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(4)(C) of this subsection for purposes 
of determining eligibility for State 
need-based financial aid; and 
‘‘(II) the State-specific data that 
the State agency requires for delivery 
of State need-based financial aid. 
‘‘(ii) ACCEPTANCE OF FORMS.—In the 
event that a State does not permit an ap-
plicant to file a form described in para-
graph (3)(B) or paragraph (4)(C) of this 
subsection for purposes of determining eli-
gibility for State need-based financial 
aid— 
‘‘(I) the State shall notify the 
Secretary if the State is not permitted 
to do so because of either State law or 
because of agency policy; and 
‘‘(II) the notification under sub-
clause (I) shall include an estimate of 
the program cost to permit applicants 
to complete simplified application 
forms under paragraphs (3)(B) and 
paragraph (4)(C) of this subsection. 
‘‘(iii) LACK OF NOTIFICATION BY THE 
STATE.—If a State does not notify the 
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Secretary pursuant to clause (i), the Sec-
retary shall— 
‘‘(I) permit residents of that 
State to complete simplified applica-
tion forms under paragraphs (3)(B) 
and paragraph (4)(C) of this sub-
section; and 
‘‘(II) not require any resident of 
that State to complete any data pre-
viously required by that State under 
this section. 
‘‘(7) CHARGES
TO
STUDENTS
AND
PARENTS 
FOR USE OF FORMS PROHIBITED.— 
‘‘(A) FEES PROHIBITED.—The FAFSA, in 
whatever form (including the EZ–FAFSA, 
paper, electronic, simplified, or reapplication), 
shall be produced, distributed, and processed by 
the Secretary and no parent or student shall be 
charged a fee by an entity for the collection, 
processing, or delivery of financial aid through 
the use of the FAFSA. The need and eligibility 
of a student for financial assistance under parts 
A through E of this title (other than under sub-
part 4 of part A) may only be determined by 
using the FAFSA developed by the Secretary 
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pursuant to this subsection. No student may re-
ceive assistance under parts A through E of 
this title (other than under subpart 4 of part 
A), except by use of the FAFSA developed by 
the Secretary pursuant to this subsection. No 
data collected on a form, worksheet, or other 
document for which a fee is charged shall be 
used to complete the FAFSA. 
‘‘(B) NOTICE.—Any entity that provides to 
students or parents, or charges students or par-
ents for, any value-added services with respect 
to or in connection with the FAFSA, such as 
completion of the FAFSA, submission of the 
FAFSA, or tracking of the FAFSA for a stu-
dent, shall provide to students and parents 
clear and conspicuous notice that— 
‘‘(i) the FAFSA is a free Federal stu-
dent aid application; 
‘‘(ii) the FAFSA can be completed 
without professional assistance; and 
‘‘(iii) includes the current Internet ad-
dress for the FAFSA on the Department’s 
web site. 
‘‘(8) APPLICATION
PROCESSING
CYCLE.—The 
Secretary shall enable students to submit a form 
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created under this subsection in order to meet the 
filing requirements of this section and in order to re-
ceive aid from programs under this title and shall 
initiate the processing of applications under this 
subsection as early as practicable prior to January 
1 of the student’s planned year of enrollment.’’. 
(2) MASTER CALENDAR.—Section 482(a)(1)(B) 
(20 U.S.C. 1089) is amended to read as follows: 
‘‘(B) by March 1: proposed modifications, 
updates, and notices pursuant to sections 478, 
479(c)(2)(C), and 483(a)(6) published in the 
Federal Register;’’. 
(b) INCREASING ACCESS TO TECHNOLOGY.—Section 
483 (20 U.S.C. 1090) is further amended by adding at 
the end the following: 
‘‘(f) ADDRESSING THE DIGITAL DIVIDE.—The Sec-
retary shall utilize savings accrued by moving more appli-
cants to the electronic forms described in subsection (a)(4) 
to improve access to the electronic forms described in sub-
section (a)(4) for applicants meeting the requirements of 
section 479(c).’’. 
