II 

117TH CONGRESS 

1ST SESSION S. 2081 

To improve the structure of the Federal Pell Grant program, and for other 

purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 16, 2021 

Ms. HIRONO (for herself, Mrs. MURRAY, Mr. REED, Mr. WHITEHOUSE, Mr. 

VAN HOLLEN, Ms. WARREN, Mr. DURBIN, Mr. MARKEY, Mr. WYDEN, 

Ms. HASSAN, Mr. PADILLA, Ms. SMITH, Mrs. SHAHEEN, Mr. BROWN, 

Ms. KLOBUCHAR, Mr. BOOKER, Mr. WARNOCK, Mr. LUJA ́N, Mr. 

BLUMENTHAL, and Ms. DUCKWORTH) introduced the following bill; which 

was read twice and referred to the Committee on Health, Education, 

Labor, and Pensions 

A BILL 

To improve the structure of the Federal Pell Grant program, 

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 ‘‘Pell Grant Preserva5 tion and Expansion Act of 2021’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds the following: 


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1 (1) The United States needs individuals with 

2 the knowledge, skills, and abilities that enable them 

3 to thrive as educated citizens in society and success4 fully participate in an interconnected economy. 

5 (2) Investments in higher education through 

6 student aid such as the Federal Pell Grant program 

7 under section 401 of the Higher Education Act of 

8 1965 (20 U.S.C. 1070a) help students and families 

9 reach, afford, and complete education and training 

10 opportunities beyond high school. 

11 (3) The Federal Pell Grant program is the larg12 est source of federally funded grant aid for postsec13 ondary education. 

14 (4) The Federal Pell Grant program allows mil15 lions of people of the United States to attend college 

16 and is especially vital for students of color. Three in 

17 5 African American undergraduate students, and 

18 one-half of all Latino undergraduate students, rely 

19 on the Federal Pell Grant program. 

20 (5) The Federal Pell Grant program should 

21 continue to be a reliable source of funding for aspir22 ing students, their families, and future generations 

23 that they can count on to be there for them when 

24 they seek higher education. 


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1 (6) To stabilize Federal Pell Grant funding and 

2 ensure the grant will continue to serve millions of 

3 students now and in the future, the program should 

4 become a fully mandatory program that grows with 

5 inflation. 

6 (7) Restoring prior eligibility cuts and expand7 ing access to underserved students will give millions 

8 of students and families the critical student aid sup9 port they need and deserve. 

10 SEC. 3. TABLE OF CONTENTS; REFERENCES. 

11 (a) TABLE OF CONTENTS.—The table of contents of 

12 this Act is as follows: 

Sec. 1. Short title. 

Sec. 2. Findings. 

Sec. 3. Table of contents; references. 

Sec. 4. Doubling Federal Pell Grants and providing all Federal Pell Grants 

through mandatory funding. 

Sec. 5. Providing increased Federal Pell Grants and other assistance for recipients of means-tested benefits. 

Sec. 6. Federal Pell Grant eligibility for Dreamer students. 

Sec. 7. Providing Federal Pell Grants for dependents of fallen heroes. 

Sec. 8. Restoring the total semesters of Federal Pell Grant eligibility. 

Sec. 9. Reducing financial aid penalties from satisfactory academic progress determinations. 

Sec. 10. Conforming amendments. 

Sec. 11. Effective date. 

13 (b) REFERENCES.—Except as otherwise expressly 

14 provided, whenever in this Act an amendment or repeal 

15 is expressed in terms of an amendment to, or repeal of, 

16 a section or other provision, the reference shall be consid17 ered to be made to a section or other provision of the 

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


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1 SEC. 4. DOUBLING FEDERAL PELL GRANTS AND PRO2 VIDING ALL FEDERAL PELL GRANTS 

3 THROUGH MANDATORY FUNDING. 

4 (a) AMOUNT OF MINIMUM FEDERAL PELL

5 GRANTS.—Section 401 (20 U.S.C. 1070a), as amended by 

6 section 703 of the FAFSA Simplification Act (title VII 

7 of division FF of Public Law 116–260) (referred to in 

8 this Act as the ‘‘FAFSA Simplification Act’’), is further 

9 amended— 

10 (1) in subsection (a)(2)(F), by striking ‘‘10 per11 cent’’ and inserting ‘‘5 percent’’; 

12 (2) in subsection (b)— 

13 (A) in paragraph (1)(B)(i), by striking 

14 ‘‘paragraph (5)(A)’’ and inserting ‘‘paragraph 

15 (5)’’; 

16 (B) by striking paragraph (5) and insert17 ing the following: 

