II 

114TH CONGRESS 

1ST SESSION S. 108 

To amend the Higher Education Act of 1965 to improve access for students 

to Federal grants and loans to help pay for postsecondary, graduate, 

and professional educational opportunities, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JANUARY 7, 2015 

Mr. ALEXANDER (for himself, Mr. BENNET, Mr. BURR, Mr. KING, Mr. ISAKSON, and Mr. BOOKER) 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 improve 

access for students to Federal grants and loans to help 

pay for postsecondary, graduate, and professional educational opportunities, 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 Sim5 plification and Transparency Act of 2015’’. 


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1 SEC. 2. REFERENCES. 

2 Except as otherwise specifically provided, whenever in 

3 this Act a section or other provision is amended or re4 pealed, such amendment or repeal shall be considered to 

5 be made to that section or other provision of the Higher 

6 Education Act of 1965 (20 U.S.C. 1001 et seq.). 

7 SEC. 3. STATEMENT OF PURPOSE. 

8 The purpose of this Act is to simplify the Federal 

9 student aid programs in order to provide— 

10 (1) access to postsecondary education for stu11 dents and families; and 

12 (2) information that will allow students and 

13 families to make better consumer choices. 

14 SEC. 4. DEFINITIONS; SPECIAL RULE FOR PARENT BOR15 ROWERS. 

16 Part A of title IV (20 U.S.C. 1070 et seq.) is amend17 ed, in the matter preceding subpart 1, by striking section 

18 400 and inserting the following: 

19 ‘‘SEC. 400. DEFINITIONS; SPECIAL RULE FOR PARENT BOR20 ROWERS. 

21 ‘‘(a) DEFINITIONS.—In part A and part F: 

22 ‘‘(1) COST OF ATTENDANCE.—The term ‘cost of 

23 attendance’ means— 

24 ‘‘(A) tuition and fees normally assessed a 

25 student carrying the same academic workload 

26 as determined by the institution, and including 


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1 costs for rental or purchase of any equipment, 

2 materials, or supplies required of all students in 

3 the same course of study; 

4 ‘‘(B) an allowance for books, supplies, 

5 transportation, and miscellaneous personal ex6 penses, including a reasonable allowance for the 

7 documented rental or purchase of a personal 

8 computer, for a student attending the institu9 tion on at least a half-time basis, as determined 

10 by the institution; 

11 ‘‘(C) an allowance (as determined by the 

12 institution) for room and board costs incurred 

13 by the student which— 

14 ‘‘(i) shall be an allowance determined 

15 by the institution for a student without de16 pendents residing at home with parents; 

17 ‘‘(ii) for students without dependents 

18 residing in institutionally owned or oper19 ated housing, shall be a standard allowance 

20 determined by the institution based on the 

21 amount normally assessed most of its resi22 dents for room and board; 

23 ‘‘(iii) for students who live in housing 

24 located on a military base or for which a 

25 basic allowance is provided under section 


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1 403(b) of title 37, United States Code, 

2 shall be an allowance based on the ex3 penses reasonably incurred by such stu4 dents for board but not for room; and 

5 ‘‘(iv) for all other students shall be an 

6 allowance based on the expenses reason7 ably incurred by such students for room 

8 and board; 

9 ‘‘(D) for less than half-time students (as 

10 determined by the institution), tuition and fees 

11 and an allowance for only— 

12 ‘‘(i) books, supplies, and transpor13 tation (as determined by the institution); 

14 ‘‘(ii) dependent care expenses (deter15 mined in accordance with subparagraph 

16 (H)); and 

17 ‘‘(iii) room and board costs (deter18 mined in accordance with subparagraph 

19 (C)), except that a student may receive an 

20 allowance for such costs under this sub21 paragraph for not more than 3 semesters 

22 or the equivalent, of which not more than 

23 2 semesters or the equivalent may be con24 secutive; 


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1 ‘‘(E) for a student engaged in a program 

2 of study by correspondence, only tuition and 

3 fees and, if required, books and supplies, travel, 

4 and room and board costs incurred specifically 

5 in fulfilling a required period of residential 

6 training; 

7 ‘‘(F) for incarcerated students only tuition 

8 and fees and, if required, books and supplies; 

9 ‘‘(G) for a student enrolled in an academic 

10 program in a program of study abroad ap11 proved for credit by the student’s home institu12 tion, reasonable costs associated with such 

13 study (as determined by the institution at which 

14 such student is enrolled); 

15 ‘‘(H) for a student with one or more de16 pendents, an allowance based on the estimated 

17 actual expenses incurred for such dependent 

18 care, based on the number and age of such de19 pendents, except that— 

20 ‘‘(i) such allowance shall not exceed 

21 the reasonable cost in the community in 

22 which such student resides for the kind of 

23 care provided; and 

24 ‘‘(ii) the period for which dependent 

25 care is required includes, but is not limited 


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1 to, class-time, study-time, field work, in2 ternships, and commuting time; 

3 ‘‘(I) for a student with a disability, an al4 lowance (as determined by the institution) for 

5 those expenses related to the student’s dis6 ability, including special services, personal as7 sistance, transportation, equipment, and sup8 plies that are reasonably incurred and not pro9 vided for by other assisting agencies; 

10 ‘‘(J) for a student receiving all or part of 

11 the student’s instruction by means of tele12 communications technology, no distinction shall 

13 be made with respect to the mode of instruction 

14 in determining costs; 

15 ‘‘(K) for a student engaged in a work ex16 perience under a cooperative education pro17 gram, an allowance for reasonable costs associ18 ated with such employment (as determined by 

19 the institution); 

20 ‘‘(L) for a student who receives a loan 

21 under this or any other Federal law, or, at the 

22 option of the institution, a conventional student 

23 loan incurred by the student to cover a stu24 dent’s cost of attendance at the institution, an 

25 allowance for the actual cost of any loan fee, 


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1 origination fee, or insurance premium charged 

2 to such student or such parent on such loan, or 

3 the average cost of any such fee or premium 

4 charged by the Secretary, lender, or guaranty 

5 agency making or insuring such loan, as the 

6 case may be; and 

7 ‘‘(M) at the option of the institution, for a 

8 student in a program requiring professional li9 censure or certification, the one-time cost of ob10 taining the first professional credentials (as de11 termined by the institution). 

12 ‘‘(2) ELIGIBLE STUDENT.—The term ‘eligible 

13 student’ means an individual who— 

14 ‘‘(A) is enrolled or accepted for enrollment 

15 in a program of study at an eligible institution 

16 of higher education leading to a degree, certifi17 cate, or credential issued by such institution; 

18 ‘‘(B) in the case of a student who is en19 rolled at an eligible institution, is maintaining 

20 satisfactory academic progress in the program 

21 of study the student is pursuing while attending 

22 the institution (as defined in accordance with 

23 section 484(c)); 


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1 ‘‘(C) does not owe a refund on grants pre2 viously received at any institution under this 

3 title; 

4 ‘‘(D) is not in a default status on any loan 

5 made, insured, or guaranteed by the Secretary 

6 under this title for attendance at any institu7 tion; and 

8 ‘‘(E) is a citizen or national of the United 

9 States, a permanent resident of the United 

10 States, or able to provide evidence from Immi11 gration and Customs Enforcement that he or 

12 she is in the United States for other than a 

13 temporary purpose with the intention of becom14 ing a citizen or permanent resident. 

15 ‘‘(3) MEANS-TESTED FEDERAL BENEFIT PRO16 GRAM.—The term ‘means-tested Federal benefit pro17 gram’ means any of the following mandatory spend18 ing programs of the Federal Government: 

19 ‘‘(A) The supplemental security income 

20 program established under title XVI of the So21 cial Security Act (42 U.S.C. 1381 et seq.). 

22 ‘‘(B) The supplemental nutrition assist23 ance program established under the Food and 

24 Nutrition Act of 2008 (7 U.S.C. 2011 et seq.). 


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1 ‘‘(C) The free and reduced price school 

2 lunch program established under the Richard 

3 B. Russell National School Lunch Act (42 

4 U.S.C. 1751 et seq.). 

5 ‘‘(D) The program of block grants to 

6 States for temporary assistance for needy fami7 lies program established under part A of title 

8 IV of the Social Security Act (42 U.S.C. 601 et 

9 seq.). 

