I 

115TH CONGRESS 

2D SESSION H. R. 5550 

To amend the Higher Education Act of 1965 to increase the maximum 

Federal Pell Grant amount, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 18, 2018 

Mr. DEFAZIO introduced the following bill; which was referred to the Committee on Education and the Workforce, and in addition to the Committee on Agriculture, 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 amend the Higher Education Act of 1965 to increase 

the maximum Federal Pell Grant amount, 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 section may be cited as the ‘‘Achieving Inde5 pendence through Degrees Act’’ or the ‘‘AID Act’’. 

6 SEC. 2. TABLE OF CONTENTS. 

7 The table of contents for this Act is as follows: 

Sec. 1. Short title. 

Sec. 2. Table of contents. 


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TITLE I—ADJUSTMENTS TO FEDERAL PELL GRANTS 

Sec. 101. Increase in maximum Federal Pell Grant amount. 

Sec. 102. Increase in total semesters of Federal Pell Grant eligibility. 

Sec. 103. Extending Federal Pell Grant eligibility of certain short-term programs. 

TITLE II—FINANCIAL AID COUNSELING FOR BORROWERS 

Sec. 201. Annual financial aid counseling. 

Sec. 202. Exit counseling. 

Sec. 203. Online counseling tools. 

Sec. 204. Longitudinal study on the effectiveness of student loan counseling. 

TITLE III—REPEAL OF SUSPENSION OF ELIGIBILITY UNDER THE 

HIGHER EDUCATION ACT OF 1965 FOR GRANTS, LOANS, AND 

WORK ASSISTANCE FOR DRUG-RELATED OFFENSES 

Sec. 301. Repeal. 

Sec. 302. Revision of FAFSA form. 

TITLE IV—FINANCIAL AID SHOPPING SHEET 

Sec. 401. Secretarial requirements. 

Sec. 402. Requirements for institutions of higher education. 

TITLE V—SNAP AND HIGHER EDUCATION 

Sec. 501. SNAP treatment of living expenses included in educational loans. 

Sec. 502. Eligibility of students to participate in the supplemental nutrition assistance program. 

1 TITLE I—ADJUSTMENTS TO 

2 FEDERAL PELL GRANTS 

3 SEC. 101. INCREASE IN MAXIMUM FEDERAL PELL GRANT 

4 AMOUNT. 

5 Section 401(b)(7)(C) of the Higher Education Act of 

6 1965 (20 U.S.C. 1070a(b)(7)(C)) is amended by striking 

7 clauses (ii) and (iii) and inserting the following: 

8 ‘‘(ii) AWARD YEAR 2019–2020.—For 

9 award year 2019–2020, the amount deter10 mined under this subparagraph for pur11 poses of subparagraph (B)(iii) shall be in12 creased to $9,970. 


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1 ‘‘(iii) SUBSEQUENT AWARD YEARS.— 

2 For award year 2020–2021 and each sub3 sequent award year, the amount deter4 mined under this subparagraph for pur5 poses of subparagraph (B)(iii) shall be 

6 equal to— 

7 ‘‘(I) the amount determined 

8 under this subparagraph for the pre9 ceding award year; increased by 

10 ‘‘(II) a percentage equal to the 

11 annual adjustment percentage for the 

12 award year for which the amount 

13 under this subparagraph is being de14 termined; and 

15 ‘‘(III) rounded to the nearest 

16 $5.’’. 

17 SEC. 102. INCREASE IN TOTAL SEMESTERS OF FEDERAL 

18 PELL GRANT ELIGIBILITY. 

19 Section 401(c)(5) of the Higher Education Act of 

20 1965 (20 U.S.C. 1070a(c)(5)) is amended by striking 

21 ‘‘12’’ both places it appears and inserting ‘‘15’’. 

22 SEC. 103. EXTENDING FEDERAL PELL GRANT ELIGIBILITY 

23 OF CERTAIN SHORT-TERM PROGRAMS. 

24 (a) IN GENERAL.—Section 401 of the Higher Edu25 cation Act of 1965 (20 U.S.C. 1070a), as amended by secVerDate Sep 11 2014 03:25 Apr 25, 2018 Jkt 079200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H5550.IH H5550

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1 tion 4, is further amended by inserting after subsection 

2 (j) the following: 

3 ‘‘(k) JOB TRAINING FEDERAL PELL GRANT PRO4 GRAM.— 

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

6 ‘‘(A) ELIGIBLE CAREER PATHWAY PRO7 GRAM.—The term ‘eligible career pathway pro8 gram’ means a program that— 

9 ‘‘(i) meets the requirements of section 

10 484(d)(2); 

11 ‘‘(ii) is a program of training services 

12 listed under included on the list established 

13 under section 122(d) of the Workforce In14 novation and Opportunity Act (29 U.S.C. 

