I 

109TH CONGRESS 

1ST SESSION H. R. 1277 

To expand college opportunities by significantly simplifying the Federal 

student aid application process. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 14, 2005 

Mr. EMANUEL (for himself, Mr. GEORGE MILLER of California, Mr. RYAN of 

Ohio, Mr. BISHOP of New York, Mr. TIERNEY, Mr. LYNCH, Mr. HOLT, 

Mr. CUMMINGS, Mr. DELAHUNT, Mr. BROWN of Ohio, Ms. SOLIS, Mr. 

GRIJALVA, Mr. MCDERMOTT, Mr. HINCHEY, Ms. WATSON, Mr. FILNER, 

Mr. OWENS, Mr. COSTELLO, Mr. MCGOVERN, Mr. MCNULTY, Mr. SKELTON, Mr. JEFFERSON, Mr. SCOTT of Georgia, Mr. HINOJOSA, Mr. 

PAYNE, Mr. DEFAZIO, Mr. ETHERIDGE, Mr. ISRAEL, Mr. PALLONE, Ms. 

SLAUGHTER, Mr. NEAL of Massachusetts, Mr. SANDERS, Ms. LINDA T. 

SA ́NCHEZ of California, and Mr. FORD) introduced the following bill; 

which was referred to the Committee on Education and the Workforce 

A BILL 

To expand college opportunities by significantly simplifying 

the Federal student aid application process. 

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; REFERENCE. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘College Aid Made EZ Act’’. 
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1 (b) REFERENCES.—Except as otherwise expressly 

2 provided, whenever in this Act an amendment or repeal 

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

4 a section or other provision, the reference shall be consid5 ered to be made to a section or other provision of the 

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

7 SEC. 2. EXPANDING THE AUTO-ZERO AND FURTHER SIM8 PLIFYING THE SIMPLIFIED NEEDS TEST. 

9 (a) SIMPLIFIED NEEDS TEST.—Section 479 (20 

10 U.S.C. 1087ss) is amended— 

11 (1) in subsection (b)— 

12 (A) in paragraph (1)— 

13 (i) by striking clause (i) of subpara14 graph (A) and inserting the following: 

15 ‘‘(i) the student’s parents— 

16 ‘‘(I) file, or are eligible to file, a 

17 form described in paragraph (3); or 

18 ‘‘(II) certify that they are not re19 quired to file an income tax return; or 

20 ‘‘(III) or the student received 

21 benefits at some time during the pre22 vious 12-month period under a means23 tested Federal benefit program as de24 fined under subsection (d); and’’; and 
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1 (ii) by striking clause (i) of subpara2 graph (B) and inserting the following: 

3 ‘‘(i) the student (and the student’s 

4 spouse, if any)— 

5 ‘‘(I) files, or is eligible to file, a 

6 form described in paragraph (3); or 

7 ‘‘(II) certifies that the student 

8 (and the student’s spouse, if any) is 

9 not required to file an income tax re10 turn; or 

11 ‘‘(III) received benefits at some 

12 time during the previous 12-month 

13 period under a means-tested Federal 

14 benefit program as defined under sub15 section (d); and’’; and 

16 (B) in paragraph (3), by striking ‘‘A stu17 dent or family files a form described in this 

18 subsection, or subsection (c), as the case may 

19 be, if the student or family, respectively, files’’ 

20 and inserting ‘‘In the case of an independent 

21 student, the student, or in the case of a depend22 ent student, the parent, files a form described 

23 in this subsection, or subsection (c), as the case 

24 may be, if the student or parent, as appro25 priate, files’’; 
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1 (2) in subsection (c)— 

2 (A) in paragraph (1), by striking subpara3 graphs (A) and (B) and inserting the following: 

4 ‘‘(A) the student’s parents— 

5 ‘‘(i) file, or are eligible to file, a form 

6 described in subsection (b)(3); or 

7 ‘‘(ii) certify that they are not required 

8 to file an income tax return; or 

9 ‘‘(iii) or the student received benefits 

10 at some time during the previous 12-month 

11 period under a means-tested Federal ben12 efit program as defined under subsection 

13 (d); and 

14 ‘‘(B) the sum of the adjusted gross income 

15 of the parents is less than or equal to $25,000; 

16 or’’; and 

17 (B) in paragraph (2), by striking subpara18 graphs (A) and (B) and inserting the following: 

19 ‘‘(A) the student (and the student’s 

20 spouse, if any)— 

21 ‘‘(i) files, or is eligible to file, a form 

22 described in subsection (b)(3); or 

23 ‘‘(ii) certifies that the student (and 

24 the student’s spouse, if any) is not re25 quired to file an income tax return; or 
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1 ‘‘(iii) received benefits at some time 