10 ‘‘(E) The special supplemental nutrition 

11 program for women, infants, and children es12 tablished by section 17 of the Child Nutrition 

13 Act of 1966 (42 U.S.C. 1786). 

14 ‘‘(4) GRADUATE OR PROFESSIONAL STU15 DENT.—The term ‘graduate or professional student’ 

16 means a student who has received a baccalaureate 

17 degree and is enrolled in a program of study requir18 ing a baccalaureate degree as a condition of that en19 rollment. 

20 ‘‘(b) SPECIAL RULE FOR PARENT BORROWERS.— 

21 Whenever necessary to carry out the provisions of part A 

22 or F, the terms ‘student’ and ‘borrower’ shall include a 

23 parent borrower. 


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1 ‘‘SEC. 400A. SIMPLIFIED APPLICATION FOR FEDERAL PELL 

2 GRANTS AND LOANS UNDER PART A AND 

3 PART F. 

4 ‘‘(a) IN GENERAL.—Each individual desiring to apply 

5 for Federal financial aid under this title for any year shall 

6 file an application with the Secretary to determine eligi7 bility for aid as described in subsection (b). 

8 ‘‘(b) FREE APPLICATION.— 

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

10 available, for the purposes of subsection (a), a free 

11 application to determine the eligibility of a student 

12 for a Federal Pell Grant under section 401 or a 

13 Federal loan under part F based— 

14 ‘‘(A) in the case of a Federal Pell Grant, 

15 on the adjusted gross income and family size of 

16 a student applicant, as described under section 

17 401(b); and 

18 ‘‘(B) in the case of a loan, on the max19 imum amount allowed as determined under sec20 tion 470(e)(4)(B). 

21 ‘‘(2) INFORMATION REQUIRED OF THE APPLI22 CANT.—The Secretary shall request the following in23 formation in order to determine an applicant’s eligi24 bility for Federal student aid: 

25 ‘‘(A) For the purposes of attaining a Fed26 eral Pell Grant— 


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1 ‘‘(i) the applicant’s name and address; 

2 ‘‘(ii) the applicant’s social security 

3 number; 

4 ‘‘(iii) the applicant’s date of birth; 

5 ‘‘(iv) in the case of an applicant who 

6 filed taxes, or an applicant whose parent or 

7 spouse (as applicable) filed taxes, in the 

8 year prior to the current prior year tax fil9 ing (as determined by the date of enroll10 ment), income and family size information, 

11 which shall be retrieved from the Internal 

12 Revenue Service; and 

13 ‘‘(v) in the case of an applicant who 

14 did not file taxes, and whose parent or 

15 spouse (as applicable) did not file taxes, in 

16 the year prior to the current prior year tax 

17 filing (as determined by the date of enroll18 ment), income and family size information, 

19 which shall be reported by the applicant. 

20 ‘‘(B) For the purpose of attaining a Fed21 eral loan, the applicant’s— 

22 ‘‘(i) name and address; 

23 ‘‘(ii) social security number; 

24 ‘‘(iii) date of birth; and 


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1 ‘‘(iv) if the applicant so chooses, a list 

2 of institutions of higher education that the 

3 applicant is interested in attending. 

4 ‘‘(3) INFORMATION TO BE SUPPLIED BY THE

5 SECRETARY.—Upon receiving and timely processing 

6 an application described under paragraph (1), the 

7 Secretary will provide to only the applicant, the fol8 lowing information: 

9 ‘‘(A) If the applicant applied for a Federal 

10 Pell Grant, the amount of the applicant’s Fed11 eral Pell Grant award. 

12 ‘‘(B) If the applicant applied for a Federal 

13 loan under section 470, the amount of the Fed14 eral loan that the applicant may receive if the 

15 applicant chooses, and the following informa16 tion: 

17 ‘‘(i) If the interest rate on the loan 

18 has been determined at the time such in19 formation is provided, the interest rate on 

20 the loan. 

21 ‘‘(ii) If the interest rate on the loan 

22 has not been determined at the time such 

23 information is provided, the current inter24 est rate and a statement that the interest 

25 rate is subject to change. 


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1 ‘‘(iii) The monthly amount that the 

2 applicant would be required to repay if the 

3 applicant chooses to accept the loan, based 

4 on— 

5 ‘‘(I) the amount of the Federal 

6 loan under section 470 that the appli7 cant may choose to receive; and 

8 ‘‘(II) payment of such loan on a 

9 10-year repayment plan. 

10 ‘‘(iv) The monthly amount that the 

11 applicant would be required to repay if the 

12 applicant chooses to accept a loan of the 

13 same amount and paid according to the 

14 same repayment plan as described in 

15 clause (iii)— 

16 ‘‘(I) if the applicant were to at17 tend a program 2 years in length; and 

18 ‘‘(II) if the applicant were to at19 tend a program 4 years in length. 

20 ‘‘(v) The monthly amount that the ap21 plicant would be required to repay if the 

22 applicant chooses to accept the loan, based 

23 on— 


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1 ‘‘(I) the amount of the Federal 

2 loan under section 470 that the appli3 cant may choose to receive; and 

4 ‘‘(II) payment of such loan ac5 cording to the income-based repay6 ment plan, reflecting not less than 5 

7 different income levels. 

8 ‘‘(vi) The monthly amount (based on 

9 not less than 5 different income levels) 

10 that the applicant would be required to 

11 repay if the applicant chooses to accept a 

12 loan of the same amount and paid accord13 ing to the same repayment plan as de14 scribed in clause (v)— 

15 ‘‘(I) if the applicant were to at16 tend a program 2 years in length; and 

17 ‘‘(II) if the applicant were to at18 tend a program 4 years in length.’’. 

19 SEC. 5. ONE GRANT PROGRAM. 

20 Part A of title IV of the Act (20 U.S.C. 1070 et seq.) 

21 is further amended— 

22 (1) in subpart 1, by striking sections 401 and 

23 401A and inserting the following: 


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1 ‘‘SEC. 401. FEDERAL PELL GRANTS. 

2 ‘‘(a) PROGRAM AUTHORITY AND METHOD OF DIS3 TRIBUTION.— 

4 ‘‘(1) IN GENERAL.—Grants made under this 

5 subpart shall be known as ‘Federal Pell Grants’. 

6 ‘‘(2) PROGRAM AUTHORIZED.—For each of fis7 cal years 2016 through 2022, the Secretary shall 

8 pay to each eligible institution such sums as may be 

9 necessary to pay to each eligible student, as defined 

10 in accordance with section 400(a), for each academic 

11 year during which that student is in attendance at 

12 an institution of higher education, as an under13 graduate, a Federal Pell Grant in the amount for 

14 which that student is eligible, as determined pursu15 ant to subsection (b). 

16 ‘‘(3) METHOD OF DISTRIBUTION.—The Sec17 retary shall provide funds to each eligible institution 

18 of higher education in an accurate and timely man19 ner based upon an amount requested by the institu20 tion for eligible students at that institution that have 

21 submitted an approved application in accordance 

22 with subsection (d). 

23 ‘‘(b) PURPOSE AND AMOUNT OF GRANT.— 

24 ‘‘(1) PURPOSE.—The purpose of this part is to 

25 assist in making available the benefits of postsec26 ondary education to eligible students in institutions 


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1 of higher education by providing Federal Pell Grants 

2 to all eligible students. 

3 ‘‘(2) DETERMINATION OF AMOUNT.— 

4 ‘‘(A) QUALIFICATION FOR FEDERAL PELL

5 GRANT AWARD.—An eligible student shall auto6 matically qualify to receive a Federal Pell Grant 

7 award, which shall be determined in accordance 

8 with subparagraph (B)(ii) if the student or the 

9 student’s family received benefits at some time 

10 during the previous 24-month period under a 

11 means-tested Federal benefit program, as de12 fined in section 400. 

13 ‘‘(B) AWARD AMOUNT.— 

14 ‘‘(i) AWARD YEAR 2015.—An eligible 

15 student shall receive a Federal Pell Grant 

16 award for award year 2015 in an amount 

17 determined in accordance with clause (ii). 