15 3152(d)); and 

16 ‘‘(iii) is part of a career pathway, as 

17 defined in section 3 of such Act (29 U.S.C. 

18 3102). 

19 ‘‘(B) JOB TRAINING PROGRAM.—The term 

20 ‘job training program’ means a career and tech21 nical education program at an institution of 

22 higher education that— 

23 ‘‘(i) provides not less than 150, and 

24 not more than 600, clock hours of instrucVerDate Sep 11 2014 03:25 Apr 25, 2018 Jkt 079200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H5550.IH H5550

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1 tional time over a period of not less than 

2 8, and not more than 15, weeks; 

3 ‘‘(ii) provides training aligned with 

4 the requirements of employers in the State 

5 or local area, which may include in-demand 

6 industry sectors or occupations, as defined 

7 in section 3 of the Workforce Innovation 

8 and Opportunity Act (29 U.S.C. 3102), in 

9 the State or local area (as defined in such 

10 section); 

11 ‘‘(iii) is a program of training services 

12 that is provided through an eligible pro13 vider of training services listed under sec14 tion 122(d) of such Act (29 U.S.C. 

15 3152(d)); 

16 ‘‘(iv) provides a student, upon comple17 tion of the program, with a recognized 

18 postsecondary credential, as defined in sec19 tion 3 of such Act, that is recognized by 

20 employers in the relevant industry, includ21 ing credentials recognized by industry or 

22 sector partnerships in the State or local 

23 area where the industry is located; 

24 ‘‘(v) has been determined, by the in25 stitution of higher education, to provide 


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1 academic content, an amount of instruc2 tional time, and a recognized postsec3 ondary credential that are sufficient to— 

4 ‘‘(I) meet the hiring requirements 

5 of potential employers; and 

6 ‘‘(II) satisfy any applicable edu7 cational prerequisite requirement for 

8 professional licensure or certification, 

9 so that the student who completes the 

10 program and seeks employment quali11 fies to take any licensure or certifi12 cation examination needed to practice 

13 or find employment in an occupation 

14 that the program prepares students to 

15 enter; 

16 ‘‘(vi) may include integrated or basic 

17 skills courses; and 

18 ‘‘(vii) may be offered as part of an eli19 gible career pathway program. 

20 ‘‘(2) GRANT PROGRAM.—For the award year 

21 beginning on July 1, 2019, and each subsequent 

22 award year, the Secretary shall carry out a program 

23 through which the Secretary shall award job training 

24 Federal Pell Grants to students in job training pro25 grams. Each job training Federal Pell Grant awardVerDate Sep 11 2014 03:25 Apr 25, 2018 Jkt 079200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H5550.IH H5550

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1 ed under this subsection shall have the same terms 

2 and conditions, and be awarded in the same manner, 

3 as a Federal Pell Grant awarded under subsection 

4 (a), except as follows: 

5 ‘‘(A) A student who is eligible to receive a 

6 job training Federal Pell Grant under this sub7 section is a student who— 

8 ‘‘(i) has not yet attained a bacca9 laureate degree or postbaccalaureate de10 gree; 

11 ‘‘(ii) attends an institution of higher 

12 education; 

13 ‘‘(iii) is enrolled, or accepted for en14 rollment, in a job training program at such 

15 institution of higher education; and 

16 ‘‘(iv) meets all other eligibility re17 quirements for a Federal Pell Grant (ex18 cept with respect to the type of program of 

19 study, as provided in clause (iii)). 

20 ‘‘(B) The amount of a job training Federal 

21 Pell Grant for an eligible student shall be deter22 mined under subsection (b)(1), except that— 

23 ‘‘(i) the maximum Federal Pell Grant 

24 awarded under this subsection for an 

25 award year shall be 50 percent of the maxVerDate Sep 11 2014 03:25 Apr 25, 2018 Jkt 079200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H5550.IH H5550

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1 imum Federal Pell Grant awarded under 

2 subsection (b)(5) applicable to that award 

3 year; and 

4 ‘‘(ii) subsection (b)(4) shall not apply. 

5 ‘‘(3) INCLUSION IN TOTAL ELIGIBILITY PE6 RIOD.—Any period during which a student receives 

7 a job training Federal Pell Grant under this sub8 section shall be included in calculating the student’s 

9 period of eligibility for Federal Pell Grants under 

10 subsection (c), and any regulations under such sub11 section regarding students who are enrolled in an 

12 undergraduate program on less than a full-time 

13 basis shall similarly apply to students who are en14 rolled in a job training program at an eligible insti15 tution on less than a full-time basis.’’. 

16 (b) ADDITIONAL SAFEGUARDS.—Section 496(a)(4) 

17 of the Higher Education Act of 1965 (20 U.S.C. 

