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) (1) in clause (i)(I), by striking clause (iv)(II) clause (v)(II) (2) in clause (ii)— (A) in the heading, by striking through 2017–2018 and 2015–2016 (B) in the matter preceding subclause (I), by striking through 2017–2018 and 2015–2016 (C) in subclause (I), by striking clause (iv)(II) clause (v)(II) (3) by redesignating clauses (iii) and (iv) as clauses (iv) and (v), respectively; (4) by inserting after clause (ii) the following: (iii) Award year 2016–2017 For award year 2016–2017, the amount determined under this subparagraph for purposes of subparagraph (B)(iii) shall be equal to— (I) $9,140, reduced by (II) the maximum Federal Pell Grant for which a student was eligible, as specified in the last enacted appropriation Act applicable to award year 2016–2017; and (III) rounded to the nearest $5. ; and (5) by striking clause (iv), as redesignated by paragraph (3), and inserting the following: (iv) Subsequent award years For award year 2017–2018 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) (A) In this paragraph, the term eligible student (i) has received a Federal Pell Grant for an award year and is enrolled in an eligible program for 1 or more additional payment periods during the same award year that are not otherwise fully covered by the student's Federal Pell Grant; (ii) continues to meets all eligibility requirements to receive a Federal Pell Grant under this section; and (iii) attends an institution of higher education on average, not less than a half-time basis. (B) Notwithstanding any other provision of this subsection, the Secretary shall award an additional Federal Pell Grant to an eligible student for the additional payment periods during an award year that are not otherwise fully covered by the student's Federal Pell Grant for the award year. (C) In the case of a student receiving more than one Federal Pell Grant in a single award year under subparagraph (B), 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)(v)(II). (D) Any period of study covered by a Federal Pell Grant awarded under subparagraph (B) shall be included in determining a student's duration limit under subsection (c)(5). (9) 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, 2015. 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 This bill amends title IV (Student Assistance) of the Higher Education Act of 1965 to modify provisions related to the Federal Pell Grant program. Specifically, it increases the maximum Federal Pell Grant award for academic year 2016-2017 and adjusts it in subsequent award years to account for changes in the Consumer Price Index. The bill also increases from one to two the number of Pell Grants an eligible student may receive in a single award year (i.e., it restores year-round Pell Grants). An eligible student is a student who has already received one Pell Grant for an award year and is enrolled in an eligible program for an additional payment period (e.g., a summer term) during the same award year. A student's total amount of Pell Grants must not exceed 150% of the maximum Pell Grant for that award year. Also, any period during which a student receives an additional Pell Grant counts toward that student's lifetime Pell Grant eligibility period. The bill increases from 12 to 15 semesters a student's lifetime Federal Pell Grant eligibility period.