18 ‘‘(ii) CALCULATION OF INDIVIDUAL

19 AWARD AMOUNT.— 

20 ‘‘(I) For family size of 1: 

‘‘2013 AGI Pell Award 

$0–$11,670 ..................................................................................... $5,730

$11,671–$12,837 ............................................................................ $5,380

$12,838–$14,004 ............................................................................ $4,890

$14,005–$15,171 ............................................................................ $4,400

$15,172–$16,338 ............................................................................ $3,910

$16,339–$17,505 ............................................................................ $3,420

$17,506–$18,672 ............................................................................ $2,930

$18,673–$19,839 ............................................................................ $2,440

$19,840–$21,006 ............................................................................ $1,950


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‘‘2013 AGI Pell Award 

$21,007–$22,173 ............................................................................ $1,460

$22,174–$23,340 ............................................................................ $970. 

1 ‘‘(II) For family size of 2: 

‘‘2013 AGI Pell Award 

$0–$15,730 ..................................................................................... $5,730

$15,731–$17,303 ............................................................................ $5,505

$17,304–$18,876 ............................................................................ $5,235

$18,877–$20,449 ............................................................................ $4,965

$20,450–$22,022 ............................................................................ $4,695

$22,023–$23,595 ............................................................................ $4,425

$23,596–$25,168 ............................................................................ $4,155

$25,169–$26,741 ............................................................................ $3,885

$26,742–$28,314 ............................................................................ $3,615

$28,315–$29,887 ............................................................................ $3,345

$29,888–$31,460 ............................................................................ $3,075

$31,461–$33,033 ............................................................................ $3,130

$33,034–$34,606 ............................................................................ $2,890

$34,607–$36,179 ............................................................................ $2,650

$36,180–$37,752 ............................................................................ $2,410

$37,753–$39,325 ............................................................................ $2,170. 

2 ‘‘(III) For family size of 3: 

‘‘2013 AGI Pell Award 

$0–$19,790 ..................................................................................... $5,730

$19,791–$21,769 ............................................................................ $5,555

$21,770–$23,748 ............................................................................ $5,345

$23,749–$25,727 ............................................................................ $5,135

$25,728–$27,706 ............................................................................ $4,925

$27,707–$29,685 ............................................................................ $4,715

$29,686–$31,664 ............................................................................ $4,505

$31,665–$33,643 ............................................................................ $4,295

$33,644–$35,622 ............................................................................ $4,085

$35,623–$37,601 ............................................................................ $3,875

$37,602–$39,580 ............................................................................ $3,665

$39,581–$41,559 ............................................................................ $3,130

$41,560–$43,538 ............................................................................ $2,890

$43,539–$45,517 ............................................................................ $2,650

$45,518–$47,496 ............................................................................ $2,410

$47,497–$49,475 ............................................................................ $2,170. 

3 ‘‘(IV) For family size of 4: 


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‘‘2013 AGI Pell Award 

$0–$23,850 ..................................................................................... $5,730

$23,851–$26,235 ............................................................................ $5,555

$26,236–$28,620 ............................................................................ $5,345

$28,621–$31,005 ............................................................................ $5,135

$31,006–$33,390 ............................................................................ $4,925

$33,391–$35,775 ............................................................................ $4,715

$35,776–$38,160 ............................................................................ $4,505

$38,161–$40,545 ............................................................................ $4,295

$40,546–$42,930 ............................................................................ $4,085

$42,931–$45,315 ............................................................................ $3,875

$45,316–$47,700 ............................................................................ $3,665

$47,701–$50,085 ............................................................................ $3,130

$50,086–$52,470 ............................................................................ $2,890

$52,471–$54,855 ............................................................................ $2,650

$54,856–$57,240 ............................................................................ $2,410

$57,241–$59,625 ............................................................................ $2,170. 

1 ‘‘(V) For family size of 5: 

‘‘2013 AGI Pell Award 

$0–$27,910 ..................................................................................... $5,730

$27,911–$30,701 ............................................................................ $5,530

$30,702–$33,492 ............................................................................ $5,290

$33,493–$36,283 ............................................................................ $5,050

$36,284–$39,074 ............................................................................ $4,810

$39,075–$41,865 ............................................................................ $4,570

$41,866–$44,656 ............................................................................ $4,330

$44,657–$47,447 ............................................................................ $4,090

$47,448–$50,238 ............................................................................ $3,850

$50,239–$53,029 ............................................................................ $3,610

$53,030–$55,820 ............................................................................ $3,370

$55,821–$58,611 ............................................................................ $3,130

$58,612–$61,402 ............................................................................ $2,890

$61,403–$64,193 ............................................................................ $2,650

$64,194–$66,984 ............................................................................ $2,410

$66,985–$69,775 ............................................................................ $2,170. 

2 ‘‘(VI) For family size of 6: 

‘‘2013 AGI Pell Award 

$0–$31,970 ..................................................................................... $5,730

$31,971–$35,167 ............................................................................ $5,530

$35,168–$38,364 ............................................................................ $5,290

$38,365–$41,561 ............................................................................ $5,050

$41,562–$44,758 ............................................................................ $4,810

$44,759–$47,955 ............................................................................ $4,570

$47,956–$51,152 ............................................................................ $4,330

$51,153–$54,349 ............................................................................ $4,090


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‘‘2013 AGI Pell Award 

$54,350–$57,546 ............................................................................ $3,850

$57,547–$60,743 ............................................................................ $3,610

$60,744–$63,940 ............................................................................ $3,370

$63,941–$67,137 ............................................................................ $3,130

$67,138–$70,334 ............................................................................ $2,890

$70,335–$73,531 ............................................................................ $2,650

$73,532–$76,728 ............................................................................ $2,410

$76,729–$79,925 ............................................................................ $2,170. 

1 ‘‘(VII) For family size of 7: 

‘‘2013 AGI Pell Award 

$0–$36,030 ..................................................................................... $5,730

$36,031–$39,633 ............................................................................ $5,530

$39,634–$43,236 ............................................................................ $5,290

$43,237–$46,839 ............................................................................ $5,050

$46,840–$50,442 ............................................................................ $4,810

$50,443–$54,045 ............................................................................ $4,570

$54,046–$57,648 ............................................................................ $4,330

$57,649–$61,251 ............................................................................ $4,090

$61,252–$64,854 ............................................................................ $3,850

$64,855–$68,457 ............................................................................ $3,610

$68,458–$72,060 ............................................................................ $3,370

$72,061–$75,663 ............................................................................ $3,130

$75,664–$79,266 ............................................................................ $2,890

$79,267–$82,869 ............................................................................ $2,650

$82,870–$86,472 ............................................................................ $2,410

$86,473–$90,075 ............................................................................ $2,170. 

2 ‘‘(VIII) For family size of 8 or 

3 more: 

‘‘2013 AGI Pell Award 

$0–$40,909 ..................................................................................... $5,730

$40,910–$45,000 ............................................................................ $5,505

$45,001–$49,091 ............................................................................ $5,235

$49,092–$53,182 ............................................................................ $4,943

$53,183–$57,273 ............................................................................ $4,628

$57,274–$61,364 ............................................................................ $4,290

$61,365–$65,454 ............................................................................ $3,953

$65,455–$69,545 ............................................................................ $3,615

$69,546–$73,636 ............................................................................ $3,278

$73,637–$77,727 ............................................................................ $2,940

$77,728–$81,818 ............................................................................ $2,603

$81,819–$85,909 ............................................................................ $3,130

$85,910–$90,000 ............................................................................ $2,890

$90,001–$94,091 ............................................................................ $2,650


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‘‘2013 AGI Pell Award 

$94,092–$98,182 ............................................................................ $2,410

$98,182–$102,273 .......................................................................... $2,170. 

1 ‘‘(iii) SUBSEQUENT AWARD YEARS.— 

2 For each award year subsequent to 2015, 

3 the dollar amounts in the table under 

4 clause (ii) shall be adjusted (rounded to 

5 the nearest dollar) by the percentage by 

6 which— 

7 ‘‘(I) the maximum Federal Pell 

8 Grant award amount calculated in ac9 cordance with subparagraph (C)(i), 

10 exceeds or decreases below 

11 ‘‘(II) $5730. 

12 ‘‘(C) MAXIMUM AMOUNT OF FEDERAL

13 PELL GRANT AWARD.— 

14 ‘‘(i) IN GENERAL.—The maximum 

15 amount of the Federal Pell Grant for a 

16 student eligible under this part shall be— 

17 ‘‘(I) the maximum Federal Pell 

18 Grant, as specified in the last enacted 

19 appropriation Act applicable to that 

20 award year, plus 

21 ‘‘(II) the amount of the increase 

22 calculated under clause (ii) for that 

23 year. 