18 1099b(a)(4)) is amended— 

19 (1) in subparagraph (A), by striking ‘‘and’’ 

20 after the semicolon; 

21 (2) in subparagraph (B)(ii), by inserting ‘‘and’’ 

22 after the semicolon; and 

23 (3) by adding at the end the following: 

24 ‘‘(C) if such agency or association has or 

25 seeks to include within its scope of recognition 


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1 the evaluation of the quality of institutions of 

2 higher education participating in the job train3 ing Federal Pell Grant program under section 

4 401(k), such agency or association shall, in ad5 dition to meeting the other requirements of this 

6 subpart, demonstrate to the Secretary that, 

7 with respect to such job training programs— 

8 ‘‘(i) the agency or association’s stand9 ards include a process for determining 

10 whether the program provides training 

11 aligned with the requirements of employers 

12 in the State or local area served by the 

13 program; and 

14 ‘‘(ii) the agency or association re15 quires a demonstration that the program— 

16 ‘‘(I) has identified each recog17 nized postsecondary credential offered 

18 and the corresponding industry or sec19 tor partnership that actively recog20 nizes each credential in the relevant 

21 industry in the State or local area 

22 where the industry is located; and 

23 ‘‘(II) provides the academic con24 tent and amount of instructional time 

25 that is sufficient to— 


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1 ‘‘(aa) meet the hiring re2 quirements of potential employ3 ers; and 

4 ‘‘(bb) satisfy any applicable 

5 educational prerequisites for pro6 fessional licensure or certification 

7 requirements so that the student 

8 who completes the program and 

9 seeks employment qualifies to 

10 take any licensure or certification 

11 examination that is needed to 

12 practice or find employment in 

13 an occupation that the program 

14 prepares students to enter;’’. 

15 TITLE II—FINANCIAL AID 

16 COUNSELING FOR BORROWERS 

17 SEC. 201. ANNUAL FINANCIAL AID COUNSELING. 

18 Section 485(l) of the Higher Education Act of 1965 

19 (20 U.S.C. 1092(l)) is amended to read as follows: 

20 ‘‘(l) ANNUAL FINANCIAL AID COUNSELING.— 

21 ‘‘(1) ANNUAL DISCLOSURE REQUIRED.— 

22 ‘‘(A) IN GENERAL.—Each eligible institu23 tion shall ensure that each individual who re24 ceives a loan made under part D (other than a 

25 Federal Direct Consolidation Loan) receives 


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1 comprehensive information on the terms and 

2 conditions of such loan and the responsibilities 

3 the individual has with respect to such loan. 

4 Such information shall be provided, for each 

5 award year for which the individual receives 

6 such loan, in a simple and understandable man7 ner— 

8 ‘‘(i) during a counseling session con9 ducted in person; 

10 ‘‘(ii) online, with the individual ac11 knowledging receipt of the information; or 

12 ‘‘(iii) through the use of the online 

13 counseling tool described in subsection 

14 (k)(1)(B). 

15 ‘‘(B) USE OF INTERACTIVE PROGRAMS.— 

16 In the case of institutions not using the online 

17 counseling tool described in subsection 

18 (k)(1)(B), the Secretary shall require such in19 stitutions to carry out the requirements of sub20 paragraph (A) through the use of interactive 

21 programs, during an annual counseling session 

22 that is in-person or online, that test the individ23 ual’s understanding of the terms and conditions 

24 of the loan awarded to the individual, using 


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1 simple and understandable language and clear 

2 formatting. 

3 ‘‘(2) ALL INDIVIDUALS.—The information to be 

4 provided under paragraph (1)(A) to each individual 

5 receiving counseling under this subsection shall in6 clude the following: 

7 ‘‘(A) An explanation of how the individual 

8 may budget for typical educational expenses 

9 and a sample budget based on the cost of at10 tendance for the institution. 

11 ‘‘(B) An explanation that an individual has 

12 a right to annually request a disclosure of infor13 mation collected by a consumer reporting agen14 cy pursuant to section 612(a) of the Fair Credit 

15 Reporting Act (15 U.S.C. 1681j(a)). 

16 ‘‘(C) Based on the most recent data avail17 able from the American Community Survey 

18 available from the Department of Commerce, 

19 the estimated average income and percentage of 

20 employment in the State of domicile of the indi21 vidual for individuals with— 

22 ‘‘(i) a high school diploma or equiva23 lent; 


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1 ‘‘(ii) some post-secondary education 

2 without completion of a degree or certifi3 cate; and 

4 ‘‘(iii) a bachelor’s degree. 

