I 

114TH CONGRESS 

1ST SESSION H. R. 3265 

To simplify the process for determining the need and eligibility of students 

for financial assistance under the Higher Education Act of 1965, and 

for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 28, 2015 

Mr. WELCH introduced the following bill; which was referred to the Committee 

on Education and the Workforce, and in addition to the Committee on 

Ways and Means, for a period to be subsequently determined by the 

Speaker, in each case for consideration of such provisions as fall within 

the jurisdiction of the committee concerned 

A BILL 

To simplify the process for determining the need and eligibility of students for financial assistance under the Higher Education Act of 1965, 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 ‘‘Student Financial Aid 

5 Simplification Act’’. 

6 SEC. 2. FAFSA SIMPLIFICATION. 

7 Section 483 of the Higher Education Act of 1965 (20 

8 U.S.C. 1090) is amended— 


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1 (1) in subsection (a)— 

2 (A) in paragraph (1), by striking ‘‘The 

3 Secretary’’ and inserting ‘‘Subject to subsection 

4 (i), the Secretary’’; and 

5 (B) in paragraph (6), by striking ‘‘The 

6 need’’ and inserting ‘‘Subject to subsection (i), 

7 the need’’; and 

8 (2) by adding at the end the following new sub9 section: 

10 ‘‘(i) FAFSA SIMPLIFICATION.— 

11 ‘‘(1) IN GENERAL.—Beginning academic year 

12 2017–2018 and notwithstanding subsection (a)(6) or 

13 any other provision of this section, with respect to 

14 a student who is a taxpayer or a dependent of a tax15 payer and who does not meet the requirements of 

16 subsection (b) or (c) of section 479, the need and 

17 eligibility of such student for financial assistance 

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

19 part A) may be determined only by— 

20 ‘‘(A) authorizing the Secretary to obtain 

21 from the Internal Revenue Service income data, 

22 and other taxpayer data needed to compute an 

23 expected family contribution for the student, 

24 from two years prior to the student’s planned 

25 enrollment date; and 


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1 ‘‘(B) submitting to the Secretary the sup2 plemental information described in paragraph 

3 (3). 

4 ‘‘(2) AUTHORIZATION UNDER THE IRC AND DIS5 TRIBUTION OF DATA.—Returns and return informa6 tion (as defined in section 6103 of the Internal Rev7 enue Code of 1986) may be obtained under para8 graph (1)(A) only to the extent authorized by section 

9 6103(l)(23) of such Code, except that institutions of 

10 higher education and States shall receive, without 

11 charge, such information from the Secretary for the 

12 purposes of processing loan applications and deter13 mining need and eligibility for institutional and 

14 State financial aid awards. 

15 ‘‘(3) SUPPLEMENTAL INFORMATION.—Each 

16 student described in paragraph (1) who is applying 

17 for financial assistance under parts A through E 

18 (other than under subpart 4 of part A) shall submit 

19 to the Secretary at such time and in such manner 

20 as required by the Secretary, any information that 

21 is needed to determine the student’s need and eligi22 bility for such financial assistance or to administer 

23 the programs under this title, but that is not avail24 able from the Internal Revenue Service to the extent 

25 authorized by section 6103(l)(23) of the Internal 


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1 Revenue Code of 1986, including information with 

2 respect to the student’s— 

3 ‘‘(A) citizenship or permanent residency 

4 status; 

5 ‘‘(B) dependency status; 

6 ‘‘(C) registration for selective service; 

7 ‘‘(D) State and length of legal residence; 

8 ‘‘(E) family members, including the total 

9 number and the number in postsecondary edu10 cation; 

11 ‘‘(F) secondary school completion status; 

12 ‘‘(G) completion of a first bachelor’s de13 gree; 

14 ‘‘(H) email address; and 

15 ‘‘(I) institution or institutions of higher 

16 education in which the student is enrolled or to 

17 which the student is applying for admission. 

18 ‘‘(4) REGULATIONS.— 

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

20 prescribe such regulations as may be necessary 

21 to carry out this subsection. 

22 ‘‘(B) INAPPLICABILITY OF RULEMAKING

23 REQUIREMENTS.—Sections 482(c) and 492 

24 shall not apply to the regulations required by 

25 this paragraph.’’. 


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1 SEC. 3. AMENDMENTS TO INTERNAL REVENUE CODE OF 

2 1986. 

3 Section 6103(l) of the Internal Revenue Code of 1986 

4 is amended by adding at the end the following new para5 graph: 

6 ‘‘(23) DISCLOSURE OF RETURN INFORMATION

7 TO DETERMINE NEED AND ELIGIBILITY OF STU8 DENT FOR FEDERAL STUDENT FINANCIAL AID.— 

9 ‘‘(A) IN GENERAL.—The Secretary may, 

10 upon written request from the Secretary of 

11 Education, disclose to officers and employees of 

12 the Department of Education return informa13 tion with respect to a taxpayer or a dependent 

14 of a taxpayer who may be eligible for Federal 

15 student financial aid and whose need and eligi16 bility for such aid is based in whole or in part 

17 on the taxpayer’s income or the income of the 

18 parents of the dependent. Such return informa19 tion shall be limited to— 

20 ‘‘(i) taxpayer identity information 

21 with respect to such taxpayer; 

22 ‘‘(ii) the filing status of such tax23 payer; 

24 ‘‘(iii) the adjusted gross income of 

25 such taxpayer; and 


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1 ‘‘(iv) any other data of such taxpayer 

2 necessary to determine the expected family 

3 contribution (within the meaning of part F 

4 of title IV of the Higher Education Act of 

5 1965 (20 U.S.C. 1087kk et seq.)) of such 

6 taxpayer or the dependent of such tax7 payer, as applicable. 

8 ‘‘(B) RESTRICTION ON USE OF DISCLOSED

9 INFORMATION.—Return information disclosed 

10 under subparagraph (A) may be used by offi11 cers and employees of the Department of Edu12 cation only for the purposes of, and to the ex13 tent necessary in, processing the student loan 

14 application, and establishing need and eligibility 

15 for Federal student financial aid, of a taxpayer 

16 or a dependent of a taxpayer. 

17 ‘‘(C) FEDERAL STUDENT LOANS AND

18 GRANTS.—For purposes of this paragraph, the 

19 term ‘Federal student financial aid’ means fi20 nancial assistance under parts A through E 

21 (other than under subpart 4 of part A) of title 

22 IV of the Higher Education Act of 1965 (20 

23 U.S.C. 1070 et seq.).’’. 

Æ 


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