18 ‘‘(5) MAXIMUM FEDERAL PELL GRANT.— 

19 ‘‘(A) AWARD YEAR 2023–2024.—For award 

20 year 2023–2024, the total maximum Federal 

21 Pell Grant award shall be $9,000. 

22 ‘‘(B) AWARD YEAR 2024–2025.—For award 

23 year 2024–2025, the total maximum Federal 

24 Pell Grant award shall be $10,000. 


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1 ‘‘(C) AWARD YEAR 2025–2026.—For award 

2 year 2025–2026, the total maximum Federal 

3 Pell Grant award shall be $11,000. 

4 ‘‘(D) AWARD YEAR 2026–2027.—For award 

5 year 2026–2027, the total maximum Federal 

6 Pell Grant award shall be $12,000. 

7 ‘‘(E) AWARD YEAR 2027–2028.—For award 

8 year 2027–2028, the total maximum Federal 

9 Pell Grant award shall be $13,000. 

10 ‘‘(F) AWARD YEAR 2028–2029 AND SUBSE11 QUENT YEARS.—For award year 2028–2029, 

12 and each subsequent award year, the total max13 imum Federal Pell Grant award shall be 

14 $13,000— 

15 ‘‘(i) increased by the adjustment per16 centage for the award year for which the 

17 amount under this subparagraph is being 

18 determined; and 

19 ‘‘(ii) rounded to the nearest $50. 

20 ‘‘(G) DEFINITION OF ADJUSTMENT PER21 CENTAGE.—In this paragraph, the term ‘adjust22 ment percentage,’ as applied to an award year, 

23 is equal to the percentage increase in the Con24 sumer Price Index, as defined in section 478(f), 


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1 between April 2026 and the April in the year 

2 prior to the beginning of the award year.’’; 

3 (C) by striking paragraphs (6) and (7) and 

4 inserting the following: 

5 ‘‘(6) APPROPRIATION OF FUNDS.—There are 

6 authorized to be appropriated, and there are appro7 priated, out of any money in the Treasury not other8 wise appropriated, such sums as may be necessary 

9 for fiscal year 2023 and each subsequent fiscal year 

10 to provide the total maximum Federal Pell Grant for 

11 which a student shall be eligible under this section 

12 during an award year.’’; and 

13 (D) by redesignating paragraphs (8) and 

14 (9) as paragraphs (7) and (8), respectively; 

15 (3) in subsection (d)(5)(B)(ii)— 

16 (A) in subclause (I)(bb), by striking ‘‘or’’ 

17 after the semicolon; 

18 (B) in subclause (II)(bb)(CC), by striking 

19 the period and inserting ‘‘; or’’; and 

20 (C) by adding at the end the following: 

21 ‘‘(III) during a period for which 

22 the student did not receive a loan 

23 under this title but for which, if the 

24 student had received such a loan, the 

25 student would have qualified for loan 


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1 forgiveness under subclause 

2 (II)(bb)(CC).’’; 

3 (4) by striking subsections (g) and (h); and 

4 (5) by redesignating subsections (i) and (j) as 

5 subsections (g) and (h), respectively. 

6 (b) REPEAL OF SCORING REQUIREMENT.— 

7 (1) IN GENERAL.—Section 406 of H. Con. Res. 

8 95 (109th Congress) is amended— 

9 (A) by striking subsection (b); and 

10 (B) by striking ‘‘(a) IN GENERAL.—Upon’’ 

11 and inserting the following: ‘‘Upon’’. 

12 (2) EFFECTIVE DATE.—The amendments made 

13 by paragraph (1) shall take effect beginning on July 

14 1, 2023. 

15 (c) ADJUSTMENT FOR AWARD YEAR 2022–2023.— 

16 Notwithstanding section 401(b)(7)(C)(iii) of the Higher 

17 Education Act of 1965 (20 U.S.C. 1070a(b)(7)(C)(iii)), 

18 the amount determined under such clause for purposes of 

19 section 401(b)(7)(B)(iii) of such Act for award year 2022– 

20 2023 shall be $2,535. 

21 SEC. 5. PROVIDING INCREASED FEDERAL PELL GRANTS 

22 AND OTHER ASSISTANCE FOR RECIPIENTS 

23 OF MEANS-TESTED BENEFITS. 

24 (a) INCREASED AMOUNT OF MAXIMUM FEDERAL

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1 DENT AID INDEXES.—Section 401(b)(1) (20 U.S.C. 