5 ‘‘(D) An introduction to the financial man6 agement resources provided by the Financial 

7 Literacy and Education Commission. 

8 ‘‘(3) BORROWERS RECEIVING LOANS MADE

9 UNDER PART D (OTHER THAN PARENT PLUS

10 LOANS).—The information to be provided under 

11 paragraph (1)(A) to a borrower of a loan made 

12 under part D (other than a Federal Direct PLUS 

13 Loan made on behalf of a dependent student) shall 

14 include the following: 

15 ‘‘(A) To the extent practicable, the effect 

16 of accepting the loan to be disbursed on the eli17 gibility of the borrower for other forms of stu18 dent financial assistance. 

19 ‘‘(B) An explanation of the use of the mas20 ter promissory note. 

21 ‘‘(C) An explanation that the borrower is 

22 not required to accept the full amount of the 

23 loan offered to the borrower. 

24 ‘‘(D) An explanation that the borrower 

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1 ship, or State or Federal work-study jobs for 

2 which the borrower is eligible prior to accepting 

3 Federal student loans. 

4 ‘‘(E) A recommendation to the borrower to 

5 exhaust the borrower’s Federal student loan op6 tions prior to taking out private education 

7 loans, an explanation that Federal student 

8 loans typically offer better terms and conditions 

9 than private education loans, an explanation of 

10 treatment of loans made under part D and pri11 vate education loans in bankruptcy, and an ex12 planation that if a borrower decides to take out 

13 a private education loan— 

14 ‘‘(i) the borrower has the ability to se15 lect a private educational lender of the bor16 rower’s choice; 

17 ‘‘(ii) the proposed private education 

18 loan may impact the borrower’s potential 

19 eligibility for other financial assistance, in20 cluding Federal financial assistance under 

21 this title; and 

22 ‘‘(iii) the borrower has a right— 

23 ‘‘(I) to accept the terms of the 

24 private education loan within 30 cal25 endar days following the date on 


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1 which the application for such loan is 

2 approved and the borrower receives 

3 the required disclosure documents, 

4 pursuant to section 128(e) of the 

5 Truth in Lending Act (15 U.S.C. 

6 1638(e)); and 

7 ‘‘(II) to cancel such loan within 3 

8 business days of the date on which the 

9 loan is consummated, pursuant to sec10 tion 128(e)(7) of such Act (15 U.S.C. 

11 1638(e)(7)). 

12 ‘‘(F) An explanation of the approved edu13 cational expenses for which the borrower may 

14 use a loan made under part D. 

15 ‘‘(G) Information on the annual and aggre16 gate loan limits for Federal Direct Stafford 

17 Loans and Federal Direct Unsubsidized Staf18 ford Loans. 

19 ‘‘(H) Information on how interest accrues 

20 and is capitalized during periods when the in21 terest is not paid by either the borrower or the 

22 Secretary. 

23 ‘‘(I) In the case of a Federal Direct PLUS 

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1 ford Loan, the option of the borrower to pay 

2 the interest while the borrower is in school. 

3 ‘‘(J) The definition of half-time enrollment 

4 at the institution, during regular terms and 

5 summer school, if applicable, and the con6 sequences of not maintaining at least half-time 

7 enrollment. 

8 ‘‘(K) An explanation of the importance of 

9 contacting the appropriate offices at the institu10 tion of higher education if the borrower with11 draws prior to completing the borrower’s pro12 gram of study so that the institution can pro13 vide exit counseling, including information re14 garding the borrower’s repayment options and 

15 loan consolidation. 

16 ‘‘(L) For a first-time borrower— 

17 ‘‘(i) a statement of the anticipated 

18 balance on the loan for which the borrower 

19 is receiving counseling under this sub20 section; 

21 ‘‘(ii) based on such anticipated bal22 ance, the anticipated monthly payment 

23 amount under, at minimum— 

24 ‘‘(I) the standard repayment 

25 plan; and 


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1 ‘‘(II) an income-based repayment 

2 plan under section 493C, as deter3 mined using regionally available data 

4 from the Bureau of Labor Statistics 

5 of the average starting salary for the 

6 occupation in which the borrower has 

7 an interest in or intends to be em8 ployed; and 

9 ‘‘(iii) an estimate of the projected 

10 monthly payment amount under each re11 payment plan described in clause (ii), 

12 based on the average cumulative indebted13 ness at graduation for borrowers of loans 

14 made under part D who are in the same 

15 program of study as the borrower. 

