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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 1249 Introduced in Senate (IS)]

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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Student Fairness Act''.

SEC. 2. REBATE REQUIRED.

    (a) Calculation of Expected Family Contribution.--Beginning 60 days 
after the date of enactment of this Act, the Secretary of Education 
(referred to in this Act as the ``Secretary'') shall, for each student 
who submits a completed Free Application for Federal Student Aid 
described in section 483 of the Higher Education Act of 1965 (20 U.S.C. 
1090) for the 2005-2006 award year, calculate--
            (1) the expected family contribution, as determined for 
        such student for such award year on the basis of the allowance 
        for State and other taxes as adjusted by the updated tax tables 
        published in the Federal Register on Thursday, December 23, 
        2004 (69 Fed. Reg. 76926-76927); and
            (2) the expected family contribution that would apply to 
        such student if such calculation was based upon the allowance 
        for State and other taxes used for the 2004-2005 award year.
    (b) Rebate the Difference in the Pell Grant Award.--
            (1) In general.--For each student for whom the amount 
        determined under subsection (a)(1) exceeds the amount 
        determined under subsection (a)(2), the Secretary shall--
                    (A) determine the amount (if any) by which--
                            (i) the Federal Pell Grant aid under 
                        subpart 1 of part A of title IV of the Higher 
                        Education Act of 1965 (20 U.S.C. 1070a et seq.) 
                        that would have been provided to such student 
                        if such calculation was based upon the 
                        allowance for State and other taxes for the 
                        2004-2005 award year, exceeds
                            (ii) the Federal Pell Grant aid provided to 
                        such student for award year 2005-2006, based 
                        upon the updated tax tables described in 
                        subsection (a)(1); and
                    (B) not later than 30 days after the date of the 
                determination under subparagraph (A), provide directly 
                to such student a rebate equal to the amount of such 
                excess.
            (2) No reduction.--If the amount determined under 
        subsection (a)(1) for a student is equal to or less than the 
        amount determined under subsection (a)(2), the Secretary shall 
        not reduce the amount of the Federal Pell Grant under subpart 1 
        of part A of title IV of the Higher Education Act of 1965 (20 
        U.S.C. 1070a et seq.) available for such student based on the 
        updated tax tables described in subsection (a)(1) for award 
        year 2005-2006.
    (c) Treatment of Rebate.--Any rebate amount provided to a student 
under this section shall not be--
            (1) treated as a resource or estimated financial aid for 
        determining an overaward;
            (2) adjusted based upon the student's attendance status 
        during the 2005-2006 payment period;
            (3) included as assistance provided to such student under 
        section 484B of the Higher Education Act of 1965 (20 U.S.C. 
        1091b);
            (4) considered as income received when completing any form 
        required by the Secretary under section 483 of the Higher 
        Education Act of 1965 (20 U.S.C. 1090); and
            (5) treated as other financial aid, assets, or income for 
        purposes of determining the need for financial assistance for 
        any award year subsequent to award year 2005-2006.
    (d) Authority to Use Contractors for Administration.--
            (1) In general.--Except as provided in paragraph (2), the 
        Secretary may provide by contract for the administration of the 
        requirements of this section.
            (2) Institutions not required to perform administrative 
        tasks.--Any institution that is eligible to participate in 
        programs under subpart 1 of part A of title IV of the Higher 
        Education Act of 1965 (20 U.S.C. 1070a et seq.) shall not be 
        required to perform any administrative requirement under this 
        Act.
    (e) Use of FAFSA Data Permitted.--The Secretary may use information 
provided on the Free Application for Federal Student Aid to comply with 
the requirements of this section.
    (f) Required Payments of Rebate.--The Secretary shall transfer any 
unobligated funds available to the Secretary under the Consolidated 
Appropriations Act, 2005 (Public Law 108-447) as may be necessary to 
carry out this Act.
                                 <all>
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