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1 ‘‘(ii) ADDITIONAL FUNDS.—There are 

2 authorized to be appropriated, and there 

3 are appropriated (in addition to any other 

4 amounts appropriated to carry out this 

5 section and out of any money in the Treas6 ury not otherwise appropriated) the fol7 lowing amounts— 

8 ‘‘(I) to carry out clause (iii), such 

9 sums as may be necessary for fiscal 

10 year 2010 and each subsequent fiscal 

11 year to provide the amount of increase 

12 of the maximum Federal Pell Grant 

13 required by clause (iii); and 

14 ‘‘(II) to carry out this section— 

15 ‘‘(aa) $0 for fiscal year 

16 2015; 

17 ‘‘(bb) $0 for fiscal year 

18 2016; 

19 ‘‘(cc) $1,574,000,000 for fis20 cal year 2017; 

21 ‘‘(dd) $1,382,000,000 for 

22 fiscal year 2018; 

23 ‘‘(ee) $1,409,000,000 for 

24 fiscal year 2019; 


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1 ‘‘(ff) $1,430,000,000 for fis2 cal year 2020; and 

3 ‘‘(gg) $1,145,000,000 for 

4 fiscal year 2021 and each suc5 ceeding fiscal year. 

6 ‘‘(iii) INCREASE IN FEDERAL PELL

7 GRANTS.—The amounts made available 

8 pursuant to clause (ii)(I) shall be used to 

9 increase the amount of the maximum Fed10 eral Pell Grant for which a student shall 

11 be eligible during an award year, as speci12 fied in the last enacted appropriation Act 

13 applicable to that award year, by the 

14 amount determined under clause (iv) for 

15 each succeeding award year. 

16 ‘‘(iv) ADJUSTMENT AMOUNTS.— 

17 ‘‘(I) AWARD YEARS 2015–2016

18 THROUGH 2017–2018.—For each of the 

19 award years 2015–2016 through 

20 2017–2018, the amount determined 

21 under this clause for purposes of 

22 clause (iii) shall be equal to— 

23 ‘‘(aa) the total maximum 

24 Federal Pell Grant for the pre25 ceding award year (as determined 


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1 under subclause (IV)), increased 

2 by a percentage equal to the an3 nual adjustment percentage for 

4 the award year for which the 

5 amount under this subparagraph 

6 is being determined, reduced by 

7 ‘‘(bb) $4,860 or the max8 imum Federal Pell Grant for 

9 which a student was eligible for 

10 the preceding award year, as 

11 specified in the last enacted ap12 propriation Act applicable to that 

13 year, whichever is greater, and 

14 ‘‘(cc) rounded to the nearest 

15 $5. 

16 ‘‘(II) SUBSEQUENT AWARD

17 YEARS.—For award year 2018–2019 

18 and each subsequent award year, the 

19 amount determined under this clause 

20 for purposes of clause (iii) shall be 

21 equal to the amount determined under 

22 subclause (IV) for award year 2017– 

23 2018. 

24 ‘‘(III) ANNUAL ADJUSTMENT

25 PERCENTAGE.—For purposes of this 


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1 clause, the term ‘annual adjustment 

2 percentage’ as applied to an award 

3 year, is equal to the estimated per4 centage change in the Consumer Price 

5 Index (as determined by the Sec6 retary, using the definition in section 

7 478(f)) for the most recent calendar 

8 year ending prior to the beginning of 

9 that award year. 

10 ‘‘(IV) TOTAL MAXIMUM FEDERAL

11 PELL GRANT.—For purposes of this 

12 clause, the term ‘total maximum Fed13 eral Pell Grant’ as applied to a pre14 ceding award year, is equal to the 

15 sum of— 

16 ‘‘(aa) the maximum Federal 

17 Pell Grant for which a student is 

18 eligible during an award year, as 

19 specified in the last enacted ap20 propriation Act applicable to that 

21 preceding award year; and 

22 ‘‘(bb) the amount of the in23 crease in the maximum Federal 

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1 paragraph for that preceding 

2 award year. 

3 ‘‘(v) PROGRAM REQUIREMENTS AND

4 OPERATIONS OTHERWISE UNAFFECTED.— 

5 Except as provided in clauses (iii) and (iv), 

6 nothing in this subparagraph shall be con7 strued to alter the requirements and oper8 ations of the Federal Pell Grant Program 

9 as authorized under this section, or au10 thorize the imposition of additional re11 quirements or operations for the deter12 mination and allocation of Federal Pell 

13 Grants under this section. 

14 ‘‘(vi) RATABLE INCREASES AND DE15 CREASES.—The amounts specified in 

16 clause (iii) shall be ratably increased or de17 creased to the extent that funds available 

18 under clause (ii) exceed or are less than 

19 (respectively) the amount required to pro20 vide the amounts specified in clause (iii). 

21 ‘‘(vii) AVAILABILITY OF FUNDS.—The 

22 amounts made available by clause (ii) for 

23 any fiscal year shall be available beginning 

24 on October 1 of that fiscal year, and shall 


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1 remain available through September 30 of 

2 the succeeding fiscal year. 

3 ‘‘(D) EXCEPTION.—Nothing in this part 

4 shall be interpreted as limiting the authority of 

5 the financial aid administrator, on the basis of 

6 adequate documentation, to make adjustments 

7 on a case-by-case basis to the values of the data 

8 items required to calculate the amount of a 

9 Federal Pell Grant award as described under 

10 subparagraph (B) to allow only for treatment of 

11 an individual eligible applicant with a change in 

12 family income or family size. 

13 ‘‘(E) LIMITATIONS.— 

14 ‘‘(i) PART-TIME STUDENTS.—In any 

15 case where a student attends an institution 

16 of higher education on less than a full-time 

17 basis (including a student who attends an 

18 institution of higher education on less than 

19 a half-time basis) during any academic 

20 year, the amount of the Federal Pell Grant 

21 to which that student is entitled shall be 

22 reduced in proportion to the degree to 

23 which that student is not so attending on 

24 a full-time basis in accordance with a 

25 schedule of reductions established by the 


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1 Secretary for the purposes of this clause, 

2 computed in accordance with this subpart. 

3 ‘‘(ii) COST OF ATTENDANCE.—No 

4 Federal Pell Grant under this subpart 

5 shall exceed the cost of attendance at the 

6 institution at which that student is in at7 tendance. 

8 ‘‘(iii) INCARCERATION.—No Federal 

9 Pell Grant shall be awarded under this 

10 subpart to any individual who is incarcer11 ated in any Federal or State penal institu12 tion or who is subject to an involuntary 

13 civil commitment upon completion of a pe14 riod of incarceration for a forcible or non15 forcible sexual offense (as determined in 

16 accordance with the Federal Bureau of In17 vestigation’s Uniform Crime Reporting 

18 Program). 

19 ‘‘(c) PERIOD OF ELIGIBILITY FOR GRANTS.— 

20 ‘‘(1) IN GENERAL.—The period during which a 

21 student may receive Federal Pell Grants shall be the 

22 period required for the completion of the first under23 graduate baccalaureate program of study being pur24 sued by that student at the institution at which the 

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1 ing which the student is enrolled in a non-credit or 

2 remedial program of study as defined in paragraph 

3 (2) shall not be counted for the purpose of this para4 graph. 

5 ‘‘(2) NON-CREDIT OR REMEDIAL COURSEWORK

6 AND STUDY ABROAD PROGRAMS.—Nothing in this 

7 section shall exclude from eligibility— 

8 ‘‘(A) programs of study which are non9 credit or remedial in nature (including courses 

10 in English language instruction) which are de11 termined by the institution to be necessary to 

12 help the student be prepared for the pursuit of 

13 a first undergraduate baccalaureate degree or 

14 certificate or, in the case of courses in English 

15 language instruction, to be necessary to enable 

16 the student to utilize already existing knowl17 edge, training, or skills; or 

18 ‘‘(B) programs of study abroad that are 

19 approved for credit by the home institution at 

20 which the student is enrolled. 

21 ‘‘(3) LIMITATION.—No student is entitled to re22 ceive Federal Pell Grant payments concurrently 

23 from more than one institution. 