2 during the previous 12-month period under 

3 a means-tested Federal benefit program as 

4 defined under subsection (d); and 

5 ‘‘(B) the sum of the adjusted gross income 

6 of the student and spouse (if appropriate) is 

7 less than or equal to $25,000.’’; and 

8 (C) by inserting after the last sentence of 

9 such subsection the following: ‘‘The Secretary 

10 shall annually adjust the income level necessary 

11 to qualify an applicant for the zero expected 

12 family contribution under this subsection. The 

13 income level shall be adjusted according to in14 creases in the Consumer Price Index, as speci15 fied in section 478(f).’’; and 

16 (3) by adding at the end the following new sub17 sections: 

18 ‘‘(d) MEANS-TESTED FEDERAL BENEFIT PRO19 GRAM.—For the purposes of this section, the term ‘means20 tested Federal benefit program’ means a mandatory 

21 spending program of the Federal Government in which eli22 gibility for the program’s benefits, or the amount of such 

23 benefits, or both, are determined on the basis of income 

24 or resources of the individual or family seeking the benefit, 

25 and includes the supplemental security income program 
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1 under title XVI of the Social Security Act, the food stamp 

2 program under the Food Stamp Act of 1977, the free and 

3 reduced price school lunch program established under the 

4 Richard B. Russell National School Lunch Act, the tem5 porary assistance to needy families program established 

6 under part A of title IV of the Social Security Act, and 

7 the women, infants and children program established 

8 under Section 17 of the Child Nutrition Act of 1966. 

9 ‘‘(e) REPORTING REQUIREMENTS.—The Secretary 

10 shall regularly evaluate the impact of the eligibility guide11 lines in subsections (b)(1)(A)(i), (b)(1)(B)(i), (c)(1)(A) 

12 and (c)(2)(A) of this section. In particular, the Secretary 

13 shall evaluate whether the means-tested Federal benefit 

14 programs (as defined by subsection (d)) ensure that the 

15 Simplified Needs Test continues to be targeted to the 

16 maximum number of low- and moderate-income stu17 dents.’’. 

18 SEC. 3. IMPROVEMENTS TO PAPER AND ELECTRONIC 

19 FORMS. 

20 (a) COMMON FINANCIAL AID FORM DEVELOPMENT

21 AND PROCESSING.—Section 483 (20 U.S.C. 1090) is 

22 amended— 

23 (1) in subsection (a)— 

24 (A) by striking paragraphs (1), (2), and 

25 (5); 
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1 (B) by redesignating paragraphs (3), (4), 

2 (6), and (7), as paragraphs (9), (10), (11), and 

3 (12), respectively; 

4 (C) by inserting before paragraph (9), as 

5 redesignated by subparagraph (B), the fol6 lowing: 

7 ‘‘(1) IN GENERAL.—The Secretary, in coopera8 tion with representatives of agencies and organiza9 tions involved in student financial assistance, shall 

10 produce, distribute, and process free of charge com11 mon financial reporting forms as described in this 

12 subsection to be used for application and reapplica13 tion to determine the need and eligibility of a stu14 dent for financial assistance under parts A through 

15 E (other than subpart 4 of part A). These forms 

16 shall be made available to applicants in both paper 

17 and electronic formats and shall be referred to as 

18 the ‘Free Application for Federal Student Aid’ or 

19 the ‘FAFSA’ . 

20 ‘‘(2) EARLY ESTIMATES.—The Secretary shall 

21 permit applicants to complete such forms as de22 scribed in this subsection in the years prior to en23 rollment in order to obtain an estimate of the family 

24 contribution, as defined by section 473. Such appli25 cants shall be permitted to update information sub-
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1 mitted on forms described in this subsection using 

2 the process required under paragraph (5)(A). 

3 ‘‘(3) PAPER FORMAT.— 

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

5 produce, distribute, and process common forms 

6 in paper format to meet the requirements of 

7 paragraph (1). The Secretary shall develop a 

8 common paper form for applicants who do not 

9 meet the requirements of subparagraph (B). 

10 ‘‘(B) EZ FAFSA.— 

11 ‘‘(i) IN GENERAL.—The Secretary 

12 shall develop and use a simplified paper 

13 application form, to be known as the ‘EZ 

14 FAFSA’, to be used for applicants meeting 

15 the requirements of section 479(c). 

16 ‘‘(ii) REDUCED DATA REQUIRE17 MENTS.—The EZ FAFSA shall permit an 

18 applicant to submit for financial assistance 

19 purposes, only the data elements required 

20 to make a determination of whether the 

21 applicant meets the requirements under 

22 section 479(c). 

23 ‘‘(iii) STATE DATA.—The Secretary 

24 shall include on the EZ FAFSA such data 

25 items as may be necessary to award State 
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1 financial assistance, as provided under 

2 paragraph (6), except that the Secretary 

3 shall not include a State’s data if that 

4 State does not permit its applicants for 

5 State assistance to use the EZ FAFSA. 

6 ‘‘(iv) FREE AVAILABILITY AND PROC7 ESSING.—The provisions of paragraph (7) 

8 shall apply to the EZ FAFSA, and the 

9 data collected by means of the EZ FAFSA 

10 shall be available to institutions of higher 

11 education, guaranty agencies, and States 

12 in accordance with paragraph (9). 