16 ‘‘(M) For a borrower with an outstanding 

17 balance of principal or interest due on a loan 

18 made under this title— 

19 ‘‘(i) a current statement of the 

20 amount of such outstanding balance and 

21 interest accrued; 

22 ‘‘(ii) based on such outstanding bal23 ance, the anticipated monthly payment 

24 amount under, at minimum, the standard 

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1 able data from the Bureau of Labor Sta2 tistics of the average starting salary for 

3 the occupation the borrower intends to be 

4 employed, an income-based repayment plan 

5 under section 493C; and 

6 ‘‘(iii) an estimate of the projected 

7 monthly payment amount under each re8 payment plan described in clause (ii), 

9 based on— 

10 ‘‘(I) the outstanding balance de11 scribed in clause (i); 

12 ‘‘(II) the anticipated outstanding 

13 balance on the loan for which the stu14 dent is receiving counseling under this 

15 subsection; and 

16 ‘‘(III) a projection for any other 

17 loans made under part D that the 

18 borrower is reasonably expected to ac19 cept during the borrower’s program of 

20 study based on at least the expected 

21 increase in the cost of attendance of 

22 such program. 

23 ‘‘(N) The obligation of the borrower to 

24 repay the full amount of the loan, regardless of 

25 whether the borrower completes or does not 


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1 complete the program in which the borrower is 

2 enrolled within the regular time for program 

3 completion. 

4 ‘‘(O) The likely consequences of default on 

5 the loan, including adverse credit reports, delin6 quent debt collection procedures under Federal 

7 law, and litigation, and a notice of the institu8 tion’s most recent cohort default rate (defined 

9 in section 435(m)), an explanation of the cohort 

10 default rate, the most recent national average 

11 cohort default rate, and the most recent na12 tional average cohort default rate for the cat13 egory of institution described in section 

14 435(m)(4) to which the institution belongs. 

15 ‘‘(P) Information on the National Student 

16 Loan Data System and how the borrower can 

17 access the borrower’s records. 

18 ‘‘(Q) The contact information for the insti19 tution’s financial aid office or other appropriate 

20 office at the institution the borrower may con21 tact if the borrower has any questions about the 

22 borrower’s rights and responsibilities or the 

23 terms and conditions of the loan. 

24 ‘‘(4) BORROWERS RECEIVING PARENT PLUS

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1 tion to be provided under paragraph (1)(A) to a bor2 rower of a Federal Direct PLUS Loan made on be3 half of a dependent student shall include the fol4 lowing: 

5 ‘‘(A) The information described in sub6 paragraphs (A) through (C) and (N) through 

7 (Q) of paragraph (3). 

8 ‘‘(B) The option of the borrower to pay the 

9 interest on the loan while the loan is in 

10 deferment. 

11 ‘‘(C) For a first-time borrower of such 

12 loan— 

13 ‘‘(i) a statement of the anticipated 

14 balance on the loan for which the borrower 

15 is receiving counseling under this sub16 section; 

17 ‘‘(ii) based on such anticipated bal18 ance, the anticipated monthly payment 

19 amount under the standard repayment 

20 plan; and 

21 ‘‘(iii) an estimate of the projected 

22 monthly payment amount under the stand23 ard repayment plan, based on the average 

24 cumulative indebtedness of other borrowers 

25 of Federal Direct PLUS Loans made on 


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1 behalf of dependent students who are in 

2 the same program of study as the student 

3 on whose behalf the borrower borrowed the 

4 loan. 

5 ‘‘(D) For a borrower with an outstanding 

6 balance of principal or interest due on such 

7 loan— 

8 ‘‘(i) a statement of the amount of 

9 such outstanding balance; 

10 ‘‘(ii) based on such outstanding bal11 ance, the anticipated monthly payment 

12 amount under the standard repayment 

13 plan; and 

14 ‘‘(iii) an estimate of the projected 

15 monthly payment amount under the stand16 ard repayment plan, based on— 

17 ‘‘(I) the outstanding balance de18 scribed in clause (i); 

19 ‘‘(II) the anticipated outstanding 

20 balance on the loan for which the bor21 rower is receiving counseling under 

22 this subsection; and 

23 ‘‘(III) a projection for any other 

24 Federal Direct PLUS Loan made on 

25 behalf of the dependent student that 


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1 the borrower is reasonably expected to 

2 accept during the program of study of 

3 such student based on at least the ex4 pected increase in the cost of attend5 ance of such program. 

6 ‘‘(E) Debt management strategies that are 

7 designed to facilitate the repayment of such in8 debtedness. 

9 ‘‘(F) An explanation that the borrower has 

10 the options to prepay each loan, pay each loan 

11 on a shorter schedule, and change repayment 

12 plans. 

13 ‘‘(G) For each Federal Direct PLUS Loan 

14 made on behalf of a dependent student for 

15 which the borrower is receiving counseling 

16 under this subsection, the contact information 

17 for the loan servicer of the loan and a link to 

18 such servicer’s Website. 

