Strengthening Financial Aid for Students Act (Strengthening FAFSA)

To amend the Higher Education Act of 1965 to increase support for working students, and for other purposes. 1. Short title This Act may be cited as the Strengthening Financial Aid for Students Act (Strengthening FAFSA) 2. Increasing support for working students by 35 percent (a) Dependent students Section 475(g)(2)(D) of the Higher Education Act of 1965 ( 20 U.S.C. 1087oo(g)(2)(D) (D) an income protection allowance (or a successor amount prescribed by the Secretary under section 478) of $9,230 for award year 2020–2021; . (b) Independent students without dependents other than a spouse Section 476 of such Act ( 20 U.S.C. 1087pp (1) in subsection (a)(2), by striking award period award year (2) by amending subsection (b)(1)(A)(iv) to read as follows: (iv) an income protection allowance (or a successor amount prescribed by the Secretary under section 478)— (I) for single or separated students, or married students where both are enrolled pursuant to subsection (a)(2), of $14,360 for award year 2020–2021; and (II) for married students where one is enrolled pursuant to subsection (a)(2), of $23,030 for award year 2020–2021; . (c) Independent students with dependents other than a spouse Section 477 of such Act ( 20 U.S.C. 1087qq (1) in subsection (a)(3), by striking award period award year (2) by amending subsection (b)(4) to read as follows: (4) Income protection allowance The income protection allowance is determined by the following table (or a successor table prescribed by the Secretary under section 478), for award year 2020–2021: Income Protection Allowance Family Number in College (including 1 2 3 4 5 For each additional subtract: 2 $36,370 $30,160 $6,180 3 45,290 39,100 $32,890 4 55,920 49,720 43,540 $37,300 5 65,990 59,750 53,570 47,360 $41,180 6 77,170 70,960 64,790 58,540 52,350 For each additional add: 8,710 . (d) Updated tables and amounts Section 478 of such Act ( 20 U.S.C. 1087rr (1) in subsection (b)— (A) in paragraph (1), by striking subparagraphs (A) and (B) and inserting the following: (A) In general For each award year after award year 2020–2021, the Secretary shall publish in the Federal Register a revised table of income protection allowances for the purpose of sections 475(c)(4) and 477(b)(4), subject to subparagraphs (B) and (C). (B) Table for independent students For each award year after award year 2020–2021, the Secretary shall develop the revised table of income protection allowances by increasing each of the dollar amounts contained in the table of income protection allowances under section 477(b)(4) by a percentage equal to the estimated percentage increase in the Consumer Price Index (as determined by the Secretary for the most recent calendar year ending prior to the beginning of the award year for which the determination is being made), and rounding the result up to the nearest $10. ; and (B) in paragraph (2)— (i) in the first sentence, by striking academic year after academic year 2007–2008 award year after award year 2020–2021 (ii) in the second sentence, by striking shall be developed shall be developed for each award year after award year 2020–2021, by increasing each of the dollar amounts contained in such section for award year 2020–2021 by a percentage equal to the estimated percentage increase in the Consumer Price Index (as determined by the Secretary for the most recent calendar year ending prior to the beginning of the award year for which the determination is being made), and rounding the result up to the nearest $10. (2) in subsection (e)(1), by striking academic year award year 3. Raising the total semesters of Federal Pell Grant eligibility Section 401(c)(5)(A) of the Higher Education Act of 1965 ( 20 U.S.C. 1070a(c)(5) 12 14

Summary: Strengthening Financial Aid for Students Act (Strengthening FAFSA) This bill increases the income protection allowance levels used to calculate a&nbsp;working student's expected family contribution and need for financial assistance. An income protection allowance is an amount for basic living expenses that is protected from being considered income available for postsecondary educational expenses. The bill also raises from 12 to 14 the total number of semesters during which a student may receive a federal Pell Grant.