Middle Class CHANCE Act

To improve college affordability. 1. Short title This Act may be cited as the Creating Higher Education Affordability Necessary to Compete Economically Act Middle Class CHANCE Act 2. Increase in the maximum amount of a Federal Pell Grant Section 401(b)(7)(C) of the Higher Education Act of 1965 ( 20 U.S.C. 1070a(b)(7)(C) (ii) Award year 2014–2015 For award year 2014–2015, the amount determined under this subparagraph for purposes of subparagraph (B)(iii) shall be increased to $4,040. (iii) Subsequent award years For award year 2015-2016 and each subsequent award year, the amount determined under this subparagraph for purposes of subparagraph (B)(iii) shall be equal to— (I) the amount determined under this subparagraph for the preceding award year; increased by (II) a percentage equal to the annual adjustment percentage for the award year for which the amount under this subparagraph is being determined; and (III) rounded to the nearest $5. . 3. Year-Round Federal Pell Grant students (a) In general Section 401(b) of the Higher Education Act of 1965 ( 20 U.S.C. 1070a(b) (8) Year-Round Federal Pell Grant students (A) In General Notwithstanding any other provision of this subsection, the Secretary shall award, to an eligible student who meets the requirements in subparagraph (B) who has received a Federal Pell Grant for an award year and is enrolled in a program of study for 1 or more additional payment periods during the same award year that are not otherwise covered by the student's Federal Pell Grant, an additional Federal Pell Grant for the additional payment periods. (B) Eligibility In order to be eligible to receive the additional Federal Pell Grant for an award year that is described in subparagraph (A), a student shall, in addition to meeting all eligibility requirements for the receipt of a Federal Pell Grant— (i) be enrolled full-time in an institution of higher education; and (ii) have successfully completed at least a full-time course load (as determined by the institution) prior to receiving an additional Federal Pell Grant award as described in subparagraph (A). (C) Amounts In the case of a student receiving more than one Federal Pell Grant in a single award year under subparagraph (A), the total amount of the Federal Pell Grants awarded to such student for the award year shall not exceed an amount equal to 150 percent of the total maximum Federal Pell Grant for such award year calculated in accordance with paragraph (7)(C)(iv)(II). (D) Inclusion in duration limit Any period of study covered by a Federal Pell Grant awarded under subparagraph (A) shall be included in determining a student's duration limit under subsection (c)(5). (9) Crossover period In any case where an eligible student is receiving a Federal Pell Grant for a payment period that spans 2 award years, the Secretary shall allow the eligible institution in which the student is enrolled to determine the award year to which the additional period shall be assigned. . (b) Effective date The amendment made by subsection (a) shall take effect on July 1, 2014. 4. Pell Grant Duration Limit Section 401(c)(5) of the Higher Education Act of 1965 ( 20 U.S.C. 1070a(c)(5) 12 semesters 15 semesters

Summary: Creating Higher Education Affordability Necessary to Compete Economically Act or the Middle Class CHANCE Act - Amends the Higher Education Act of 1965 to increase the maximum Federal Pell Grant for award year 2014-2015 and adjust it each subsequent award year to account for changes in the Consumer Price Index. Directs the Secretary of Education to award an additional Pell Grant to an eligible student who: (1) has received a Pell Grant for an award year, and (2) is enrolled in a program of study for one or more additional payment periods during the same award year that are not otherwise covered by the Pell Grant. Limits the total amount of the Pell Grants awarded to such student for the award year to 150% of the maximum Pell Grant for such award year. Raises, from 12 semesters to 15 semesters, the period during which a student may receive Federal Pell Grants.