19 ‘‘(5) ANNUAL LOAN ACCEPTANCE.—Prior to 

20 making the first disbursement of a loan made under 

21 part D (other than a Federal Direct Consolidation 

22 Loan) to a borrower for an award year, an eligible 

23 institution, shall, as part of carrying out the coun24 seling requirements of this subsection for the loan, 

25 ensure that after receiving the applicable counseling 


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1 under paragraphs (2), (3), and (4) for the loan the 

2 borrower accepts the loan for such award year by— 

3 ‘‘(A) signing the master promissory note 

4 for the loan; 

5 ‘‘(B) signing and returning to the institu6 tion a separate written statement that affirma7 tively states that the borrower accepts the loan; 

8 or 

9 ‘‘(C) electronically signing an electronic 

10 version of the statement described in subpara11 graph (B).’’. 

12 SEC. 202. EXIT COUNSELING. 

13 Section 485(b) of the Higher Education Act of 1965 

14 (20 U.S.C. 1092(b)) is amended— 

15 (1) in paragraph (1)(A)— 

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

17 striking ‘‘through financial aid offices or other18 wise’’ and inserting ‘‘through the use of an 

19 interactive program, during an exit counseling 

20 session that is in-person or online, or through 

21 the use of the online counseling tool described 

22 in subsection (k)(1)(A)’’; 

23 (B) by redesignating clauses (i) through 

24 (ix) as clauses (iv) through (xii), respectively; 


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1 (C) by inserting before clause (iv), as so 

2 redesignated, the following: 

3 ‘‘(i) a summary of the outstanding balance of 

4 principal and interest due on the loans made to the 

5 borrower under part B, D, or E; 

6 ‘‘(ii) an explanation of the grace period pre7 ceding repayment and the expected date that the 

8 borrower will enter repayment; and 

9 ‘‘(iii) an explanation that the borrower has the 

10 option to pay any interest that has accrued while the 

11 borrower was in school or that may accrue during 

12 the grace period preceding repayment or during an 

13 authorized period of deferment or forbearance, prior 

14 to the capitalization of the interest;’’; 

15 (D) in clause (iv), as so redesignated— 

16 (i) by striking ‘‘sample information 

17 showing the average’’ and inserting ‘‘infor18 mation, based on the borrower’s out19 standing balance described in clause (i), 

20 showing the borrower’s’’; and 

21 (ii) by striking ‘‘of each plan’’ and in22 serting ‘‘of at least the standard repay23 ment plan and the income-based repay24 ment plan under section 493C’’; 

25 (E) in clause (ix), as so redesignated— 


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1 (i) by inserting ‘‘decreased credit 

2 score,’’ after ‘‘credit reports,’’; and 

3 (ii) by inserting ‘‘reduced ability to 

4 rent or purchase a home or car, potential 

5 difficulty in securing employment,’’ after 

6 ‘‘Federal law,’’; 

7 (F) in clause (x), as so redesignated, by 

8 striking ‘‘consolidation loan under section 428C 

9 or a’’; 

10 (G) in clauses (xi) and (xii), as so redesig11 nated, by striking ‘‘and’’ at the end; and 

12 (H) by adding at the end the following: 

13 ‘‘(xiii) for each of the borrower’s loans made 

14 under part B, D, or E for which the borrower is re15 ceiving counseling under this subsection, the contact 

16 information for the loan servicer of the loan and a 

17 link to such servicer’s Website; and 

18 ‘‘(xiv) an explanation that an individual has a 

19 right to annually request a disclosure of information 

20 collected by a consumer reporting agency pursuant 

21 to section 612(a) of the Fair Credit Reporting Act 

22 (15 U.S.C. 1681j(a)).’’; 

23 (2) in paragraph (1)(B)— 

24 (A) by inserting ‘‘online or’’ before ‘‘in 

25 writing’’; and 


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1 (B) by adding before the period at the end 

2 the following: ‘‘, except that in the case of an 

3 institution using the online counseling tool de4 scribed in subsection (k)(1)(A), the Secretary 

5 shall attempt to provide such information to the 

6 student in the manner described in subsection 

7 (k)(3)(C)’’; and 

8 (3) in paragraph (2)(C), by inserting ‘‘, such as 

9 the online counseling tool described in subsection 

10 (k)(1)(A),’’ after ‘‘electronic means’’. 

11 SEC. 203. ONLINE COUNSELING TOOLS. 

12 Section 485(k) of the Higher Education Act of 1965 

13 (20 U.S.C. 1092) is amended to read as follows: 

14 ‘‘(k) ONLINE COUNSELING TOOLS.— 

15 ‘‘(1) IN GENERAL.—Beginning not later than 1 

16 year after the date of enactment of the Achieving 

17 Independence through Degrees Act, the Secretary 

18 shall maintain— 

19 ‘‘(A) an online counseling tool that pro20 vides the exit counseling required under sub21 section (b) and meets the applicable require22 ments of this subsection; and 

23 ‘‘(B) an online counseling tool that pro24 vides the annual counseling required under subVerDate Sep 11 2014 03:25 Apr 25, 2018 Jkt 079200 PO 00000 Frm 00026 Fmt 6652 Sfmt 6201 E:\BILLS\H5550.IH H5550

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1 section (l) and meets the applicable require2 ments of this subsection. 