13 ‘‘(v) TESTING.—The Secretary shall 

14 conduct appropriate field testing on the 

15 EZ FAFSA. 

16 ‘‘(C) PROMOTING THE USE OF ELEC17 TRONIC FAFSA.— 

18 ‘‘(i) IN GENERAL.—The Secretary 

19 shall make all efforts to encourage all ap20 plicants to utilize the electronic forms de21 scribed in paragraph (4). 

22 ‘‘(ii) MAINTENANCE OF THE FAFSA IN

23 A PRINTABLE ELECTRONIC FILE.—The 

24 Secretary shall maintain a version of the 

25 paper forms described in subparagraphs 
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1 (A) and (B) in a printable electronic file 

2 that is easily portable. The printable elec3 tronic file will be made easily accessible 

4 and downloadable to students on the same 

5 website used to provide students with the 

6 electronic application forms described in 

7 paragraph (4) of this subsection. The Sec8 retary shall enable students to submit a 

9 form created under this subparagraph that 

10 is downloaded and printed from an elec11 tronic file format in order to meet the fil12 ing requirements of this section and in 

13 order to receive aid from programs under 

14 this title. 

15 ‘‘(iii) REPORTING REQUIREMENT.— 

16 The Secretary shall report annually to 

17 Congress on the impact of the digital di18 vide on students completing applications 

19 for title IV aid described under this para20 graph and paragraph (4). The Secretary 

21 will also report on the steps taken to elimi22 nate the digital divide and phase out the 

23 paper form described in subparagraph (A) 

24 of this paragraph. The Secretary’s report 

25 will specifically address the impact of the 
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1 digital divide on the following student pop2 ulations: independent students, adults, and 

3 dependent students. 

4 ‘‘(4) ELECTRONIC FORMAT.— 

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

6 produce, distribute, and process common forms 

7 in electronic format to meet the requirements of 

8 paragraph (1). The Secretary shall develop 

9 common electronic forms for applicants who do 

10 not meet the requirements of subparagraph (C) 

11 of this paragraph. 

12 ‘‘(B) STATE DATA.—The Secretary shall 

13 include on the common electronic forms space 

14 for information that needs to be submitted from 

15 the applicant to be eligible for State financial 

16 assistance, as provided under paragraph (6), ex17 cept the Secretary shall not require applicants 

18 to complete data required by any State other 

19 than the applicant’s State of residence. 

20 ‘‘(C) SIMPLIFIED APPLICATIONS: FAFSA ON

21 THE WEB.— 

22 ‘‘(i) IN GENERAL.—The Secretary 

23 shall develop and use a simplified elec24 tronic application form to be used by appli25 cants meeting the requirements under sub-
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1 section (c) of section 479 and an addi2 tional, separate simplified electronic appli3 cation form to be used by applicants meet4 ing the requirements under subsection (b) 

5 of section 479. 

6 ‘‘(ii) REDUCED DATA REQUIRE7 MENTS.—The simplified electronic applica8 tion forms shall permit an applicant to 

9 submit for financial assistance purposes, 

10 only the data elements required to make a 

11 determination of whether the applicant 

12 meets the requirements under subsection 

13 (b) or (c) of section 479. 

14 ‘‘(iii) STATE DATA.—The Secretary 

15 shall include on the simplified electronic 

16 application forms such data items as may 

17 be necessary to award state financial as18 sistance, as provided under paragraph (6), 

19 except that the Secretary shall not require 

20 applicants to complete data required by 

21 any State other than the applicant’s state 

22 of residence. 

23 ‘‘(iv) AVAILABILITY AND PROC24 ESSING.—The data collected by means of 

25 the simplified electronic application forms 
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1 shall be available to institutions of higher 

2 education, guaranty agencies, and States 

3 in accordance with paragraph (9). 

4 ‘‘(v) TESTING.—The Secretary shall 

5 conduct appropriate field testing on the 

6 forms developed under this subparagraph. 

7 ‘‘(D) USE OF FORMS.—Nothing in this 

8 subsection shall be construed to prohibit the use 

9 of the forms developed by the Secretary pursu10 ant to this paragraph by an eligible institution, 

11 eligible lender, guaranty agency, State grant 

12 agency, private computer software provider, a 

13 consortium thereof, or such other entities as the 

14 Secretary may designate. 

15 ‘‘(E) PRIVACY.—The Secretary shall en16 sure that data collection under this paragraph 

17 complies with section 552a of title 5, United 

18 States Code, and that any entity using the elec19 tronic version of the forms developed by the 

20 Secretary pursuant to this paragraph shall 

21 maintain reasonable and appropriate adminis22 trative, technical, and physical safeguards to 

23 ensure the integrity and confidentiality of the 

24 information, and to protect against security 

25 threats, or unauthorized uses or disclosures of 
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1 the information provided on the electronic 

2 version of the forms. Data collected by such 

3 electronic version of the forms shall be used 

4 only for the application, award, and administra5 tion of aid awarded under this title, State aid 

6 awarded under section 415C, or aid awarded by 

7 eligible institutions or such entities as the Sec8 retary may designate. No data collected by such 

9 electronic version of the forms shall be used for 

10 making final aid awards under this title until 

11 such data have been processed by the Secretary 

12 or a contractor or designee of the Secretary, ex13 cept as may be permitted under this title. 