2 1070a(b)(1)), as amended by section 4 and section 703 

3 of the FAFSA Simplification Act, is further amended— 

4 (1) in subparagraph (A)— 

5 (A) in the matter preceding clause (i), by 

6 striking ‘‘A student’’ and inserting ‘‘Except in 

7 the case of a student with a student aid index 

8 of less than zero, a student’’; 

9 (B) by striking clause (i); and 

10 (C) by redesignating clauses (ii) and (iii) 

11 as clauses (i) and (ii), respectively; 

12 (2) by redesignating subparagraphs (B) 

13 through (E) as subparagraphs (C) through (F), re14 spectively; 

15 (3) by inserting after subparagraph (A) the fol16 lowing: 

17 ‘‘(B) A student with a student aid index of 

18 less than zero shall receive a Federal Pell Grant 

19 award that exceeds the total maximum Federal 

20 Pell Grant by an amount equal to the amount 

21 by which the student’s student aid index is less 

22 than zero.’’; 

23 (4) in subparagraph (C), as redesignated by 

24 paragraph (2)— 


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1 (A) in the matter preceding clause (i), by 

2 striking ‘‘subparagraph (A) for an academic 

3 year,’’ and inserting ‘‘subparagraph (A), or an 

4 increased Federal Pell Grant under subpara5 graph (B), for an academic year,’’; and 

6 (B) in clause (ii), by striking ‘‘, except that 

7 a student aid index of less than zero shall be 

8 considered to be zero for the purposes of this 

9 clause’’; 

10 (5) in subparagraph (D), as redesignated by 

11 paragraph (2), by striking ‘‘(A) or (B)’’ and insert12 ing ‘‘(A), (B), or (C)’’; 

13 (6) in subparagraph (E), as redesignated by 

14 paragraph (2), by inserting ‘‘or an increased Federal 

15 Pell Grant under subparagraph (B)’’ after ‘‘subpara16 graph (A)’’; or 

17 (7) in subparagraph (F), as redesignated by 

18 paragraph (2), by striking ‘‘or a minimum Federal 

19 Pell Grant under subparagraph (C)’’ and inserting 

20 ‘‘an increased Federal Pell Grant under subpara21 graph (B), or a minimum Federal Pell Grant under 

22 subparagraph (D)’’. 

23 (b) SPECIAL STUDENT AID INDEX RULE FOR RE24 CIPIENTS OF MEANS-TESTED BENEFITS.—Section 473 

25 (20 U.S.C. 1087mm), as amended by section 702(b) of 


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1 the FAFSA Simplification Act, is further amended by 

2 adding at the end the following: 

3 ‘‘(d) SPECIAL RULE FOR MEANS-TESTED BENEFIT

4 RECIPIENTS.—Notwithstanding subsection (b), for an ap5 plicant (or, as applicable, an applicant and spouse, or an 

6 applicant’s parents) who, at any time during the previous 

7 24-month period, received a benefit under a means-tested 

8 Federal benefit program (or whose parent or spouse re9 ceived such a benefit, as applicable), the Secretary shall 

10 for the purposes of this title consider the student aid index 

11 as equal to –$1,500 for the applicant.’’. 

12 SEC. 6. FEDERAL PELL GRANT ELIGIBILITY FOR DREAMER 

13 STUDENTS. 

14 Section 484 (20 U.S.C. 1091), as amended by section 

15 702(n) of the FAFSA Simplification Act, is further 

16 amended— 

17 (1) in subsection (a)(5), by inserting ‘‘, or be a 

18 Dreamer student, as defined in subsection (u)’’ after 

19 ‘‘becoming a citizen or permanent resident’’; and 

20 (2) by adding at the end the following: 

21 ‘‘(u) DREAMER STUDENTS.— 

22 ‘‘(1) IN GENERAL.—In this section, the term 

23 ‘Dreamer student’ means an individual who— 

24 ‘‘(A)(i) is not a citizen or national of the 

25 United States; and 


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1 ‘‘(ii) is inadmissible or deportable under 

2 the Immigration and Nationality Act (8 U.S.C. 

3 1101 et seq.); and 

4 ‘‘(B)(i) in the case of such an individual 

5 who was younger than 18 years of age on the 

6 date on which the individual initially entered 

7 the United States— 

8 ‘‘(I) has earned a high school diploma, 

9 the recognized equivalent of such diploma 

10 from a secondary school, or a high school 

11 equivalency diploma recognized by State 

12 law, or is scheduled to complete the re13 quirements for such a diploma or equiva14 lent before the next academic year begins; 

15 ‘‘(II) is enrolled at an institution of 

16 higher education pursuant to subsection 

17 (d); 

18 ‘‘(III) has served in the uniformed 

19 services (as such term is defined in section 

20 101 of title 10, United States Code) for 

21 not less than 2 years and, if discharged, 

22 received an honorable discharge; 

23 ‘‘(IV) has acquired a degree, certifi24 cate, or recognized postsecondary creden25 tial from an institution of higher education 


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1 or area career and technical education 

2 school (as such term is defined in section 

3 3 of the Carl D. Perkins Career and Tech4 nical Education Act of 2006 (20 U.S.C. 

