566 
under section 455A unless and until the institution 
would qualify for a resumption of eligible institution 
status under such section.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
paragraph (2) of subsection (a) shall take effect on Octo-
ber 1, 2021. 
SEC. 4405. STUDENT LOAN INFORMATION BY ELIGIBLE IN-
STITUTIONS FOR PURPOSES OF THE PERKINS 
LOAN PROGRAM. 
Section 463A of the Higher Education Act of 1965 
(20 U.S.C. 1087cc–1) is amended— 
(1) in subsection (a), by striking ‘‘Each institu-
tion’’ and inserting ‘‘For loans made before July 1, 
2021, each institution’’; and 
(2) in subsection (b), by striking ‘‘Each institu-
tion’’ and inserting ‘‘For loans made before July 1, 
2021, each institution’’. 
SEC. 4406. TERMS OF LOANS FOR PURPOSES OF THE PER-
KINS LOAN PROGRAM. 
Section 464 of the Higher Education Act of 1965 (20 
U.S.C. 1087dd) is amended— 
(1) in subsection (a)(1), by striking ‘‘section 
463’’ and inserting ‘‘section 463(a)’’; 
(2) in subsection (b)(1), by inserting ‘‘made be-
fore July 1, 2021,’’ after ‘‘A loan’’; 
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(3) in subsection (c)— 
(A) in paragraph (1), by inserting ‘‘made 
before July 1, 2021,’’ after ‘‘a loan’’; 
(B) in paragraph (2)— 
(i) in subparagraph (A), by inserting 
‘‘made before July 1, 2021,’’ after ‘‘any 
loan’’; and 
(ii) in subparagraph (B), by inserting 
‘‘made before July 1, 2021,’’ after ‘‘any 
loan’’; 
(C) in paragraph (3)(B), by inserting ‘‘for 
a loan made before July 1, 2021,’’ after ‘‘Sec-
retary, the repayment period’’; 
(D) in paragraph (4), by inserting ‘‘before 
July 1, 2021,’’ after ‘‘for a loan made’’; 
(E) in paragraph (5), by striking ‘‘The in-
stitution’’ and inserting ‘‘For loans made before 
July 1, 2021, the institution’’; and 
(F) in paragraph (6), by inserting ‘‘made 
before July 1, 2021,’’ after ‘‘of loans’’; 
(4) in subsection (d), by inserting ‘‘made before 
July 1, 2021,’’ before ‘‘from the student loan fund’’; 
(5) in subsection (e), by inserting ‘‘with respect 
to loans made before July 1, 2021, and’’ before ‘‘as 
documented in accordance with paragraph (2),’’; 
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(6) in subsection (g)(1), by inserting ‘‘and be-
fore July 1, 2021,’’ after ‘‘January 1, 1986,’’; 
(7) in subsection (h)— 
(A) in paragraph (1)(A) by inserting ‘‘be-
fore July 1, 2021,’’ after ‘‘made under this 
part’’; and 
(B) in paragraph (2), by inserting ‘‘before 
July 1, 2021,’’ after ‘‘under this part’’; and 
(8) in subsection (j)(1), by inserting ‘‘before 
July 1, 2021,’’ after ‘‘under this part’’. 
SEC. 4407. REIMBURSEMENT FOR CANCELLATION OF PER-
KINS LOANS FOR CERTAIN PUBLIC SERVICE. 
Section 465 of the Higher Education Act of 1965 (20 
U.S.C. 1087ee) is amended— 
(1) in subsection (a), by inserting ‘‘and before 
July 1, 2021,’’ after ‘‘June 30, 1972,’’; and 
(2) by amending subsection (b) to read as fol-
lows: 
‘‘(b) REIMBURSEMENT FOR CANCELLATIONS.— 
‘‘(1) ASSIGNED LOANS.—In the case of loans 
made under this part before July 1, 2021, and that 
are assigned to the Secretary, the Secretary shall, 
from amounts repaid each quarter on assigned Per-
kins Loans made before July 1, 2021, pay to each 
institution for each quarter an amount equal to— 
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‘‘(A) the aggregate of the amounts of loans 
from its student loan fund that are canceled 
pursuant to this section for such quarter, minus 
‘‘(B) an amount equal to the aggregate of 
the amounts of any such loans so canceled that 
were made from Federal capital contributions 
to its student loan fund. 