3 ‘‘(2) REQUIREMENTS OF TOOLS.—In maintain4 ing the online counseling tools described in para5 graph (1), the Secretary shall ensure that each such 

6 tool is— 

7 ‘‘(A) consumer tested, in consultation with 

8 other relevant Federal agencies, to ensure that 

9 the tool is effective in helping individuals under10 stand their rights and obligations with respect 

11 to borrowing a loan made under part D; 

12 ‘‘(B) understandable to students who are 

13 borrowers of loans made under part D; and 

14 ‘‘(C) freely available to all eligible institu15 tions. 

16 ‘‘(3) RECORD OF COUNSELING COMPLETION.— 

17 The Secretary shall— 

18 ‘‘(A) use each online counseling tool de19 scribed in paragraph (1) to keep a record of 

20 which individuals have received counseling using 

21 the tool, and notify the applicable institutions 

22 of the individual’s completion of such coun23 seling; 

24 ‘‘(B) in the case of a borrower who re25 ceives annual counseling for a loan made under 


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1 part D using the tool described in paragraph 

2 (1)(B), notify the borrower by when the bor3 rower should accept, in a manner described in 

4 subsection (l)(6), the loan for which the bor5 rower has received such counseling; and 

6 ‘‘(C) in the case of a borrower described in 

7 subsection (b)(1)(B) at an institution that uses 

8 the online counseling tool described in para9 graph (1)(A) of this subsection, the Secretary 

10 shall attempt to provide the information de11 scribed in subsection (b)(1)(A) to the borrower 

12 through such tool.’’. 

13 SEC. 204. LONGITUDINAL STUDY ON THE EFFECTIVENESS 

14 OF STUDENT LOAN COUNSELING. 

15 (a) IN GENERAL.—Not later than 1 year after the 

16 date of enactment of this Act, the Secretary of Education, 

17 acting through the Director of the Institute of Education 

18 Sciences, shall begin conducting a rigorous, longitudinal 

19 study of the impact and effectiveness of the student loan 

20 counseling— 

21 (1) provided under subsections (b), (l), and (k) 

22 of section 485 of the Higher Education Act of 1965 

23 (20 U.S.C. 1092), as amended by this Act; and 

24 (2) provided through such other means as the 

25 Secretary of Education may determine. 


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1 (b) CONTENTS.— 

2 (1) BORROWER INFORMATION.—The longitu3 dinal study carried out under subsection (a) shall in4 clude borrower information, in the aggregate and 

5 disaggregated by race, ethnicity, gender, income, and 

6 status as an individual with a disability, on— 

7 (A) student persistence; 

8 (B) degree attainment; 

9 (C) program completion; 

10 (D) successful entry into student loan re11 payment; 

12 (E) cumulative borrowing levels; and 

13 (F) such other factors as the Secretary of 

14 Education may determine. 

15 (2) EXCEPTION.—The disaggregation under 

16 paragraph (1) shall not be required in a case in 

17 which the number of borrowers in a category is in18 sufficient to yield statistically reliable information or 

19 the results would reveal personally identifiable infor20 mation about an individual borrower. 

21 (c) INTERIM REPORTS.—Not later than 18 months 

22 after the commencement of the study under subsection 

23 (a), and annually thereafter, the Secretary of Education 

24 shall evaluate the progress of the study and report any 


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1 short-term findings to the appropriate committees of Con2 gress. 

3 TITLE III—REPEAL OF SUSPEN4 SION OF ELIGIBILITY UNDER 

5 THE HIGHER EDUCATION ACT 

6 OF 1965 FOR GRANTS, LOANS, 

7 AND WORK ASSISTANCE FOR 

8 DRUG-RELATED OFFENSES 

9 SEC. 301. REPEAL. 

10 (a) IN GENERAL.—Section 484 of the Higher Edu11 cation Act of 1965 (20 U.S.C. 1091) is amended by strik12 ing subsection (r). 

13 (b) CONFORMING AMENDMENTS.—Section 484 of the 

14 Higher Education Act of 1965 (20 U.S.C. 1091) is 

15 amended by redesignating subsections (s), (t), and (u) as 

16 subsections (r), (s), and (t), respectively. 

17 SEC. 302. REVISION OF FAFSA FORM. 

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

19 U.S.C. 1090) is amended by adding at the end the fol20 lowing: 

21 ‘‘(i) CONVICTIONS.—The Secretary shall not include 

22 any question about the conviction of an applicant for the 

23 possession or sale of illegal drugs on the FAFSA (or any 

24 other form developed under subsection (a)).’’. 