14 ‘‘(F) SIGNATURE.—Notwithstanding any 

15 other provision of this Act, the Secretary may 

16 permit an electronic form under this paragraph 

17 to be submitted without a signature, if a signa18 ture is subsequently submitted by the applicant 

19 or if the applicant uses a personal identification 

20 number provided by the Secretary under sub21 paragraph (G) of this paragraph. 

22 ‘‘(G) PERSONAL IDENTIFICATION NUM23 BERS AUTHORIZED.—The Secretary may assign 

24 to applicants personal identification numbers— 
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1 ‘‘(i) to enable the applicants to use 

2 such numbers in lieu of a signature for 

3 purposes of completing a form under this 

4 paragraph; 

5 ‘‘(ii) to enable the applicants to use 

6 such numbers in lieu of a signature for 

7 purposes of completing forms required by 

8 States under section 415C; and 

9 ‘‘(iii) for any purpose determined by 

10 the Secretary to enable the Secretary to 

11 carry out this title. 

12 ‘‘(5) STREAMLINING.— 

13 ‘‘(A) STREAMLINED REAPPLICATION PROC14 ESS.— 

15 ‘‘(i) IN GENERAL.—The Secretary 

16 shall develop streamlined reapplication 

17 forms and processes, including both paper 

18 and electronic reapplication processes, con19 sistent with the requirements of this sub20 section, for an applicant who applies for fi21 nancial assistance under this title in the 

22 next succeeding academic year subsequent 

23 to the year in which such applicant first 

24 applied for financial assistance under this 

25 title. 
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1 ‘‘(ii) MECHANISMS FOR REAPPLICA2 TION.—The Secretary shall develop appro3 priate mechanisms to support reapplica4 tion. 

5 ‘‘(iii) IDENTIFICATION OF UPDATED

6 DATA.—The Secretary shall determine, in 

7 cooperation with States, institutions of 

8 higher education, agencies, and organiza9 tions involved in student financial assist10 ance, the data elements that can be up11 dated from the previous academic year’s 

12 application. 

13 ‘‘(iv) REDUCED DATA AUTHORIZED.— 

14 Nothing in this title shall be construed as 

15 limiting the authority of the Secretary to 

16 reduce the number of data elements re17 quired of reapplicants. 

18 ‘‘(v) ZERO FAMILY CONTRIBUTION.— 

19 Applicants determined to have a zero fam20 ily contribution pursuant to section 479(c) 

21 shall not be required to provide any finan22 cial data in a reapplication form, except 

23 that which is necessary to determine eligi24 bility under such section. 

25 ‘‘(B) REDUCTION OF DATA ELEMENTS.— 
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1 ‘‘(i) REDUCTION REQUIRED.—Of the 

2 number of data elements on the FAFSA 

3 on the date of enactment of the College 

4 Aid Made EZ Act (including questions on 

5 the FAFSA for the purposes described in 

6 paragraph (6)), the Secretary, in coopera7 tion with representatives of agencies and 

8 organizations involved in student financial 

9 assistance, shall reduce the number of such 

10 data elements by 50 percent within 5 years 

11 after such date of enactment. Reductions 

12 of data elements under paragraph (3)(B), 

13 (4)(C), or (5)(A)(iv) shall not be counted 

14 towards such 50 percent reduction unless 

15 those data elements are reduced for all ap16 plicants. 

17 ‘‘(ii) REPORT.—The Secretary shall 

18 submit a report on the process of this re19 duction to each House of Congress within 

20 2 years after such date of enactment. 

21 ‘‘(6) STATE REQUIREMENTS.— 

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

23 include on the forms developed under this sub24 section, such State-specific nonfinancial data 

25 items as the Secretary determines are necessary 
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1 to meet State requirements for need-based 

2 State aid under section 415C, except as pro3 vided in paragraphs (3)(B)(iii) and (4)(C)(iii) 

4 of this subsection. Such items shall be selected 

5 in consultation with State agencies that submit 

6 applications under section 415C in order to as7 sist in the awarding of State financial assist8 ance in accordance with the terms of this sub9 section, except as provided in paragraphs 

10 (3)(B)(iii) and (4)(C)(iii) of this subsection. 

11 The number of such data items shall not be less 

12 than the number included on the form on Octo13 ber 7, 1998, unless a State notifies the Sec14 retary that the State no longer requires those 

15 data items for the distribution of State need16 based aid. 