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1 case basis, a student to receive a basic grant if the 

2 student— 

3 ‘‘(A) is carrying at least one-half the nor4 mal full-time work load for the program of 

5 study the student is pursuing, as determined by 

6 the institution of higher education; and 

7 ‘‘(B) is enrolled or accepted for enrollment 

8 in a postbaccalaureate program that does not 

9 lead to a graduate degree, and in courses re10 quired by a State in order for the student to re11 ceive a professional certification or licensing 

12 credential that is required for employment as a 

13 teacher in an elementary school or secondary 

14 school in that State, except that this paragraph 

15 shall not apply to a student who is enrolled in 

16 an institution of higher education that offers a 

17 baccalaureate degree in education. 

18 ‘‘(5) ANNUAL AWARD.— 

19 ‘‘(A) IN GENERAL.—The period during 

20 which a student may receive Federal Pell 

21 Grants shall not exceed 12 semesters, or the 

22 equivalent of 12 semesters, as determined by 

23 the Secretary by regulation. Such regulation 

24 shall provide, with respect to a student who re25 ceived a Federal Pell Grant for a semester and 


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1 was enrolled on a less than full-time basis dur2 ing that semester, that only a fraction of such 

3 semester shall count towards the semester limit 

4 described in this subparagraph. 

5 ‘‘(B) EXCEPTIONS FOR ACCELERATED

6 COMPLETION.— 

7 ‘‘(i) ACCELERATED COURSEWORK.— 

8 An eligible student who completes 

9 coursework equivalent to one academic 

10 year before the end of an award year and 

11 has exhausted the Federal Pell Grant 

12 award funding for which that student is el13 igible for such award year may receive all, 

14 or a portion of, the Federal Pell Grant 

15 funds that the student would otherwise be 

16 eligible to receive in the next award year to 

17 pay additional tuition and fees charged to 

18 the student due to enrolling in additional 

19 courses during such award year. A student 

20 who receives all, or a portion, of such Fed21 eral Pell Grant funds for the next award 

22 year in accordance with this clause shall 

23 not have the amount of Federal Pell Grant 

24 funds reduced in that next award year due 

25 to such accelerated coursework. 


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1 ‘‘(ii) 2 PELL GRANTS IN A SINGLE

2 AWARD YEAR.— 

3 ‘‘(I) 2 PELL GRANTS IN A SINGLE

4 AWARD YEAR.—In addition to the ex5 ception described in clause (i), the 

6 Secretary shall award an eligible stu7 dent who has not completed 

8 coursework equivalent to one aca9 demic year before the end of an award 

10 year not more than 2 Federal Pell 

11 Grants during a single award year to 

12 permit such student to complete aca13 demic progress for that award year so 

14 that the student may receive a degree 

15 or certificate on time. Such eligible 

16 student may earn academic credits ex17 ceeding the minimum number of cred18 its needed to maintain academic 

19 progress toward receiving a degree or 

20 certificate on time, if those credits are 

21 earned in the course of pursuing aca22 demic progress for on time completion 

23 of a degree or certificate. 

24 ‘‘(II) EXCEPTION TO ANNUAL

25 PELL GRANT LIMIT.—In the case of a 


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1 student receiving more than 1 Federal 

2 Pell Grant in a single award year 

3 under subclause (I), the total amount 

4 of Federal Pell Grants awarded to 

5 such student for the award year may 

6 exceed the maximum basic grant level 

7 calculated in accordance with sub8 section (b)(2)(C)(i) for such award 

9 year, but shall not exceed an amount 

10 equal to 150 percent of such max11 imum basic grant level. 

12 ‘‘(III) INCLUSION IN DURATION

13 LIMIT.—Any period of study covered 

14 by a Federal Pell Grant awarded 

15 under this clause shall be included in 

16 determining a student’s duration limit 

17 under subparagraph (A). 

18 ‘‘(d) APPLICATION FOR GRANTS.—The Secretary 

19 shall from time to time set dates by which students shall 

20 file applications for Federal Pell Grants under this sub21 part. Each student desiring a Federal Pell Grant for any 

22 year shall file an application with the Secretary to deter23 mine eligibility for an award as described in section 400A. 

24 ‘‘(e) DISTRIBUTION OF GRANTS TO STUDENTS.— 


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1 ‘‘(1) IN GENERAL.—Payments under this sec2 tion shall be made in accordance with regulations 

3 promulgated by the Secretary for such purpose, in 

4 such manner as will best accomplish the purpose of 

5 this section. 

6 ‘‘(2) LIMITATIONS.—Any disbursement allowed 

7 to be made by crediting the student’s account shall 

8 be limited to tuition and fees and, in the case of in9 stitutionally owned housing, room and board. 

10 ‘‘(3) EXCEPTION.—A student may elect to have 

11 the institution provide other such goods and services 

12 by crediting the student’s account. 

13 ‘‘(f) TREATMENT OF INSTITUTIONS AND STUDENTS

14 UNDER OTHER LAWS.—Any institution of higher edu15 cation which enters into an agreement with the Secretary 

16 to disburse to students attending that institution the 

17 amounts those students are eligible to receive under this 

18 subpart shall not be deemed, by virtue of such agreement, 

19 a contractor maintaining a system of records to accom20 plish a function of the Secretary. Recipients of Federal 

21 Pell Grants shall not be considered to be individual grant22 ees for purposes of subtitle D of title V of Public Law 

23 100–690. 

24 ‘‘(g) INSUFFICIENT APPROPRIATIONS.—If, for any 

25 fiscal year, the funds appropriated for payments under 


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1 this subpart are insufficient to satisfy fully all entitle2 ments, as calculated under subsection (b) (but at the max3 imum grant level specified in such appropriation), the Sec4 retary shall promptly transmit a notice of such insuffi5 ciency to each House of the Congress, and identify in such 

6 notice the additional amount that would be required to 

7 be appropriated to satisfy fully all entitlements (as so cal8 culated at such maximum grant level). 

9 ‘‘(h) USE OF EXCESS FUNDS.—If, at the end of a 

10 fiscal year, the funds available for making payments under 

11 this subpart exceed the amount necessary to make the 

12 payments required under this subpart to eligible students, 

13 then all of the excess funds shall remain available for mak14 ing payments under this subpart during the next suc15 ceeding fiscal year.’’; 

16 (2) by striking subparts 3, 4, and 6; and 

17 (3) by redesignating subparts 5, 7, 9, and 10 

18 as subparts 3, 4, 5, and 6, respectively. 

19 SEC. 6. ONE LOAN PROGRAM. 

20 Title IV of the Act (20 U.S.C. 1070 et seq.) is further 

21 amended— 

22 (1) in section 451(a), by inserting ‘‘, and end23 ing on the June 30 following the date of enactment 

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1 parency Act of 2015’’ after ‘‘during the period be2 ginning July 1, 1994’’; and 

3 (2) by striking part F and inserting the fol4 lowing: 

5 ‘‘PART F—ONE LOAN PROGRAM 

6 ‘‘SEC. 470. LOANS TO STUDENTS AND FAMILIES FOR POST7 SECONDARY AND GRADUATE EDUCATION. 

8 ‘‘(a) PROGRAM AUTHORIZED.— 

9 ‘‘(1) IN GENERAL.—There are hereby made 

10 available, in accordance with the provisions of this 

11 part, such sums as may be necessary to make loans 

12 (including consolidation loans, as described in sub13 section (f)) to all eligible students (and the eligible 

14 parents of such students) in attendance at partici15 pating institutions of higher education, to enable 

16 such students to pursue their programs of study at 

17 such institutions during the period beginning on the 

18 July 1 after the date of enactment of the Financial 

19 Aid Simplification and Transparency Act of 2015. 

20 ‘‘(2) LOAN ORIGINATION.—Loans made under 

21 this part shall be made by participating institutions, 

22 or consortia thereof, that have agreements with the 

23 Secretary to originate loans, or by alternative origi24 nators designated by the Secretary to make loans for 

25 students in attendance at participating institutions. 


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1 ‘‘(b) FUNDS FOR ORIGINATION.— 

2 ‘‘(1) IN GENERAL.—The Secretary shall pro3 vide, on the basis of the estimated loan amount de4 termined under subsection (e)(4) and the eligibility 

5 of students at each participating institution, and 

6 parents of such students, for such loans, funds for 

7 student and parent loans under this part directly to 

8 an institution of higher education that has an agree9 ment with the Secretary under subsection (d)(1) to 

10 participate in the student loan programs under this 

11 part and that also has an agreement with the Sec12 retary under subsection (d)(2) to originate loans 

13 under this part. 