5 2302)); or 

6 ‘‘(V) has completed not less than 2 

7 years in a postsecondary program at an in8 stitution of higher education, or area ca9 reer and technical education school, in the 

10 United States and has made satisfactory 

11 academic progress, as defined in subsection 

12 (c), during such time period; or 

13 ‘‘(ii)(I) is, or at any time was, eligible for 

14 a grant of deferred action pursuant to— 

15 ‘‘(aa) the memorandum of the De16 partment of Homeland Security entitled 

17 ‘Exercising Prosecutorial Discretion with 

18 Respect to Individuals Who Came to the 

19 United States as Children’ issued on June 

20 15, 2012; or 

21 ‘‘(bb) the memorandum of the De22 partment of Homeland Security entitled 

23 ‘Exercising Prosecutorial Discretion with 

24 Respect to Individuals Who Came to the 

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1 spect to Certain Individuals Who Are the 

2 Parents of U.S. Citizens or Permanent 

3 Residents’ issued on November 20, 2014; 

4 or 

5 ‘‘(II) would have been eligible for such a 

6 grant of deferred action if the applicable memo7 randum described in subclause (I) had been 

8 fully in effect since the date on which it was 

9 issued. 

10 ‘‘(2) HARDSHIP EXCEPTION.—The Secretary 

11 shall issue regulations that direct when the Depart12 ment shall waive the age requirement of paragraph 

13 (1)(B)(i) for an individual to qualify as a Dreamer 

14 student under such paragraph, if the individual dem15 onstrates compelling circumstances.’’. 

16 SEC. 7. PROVIDING FEDERAL PELL GRANTS FOR DEPEND17 ENTS OF FALLEN HEROES. 

18 (a) IN GENERAL.—Part A of title IV (20 U.S.C. 

19 1070 et seq.), as amended by section 703 of the FAFSA 

20 Simplification Act, is amended— 

21 (1) in section 401— 

22 (A) in subsection (c)— 

23 (i) in paragraph (2)— 

24 (I) by striking subparagraph (A); 

25 and 


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1 (II) by redesignating subpara2 graphs (B) and (C) as subparagraphs 

3 (A) and (B), respectively; 

4 (ii) in paragraph (3), by striking 

5 ‘‘(2)(B)(i)’’ and inserting ‘‘(2)(A)(i)’’; 

6 (iii) by redesignating paragraph (5) as 

7 paragraph (7); and 

8 (iv) by inserting after paragraph (4) 

9 the following: 

10 ‘‘(5) PREVENTION OF DOUBLE BENEFITS.—No 

11 eligible student described in paragraph (2) may re12 ceive a grant under both this subsection and sub13 section (b) concurrently. 

14 ‘‘(6) TERMS AND CONDITIONS.—The Secretary 

15 shall award grants under this subsection in the same 

16 manner and with the same terms and conditions, in17 cluding the length of the period of eligibility, as the 

18 Secretary awards Federal Pell Grants under sub19 section (b), except that— 

20 ‘‘(A) the award rules and determination of 

21 need applicable to the calculation of Federal 

22 Pell Grants under subsection (b)(1) shall not 

23 apply to grants made under this subsection; and 

24 ‘‘(B) the maximum period determined 

25 under subsection (d)(5) shall be determined by 


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1 including all grants made under this section re2 ceived by the eligible student and all grants so 

3 received under subpart 10 before the effective 

4 date of this subsection.’’; and 

5 (2) by striking subpart 10 of part A (20 U.S.C. 

6 1070h). 

7 (b) TRANSITION.—The Secretary shall take such 

8 steps as are necessary to transition from the Iraq and Af9 ghanistan Service Grants program under subpart 10 of 

10 part A of title IV of the Higher Education Act of 1965 

11 (20 U.S.C. 1070h), as in effect on the day before the effec12 tive date of this section, and the provision of Federal Pell 

13 Grants under section 401(c) of the Higher Education Act 

14 of 1965 (20 U.S.C. 1070a(c)), as amended by the FAFSA 

15 Simplification Act and this section. 

16 SEC. 8. RESTORING THE TOTAL SEMESTERS OF FEDERAL 

17 PELL GRANT ELIGIBILITY. 

18 Section 401(c)(5)(A), as added by section 703 of the 

19 FAFSA Simplification Act, is amended by striking ‘‘12’’ 

20 each place the term appears and inserting ‘‘18’’. 