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1 TITLE IV—FINANCIAL AID 

2 SHOPPING SHEET 

3 SEC. 401. SECRETARIAL REQUIREMENTS. 

4 (a) IN GENERAL.—Not later 1 year after the date 

5 of enactment of this Act, the Secretary of Education, in 

6 consultation with the Secretaries of Defense and Veterans 

7 Affairs, shall develop and finalize a financial shopping 

8 sheet that ensures each institution of higher education 

9 provides meaningful information about the financial cost 

10 and quality of such institution to students (including stu11 dents who have authorized the Department of Education 

12 to send the student’s Institutional Student Information 

13 Record to such institution) to assist such students in de14 termining how to use financial aid to attend such institu15 tion, and which— 

16 (1) is standardized so that it can be used by all 

17 institutions of higher education; 

18 (2) is consumer tested, and presented in a man19 ner that is simple and easily understandable; and 

20 (3) is personalized for each student who re21 ceives such sheet by including— 

22 (A) the cost of attendance of the edu23 cational program in which the student is en24 rolled or seeks to be enrolled; 


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1 (B) the type of Federal educational bene2 fits available to assist in covering such cost of 

3 attendance, including loans and grants under 

4 title IV of the Higher Education Act of 1965; 

5 (C) the amount of financial aid, including 

6 Federal, State, institutional, or other aid that 

7 can be used to assist in covering such cost of 

8 attendance; 

9 (D) information about student outcomes 

10 for students who graduate from such edu11 cational program, including, based upon the 

12 most recent data available— 

13 (i) the graduation rate; 

14 (ii) the loan repayment rate; and 

15 (iii) the estimated loan debt upon 

16 graduation; and 

17 (E) any other information that facilitates 

18 comparison of aid packages offered by different 

19 institutions of higher education. 

20 (b) DEFINITIONS.—In this subsection: 

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

22 attendance’’ has the meaning given the term in sec23 tion 472 of the Higher Education Act of 1965 (20 

24 U.S.C. 1087ll). 


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1 (2) INSTITUTION OF HIGHER EDUCATION.—The 

2 term ‘‘institution of higher education’’ has the 

3 meaning given the term in section 102 of the Higher 

4 Education Act of 1965 (20 U.S.C. 1002). 

5 SEC. 402. REQUIREMENTS FOR INSTITUTIONS OF HIGHER 

6 EDUCATION. 

7 Section 487(a) of the Higher Education Act of 1965 

8 (20 U.S.C. 1094(a)) is amended by adding at the end the 

9 following: 

10 ‘‘(30) The institution will use a financial aid 

11 shopping sheet described in 401(a) of the Achieving 

12 Independence through Degrees Act as its sole finan13 cial award letter or include such sheet as a supple14 mental cover to such financial award letter.’’. 

15 TITLE V—SNAP AND HIGHER 

16 EDUCATION 

17 SEC. 501. SNAP TREATMENT OF LIVING EXPENSES IN18 CLUDED IN EDUCATIONAL LOANS. 

19 Section 5 of the Food and Nutrition Act of 2008 (7 

20 U.S.C. 2014) is amended— 

21 (1) in subsection (d)— 

22 (A) in paragraph (3)(B) by striking ‘‘other 

23 than’’ and inserting ‘‘including’’; and 


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1 (B) in the proviso of paragraph (5) by 

2 striking ‘‘, and no portion’’ and all that follows 

3 through ‘‘expenses,’’; and 

4 (2) in subsection (k)— 

5 (A) by striking paragraph (3); and 

6 (B) by redesignating paragraph (4) as 

7 paragraph (3). 

8 SEC. 502. ELIGIBILITY OF STUDENTS TO PARTICIPATE IN 

9 THE SUPPLEMENTAL NUTRITION ASSIST10 ANCE PROGRAM. 

11 Section 6(e) of the Food and Nutrition Act of 2008 

12 (7 U.S.C. 2015(e)) is amended— 

13 (1) in paragraph (7) by striking ‘‘or’’ at the 

14 end; 

15 (2) in paragraph (8) by striking the period at 

16 the end and inserting a semicolon; and 

17 (3) by adding at the end the following: 

18 ‘‘(9) has an expected family contribution of 

19 zero, as determined by the procedures established in 

20 part F of title IV of the Higher Education Act of 

21 1965 (20 U.S.C. 1087kk–1087vv); or 

22 ‘‘(10) is determined to be ‘independent’ based 

23 on one of the criteria specified in subparagraphs 


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1 (B), (C), (D), (G), and (H) of section 480(d)(1) of 

2 the Higher Education Act (20 U.S.C. 1087vv).’’. 

Æ 


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