17 ‘‘(B) ANNUAL REVIEW.—The Secretary 

18 shall conduct an annual review process to deter19 mine which forms and nonfinancial data items 

20 the States require to award need-based State 

21 aid and other application requirements that the 

22 States may impose. 

23 ‘‘(C) STATE USE OF SIMPLIFIED FORMS.— 

24 The Secretary shall encourage states to take 

25 such steps as necessary to encourage the use of 
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1 simplified application forms, including those de2 scribed in paragraphs (3)(B) and (4)(C), to 

3 meet the requirements under subsection (b) or 

4 (c) of section 479. 

5 ‘‘(D) FEDERAL REGISTER NOTICE.—The 

6 Secretary shall publish on an annual basis a no7 tice in the Federal Register requiring State 

8 agencies to inform the Secretary— 

9 ‘‘(i) if the State agency is unable to 

10 permit applicants to utilize the simplified 

11 application forms described in paragraphs 

12 (3)(B) and (4)(C); and 

13 ‘‘(ii) of the State-specific nonfinancial 

14 data that the State agency requires for de15 livery of State need-based financial aid. 

16 ‘‘(E) STATE NOTIFICATION TO THE SEC17 RETARY.— 

18 ‘‘(i) IN GENERAL.—Each State agency 

19 that submits an application under section 

20 415C shall notify the Secretary— 

21 ‘‘(I) whether the State permits 

22 an applicant to file a form described 

23 in paragraph (3)(B) or (4)(A) of this 

24 subsection for purposes of deter-
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1 mining eligibility for State need-based 

2 grant aid; and 

3 ‘‘(II) the State-specific non4 financial data that the State agency 

5 requires for delivery of State need6 based financial aid. 

7 ‘‘(ii) ACCEPTANCE OF FORMS.—In the 

8 event that a State does not permit an ap9 plicant to file a form described in para10 graph (3)(B) or (4)(A) of this subsection 

11 for purposes of determining eligibility for 

12 State need-based grant aid— 

13 ‘‘(I) the State shall notify the 

14 Secretary if the State is not permitted 

15 to do so because of either State law or 

16 because of agency policy; and 

17 ‘‘(II) the notification under sub18 clause (I) shall include an estimate of 

19 the program cost to permit applicants 

20 to complete simplified application 

21 forms under paragraphs (3)(B) and 

22 (4)(A) of this subsection. 

23 ‘‘(iii) LACK OF NOTIFICATION BY THE

24 STATE.—If a State does not notify the 
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1 Secretary pursuant to clause (i), the Sec2 retary shall— 

3 ‘‘(I) permit residents of that 

4 State to complete simplified applica5 tion forms under paragraphs (3)(B) 

6 and (4)(A) of this subsection; and 

7 ‘‘(II) not require any resident of 

8 that State to complete any non9 financial data previously required by 

10 that State under this section. 

11 ‘‘(7) CHARGES TO STUDENTS AND PARENTS

12 FOR USE OF FORMS PROHIBITED.— 

13 ‘‘(A) FEES PROHIBITED.—The FAFSA, in 

14 whatever form (including the EZ–FAFSA, 

15 paper, electronic, simplified, or reapplication), 

16 shall be produced, distributed, and processed by 

17 the Secretary and no parent or student shall be 

18 charged a fee for the collection, processing, or 

19 delivery of financial aid through the use of the 

20 FAFSA. The need and eligibility of a student 

21 for financial assistance under parts A through 

22 E of this title (other than under subpart 4 of 

23 part A) may only be determined by using the 

24 FAFSA developed by the Secretary pursuant to 

25 this subsection. No student may receive assist-
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1 ance under parts A through E of this title 

2 (other than under subpart 4 of part A), except 

3 by use of the FAFSA developed by the Sec4 retary pursuant to this subsection. No data col5 lected on a form for which a fee is charged shall 

6 be used to complete the FAFSA. 

7 ‘‘(B) NOTICE.—Any entity that provides to 

8 students and parents, or charges students or 

9 parents for, any value-added services with re10 spect to or in connection with the FAFSA, such 

11 as completion of the FAFSA, submission of the 

12 FAFSA, or tracking of the FAFSA for a stu13 dent, shall provide to students and parents 

14 clear and conspicuous notice that— 

15 ‘‘(i) the FAFSA is a free Federal stu16 dent aid application; 

17 ‘‘(ii) the FAFSA can be completed 

18 without professional assistance; and 

19 ‘‘(iii) includes the current Internet ad20 dress for the FAFSA on the Department’s 

21 web site. 

22 ‘‘(8) APPLICATION PROCESSING CYCLE.—The 

23 Secretary shall enable students to submit a form 

24 created under this subsection in order to meet the 

25 filing requirements of this section and in order to re-
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1 ceive aid from programs under this title and shall 

2 initiate the processing of applications under this 

3 subsection as early as practicable prior to January 

4 1 of the student’s planned year of enrollment.’’; 

5 (2) by adding at the end of subsection (a) the 

6 following paragraph: 

7 ‘‘(13) EARLY APPLICATION AND AWARD DEM8 ONSTRATION PROGRAM.— 

9 ‘‘(A) PROGRAM REQUIRED.—The Secretary 

10 shall, no later than two years after the date of 

11 enactment of the College Aid Made EZ Act, im12 plement an early application demonstration pro13 gram enabling dependent students to complete 

14 applications under this subsection in their jun15 ior year of high school, or in the academic year 

16 that is two years prior to their intended year of 

17 enrollment, and to be eligible to receive aid 

18 under this title and such aid as may be avail19 able from participants, including State financial 

20 assistance as provided under section 415C and 

21 other aid provided by participating institutions. 

