Simplifying the Application for Student Aid Act

To amend the Higher Education Act of 1965 to simplify the FAFSA, and for other purposes. 1. Short title This Act may be cited as the Simplifying the Application for Student Aid Act 2. Using data from second preceding year Section 480(a)(1)(B) of the Higher Education Act of 1965 ( 20 U.S.C. 1087vv(a)(1)(B) may shall 3. Calculation of annual adjustment percentage for Federal Pell Grants Section 401(b)(7)(C)(iv)(I) of the Higher Education Act of 1965 ( 20 U.S.C. 1070a(b)(7)(C)(iv)(I) calendar year fiscal year 4. FAFSA Simplification (a) FAFSA Simplification Section 483 of the Higher Education Act of 1965 ( 20 U.S.C. 1090 (1) in subsection (a)(3), by adding at the end the following: (I) Format Not later than 180 days after the date of the enactment of the Simplifying the Application for Student Aid Act (i) save data; and (ii) submit their FAFSA to the Secretary through such tool. (J) Consumer testing In developing and maintaining the electronic version of the forms under this paragraph and the technology tool for mobile devices under subparagraph (I), the Secretary shall conduct consumer testing with appropriate persons to ensure the forms and technology tool are designed to be easily usable and understandable by students and families. Such consumer testing shall include— (i) current and prospective college students, family members of such students, and other individuals with expertise in student financial assistance application processes; (ii) dependent students and independent students meeting the requirements under subsection (b) or (c) of section 479; and (iii) dependent students and independent students who do not meet the requirements under subsection (b) or (c) of section 479. ; and (2) by amending subsection (f) to read as follows: (f) Use of Internal Revenue Service data retrieval tool to populate FAFSA (1) Simplification efforts The Secretary shall— (A) make every effort to use data available from the Internal Revenue Service to reduce the amount of original data entry by applicants and strengthen the reliability of data used to calculate expected family contributions, including through the use of technology to— (i) automatically populate the electronic version of the forms under this paragraph with data available from the Internal Revenue Service; and (ii) direct an applicant to appropriate questions on such forms based on the applicant’s answers to previous questions; and (B) allow single taxpayers, married taxpayers filing jointly, and married taxpayers filing separately to utilize the data retrieval tool to its full capacity. (2) Use of tax return in application process The Secretary shall continue to examine whether data provided by the Internal Revenue Service can be used to generate an expected family contribution without additional action on the part of the student and taxpayer. (3) Reports on FAFSA simplification efforts Not less than once every other year, the Secretary shall report to the authorizing committees on the progress of the simplification efforts under this subsection. (4) Reports on FAFSA access Not less than once every 10 years, the Secretary shall report to the authorizing committees on the needs of limited English proficient students using the FAFSA. . (b) Funding (1) Use of existing funds Of the amount authorized to be appropriated to the Department of Education to maintain the Free Application for Federal Student Aid, $3,000,000 shall be available to carry out this Act and the amendments made by this Act. (2) No additional funds authorized No funds are authorized by this Act to be appropriated to carry out this Act or the amendments made by this Act. July 11, 2016 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed

Summary: Simplifying the Application for Student Aid Act (Sec. 2) This bill amends title IV (Student Assistance) of the Higher Education Act of 1965 to require the Department of Education (ED) to use tax information from the second preceding tax year (the "prior, prior year") to determine a student's financial aid eligibility. It requires data sharing between ED and the Internal Revenue Service (IRS), pursuant to taxpayer consent. (Sec. 3) The bill revises the annual adjustment percentage calculation used to determine the total maximum Federal Pell Grant award by measuring inflation over the most recent fiscal year instead of calendar year. (Sec. 4) ED must develop and maintain a consumer-tested technology tool to allow a federal financial aid applicant to complete, save, and submit electronic forms (e.g., the Free Application for Federal Student Aid) using a mobile device. Additionally, ED must make every effort to allow applicants to utilize the existing IRS data tool to automatically populate the electronic forms with tax return information. ED must report to Congress on: (1) efforts to simplify the federal financial aid application process, and (2) the needs of limited English proficient students.