14 ‘‘(2) NO ENTITLEMENT TO PARTICIPATE OR

15 ORIGINATE.—No institution of higher education 

16 shall have a right to participate in the program au17 thorized by this part, to originate loans, or to per18 form any program function under this part. Nothing 

19 in this paragraph shall be construed so as to limit 

20 the entitlement of an eligible student attending a 

21 participating institution (or the eligible parent of 

22 such student) to borrow under this part. 

23 ‘‘(3) DELIVERY OF LOAN FUNDS.—Loan funds 

24 shall be paid and delivered to an institution by the 

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1 riod established by the Secretary in a manner that 

2 is consistent with payment and delivery of Federal 

3 Pell Grants under subpart 1 of part A of this title. 

4 ‘‘(4) INSTITUTIONS OUTSIDE THE UNITED

5 STATES.—Loan funds for students (and parents of 

6 students) attending institutions outside the United 

7 States shall be disbursed through a financial institu8 tion located or operating in the United States and 

9 designated by the Secretary to serve as the agent of 

10 such institutions with respect to the receipt of the 

11 disbursements of such loan funds and the transfer of 

12 such funds to such institutions. To be eligible to re13 ceive funds under this part, an institution outside 

14 the United States shall make arrangements with the 

15 agent designated by the Secretary under this para16 graph to receive funds under this part. 

17 ‘‘(c) SELECTION OF INSTITUTIONS FOR PARTICIPA18 TION AND ORIGINATION.— 

19 ‘‘(1) GENERAL AUTHORITY.—The Secretary 

20 shall enter into agreements pursuant to subsection 

21 (d)(1) with institutions of higher education to par22 ticipate in the student loan program under this part, 

23 and agreements pursuant to subsection (d)(2) with 

24 institutions of higher education, or consortia thereof, 

25 to originate loans in such program, for academic 


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1 years beginning on or after the July 1 after the date 

2 of enactment of the Financial Aid Simplification and 

3 Transparency Act of 2015. Such agreements for the 

4 academic year 2015–2016 shall, to the extent fea5 sible, be entered into not later than January 1, 

6 2015. 

7 ‘‘(2) SELECTION CRITERIA.— 

8 ‘‘(A) APPLICATION.—Each institution of 

9 higher education desiring to participate in the 

10 student loan program under this part shall sub11 mit an application satisfactory to the Secretary 

12 containing such information and assurances as 

13 the Secretary may require. 

14 ‘‘(B) SELECTION PROCEDURE.—The Sec15 retary shall select institutions for participation 

16 in the student loan program under this part, 

17 and shall enter into agreements with such insti18 tutions under subsection (d)(1), from among 

19 those institutions that submit the applications 

20 described in subparagraph (A), and meet such 

21 other eligibility requirements as the Secretary 

22 shall prescribe. 

23 ‘‘(3) SELECTION CRITERIA FOR ORIGINATION.— 

24 ‘‘(A) IN GENERAL.—The Secretary may 

25 enter into a supplemental agreement with an 


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1 institution (or a consortium of such institu2 tions) that— 

3 ‘‘(i) has an agreement under sub4 section (d)(1); 

5 ‘‘(ii) desires to originate loans under 

6 this part; and 

7 ‘‘(iii) meets the criteria described in 

8 subparagraph (B). 

9 ‘‘(B) SELECTION CRITERIA.—The Sec10 retary may approve an institution to originate 

11 loans only if such institution— 

12 ‘‘(i) is not on the reimbursement sys13 tem of payment for any of the programs 

14 under subpart 1 of part A or part C of this 

15 title; 

16 ‘‘(ii) is not overdue on program or fi17 nancial reports or audits required under 

18 this title; 

19 ‘‘(iii) is not subject to an emergency 

20 action, or a limitation, suspension, or ter21 mination under section 428(b)(1)(T), 

22 432(h), or 487(c); 

23 ‘‘(iv) in the opinion of the Secretary, 

24 has not had severe performance defi25 ciencies for any of the programs under this 


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1 title, including such deficiencies dem2 onstrated by audits or program reviews 

3 submitted or conducted during the 5 cal4 endar years immediately preceding the 

5 date of application; 

6 ‘‘(v) provides an assurance that such 

7 institution has no delinquent outstanding 

8 debts to the Federal Government, unless 

9 such debts are being repaid under or in ac10 cordance with a repayment arrangement 

11 satisfactory to the Federal Government, or 

12 the Secretary in the Secretary’s discretion 

13 determines that the existence or amount of 

14 such debts has not been finally determined 

15 by the cognizant Federal agency; and 

16 ‘‘(vi) meets such other criteria as the 

17 Secretary may establish to protect the fi18 nancial interest of the United States and 

19 to promote the purposes of this part. 

20 ‘‘(4) ELIGIBLE INSTITUTIONS.—The Secretary 

21 may not select an institution of higher education for 

22 participation under this section unless such institu23 tion is an eligible institution under section 435(a). 

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1 tutions of higher education (as determined under 

2 paragraph (4)) with agreements under subsection 

3 (d)(1) may apply to the Secretary as consortia to 

4 originate loans under this part for students in at5 tendance at such institutions. Each such institution 

6 shall be required to meet the requirements of para7 graph (3) with respect to loan origination. 

8 ‘‘(d) AGREEMENTS WITH INSTITUTIONS.— 

9 ‘‘(1) PARTICIPATION AGREEMENTS.—An agree10 ment with any institution of higher education for 

11 participation in the student loan program under this 

12 part shall— 

13 ‘‘(A) provide for the establishment and 

14 maintenance of a student loan program at the 

15 institution under which the institution will— 

16 ‘‘(i) identify eligible students who seek 

17 student financial assistance at such institu18 tion in accordance with subsection (e)(2); 

19 ‘‘(ii) estimate the loan amount of each 

20 such student in accordance with subsection 

21 (e)(4)(A)(i); 

22 ‘‘(iii) provide a statement that cer23 tifies the eligibility of any student to re24 ceive a loan under this part that is not in 

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1 plicable to such loan, except that the insti2 tution may, in exceptional circumstances 

3 identified by the Secretary, refuse to cer4 tify a statement that permits a student to 

5 receive a loan under this part, or certify a 

6 loan amount that is less than the amount 

7 the student may otherwise be eligible to re8 ceive, as described in clauses (iii) and (iv) 

9 of subsection (e)(4)(B); 

10 ‘‘(iv) set forth a schedule for disburse11 ment of the proceeds of the loan in install12 ments, consistent with the requirements of 

13 section 428G; and 

14 ‘‘(v) provide timely and accurate in15 formation concerning the status of student 

16 borrowers (and students on whose behalf 

17 parents borrow under this part) while such 

18 students are in attendance at the institu19 tion and concerning any new information 

20 of which the institution becomes aware for 

21 such students (or their parents) after such 

22 borrowers leave the institution, to the Sec23 retary for the servicing and collecting of 

24 loans made under this part; 


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1 ‘‘(B) provide assurances that the institu2 tion will comply with requirements established 

3 by the Secretary relating to student loan infor4 mation with respect to loans made under this 

5 part; 

6 ‘‘(C) provide that the institution accepts 

7 responsibility and financial liability stemming 

8 from its failure to perform its functions pursu9 ant to the agreement; 

10 ‘‘(D) provide for the implementation of a 

11 quality assurance system, as established by the 

12 Secretary and developed in consultation with in13 stitutions of higher education, to ensure that 

14 the institution is complying with program re15 quirements and meeting program objectives; 

16 ‘‘(E) provide that the institution will not 

17 charge any fees of any kind, however described, 

18 to student or parent borrowers for origination 

19 activities or the provision of any information 

20 necessary for a student or parent to receive a 

21 loan under this part, or any benefits associated 

22 with such loan; and 

23 ‘‘(F) include such other provisions as the 

24 Secretary reasonably determines are necessary 


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1 to protect the interests of the United States 

2 and to promote the purposes of this part. 

3 ‘‘(2) ORIGINATION.—An agreement with any in4 stitution of higher education, or consortia thereof, 

5 for the origination of loans under this part shall— 

6 ‘‘(A) supplement the agreement entered 

7 into in accordance with paragraph (1); 

8 ‘‘(B) include provisions established by the 

9 Secretary that are similar to the participation 

10 agreement provisions described in subpara11 graphs (A)(v), (B), (C), (D), (E), and (F) of 

12 paragraph (1), as modified to relate to the 

13 origination of loans by the institution or consor14 tium; 

15 ‘‘(C) provide that the institution or consor16 tium will originate loans to eligible students and 

17 parents in accordance with this part; and 

18 ‘‘(D) provide that the note or evidence of 

19 obligation on the loan shall be the property of 

20 the Secretary. 