(c) EXPANDING
THE DEFINITION
OF
AN INDE-
PENDENT
STUDENT.—Section 
480(d) 
(20 
U.S.C.1087vv(d)) is amended by striking paragraph (2) 
and inserting the following: 
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‘‘(2) is an orphan, in foster care, or a ward of 
the court, or was in foster care or a ward of the 
court until the individual reached the age of 18;’’. 
(d) HOMELESS YOUTH.—Section 480(d) is further 
amended— 
(1) by redesignating paragraphs (6) and (7) as 
paragraphs (7) and (8), respectively; and 
(2) by inserting after paragraph (5) the fol-
lowing new paragraph: 
‘‘(6) has been verified as both a homeless child 
or youth and an unaccompanied youth, as such 
terms are defined in section 725 of the McKinney- 
Vento Homeless Assistance Act (42 U.S.C. 11434a), 
during the school year in which the application for 
financial assistance is submitted, by— 
‘‘(A) a local educational agency liaison for 
homeless children and youths, as designated 
under section 722(g)(1)(J)(ii) of the McKinney- 
Vento Homeless Assistance Act (42 U.S.C. 
11432(g)(1)(J)(ii)); 
‘‘(B) a director of a homeless shelter, tran-
sitional shelter, or independent living program; 
or 
‘‘(C) a financial aid administrator;’’. 
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SEC. 472. DISCRETION OF STUDENT FINANCIAL AID ADMIN-
ISTRATORS. 
Section 479A(a) (20 U.S.C. 1087tt(a)) is amended— 
(1) by striking ‘‘(a) IN GENERAL.—’’ and in-
serting the following: 
‘‘(a) AUTHORITY TO MAKE ADJUSTMENTS.— 
‘‘(1) 
ADJUSTMENTS
FOR
SPECIAL
CIR-
CUMSTANCES.—’’; 
(2) by inserting before ‘‘Special circumstances 
may’’ the following: 
‘‘(2) SPECIAL CIRCUMSTANCES DEFINED.—’’; 
(3) by inserting ‘‘a student’s status as a ward 
of the court at any time prior to attaining 18 years 
of age, a student’s status as an individual who was 
adopted at or after age 13, a student’s status as a 
homeless or unaccompanied youth (as defined in sec-
tion 725 of the McKinney-Vento Homeless Assist-
ance Act),’’ after ‘‘487,’’; 
(4) by inserting before ‘‘Adequate documenta-
tion’’ the following: 
‘‘(3) DOCUMENTATION AND USE OF SUPPLE-
MENTARY INFORMATION.—’’; and 
(5) by inserting before ‘‘No student’’ the fol-
lowing: 
‘‘(4) FEES FOR SUPPLEMENTARY INFORMATION 
PROHIBITED.—’’. 
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PART G—GENERAL PROVISIONS RELATING TO 
STUDENT FINANCIAL ASSISTANCE 
SEC. 481. EXPANDING INFORMATION DISSEMINATION RE-
GARDING ELIGIBILITY FOR PELL GRANTS. 
Section 483(a) (20 U.S.C. 1090(a)) (as amended by 
section 471(a)) is further amended by adding at the end 
the following new paragraph: 
‘‘(13) EXPANDING
INFORMATION
DISSEMINA-
TION REGARDING ELIGIBILITY FOR PELL GRANTS.— 
The Secretary shall make special efforts, in conjunc-
tion with State efforts, to notify students and their 
parents who qualify for a free lunch under the Rich-
ard B. Russell National School Lunch Act (42 
U.S.C. 1751 et seq.), the Food Stamps program, or 
such other programs as the Secretary shall deter-
mine, of their potential eligibility for a maximum 
Pell Grant, and shall disseminate such informational 
materials as the Secretary deems appropriate.’’. 
SEC. 482. STUDENT ELIGIBILITY. 
(a) TECHNICAL AMENDMENT.—Section 484(b)(5) 
(20 U.S.C. 1091(b)(5)) is amended by inserting ‘‘or par-
ent (on behalf of a student)’’ after ‘‘student’’. 
(b) REPUBLIC OF PALAU.—Section 484 (20 U.S.C. 