21 SEC. 9. REDUCING FINANCIAL AID PENALTIES FROM SATIS22 FACTORY ACADEMIC PROGRESS DETERMINA23 TIONS. 

24 Section 484(c) of the Higher Education Act of 1965 

25 (20 U.S.C. 1091(c)) is amended to read as follows: 


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1 ‘‘(c) SATISFACTORY PROGRESS.— 

2 ‘‘(1) DEFINITIONS.—In this subsection: 

3 ‘‘(A) APPEAL.—The term ‘appeal’ means a 

4 process by which a student who is not meeting 

5 the institution’s satisfactory academic progress 

6 standards petitions the institution for reconsid7 eration of the student’s eligibility for assistance 

8 under this title. 

9 ‘‘(B) FINANCIAL AID PROBATION.—The 

10 term ‘financial aid probation’ means a status 

11 assigned by an institution to a student who fails 

12 to make satisfactory academic progress and 

13 who has appealed and has had eligibility for aid 

14 reinstated. 

15 ‘‘(C) FINANCIAL AID WARNING.—The term 

16 ‘financial aid warning’ means a status assigned 

17 to a student who fails to make satisfactory aca18 demic progress at the end of the semester or 

19 equivalent period in which the student first fails 

20 to make such progress. 

21 ‘‘(D) PAYMENT PERIOD.—The term ‘pay22 ment period’ means the applicable payment pe23 riod described in section 668.4 of title 34, Code 

24 of Federal Regulations, or any successor regula25 tion. 


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1 ‘‘(2) SATISFACTORY ACADEMIC PROGRESS POL2 ICY.—An institution shall establish a reasonable sat3 isfactory academic progress policy for determining 

4 whether an otherwise eligible student is making sat5 isfactory academic progress in the student’s edu6 cational program and may receive assistance under 

7 this title. The Secretary shall consider the institu8 tion’s policy to be reasonable if— 

9 ‘‘(A) the policy is at least as strict as the 

10 policy the institution applies to a student who 

11 is not receiving assistance under this title; 

12 ‘‘(B) the policy provides for consistent ap13 plication of standards to all students, including 

14 full-time, part-time, undergraduate, and grad15 uate students, and all educational programs es16 tablished by the institution; 

17 ‘‘(C)(i) the policy specifies the grade point 

18 average that a student must achieve at each 

19 evaluation, or if a grade point average is not an 

20 appropriate qualitative measure, a comparable 

21 assessment measured against a norm; and 

22 ‘‘(ii) if a student is enrolled in an edu23 cational program of more than 2 academic 

24 years, the policy specifies that at the end of the 

25 second academic year, the student must have a 


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1 grade point average of at least a ‘C’ or its 

2 equivalent, or have academic standing con3 sistent with the institution’s requirements for 

4 graduation; 

5 ‘‘(D) the policy provides for measurement 

6 of the student’s progress at each evaluation; 

7 ‘‘(E) the policy describes— 

8 ‘‘(i) how a student’s grade point aver9 age and the pace at which the student pro10 gresses toward completion are affected by 

11 course incompletes, withdrawals, or repeti12 tions, or transfers of credit from other in13 stitutions, including that credit hours from 

14 another institution that are accepted to15 ward the student’s educational program 

16 are counted as both attempted and com17 pleted hours; and 

18 ‘‘(ii) how after a student reenrolls 

19 after the student’s satisfactory academic 

20 progress was reset pursuant to paragraph 

21 (3)(B), the student may have any credits 

22 that were earned before the student was 

23 determined not to be making satisfactory 

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1 enrolls, but any attempted hours that were 

2 not earned by the student (including in3 completes, withdrawn courses, and failed 

4 courses) before the student was determined 

5 not to be making satisfactory academic 

6 progress will not negatively impact the de7 termination of whether the student made 

8 satisfactory academic progress after such 

9 reset; 

10 ‘‘(F) the policy provides that, except as 

11 provided in subparagraph (G) with respect to a 

12 student placed on financial aid warning or fi13 nancial aid probation and paragraph (3), a stu14 dent is no longer eligible to receive assistance 

15 under this title if the student has not achieved 

16 the required grade point average or who is not 

17 making progress toward completion in the stu18 dent’s educational program— 

19 ‘‘(i) at the time of each evaluation 

20 with respect to a student who is in an edu21 cational program of 2 academic years or 