22 ‘‘(B) PURPOSE AND OBJECTIVES.—The 

23 purpose of the demonstration program under 

24 this paragraph shall be to measure the benefits, 

25 in terms of student aspirations and plans to at-
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1 tend college, and the adverse effects, in terms 

2 of program costs, integrity, distribution, and 

3 delivery of aid under this title, of implementing 

4 an early application system for all dependent 

5 students that allows dependent students to 

6 apply for financial aid using information from 

7 the year prior to the year prior to enrollment. 

8 Additional objectives associated with implemen9 tation of the demonstration program are the 

10 following: 

11 ‘‘(i) Measure the feasibility of ena12 bling dependent students to apply for Fed13 eral, State, and institutional financial aid 

14 in their junior year of high school, using 

15 information from the year prior to the year 

16 prior to enrollment, by completing any of 

17 the application forms under this sub18 section. 

19 ‘‘(ii) Determine the feasibility, bene20 fits, and adverse effects of implementing a 

21 data match with the Internal Revenue 

22 Service (IRS). 

23 ‘‘(iii) Identify whether receiving final 

24 financial aid awards no later than the fall 

25 of the senior year provides students with 
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1 additional time to compete for the limited 

2 resources available for State and institu3 tional financial aid and positively impacts 

4 the college aspirations and plans of these 

5 students. 

6 ‘‘(iv) Measure the impact of using in7 come information from the year prior to 

8 the year prior to enrollment on— 

9 ‘‘(I) eligibility for financial aid 

10 under this title and for other institu11 tional aid; and 

12 ‘‘(II) the cost of financial aid 

13 programs under this title. 

14 ‘‘(iv) Effectively evaluate the benefits 

15 and adverse effects of the demonstration 

16 program on program costs, integrity, dis17 tribution, and delivery of aid. 

18 ‘‘(C) PARTICIPANTS.—The Secretary shall 

19 select States and institutions within those 

20 States to participate in the demonstration pro21 gram under this paragraph that are partici22 pating in the programs under this title and that 

23 are willing to make final financial aid awards to 

24 students based on their application information 

25 from the year prior to the year prior to enroll-
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1 ment. The Secretary shall also select as partici2 pants in the demonstration program secondary 

3 schools and dependent students that are located 

4 in the participating States. 

5 ‘‘(D) APPLICATION PROCESS.—The Sec6 retary shall insure that the following provisions 

7 are included in the demonstration program: 

8 ‘‘(i) Participating States and institu9 tions shall allow participating students to 

10 apply for financial aid during their junior 

11 year of high school using information from 

12 the year prior to the year prior to enroll13 ment and all provisions available under 

14 this title and shall award final financial aid 

15 awards to participating students based on 

16 the applications provided under this dem17 onstration program. 

18 ‘‘(ii) Participating States and institu19 tions shall not require students partici20 pating in this demonstration program to 

21 complete an additional application in the 

22 year prior to enrollment in order to receive 

23 State aid under section 415C and any 

24 other institutional aid. 
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1 ‘‘(iii) Financial aid administrators at 

2 participating institutions shall be allowed 

3 to use their discretion in awarding finan4 cial aid to participating students, as out5 lined under section 479A and section 

6 480(d)(7). 

7 ‘‘(E) DATA MATCH WITH THE INTERNAL

8 REVENUE SERVICE.—The Secretary shall in9 clude in this demonstration project a data 

10 match with the Internal Revenue Service in 

11 order to verify data provided by participating 

12 students and gauge the feasibility of imple13 menting such a data match for all students ap14 plying for aid under this title. 

15 ‘‘(F) EVALUATION.—The Secretary shall 

16 conduct a rigorous evaluation of this dem17 onstration program in order to measure its ben18 efits and adverse effects as indicated under sub19 paragraph (A). 

20 ‘‘(G) OUTREACH.—The Secretary shall 

21 make appropriate efforts in order to notify 

22 States of the demonstration program under this 

23 paragraph. Upon determination of participating 

24 States, the Secretary shall continue to make ef25 forts to notify institutions and dependent stu-
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1 dents within participating States of the oppor2 tunity to participate in the demonstration pro3 gram and of the participation requirements.’’ 

4 (3) by striking subsection (b); 

5 (4) by redesignating subsections (c), (d), and 

6 (e) as subsections (b), (c), and (d), respectively. 

