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shall not include a State’s data if that 
State does not permit its applicants to use 
the EZ FAFSA for State assistance. 
‘‘(iv) FREE AVAILABILITY AND PROC-
ESSING.—The provisions of paragraph (7) 
shall apply to the EZ FAFSA, and the 
data collected by means of the EZ FAFSA 
shall be available to institutions of higher 
education, guaranty agencies, and States 
in accordance with paragraph (9). 
‘‘(v) TESTING.—The Secretary shall 
conduct appropriate field testing on the 
EZ FAFSA. 
‘‘(C) PROMOTING
THE
USE
OF
ELEC-
TRONIC FAFSA.— 
‘‘(i) IN
GENERAL.—The Secretary 
shall make all efforts to encourage all ap-
plicants to utilize the electronic forms de-
scribed in paragraph (4). 
‘‘(ii) MAINTENANCE OF THE FAFSA IN 
A
PRINTABLE
ELECTRONIC
FILE.—The 
Secretary shall maintain a version of the 
paper forms described in subparagraphs 
(A) and (B) in a printable electronic file 
that is easily portable. The printable elec-
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tronic file will be made easily accessible 
and downloadable to students on the same 
website used to provide students with the 
electronic application forms described in 
paragraph (4) of this subsection. The Sec-
retary shall enable students to submit a 
form created under this subparagraph that 
may be downloaded and printed from an 
electronic file format in order to meet the 
filing requirements of this section and in 
order to receive aid from programs under 
this title. 
‘‘(iii) REPORTING
REQUIREMENT.— 
The Secretary shall report annually to 
Congress on the impact of the digital di-
vide on students completing applications 
for title IV aid described under this para-
graph and paragraph (4). The Secretary 
will also report on the steps taken to elimi-
nate the digital divide and reduce produc-
tion of the paper form described in sub-
paragraph (A) of this paragraph. The Sec-
retary’s report will specifically address the 
impact of the digital divide on the fol-
lowing student populations: independent 
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students, 
traditionally 
underrepresented 
students, and dependent students. 
‘‘(4) ELECTRONIC FORMAT.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
produce, distribute, and process common forms 
in electronic format to meet the requirements of 
paragraph (1). The Secretary shall develop 
common electronic forms for applicants who do 
not meet the requirements of subparagraph (C) 
of this paragraph. 
‘‘(B) STATE
DATA.—The Secretary shall 
include on the common electronic forms space 
for information that needs to be entered for the 
applicant to be eligible for State financial as-
sistance, as provided under paragraph (6), ex-
cept the Secretary shall not require applicants 
to enter data required by any State other than 
the applicant’s State of residence. 
‘‘(C) SIMPLIFIED APPLICATIONS: FAFSA ON 
THE WEB.— 
‘‘(i) IN
GENERAL.—The Secretary 
shall develop and use a simplified elec-
tronic application form to be used by appli-
cants meeting the requirements under sub-
sections (b) and (c) of section 479. 
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‘‘(ii) 
REDUCED
DATA
REQUIRE-
MENTS.—The simplified electronic applica-
tion forms shall permit an applicant to 
submit for financial assistance purposes, 
only the data elements required to make a 
determination of whether the applicant 
meets the requirements under subsection 
(b) or (c) of section 479. 
‘‘(iii) STATE
DATA.—The Secretary 
shall include on the simplified electronic 
application forms such data items as may 
be necessary to award State financial as-
sistance, as provided under paragraph (6), 
except that the Secretary shall not require 
applicants to enter data required by any 
State other than the applicant’s State of 
residence. 
‘‘(iv) 
AVAILABILITY
AND
PROC-
ESSING.—The data collected by means of 
the simplified electronic application forms 
shall be available to institutions of higher 
education, guaranty agencies, and States 
in accordance with paragraph (9). 
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‘‘(v) TESTING.—The Secretary shall 
conduct appropriate field testing on the 
forms developed under this subparagraph. 
‘‘(D) USE
OF
FORMS.—Nothing in this 
subsection shall be construed to prohibit the use 
of the forms developed by the Secretary pursu-
ant to this paragraph by an eligible institution, 
eligible lender, guaranty agency, State grant 
agency, private computer software provider, a 
consortium thereof, or such other entities as the 
Secretary may designate. 