22 less in length; or 

23 ‘‘(ii) at the end of the second aca24 demic year with respect to a student who 


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1 is in an educational program of more than 

2 2 academic years in length; 

3 ‘‘(G) the policy describes when students 

4 will be placed on financial aid warning or finan5 cial aid probation, in accordance with para6 graph (4), and provides that— 

7 ‘‘(i) a student on financial aid warn8 ing— 

9 ‘‘(I) may receive assistance under 

10 the this title for one payment period 

11 despite a determination that the stu12 dent is not making satisfactory aca13 demic progress; and 

14 ‘‘(II) may be assigned such sta15 tus without an appeal or other action 

16 by the student; and 

17 ‘‘(ii)(I) a student on financial aid pro18 bation may receive assistance under this 

19 title for one payment period and the insti20 tution may require the student to fulfill 

21 specific terms and conditions, such as tak22 ing a reduced course load or enrolling in 

23 specific courses; and 

24 ‘‘(II) at the end of such one payment 

25 period, the student is required to meet the 


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1 institution’s satisfactory academic progress 

2 standards, or meet the requirements of the 

3 academic plan developed by the institution 

4 and the student, in order to qualify for 

5 continued assistance under this title; 

6 ‘‘(H) if the institution permits a student to 

7 appeal a determination by the institution that 

8 the student is not making satisfactory academic 

9 progress, the policy describes— 

10 ‘‘(i) how the student may reestablish 

11 the student’s eligibility to receive assist12 ance under this title; 

13 ‘‘(ii) the basis on which the student 

14 may file an appeal, including because of 

15 the death of a relative, an injury or illness 

16 of the student, or another special cir17 cumstance; and 

18 ‘‘(iii) information the student is re19 quired to submit regarding why the stu20 dent failed to make satisfactory academic 

21 progress, and what has changed in the stu22 dent’s situation that will allow the student 

23 to demonstrate satisfactory academic 

24 progress at the next evaluation; 


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1 ‘‘(I) if the institution does not permit a 

2 student to appeal a determination by the insti3 tution that the student is not making satisfac4 tory academic progress, the policy describes 

5 how the student may reestablish the student’s 

6 eligibility to receive assistance under this title; 

7 ‘‘(J) the policy provides for notification to 

8 students of the results of an evaluation that im9 pacts the student’s eligibility for assistance 

10 under this title; and 

11 ‘‘(K) the policy does not impose satisfac12 tory progress limitations on need-based institu13 tional aid that are more stringent than the 

14 standard applied under this subsection without 

15 demonstrating to the Secretary the effectiveness 

16 of such limitations on improving student per17 sistence in, and completion of, postsecondary 

18 study. 

19 ‘‘(3) REGAINING ELIGIBILITY.— 

20 ‘‘(A) STUDENTS WHO REMAIN IN

21 SCHOOL.—Whenever a student fails to meet the 

22 eligibility requirements of subsection (a)(2) as a 

23 result of the application of this subsection and, 

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1 sistent with the requirements for staying on 

2 track to graduate within 150 percent of the 

3 published length of the educational program, as 

4 determined by the institution, the student shall 

5 again be eligible under subsection (a)(2) for a 

6 grant, loan, or work assistance under this title, 

7 as long as the student maintains satisfactory 

8 academic progress under paragraph (2) begin9 ning on and after the date that the student re10 gains eligibility. 

11 ‘‘(B) STUDENTS WHO LEAVE SCHOOL.— 

12 ‘‘(i) IN GENERAL.—If a student has 

13 not been enrolled in any institution of 

14 higher education for the immediately pre15 ceding 2 years, any previous failure to 

16 meet the eligibility requirements of sub17 section (a)(2) shall not be used in any de18 termination of eligibility of such student 

19 under such subsection. Such student shall, 

20 on the date of enrollment subsequent to 

21 such 2-year period, have the student’s eli22 gibility for a grant, loan, or work assist23 ance under this title reset and be deemed 

24 as meeting the requirements described in 

25 paragraph (2). Beginning on and after 


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1 such date, the student’s satisfactory aca2 demic progress shall be determined in ac3 cordance with paragraph (2)(E)(ii). 

4 ‘‘(ii) MAXIMUM NUMBER OF

5 RESETS.—A student shall be eligible for a 

6 reset of eligibility pursuant to this sub7 paragraph not more than 2 times. 

