‘‘(i) REDUCTION REQUIRED.—Of the 
number of data elements on the FAFSA 
on the date of enactment of the College 
Opportunity for All Act (including ques-
tions on the FAFSA for the purposes de-
scribed in paragraph (6)), the Secretary, in 
cooperation with representatives of agen-
cies and organizations involved in student 
financial assistance, shall reduce the num-
ber of such data elements by 50 percent 
within 5 years after such date of enact-
ment. Reductions of data elements under 
paragraph (3)(B), (4)(C), or (5)(A)(iv) 
shall not be counted towards such 50 per-
cent reduction unless those data elements 
are reduced for all applicants. 
‘‘(ii) REPORT.—The Secretary shall 
submit a report on the process of this re-
duction to each House of Congress within 
2 years after such date of enactment. 
‘‘(6) STATE REQUIREMENTS.—
‘‘(A) IN
GENERAL.—The Secretary shall 
include on the forms developed under this sub-
section, such State-specific nonfinancial data 
items as the Secretary determines are necessary
to meet State requirements for need-based 
State aid under section 415C, except as pro-
vided in paragraphs (3)(B)(iii) and (4)(C)(iii) 
of this subsection. Such items shall be selected 
in consultation with State agencies that submit 
applications under section 415C in order to as-
sist in the awarding of State financial assist-
ance in accordance with the terms of this sub-
section, except as provided in paragraphs 
(3)(B)(iii) and (4)(C)(iii) of this subsection. 
The number of such data items shall not be less 
than the number included on the form on Octo-
ber 7, 1998, unless a State notifies the Sec-
retary that the State no longer requires those 
data items for the distribution of State need-
based aid. 
‘‘(B) ANNUAL
REVIEW.—The Secretary 
shall conduct an annual review process to deter-
mine which forms and nonfinancial data items 
the States require to award need-based State 
aid and other application requirements that the 
States may impose. 
‘‘(C) STATE USE OF SIMPLIFIED FORMS.—
The Secretary shall encourage states to take 
such steps as necessary to encourage the use of
simplified application forms, including those de-
scribed in paragraphs (3)(B) and (4)(C), to 
meet the requirements under subsection (b) or 
(c) of section 479. 
‘‘(D) FEDERAL
REGISTER
NOTICE.—The 
Secretary shall publish on an annual basis a no-
tice in the Federal Register requiring State 
agencies to inform the Secretary—
‘‘(i) if the State agency is unable to 
permit applicants to utilize the simplified 
application forms described in paragraphs 
(3)(B) and (4)(C); and 
‘‘(ii) of the State-specific nonfinancial 
data that the State agency requires for de-
livery of State need-based financial aid. 
‘‘(E) STATE NOTIFICATION TO THE SEC-
RETARY.—
‘‘(i) IN GENERAL.—Each State agency 
that submits an application under section 
415C shall notify the Secretary—
‘‘(I) whether the State permits 
an applicant to file a form described 
in paragraph (3)(B) or (4)(A) of this 
subsection for purposes of deter-
mining eligibility for State need-based 
grant aid; and 
‘‘(II) 
the 
State-specific 
non-
financial 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 (4)(A) of this subsection 
for purposes of determining eligibility for 
State need-based grant 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 
(4)(A) of this subsection. 
‘‘(iii) LACK OF NOTIFICATION BY THE 
STATE.—If a State does not notify the