‘‘(E) PRIVACY.—The Secretary shall en-
sure that data collection under this paragraph 
complies with section 552a of title 5, United 
States Code, and that any entity using the elec-
tronic version of the forms developed by the 
Secretary pursuant to this paragraph shall 
maintain reasonable and appropriate adminis-
trative, technical, and physical safeguards to 
ensure the integrity and confidentiality of the 
information, and to protect against security 
threats, or unauthorized uses or disclosures of 
the information provided on the electronic 
version of the forms. Data collected by such 
electronic version of the forms shall be used 
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only for the application, award, and administra-
tion of aid awarded under this title, State aid 
awarded under section 415C, or aid awarded by 
eligible institutions or such entities as the Sec-
retary may designate. No data collected by such 
electronic version of the forms shall be used for 
making final aid awards under this title until 
such data have been processed by the Secretary 
or a contractor or designee of the Secretary, ex-
cept as may be permitted under this title. 
‘‘(F) SIGNATURE.—Notwithstanding any 
other provision of this Act, the Secretary may 
permit an electronic form under this paragraph 
to be submitted without a signature, if a signa-
ture is subsequently submitted by the applicant 
or if the applicant uses a personal identification 
number provided by the Secretary under sub-
paragraph (G) of this paragraph. 
‘‘(G) PERSONAL
IDENTIFICATION
NUM-
BERS AUTHORIZED.—The Secretary may assign 
to applicants personal identification numbers— 
‘‘(i) to enable the applicants to use 
such numbers in lieu of a signature for 
purposes of completing a form under this 
paragraph; 
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‘‘(ii) to enable the applicants to use 
such numbers in lieu of a signature for 
purposes of completing forms required by 
States under section 415C; and 
‘‘(iii) for any purpose determined by 
the Secretary to enable the Secretary to 
carry out this title. 
‘‘(H) PERSONAL IDENTIFICATION NUMBER 
IMPROVEMENT.—The Secretary shall implement 
a real-time data match between the Social Se-
curity Administration and the Department to 
minimize the time required for an applicant to 
obtain a personal identification number when 
applying for aid under this title through an 
electronic version of a form developed under 
this paragraph. 
‘‘(5) STREAMLINING.— 
‘‘(A) STREAMLINED REAPPLICATION PROC-
ESS.— 
‘‘(i) IN
GENERAL.—The Secretary 
shall develop streamlined reapplication 
forms and processes, including both paper 
and electronic reapplication processes, con-
sistent with the requirements of this sub-
section, for an applicant who applies for fi-
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nancial assistance under this title in the 
next succeeding academic year subsequent 
to the year in which such applicant first 
applied for financial assistance under this 
title. 
‘‘(ii) MECHANISMS
FOR
REAPPLICA-
TION.—The Secretary shall develop appro-
priate mechanisms to support reapplica-
tion. 
‘‘(iii) IDENTIFICATION
OF
UPDATED 
DATA.—The Secretary shall determine, in 
cooperation with States, institutions of 
higher education, agencies, and organiza-
tions involved in student financial assist-
ance, the data elements that can be up-
dated from the previous academic year’s 
application. 
‘‘(iv) REDUCED DATA AUTHORIZED.— 
Nothing in this title shall be construed as 
limiting the authority of the Secretary to 
reduce the number of data elements re-
quired of reapplicants. 
‘‘(v) ZERO FAMILY CONTRIBUTION.— 
Applicants determined to have a zero fam-
ily contribution pursuant to section 479(c) 
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shall not be required to provide any finan-
cial data in a reapplication form, except 
that which is necessary to determine eligi-
bility under such section. 
‘‘(B) REDUCTION OF DATA ELEMENTS.— 
‘‘(i) REDUCTION
ENCOURAGED.—Of 
the number of data elements on the 
FAFSA on the date of enactment of the 
College Opportunity and Affordability Act 
of 2008 (including questions on the 
FAFSA for the purposes described in 
paragraph (6)), the Secretary, in coopera-
tion with representatives of agencies and 
organizations involved in student financial 
assistance, shall continue to reduce the 
number of such data elements required to 
be entered by all applicants, with the goal 
of reducing such number by 50 percent. 
Reductions of data elements under para-
graph (3)(B), (4)(C), or (5)(A)(iv) shall 
not be counted towards such reduction un-
less those data elements are reduced for all 
applicants. 
‘‘(ii) REPORT.—The Secretary shall 
submit a report on the process of this re-
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duction to each the authorizing committees 
within 2 years after such date of enact-
ment. 
‘‘(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 for the 
2008–2009 academic year, unless a State noti-
fies the Secretary that the State no longer re-
quires those data items for the distribution of 
State need-based aid. 
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‘‘(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. 