8 ‘‘(C) DUTIES OF THE SECRETARY.—The 

9 Secretary shall— 

10 ‘‘(i) send, to each student who failed 

11 to meet the eligibility requirements of sub12 section (a)(2) and who has not regained 

13 eligibility for a grant, loan, or work assist14 ance under subparagraph (A), a notice, 

15 two years after such failure, that in16 cludes— 

17 ‘‘(I) a notification that, if the 

18 student has not been enrolled in any 

19 institution of higher education for the 

20 preceding two years and has not re21 ceived two resets of eligibility under 

22 subparagraph (B), the student may 

23 use grant, loan, or work assistance 

24 under this title for enrollment at any 

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1 tution other than the institution in 

2 which the student was previously en3 rolled; 

4 ‘‘(II) a notification that, if the 

5 student has remained enrolled, or re6 sumed enrollment, at an institution of 

7 higher education, the student may be 

8 eligible for a grant, loan, or work as9 sistance under this title subject to the 

10 requirements of subparagraph (A); 

11 ‘‘(III) information on how many 

12 semesters of eligibility for a grant, 

13 loan, or work assistance under this 

14 title to which the student still has ac15 cess; and 

16 ‘‘(IV) a notification that the stu17 dent should ask any prospective eligi18 ble institution how many of the stu19 dent’s previously completed credits the 

20 student would be able to transfer; and 

21 ‘‘(ii) submit an annual report to Con22 gress on the outcomes of students who 

23 have received a reset of eligibility pursuant 

24 to this paragraph, including— 


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1 ‘‘(I) the number of students who 

2 reenroll in an eligible institution after 

3 such reset, disaggregated by race or 

4 ethnicity, sex, age, socioeconomic sta5 tus, and disability status; 

6 ‘‘(II) the 250 eligible institutions 

7 with the highest numbers of enrolled 

8 students receiving grant, loan, or 

9 work assistance under this title after 

10 such a reset; 

11 ‘‘(III) the 250 eligible institu12 tions with the highest share of en13 rolled students receiving grant, loan, 

14 or work assistance under this title 

15 after such a reset; and 

16 ‘‘(IV) the average completion 

17 rate and time to completion for stu18 dents who reenroll in an eligible insti19 tution after such reset, disaggregated 

20 by institution. 

21 ‘‘(4) EVALUATION OF ACADEMIC PROGRESS.— 

22 ‘‘(A) IN GENERAL.—An institution that 

23 determines that a student is not making satis24 factory academic progress under its policy may 

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1 cial assistance programs under this title (in2 cluding work-study programs under subtitle C) 

3 to the student in accordance with subpara4 graphs (B), (C), and (D). 

5 ‘‘(B) PAYMENT PERIOD FOLLOWING NOT

6 MAKING SATISFACTORY ACADEMIC PROGRESS.— 

7 For the payment period following the payment 

8 period in which a student did not make satis9 factory academic progress, the institution shall 

10 place the student on financial aid warning and 

11 disburse funds under this title to the student. 

12 ‘‘(C) PAYMENT PERIOD FOLLOWING FI13 NANCIAL AID WARNING.—For the payment pe14 riod following a payment period during which a 

15 student was on financial aid warning, the insti16 tution may place the student on financial aid 

17 probation, and disburse funds under this title to 

18 the student if— 

19 ‘‘(i) the institution evaluates the stu20 dent’s progress and determines that stu21 dent did not make satisfactory academic 

22 progress during the payment period the 

23 student was on financial aid warning; 

24 ‘‘(ii) the student appeals the deter25 mination; and 


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1 ‘‘(iii)(I) the institution determines 

2 that the student should be able to meet the 

3 institution’s satisfactory academic progress 

4 standards by the end of the subsequent 

5 payment period; or 

6 ‘‘(II) the institution develops an aca7 demic plan for the student that, if fol8 lowed, will ensure that the student is able 

9 to meet the institution’s satisfactory aca10 demic progress standards by a specific 

11 point in time. 

12 ‘‘(D) PAYMENT PERIOD FOLLOWING FI13 NANCIAL AID PROBATION.—A student on finan14 cial aid probation for a payment period may not 

15 receive funds under this title for the subsequent 

16 payment period unless the student makes satis17 factory academic progress or the institution de18 termines that the student met the requirements 

19 specified by the institution in the academic plan 

20 for the student developed under subparagraph 

21 (C)(iii)(II). 

22 ‘‘(E) FREQUENCY OF ACADEMIC PROGRESS

23 EVALUATION AND COMMUNICATION.— 

24 ‘‘(i) IN GENERAL.—Subject to clause 

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1 er presently enrolled students are main2 taining satisfactory progress, each institu3 tion of higher education that enrolls stu4 dents who receive any grant, loan, or work 

5 assistance under this title shall review the 

6 progress of such students at the end of 

7 each payment period. 