21 ‘‘(3) WITHDRAWAL AND TERMINATION PROCE22 DURES.—The Secretary shall establish procedures by 

23 which institutions or consortia may withdraw or be 

24 terminated from the program under this part. 

25 ‘‘(e) TERMS AND CONDITIONS OF LOANS.— 


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1 ‘‘(1) PARALLEL TERMS, CONDITIONS, BENE2 FITS, AND AMOUNTS OF LOANS.—Unless otherwise 

3 specified in this part, loans made to borrowers under 

4 this part shall have the same terms, conditions, and 

5 benefits as Federal Direct Unsubsidized Stafford 

6 Loans under part D made to borrowers and first 

7 disbursed on July 1, 1994. 

8 ‘‘(2) ELIGIBILITY.—In order to be eligible for a 

9 loan under this section, an individual must be— 

10 ‘‘(A) an eligible student, as defined in sec11 tion 400(a), who is an undergraduate; 

12 ‘‘(B) an eligible graduate or professional 

13 student as defined in section 400(a); or 

14 ‘‘(C) a parent or legal guardian of an eligi15 ble student who is an undergraduate, as defined 

16 in section 400(a). 

17 ‘‘(3) APPLICATION FOR LOANS.—Each eligible 

18 student (or the parent of such student) desiring to 

19 obtain a Federal loan under this part for any year 

20 shall file an application with the Secretary to deter21 mine eligibility for a loan as described in section 

22 400A. 

23 ‘‘(4) AMOUNT OF LOAN.— 


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1 ‘‘(A) IN GENERAL.—The amount of a loan 

2 disbursed by a participating institution under 

3 this section shall be the lesser of— 

4 ‘‘(i) an amount that is equal to the es5 timated loan amount, as determined by the 

6 institution by calculating— 

7 ‘‘(I) the estimated cost of attend8 ance at the eligible institution; minus 

9 ‘‘(II)(aa) any estimated financial 

10 assistance that the student will receive 

11 from a Federal grant, including a 

12 Federal Pell Grant, a State grant, an 

13 institutional grant, or a scholarship or 

14 grant from another source, that is 

15 known to the institution at the time 

16 the student’s determination of need is 

17 made; and 

18 ‘‘(bb) in the case of a loan to a 

19 parent, the amount of a loan awarded 

20 under this part to the parent’s child; 

21 or 

22 ‘‘(ii) the maximum Federal loan 

23 amount for which such student is eligible 

24 in accordance with subparagraph (B). 

25 ‘‘(B) LOAN LIMITS.— 


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1 ‘‘(i) ANNUAL LIMITS.—Except as pro2 vided under clause (iv), the annual amount 

3 of loans under this section that an eligible 

4 student may borrow shall be— 

5 ‘‘(I) $8,000, in the case of a stu6 dent who is an undergraduate student 

7 attending a participating institution; 

8 and 

9 ‘‘(II) $30,000, in the case of a 

10 graduate or professional student at11 tending a participating institution. 

12 ‘‘(ii) AGGREGATE LIMITS.—Except as 

13 provided under clause (iv), the maximum 

14 aggregate amount of loans under this sec15 tion that an eligible student may borrow 

16 shall be— 

17 ‘‘(I) $37,500 in the case of a stu18 dent who is an undergraduate student 

19 attending an eligible institution; and 

20 ‘‘(II) $150,000 in the case of a 

21 student who is a graduate or profes22 sional student attending an eligible in23 stitution, except that such aggregate 

24 limit shall not include any debt that 


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1 the student incurred as an under2 graduate. 

3 ‘‘(iii) PART-TIME STUDENTS.—Any el4 igible student receiving loans under this 

5 section that is enrolled in a program of 

6 study on less than a full-time basis shall 

7 have their loans prorated based on actual 

8 enrollment status. 

9 ‘‘(iv) INSTITUTIONAL DETERMINED

10 LIMITS AND INCREASES.— 

11 ‘‘(I) INSTITUTIONAL DETER12 MINED LIMITS.— 

13 ‘‘(aa) IN GENERAL.—Not14 withstanding any other provision 

15 of this paragraph, a participating 

16 institution may limit the annual 

17 amount that students enrolled in 

18 an identified program of study at 

19 that institution may borrow 

20 under this section, if— 

21 ‘‘(AA) the institution 

22 can reasonably demonstrate, 

23 based on previous student 

24 income following such proVerDate Sep 11 2014 05:25 Jan 14, 2015 Jkt 049200 PO 00000 Frm 00048 Fmt 6652 Sfmt 6201 E:\BILLS\S108.IS S108

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1 gram, that student debt lev2 els are excessive; and 

3 ‘‘(BB) subject to item 

4 (bb), any proration or lim5 iting of loan amounts are 

6 applied in the same manner 

7 to all students enrolled in 

8 the institution or program of 

9 study. 

10 ‘‘(bb) EXCEPTION.—Not11 withstanding item (aa)(BB), 

12 upon the request of an individual 

13 student, an institution (at the 

14 discretion of a financial aid ad15 ministrator) may increase the an16 nual amount limit established 

17 under this subclause for an indi18 vidual student if that student 

19 demonstrates special cir20 cumstances. 

21 ‘‘(II) INSTITUTIONAL DETER22 MINED INCREASES.—Notwithstanding 

23 the annual loan limits described in 

24 clause (i) and subject to subclause 

25 (III), a participating institution may 


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1 increase the annual amount that grad2 uate and professional students en3 rolled in an identified program of 

4 study at that institution may borrow 

5 under this section and allow the an6 nual amount to exceed such limit, if— 

7 ‘‘(aa) the institution can 

8 reasonably demonstrate that stu9 dents enrolled in a program of 

10 study have an increased need and 

11 should not be subject to the loan 

12 limitations described in clauses 

13 (i) and (iii); and 

14 ‘‘(bb) any increase of loan 

15 amounts are applied in the same 

16 manner to all students enrolled 

17 in the institution or program of 

18 study. 

19 ‘‘(III) LIMITATION ON INSTITU20 TIONAL DETERMINED INCREASES.— 

21 An increase in the annual loan 

22 amount under subclause (II) shall not 

23 be for an amount that results in more 

24 than a 50 percent increase to the agVerDate Sep 11 2014 05:25 Jan 14, 2015 Jkt 049200 PO 00000 Frm 00050 Fmt 6652 Sfmt 6201 E:\BILLS\S108.IS S108

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1 gregate loan limit amount established 

2 under clause (ii)(II). 

3 ‘‘(5) REPAYMENT.— 

4 ‘‘(A) IN GENERAL.—Repayment of prin5 cipal and interest accrued on loans made under 

6 this part shall commence not later than the day 

7 after 6 months after the date the student, or 

8 the student on whose behalf the loan was 

9 made— 

10 ‘‘(i) ceases to carry at least one-half 

11 of the normal full-time academic workload, 

12 as determined by the institution; or 

13 ‘‘(ii) successfully completes the pro14 gram of study in which the student is en15 rolled, as determined by the institution. 

16 ‘‘(B) REPAYMENT PLANS.— 

17 ‘‘(i) IN GENERAL.—Not later than 2 

18 months after a student enters the status 

19 described under clause (i) or (ii) of sub20 paragraph (A), the Secretary shall inform 

21 a borrower of a loan made under this part 

22 of the borrower’s repayment options, by 

23 providing— 

24 ‘‘(I) the monthly payment 

25 amount that the borrower will owe 


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1 based on the total amount of the bor2 rower’s Federal loan under this sec3 tion if such loan is paid under a 10- 

4 year repayment plan; and 

5 ‘‘(II) estimates of the monthly 

6 payment amounts that the borrower 

7 may owe under the income-based re8 payment plan, based on the total 

9 amount of the borrower’s Federal loan 

10 under this section and a schedule of 

11 different income levels. 

12 ‘‘(ii) REPAYMENT OPTIONS.—A bor13 rower of a loan made under this part may 

14 choose from— 

15 ‘‘(I) a repayment plan with a 

16 fixed monthly repayment amount paid 

17 over a fixed period of time, not to ex18 ceed 10 years; or 

19 ‘‘(II) an income-based repayment 

20 plan under section 493C. 