‘‘(2) RETAINED LOANS.—In the case of loans 
made under this part before July 1, 2021, and that 
are retained by the institution for servicing, the in-
stitution shall deduct from loan repayments owed to 
the Secretary under section 466, an amount equal 
to— 
‘‘(A) the aggregate of the amounts of loans 
from its student loan fund that are canceled 
pursuant to this section for such quarter, minus 
‘‘(B) an amount equal to the aggregate of 
the amounts of any such loans so canceled that 
were made from Federal capital contributions 
to its student loan fund.’’. 
SEC. 4408. DISTRIBUTION OF ASSETS FROM STUDENT LOAN 
FUNDS FOR PURPOSES OF THE PERKINS 
LOAN PROGRAM. 
Section 466 of the Higher Education Act of 1965 (20 
U.S.C. 1087ff) is amended to read as follows: 
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‘‘SEC. 466. DISTRIBUTION OF ASSETS FROM STUDENT LOAN 
FUNDS. 
‘‘(a) CAPITAL DISTRIBUTION.—Beginning July 1, 
2021, there shall be a capital distribution of the balance 
of the student loan fund established under this part by 
each institution of higher education as follows: 
‘‘(1) For the quarter beginning July 1, 2021, 
the Secretary shall first be paid, no later than Sep-
tember 30, 2021, an amount that bears the same 
ratio to the cash balance in such fund at the close 
of June 30, 2021, as the total amount of the Fed-
eral capital contributions to such fund by the Sec-
retary under this part bears to— 
‘‘(A) the sum of such Federal contribu-
tions and the institution’s capital contributions 
to such fund, less 
‘‘(B) an amount equal to— 
‘‘(i) the institution’s outstanding ad-
ministrative costs as calculated under sec-
tion 463(b); 
‘‘(ii) outstanding charges assessed 
under section 464(c)(1)(H); and 
‘‘(iii) outstanding loan cancellation 
costs incurred under section 465. 
‘‘(2) At the end of each quarter subsequent to 
the quarter ending September 30, 2021, the Sec-
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retary shall first be paid an amount that bears the 
same ratio to the cash balance in such fund at the 
close of the preceding quarter, as the total amount 
of the Federal capital contributions to such fund by 
the Secretary under this part bears to— 
‘‘(A) the sum of such Federal contribu-
tions and the institution’s capital contributions 
to such fund, less 
‘‘(B) an amount equal to— 
‘‘(i) the institution’s administrative 
costs incurred for that quarter as cal-
culated under section 463(b); 
‘‘(ii) charges assessed for that quarter 
under section 464(c)(1)(H); and 
‘‘(iii) loan cancellation costs incurred 
for that quarter under section 465. 
‘‘(3)(A) The Secretary shall calculate the 
amounts due to the Secretary under paragraph (1) 
(adjusted in accordance with subparagraph (B), as 
appropriate) and paragraph (2) and shall promptly 
inform the institution of such calculated amounts. 
‘‘(B) In the event that, prior to the date of en-
actment of the College Affordability Act, an institu-
tion made a short-term, interest-free loan to the in-
stitution’s student loan fund established under this 
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572 
part in anticipation of collections or receipt of Fed-
eral capital contributions, and the institution dem-
onstrates to the Secretary, on or before June 30, 
2021, that such loan will still be outstanding after 
June 30, 2021, the Secretary shall subtract the 
amount of such outstanding loan from the cash bal-
ance of the institution’s student loan fund that is 
used to calculate the amount due to the Secretary 
under paragraph (1). An adjustment of an amount 
due to the Secretary under this subparagraph shall 
be made by the Secretary on a case-by-case basis. 