8 ‘‘(ii) SHORTER PAYMENT PERIODS.— 

9 For each institution described in clause (i) 

10 that has payment periods that are shorter 

11 than on the semester system basis (such as 

12 on a quarterly or trimester system basis or 

13 by clock hour program or non-term pro14 gram), such institution shall review the 

15 progress of presently enrolled students at 

16 the end of each semester or equivalent pe17 riod of 12 to 18 weeks. 

18 ‘‘(iii) FINANCIAL AID WARNING.—At 

19 the end of each payment period (or, in the 

20 case of an institution described in clause 

21 (ii), at the end of each semester or equiva22 lent period), each institution shall send a 

23 financial aid warning to presently enrolled 

24 students that do not meet the grade point 

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1 graph (2), or its equivalent or academic 

2 standing consistent with the requirements 

3 for graduation, as determined by the insti4 tution, that informs the students of their 

5 risk of being determined to not be main6 taining satisfactory progress and therefore 

7 losing eligibility for grant, loan, or work 

8 assistance under this title and provides in9 formation on— 

10 ‘‘(I) the specific criteria of the in11 stitution’s academic requirements that 

12 the student is not meeting and the 

13 specific improvements needed to meet 

14 the requirements; and 

15 ‘‘(II) how to meet with the stu16 dent’s academic advisor to get the 

17 academic support the student needs. 

18 ‘‘(5) DETAILING REQUIREMENTS TO STU19 DENTS.—Each institution of higher education that 

20 enrolls students who receive any grant, loan, or work 

21 assistance under this title shall detail the institu22 tion’s requirements regarding students maintaining 

23 satisfactory academic progress— 

24 ‘‘(A) to such students before the students 

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1 tailed communication that may be separate 

2 from a financial aid offer; and 

3 ‘‘(B) on the financial aid webpage of the 

4 website of the institution. 

5 ‘‘(6) CONSUMER TESTING.—The Secretary— 

6 ‘‘(A) shall conduct consumer testing to de7 velop exemplary practices and templates— 

8 ‘‘(i) to support institutions of higher 

9 education in carrying out paragraph (5); 

10 and 

11 ‘‘(ii) which shall be available as re12 sources for institutions of higher edu13 cation; and 

14 ‘‘(B) shall not require the use of such 

15 practices and templates by institutions of high16 er education.’’. 

17 SEC. 10. CONFORMING AMENDMENTS. 

18 The Act (20 U.S.C. 1001 et seq.) is amended— 

19 (1) in section 401A(d)(1)(B)(i) (20 U.S.C. 

20 1070a–1(d)(1)(B)(i)), by striking ‘‘section 

21 401(b)(2)(B)’’ and inserting ‘‘section 401(b)(2)’’; 

22 (2) in section 402D(d)(1) (20 U.S.C. 1070a– 

23 14(d)(1))— 

24 (A) by striking ‘‘section 401(b)(2)(A)’’ and 

25 inserting ‘‘section 401(b)(1)’’; and 


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1 (B) by striking ‘‘described in section 

2 401(b)(4)’’ and inserting ‘‘as defined in section 

3 401(a)’’; 

4 (3) in section 435(a)(5)(A)(i)(I) (20 U.S.C. 

5 1085(a)(5)(A)(i)(I)), by striking ‘‘under section 

6 401(b)(2)(A)’’ and inserting ‘‘, as appropriate, 

7 under section 401(b)(2)(A) (as in effect on the day 

8 before the effective date under section 701(b) of the 

9 FAFSA Simplification Act (title VII of division FF 

10 of Public Law 116–260)) or section 401(b)(1)’’; 

11 (4) in section 485E(b)(1)(A) (20 U.S.C. 

12 1092f(b)(1)(A)), by striking ‘‘section 401(b)(2)(A)’’ 

13 and inserting ‘‘section 401(b)(1)’’; and 

14 (5) in section 894(f)(2)(C)(ii)(I) (20 U.S.C. 

15 1161y(f)(2)(C)(ii)(I)), by striking ‘‘section 

16 401(b)(2)(A)’’ and inserting ‘‘section 401(b)(1)’’. 

17 SEC. 11. EFFECTIVE DATE. 

18 Except as otherwise provided, the amendments made 

19 by this Act shall take effect and apply as if included in 

20 section 703 of the FAFSA Simplification Act and in ac21 cordance with section 701(b) of such Act. 

Æ 


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