21 ‘‘(f) CONSOLIDATION LOANS.— 

22 ‘‘(1) IN GENERAL.—A borrower of a loan made 

23 under this part may consolidate such loan with— 

24 ‘‘(A) another loan made under this part; 


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1 ‘‘(B) a loan described in section 

2 428C(a)(4) that was first disbursed before July 

3 1, 2010; or 

4 ‘‘(C) a loan made under section 455 that 

5 was first disbursed before the July 1 prior to 

6 the date of enactment of this Act. 

7 ‘‘(2) ELIGIBILITY.—To be eligible for a consoli8 dation loan under this part, a borrower shall meet 

9 the eligibility criteria set forth in section 428C(a)(3). 

10 ‘‘(3) TERMS AND CONDITIONS.—A consolidation 

11 loan under this subsection shall have the same terms 

12 and conditions as a consolidation loan made under 

13 section 455(g).’’. 

14 SEC. 7. EARLY AWARENESS OF FINANCIAL AID ELIGI15 BILITY. 

16 Section 485E of the Act (20 U.S.C. 1092f) is amend17 ed by adding at the end the following: 

18 ‘‘(c) EARLY AWARENESS.— 

19 ‘‘(1) IN GENERAL.—Not later than 180 days 

20 after the date of enactment of the Financial Aid 

21 Simplification and Transparency Act of 2015, the 

22 Secretary shall develop and implement a plan to dis23 seminate information about eligibility for Federal fi24 nancial aid under title IV to local educational agen25 cies and to middle and secondary schools that serve 


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1 students at least 25 percent of whom are eligible for 

2 a free or reduced price school lunch under the Rich3 ard B. Russell National School Lunch Act (42 

4 U.S.C. 1751 et seq.). 

5 ‘‘(2) RECOMMENDATIONS TO CONGRESS.—Not 

6 later than 365 days after the date of enactment of 

7 the Financial Aid Simplification and Transparency 

8 Act of 2015, the Secretary, in consultation with 

9 State educational agencies, local educational agen10 cies, and the Secretary of Agriculture, shall make 

11 recommendations to Congress on ways to provide in12 dividualized information about eligibility for Federal 

13 financial aid under title IV to elementary school and 

14 secondary school students who are eligible for a free 

15 or reduced price school lunch under the Richard B. 

16 Russell National School Lunch Act (42 U.S.C. 1751 

17 et seq.).’’. 

18 SEC. 8. AMENDMENTS TO GENERAL PROVISIONS. 

19 Part G of the Act (20 U.S.C. 1088 et seq.) is amend20 ed— 

21 (1) by repealing section 483; 

22 (2) in section 484— 

23 (A) in subsection (a), by striking ‘‘under 

24 this title’’ and inserting ‘‘under parts A through 

25 E of this title’’; 


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1 (B) in subsection (b), by striking ‘‘other 

2 than a loan under section 428B’’ and inserting 

3 ‘‘other than a loan under part F, section 

4 428B,’’; 

5 (C) in subsection (c), by striking ‘‘sub6 section (a)(2)’’ and inserting ‘‘subsection (a)(2) 

7 or section 400(a)(2)’’ each place the term ap8 pears; 

9 (D) in subsection (d), by striking ‘‘under 

10 subparts 1, 3, and 4 of part A and parts B, C, 

11 D, and E of this title’’ and inserting ‘‘under 

12 subpart 1 of part A and parts B, C, D, E, and 

13 F of this title’’; 

14 (E) in subsection (f)(1), by striking ‘‘part 

15 B, part D, or part E’’ and inserting ‘‘part B, 

16 part D, part E, or part F’’ each place the term 

17 appears; 

18 (F) in subsection (g)(1), by inserting ‘‘or 

19 section 400(a)(2)’’ after ‘‘subsection (a)(5)’’; 

20 (G) in subsection (m), by striking ‘‘under 

21 parts B, C, D, and E’’ and inserting ‘‘under 

22 parts B, C, D, E, and F’’; 

23 (H) in subsection (p), by inserting ‘‘or sec24 tion 400A’’ after ‘‘under subsection (a)(4)’’; 

25 and 


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1 (I) in subsection (q)(1), by striking ‘‘Fed2 eral student financial aid application’’ and all 

3 that follows through the end of that paragraph 

4 and inserting ‘‘application described under sec5 tion 400A (in the case of a student applying for 

6 a Federal Pell Grant) as the Secretary deter7 mines is necessary for the purpose of 

8 prepopulating or verifying the information on 

9 such student financial aid applications.’’; 

10 (3) in section 484A(a)(2)(C) by striking ‘‘made 

11 under part D or E’’ and inserting ‘‘made under part 

12 D, E, or F’’; 

13 (4) in section 484B— 

14 (A) in subsection (a)(3)(C)(i), by striking 

15 ‘‘parts B, D, and E’’ and inserting ‘‘parts B, 

16 D, E, and F’’; 

17 (B) in subsection (b)(2)(B), by striking 

18 ‘‘under part B or D’’ and inserting ‘‘under part 

19 B, D, or F’’; and 

20 (C) in subsection (b)(3)(A)— 

21 (i) by redesignating clauses (v) 

22 through (vii) as clauses (vi) through (viii); 

23 and 

24 (ii) by inserting after clause (iv) the 

25 following: 


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1 ‘‘(v) To outstanding balances on loans 

2 made under part F for the payment period 

3 or period of enrollment for which a return 

4 of funds is required.’’; 

5 (5) in section 485— 

6 (A) in subsection (a)— 

7 (i) by striking ‘‘under parts B, D, and 

8 E’’ and inserting ‘‘under parts B, D, E, 

9 and F’’ each place the term appears; and 

10 (ii) by striking ‘‘part B or D’’ and in11 serting ‘‘part B, D, or F’’ each place the 

12 term appears; 

13 (B) in subsection (b)— 

14 (i) in paragraph (1)(A)— 

15 (I) in the matter preceding clause 

16 (i), by inserting ‘‘or part F’’ after ‘‘or 

17 made under part E’’; and 

18 (II) in clause (vii), by striking 

19 ‘‘parts B, D, and E’’ and inserting 

20 ‘‘parts B, D, E, and F’’; and 

21 (ii) in paragraph (2)(A), in the matter 

22 preceding clause (i), by striking ‘‘part B, 

23 D, or E’’ and inserting ‘‘part B, D, E, or 

24 F’’; 


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1 (C) in subsection (d)(1), by inserting ‘‘or 

2 part F’’ after ‘‘repayment plans for loans made 

3 under part D’’; and 

4 (D) in subsection (l)(1)— 

5 (i) in subparagraph (A), in the matter 

6 preceding clause (i), by striking ‘‘or made 

7 under part D (other than a Federal Direct 

8 Consolidation Loan or a Federal Direct 

9 PLUS loan made on behalf of a student),’’ 

10 and inserting ‘‘, made under part D (other 

11 than a Federal Direct Consolidation Loan 

12 or a Federal Direct PLUS loan made on 

13 behalf of a student), or made under part F 

14 (other than a consolidation loan made 

15 under part F)’’; and 

16 (ii) in subparagraph (B), by striking 

17 ‘‘part B or D’’ and inserting ‘‘part B, D, 

18 or F’’; 

19 (6) in section 485B— 

20 (A) by striking ‘‘parts D and E’’ and in21 serting ‘‘parts D, E, and F’’ each place the 

22 term appears; and 

23 (B) by striking ‘‘part B, D, or E’’ and in24 serting ‘‘part B, D, E, or F’’ each place the 

25 term appears; 


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1 (7) in section 487, by striking ‘‘part B or D’’ 

2 and inserting ‘‘part B, D, or F’’ each place the term 

3 appears; and 

4 (8) in section 493C by striking ‘‘part B or D’’ 

5 and inserting ‘‘part B, D, or F’’ each place the term 

6 appears. 

7 SEC. 9. TRANSITION PROVISION. 

8 The Secretary of Education shall take such actions 

9 as the Secretary determines to be appropriate to provide 

10 for the orderly transition from any authority to issue loans 

11 under part D of the Higher Education Act of 1965 (20 

12 U.S.C. 1087a et seq.) to any authority to issue loans 

13 under part F of the Higher Education Act of 1965, as 

14 amended by this Act. 

Æ 


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