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‘‘(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 
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‘‘(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 
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 (4)(A) of this subsection; and 
‘‘(II) not require any resident of 
that State to complete any non-
financial data previously 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 
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‘‘(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 
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 October 
15 of the year prior to the student’s planned year 
of enrollment.’’; 
(2) by adding at the end of subsection (a) the 
following paragraph: 
‘‘(13) EARLY APPLICATION AND AWARD DEM-
ONSTRATION PROGRAM.— 
‘‘(A) PROGRAM REQUIRED.—The Secretary 
shall, no later than two years after the date of 
the enactment of the College Opportunity and 
Affordability Act of 2008, implement an early 
application demonstration program enabling de-
pendent students to— 
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‘‘(i) complete applications under this 
subsection in such students’ junior year of 
secondary school, or in the academic year 
that is 2 years prior to such students’ in-
tended year of enrollment at an institution 
of higher education; 
‘‘(ii) receive an estimate of such stu-
dents’ financial aid awards; 
‘‘(iii) update, in the year prior to such 
students’ planned year of enrollment, the 
information contained in an application 
submitted under clause (i), using the proc-
ess described in paragraph (5) to deter-
mine such students’ final financial aid 
awards; and 
‘‘(iv) receive final financial aid awards 
based on updated information described in 
clause (iii). 
‘‘(B) PURPOSE
AND
OBJECTIVES.—The 
purpose of the demonstration program under 
this paragraph shall be to measure the benefits, 
in terms of student aspirations and plans to at-
tend college, and the adverse effects, in terms 
of program costs, integrity, distribution, and 
delivery of aid under this title, of implementing 
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an early application system for all dependent 
students that allows dependent students to 
apply for financial aid using information from 
the year prior to the year prior to enrollment. 
Additional objectives associated with implemen-
tation of the demonstration program are the 
following: 
‘‘(i) Measure the feasibility of ena-
bling dependent students to apply for Fed-
eral, State, and institutional financial aid 
in their junior year of high school, using 
information from the year prior to the year 
prior to enrollment, by completing any of 
the application forms under this sub-
section. 
‘‘(ii) Identify whether receiving final 
financial aid awards no later than the fall 
of the senior year provides students with 
additional time to compete for the limited 
resources available for State and institu-
tional financial aid and positively impacts 
the college aspirations and plans of these 
students. 
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‘‘(iii) Measure the impact of using in-
come information from the years prior to 
enrollment on— 
‘‘(I) eligibility for financial aid 
under this title and for other State 
and institutional aid; and 
‘‘(II) the cost of financial aid 
programs under this title. 
‘‘(iv) Effectively evaluate the benefits 
and adverse effects of the demonstration 
program on program costs, integrity, dis-
tribution, and delivery of aid. 
‘‘(C) PARTICIPANTS.—The Secretary shall 
select States and institutions within those 
States to participate in the demonstration pro-
gram under this paragraph that are partici-
pating in the programs under this title and that 
are willing to make final financial aid awards to 
students based on their application information 
from the year prior to the year prior to enroll-
ment. The Secretary shall also select as partici-
pants in the demonstration program secondary 
schools and dependent students that are located 
in the participating States. 
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‘‘(D) APPLICATION
PROCESS.—The Sec-
retary shall insure that the following provisions 
are included in the demonstration program: 
‘‘(i) Participating States and institu-
tions shall— 
‘‘(I) encourage participating stu-
dents to apply for estimates of finan-
cial aid awards as provided under this 
title in such students’ junior year of 
secondary school, or in the academic 
year that is 2 years prior to such stu-
dents’ intended year of enrollment at 
an institution of higher education, 
using the most recent information 
available; and 
‘‘(II) make final financial aid 
awards 
to 
participating 
students 
based on the updated information con-
tained on a form submitted using the 
process described in paragraph (5). 
‘‘(ii) Financial aid administrators at 
participating institutions shall be allowed 
to use their discretion in awarding finan-
cial aid to participating students, as out-
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lined under section 479A and section 
480(d)(7). 
‘‘(E) EVALUATION.—The Secretary shall 
conduct a rigorous evaluation of this dem-
onstration program in order to measure its ben-
efits and adverse effects as indicated under sub-
paragraph (A). 
‘‘(F) OUTREACH.—The Secretary shall 
make appropriate efforts in order to notify 
States of the demonstration program under this 
paragraph. Upon determination of participating 
States, the Secretary shall continue to make ef-
forts to notify institutions and dependent stu-
dents within participating States of the oppor-
tunity to participate in the demonstration pro-
gram and of the participation requirements. 
‘‘(G) CONSULTATION.—The Secretary shall 
consult with the Advisory Committee on Stu-
dent Financial Assistance, established under 
section 491, on the design and implementation 
of the demonstration program and on the eval-
uation described in subparagraph (E).’’; 
(3) by striking subsection (b); and 
(4) by redesignating subsections (c), (d), and 
(e) as subsections (b), (c), and (d), respectively. 
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