘‘Secretary’’) shall, for each student who sub3 mits a completed Free Application for Federal Student 

4 Aid described in section 483 of the Higher Education Act 

5 of 1965 (20 U.S.C. 1090) for the 2005–2006 award year, 

6 calculate— 

7 (1) the expected family contribution, as deter8 mined for such student for such award year on the 

9 basis of the allowance for State and other taxes as 

10 adjusted by the updated tax tables published in the 

11 Federal Register on Thursday, December 23, 2004 

12 (69 Fed. Reg. 76926–76927); and 

13 (2) the expected family contribution that would 

14 apply to such student if such calculation was based 

15 upon the allowance for State and other taxes used 

16 for the 2004–2005 award year. 

17 (b) REBATE THE DIFFERENCE IN THE PELL GRANT

18 AWARD.— 

19 (1) IN GENERAL.—For each student for whom 

20 the amount determined under subsection (a)(1) ex21 ceeds the amount determined under subsection 

22 (a)(2), the Secretary shall— 

23 (A) determine the amount (if any) by 

24 which— 
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1 (i) the Federal Pell Grant aid under 

2 subpart 1 of part A of title IV of the High3 er Education Act of 1965 (20 U.S.C. 

4 1070a et seq.) that would have been pro5 vided to such student if such calculation 

6 was based upon the allowance for State 

7 and other taxes for the 2004–2005 award 

8 year, exceeds 

9 (ii) the Federal Pell Grant aid pro10 vided to such student for award year 

11 2005–2006, based upon the updated tax 

12 tables described in subsection (a)(1); and 

13 (B) not later than 30 days after the date 

14 of the determination under subparagraph (A), 

15 provide directly to such student a rebate equal 

16 to the amount of such excess. 

17 (2) NO REDUCTION.—If the amount determined 

18 under subsection (a)(1) for a student is equal to or 

19 less than the amount determined under subsection 

20 (a)(2), the Secretary shall not reduce the amount of 

21 the Federal Pell Grant under subpart 1 of part A 

22 of title IV of the Higher Education Act of 1965 (20 

23 U.S.C. 1070a et seq.) available for such student 

24 based on the updated tax tables described in sub25 section (a)(1) for award year 2005–2006. 
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•S 1249 IS

1 (c) TREATMENT OF REBATE.—Any rebate amount 

2 provided to a student under this section shall not be— 

3 (1) treated as a resource or estimated financial 

4 aid for determining an overaward; 

5 (2) adjusted based upon the student’s attend6 ance status during the 2005–2006 payment period; 

7 (3) included as assistance provided to such stu8 dent under section 484B of the Higher Education 

9 Act of 1965 (20 U.S.C. 1091b); 

10 (4) considered as income received when com11 pleting any form required by the Secretary under 

12 section 483 of the Higher Education Act of 1965 

13 (20 U.S.C. 1090); and 

14 (5) treated as other financial aid, assets, or in15 come for purposes of determining the need for finan16 cial assistance for any award year subsequent to 

17 award year 2005–2006. 

18 (d) AUTHORITY TO USE CONTRACTORS FOR ADMIN19 ISTRATION.— 

20 (1) IN GENERAL.—Except as provided in para21 graph (2), the Secretary may provide by contract for 

22 the administration of the requirements of this sec23 tion. 

24 (2) INSTITUTIONS NOT REQUIRED TO PERFORM

25 ADMINISTRATIVE TASKS.—Any institution that is eli-
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1 gible to participate in programs under subpart 1 of 

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

3 1965 (20 U.S.C. 1070a et seq.) shall not be required 

4 to perform any administrative requirement under 

5 this Act. 

6 (e) USE OF FAFSA DATA PERMITTED.—The Sec7 retary may use information provided on the Free Applica8 tion for Federal Student Aid to comply with the require9 ments of this section. 

10 (f) REQUIRED PAYMENTS OF REBATE.—The Sec11 retary shall transfer any unobligated funds available to the 

12 Secretary under the Consolidated Appropriations Act, 

13 2005 (Public Law 108–447) as may be necessary to carry 

14 out this Act. 

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