1091) is amended— 
(1) in subsection (a)— 
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(A) in paragraph (4), by striking ‘‘the Re-
public of the Marshall Islands, the Federated 
States of Micronesia, or’’; and 
(B) in paragraph (5), by striking ‘‘a cit-
izen of any one of the Freely Associated 
States’’ and inserting ‘‘or, to the extent de-
scribed in subsection (j), a citizen of the Repub-
lic of Palau’’; and 
(2) by amending subsection (j) to read as fol-
lows: 
‘‘(j) ASSISTANCE UNDER SUBPART 1 OF PART A FOR 
STUDENTS FROM PALAU.—Notwithstanding any other 
provision of law, a student shall be eligible until Sep-
tember 30, 2007, for assistance under subpart 1 of part 
A if the student is otherwise qualified and— 
‘‘(1) is a citizen of the Republic of Palau and 
attends an institution of higher education in a State 
or a public or nonprofit private institution of higher 
education in the Freely Associated States; or 
‘‘(2) meets the requirements of subsection 
(a)(5) and attends a public or nonprofit private in-
stitution of higher education in any one of the Free-
ly Associated States.’’. 
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SEC. 483. INSTITUTIONAL REFUNDS. 
Section 484B(a)(1) (20 U.S.C. 1091b(a)(1)) is 
amended in subsection (a)(1), by inserting ‘‘subpart 4 of 
part A or’’ after ‘‘received under’’. 
SEC. 484. INSTITUTIONAL AND FINANCIAL ASSISTANCE IN-
FORMATION FOR STUDENTS. 
(a) INFORMATION
DISSEMINATION
ACTIVITIES.— 
Section 485(a)(1) (20 U.S.C. 1092(a)(1)) is amended— 
(1) by amending the second sentence to read as 
follows: ‘‘The information required by this section 
shall be produced and be made publicly available to 
an enrolled student and to any prospective student, 
through appropriate publications, mailings, elec-
tronic media, and the reports required by the insti-
tution’s 
accrediting 
agency 
under 
section 
496(c)(9).’’; 
(2) by amending subparagraph (G) to read as 
follows: 
‘‘(G) the academic programs of the institution, 
including— 
‘‘(i) the current degree programs and other 
educational and training programs; 
‘‘(ii) the institution’s educational mission 
and goals; 
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‘‘(iii) the instructional, laboratory, and 
other physical plant facilities which relate to the 
academic programs; and 
‘‘(iv) the faculty and other instructional 
personnel;’’; 
(3) by striking subparagraph (L) and inserting 
the following: 
‘‘(L) a summary of student outcomes for full- 
time undergraduate students, including— 
‘‘(i) the completion or graduation rates of 
certificate- or degree-seeking undergraduate 
students entering such institutions; and 
‘‘(ii) any other student outcome data, qual-
itative or quantitative, including data regarding 
distance education, deemed by the institution to 
be appropriate to its stated educational mission 
and goals, and, when applicable, licensing and 
placement rates for professional and vocational 
programs;’’; 
(4) by inserting before the semicolon at the end 
of subparagraph (J) the following: ‘‘, and the proc-
ess for students to register complaints with the ac-
crediting agencies or associations’’; 
(5) in subparagraph (M), by striking ‘‘guaran-
teed student loans under part B of this title or di-
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rect student loans under part E of this title, or 
both,’’ and inserting ‘‘student loans under part B, 
D, or E of this title’’; 
(6) by striking ‘‘and’’ at the end of subpara-
graph (N); 
(7) by striking the period at the end of sub-
paragraph (O) and inserting a semicolon; and 
(8) by adding at the end the following new sub-
paragraphs: 
‘‘(P) the penalties contained in subsection 
484(r) regarding suspension of eligibility for drug 
related offenses; 
‘‘(Q) the policies of the institution regarding 
the acceptance or denial of academic credit earned 
at another institution of higher education, which 
shall include a statement that such decisions will not 
be based solely on the source of accreditation of a 
sending institution, provided that the sending insti-
tution is accredited by an agency or association that 
is recognized by the Secretary pursuant to section 
496 to be a reliable authority as to the quality of the 
education or training offered, and except that noth-
ing in this subparagraph shall be construed to— 
‘‘(i) authorize an officer or employee of the 
Department to exercise any direction, super-
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