7 (b) MASTER CALENDAR.—Section 482(a)(1)(B) (20 

8 U.S.C. 1089) is amended to read as follows: 

9 ‘‘(B) by March 1: proposed modifications, 

10 updates, and notices pursuant to sections 

11 479(c)(2)(C), 478, and 483(a)(6) published in 

12 the Federal Register;’’. 

13 SEC. 4. INCREASING ACCESS TO TECHNOLOGY. 

14 Section 483 (20 U.S.C. 1087ss) is further amended 

15 by adding at the end the following: 

16 ‘‘(e) ADDRESSING THE DIGITAL DIVIDE.—The Sec17 retary shall utilize savings accrued by moving more appli18 cants to the electronic forms described in subsection (a)(4) 

19 to improve access to the electronic forms described in sub20 section (a)(4) for applicants meeting the requirements of 

21 section 479(c).’’ 

22 SEC. 5. SIMPLIFY THE TREATMENT OF INCOME: REDUCING 

23 UNTAXED INCOME AND BENEFITS. 

24 Subsection (b) of section 480 (20 U.S.C. 1087vv(b)) 

25 is amended to read as follows: 
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•HR 1277 IH 

1 ‘‘(b) UNTAXED INCOME AND BENEFITS.— 

2 ‘‘(1) The term ‘untaxed income and benefits’ 

3 means— 

4 ‘‘(A) child support received; 

5 ‘‘(B) workman’s compensation; 

6 ‘‘(C) veteran’s benefits such as death pen7 sion, dependency, and indemnity compensation, 

8 but excluding veterans’ education benefits as 

9 defined in subsection (c); 

10 ‘‘(D) interest on tax-free bonds; 

11 ‘‘(E) housing, food, and other allowances 

12 (excluding rent subsidies for low-income hous13 ing) for military, clergy, and others (including 

14 cash payments and cash value of benefits); 

15 ‘‘(F) cash support or any money paid on 

16 the student‘s behalf, except, for dependent stu17 dents, funds provided by the student’s parents; 

18 ‘‘(G) untaxed portion of pensions; 

19 ‘‘(H) payments to individual retirement ac20 counts and Keogh accounts excluded from in21 come for Federal income tax purposes; and 

22 ‘‘(I) any other untaxed income and bene23 fits, such as Black Lung Benefits, Refugee As24 sistance, railroad retirement benefits, or Job 

25 Training Partnership Act noneducational bene-
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1 fits or benefits received through participation in 

2 employment and training activities under title I 

3 of the Workforce Investment Act of 1998. 

4 ‘‘(2) The term ‘untaxed income and benefits’ 

5 shall not include the amount of additional child tax 

6 credit claimed for Federal income tax purposes.’’. 

7 SEC. 6. REDUCING THE NUMBER OF QUESTIONS. 

8 Section 484 (20 U.S.C. 1091) is amended by striking 

9 subsection (r). 

10 SEC. 7. ALLOWANCE FOR STATE AND OTHER TAXES. 

11 (a) ALLOWANCE FOR STATE AND LOCAL TAXES.— 

12 Section 478 (20 U.S.C. 1087rr) is amended— 

13 (1) by striking subsection (g); 

14 (2) by redesignating subsection (h) as sub15 section (g). 

16 (b) HOLDING STUDENTS HARMLESS.—Section 

17 475(c) (20 U.S.C. 1087oo(c)) is amended— 

18 (1) in paragraph (1): 

19 (A) by striking subparagraph (B); 

20 (B) by redesignating subparagraphs (C), 

21 (D), (E), and (F) as subparagraphs (B), (C), 

22 (D), and (E), respectively; 

23 (2) by striking paragraph (2); 

24 (3) by striking paragraph (4) and inserting the 

25 following: 
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1 ‘‘(4) INCOME PROTECTION ALLOWANCE.—The 

2 income protection allowance is determined by the fol3 lowing table (or a successor table prescribed by the 

4 Secretary under section 478): 

‘‘Income Protection Allowance 

Family Size Number in College 

(including 

student) 1 2 3 4 5 

For each 

additional 

subtract: 

2 $15,207 $12,599 ................ ................ ................ $3,641

3 18,937 16,350 $13,742 ................ ................

4 23,388 20,779 18,193 $15,596 ................

5 27,595 24,986 22,400 19,802 $17,216 

6 32,268 29,670 27,084 24,487 21,900 

For each additional add: 2,586 2,586 2,586 2,586 2,586 ’’ 

5 (4) by redesignating paragraphs (3), (4) and 

6 (5) as paragraphs (2), (3) and (4), respectively. 

7 (c) DEPENDENT STUDENT INCREASE IN INCOME

8 PROTECTION ALLOWANCE.—Section 475(g) (20 U.S.C. 

9 1087oo(g)) is amended— 

10 (1) in paragraph (2)— 

11 (A) by striking subparagraph (B); 

12 (B) by striking subparagraph (D) and in13 serting the following: 

14 ‘‘(D) an income protection allowance of 

15 $2,589 (or a successor amount prescribed by 

16 the Secretary under section 478);’’ 

17 (C) by redesignating subparagraphs (C), 

18 (D), (E), and (F) as subparagraphs (B), (C), 

19 (D), and (E), respectively; 
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1 (2) by striking paragraph (3); and 

2 (3) by redesignating paragraphs (4), (5), and 

3 (6) as paragraphs (3), (4), and (5), respectively. 

4 (d) INDEPENDENT STUDENT (WITHOUT DEPEND5 ENTS) INCREASE IN INCOME PROTECTION ALLOWANCE.— 

6 Section 476(b) (20 U.S.C. 1087pp(b)) is amended— 

7 (1) in subparagraph (A) of paragraph (1)— 

8 (A) by striking clause (ii); 

9 (B) by striking subclauses (I), (II) and 

10 (III) of clause (iv) and inserting the following: 

11 ‘‘(I) $5,874 for single students; 

12 ‘‘(II) $5,874 for married stu13 dents who are both enrolled pursuant 

14 to subsection (a)(2); and 

15 ‘‘(III) $9,395 for married stu16 dents where one is enrolled pursuant 

17 to subsection (a)(2);’’; 

18 (C) by redesignating clauses (iii), (iv), (v), 

19 (vi), as clauses (ii), (iii), (iv), and (v), respec20 tively; 

21 (2) by striking paragraph (2); 

22 (3) by redesignating paragraphs (3), (4), and 

23 (5) as paragraphs (2), (3), and (4), respectively. 
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1 (e) INDEPENDENT STUDENT (WITH DEPENDENTS) 

2 INCREASE IN INCOME PROTECTION ALLOWANCE.—Sec3 tion 477(b) (20 U.S.C. 1087qq(b)) is amended— 

4 (1) in paragraph (1)— 

5 (A) by striking subparagraph (B); 

6 (B) by redesignating (C), (D), (E), and 

7 (F) as subparagraphs (B), (C), (D), and (E), 

8 respectively; 

9 (2) by striking paragraph (2); 

10 (3) by striking paragraph (4) and inserting the 

11 following: 

12 ‘‘(4) INCOME PROTECTION ALLOWANCE.—The 

13 income protection allowance is determined by the fol14 lowing table (or a successor table prescribed by the 

15 Secretary under section 478): 

‘‘Income Protection Allowance 

Family Size Number in College 

(including 

student) 1 2 3 4 5 

For each 

additional 

subtract: 

2 $16,935 $12,599 ................ ................ ................ $3,641

3 18,937 16,350 $13,742 ................ ................

4 23,384 20,779 18,193 $15,596 ................

5 27,596 24,986 22,400 19,802 $17,216 

6 32,268 29,670 27,084 24,487 21,900 

For each additional add: 2,586 2,586 2,586 2,586 2,586 ’’ 

16 (4) by redesignating paragraphs (3), (4), and 

17 (5) as paragraphs (2), (3), and (4), respectively. 

18 (f) CONFORMING AMENDMENT: UPDATES.—Section 

19 478(b) (20 U.S.C. 1087rr(b)) is amended— 
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1 (1) in paragraph (1)— 

2 (A) by striking ‘‘1993–1994’’ and inserting 

3 ‘‘2005–2006’’; 

4 (B) by striking ‘‘475(c)(4) and 477(b)(4)’’ 

5 and inserting ‘‘475(c)(3) and 477(b)(3)’’; and 

6 (C) by striking ‘‘December 1992’’ and in7 serting ‘‘December 2004’’; and 

8 (2) in paragraph (2)— 

9 (A) by striking ‘‘2000–2001’’ and inserting 

10 ‘‘2005–2006’’; 

11 (B) by striking ‘‘475(g)(2)(D) and 

12 476(b)(1)(A)(iv)’’ and inserting ‘‘475(g)(2)(C) 

13 and 476(b)(1)(A)(iii)’’; and 

14 (C) by striking ‘‘December 1999’’ and in15 serting ‘‘December 2004’’. 

16 SEC. 8. RELIEF FOR WORKING STUDENTS. 

17 (a) DEPENDENT STUDENTS.—Paragraph (4) of sec18 tion 475(g) (20 U.S.C. 1087oo(g)(4)), as redesignated by 

19 section 7(c)(3) of this Act, is amended to read as follows: 

20 ‘‘(4) the student’s available income (determined 

21 in accordance with paragraph (1) of this subsection) 

22 is assessed at 40 percent.’’ 

23 (b) INDEPENDENT STUDENTS WITHOUT DEPEND24 ENTS OTHER THAN A SPOUSE.—Paragraph (4) of section 
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•HR 1277 IH 

1 476(b) (20 U.S.C. 1087pp(b)), as redesignated by section 

2 7(d)(3) of this Act, is amended to read as follows: 

3 ‘‘(4) ASSESSMENT OF AVAILABLE INCOME.— 

4 The family’s available income (determined in accord5 ance with paragraph (1)(A) of this subsection) is as6 sessed at 40 percent.’’. 

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