‘‘(4) Any remaining balance at the end of a 
quarter after a payment under paragraph (1) or (2) 
shall be retained by the institution for use at its dis-
cretion. Any balance so retained shall be withdrawn 
from the student loan fund and shall not be counted 
in calculating amounts owed to the Secretary for 
subsequent quarters. 
‘‘(5) Each institution shall make the quarterly 
payments to the Secretary described in paragraph 
(2) until all outstanding Federal Perkins Loans at 
that institution have been assigned to the Secretary 
and there are no funds remaining in the institution’s 
student loan fund. 
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573 
‘‘(6) In the event that the institution’s adminis-
trative costs, charges, and cancellation costs de-
scribed in paragraph (2) for a quarter exceed the 
amount owed to the Secretary under paragraphs (1) 
and (2) for that quarter, no payment shall be due 
to the Secretary from the institution for that quarter 
and the Secretary shall pay the institution, from 
funds realized from the collection of assigned Fed-
eral Perkins Loans made before July 1, 2021, an 
amount that, when combined with the amount re-
tained by the institution under paragraphs (1) and 
(2), equals the full amount of such administrative 
costs, charges, and cancellation costs. 
‘‘(b) ASSIGNMENT OF OUTSTANDING LOANS.—Be-
ginning July 1, 2021, an institution of higher education 
may assign all outstanding loans made under this part be-
fore July 1, 2021, to the Secretary, consistent with the 
requirements of section 463(a)(5). In collecting loans so 
assigned, the Secretary shall pay an institution an amount 
that constitutes the same fraction of such collections as 
the fraction of the cash balance that the institution retains 
under subsection (a)(2), but determining such fraction 
without regard to subparagraph (B)(i) of such sub-
section.’’. 
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574 
PART F—NEED ANALYSIS 
SEC. 4501. CONFORMING AMENDMENT TO FAMILY CON-
TRIBUTION. 
Section 473(b) of the Higher Education Act of 1965 
(20 U.S.C. 1087mm) is amended— 
(1) in paragraph (1), by striking ‘‘academic 
year’’ and inserting ‘‘award year’’; and 
(2) in paragraph (2)— 
(A) by striking ‘‘academic year’’ each place 
it appears and inserting ‘‘award year’’; and 
(B) by striking ‘‘academic years’’ and in-
serting ‘‘award years’’. 
SEC. 4502. AMENDMENTS TO DATA ELEMENTS WHEN DE-
TERMINING THE EXPECTED FAMILY CON-
TRIBUTION. 
Section 474(b) of the Higher Education Act of 1965 
(20 U.S.C. 1087nn(b)) is amended in paragraph (4), by 
inserting before ‘‘the net’’ the following: ‘‘only in the case 
of a pathway three applicant,’’. 
SEC. 4503. AMENDMENTS TO FAMILY CONTRIBUTION FOR 
DEPENDENT STUDENTS. 
(a) DEPENDENT STUDENTS.—Section 475 of the 
Higher Education Act of 1965 (20 U.S.C. 1087oo) is 
amended— 
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575 
(1) in subsection (a)(3), by inserting before 
‘‘the student’’ the following: ‘‘only in the case of a 
pathway three applicant,’’; 
(2) in subsection (b)(1)(B), by inserting before 
‘‘the parents’’ the following: ‘‘only in the case of a 
pathway three applicant,’’; and 
(3) in subsection (b)(3), by striking ‘‘award pe-
riod’’ and inserting ‘‘award year’’. 
(b) INCREASING SUPPORT FOR WORKING DEPEND-
ENT STUDENTS.—Section 475(g)(2)(D) of the Higher 
Education Act of 1965 (20 U.S.C. 1087oo(g)(2)(D)) is 
amended to read as follows: 
‘‘(D) an income protection allowance (or a 
successor amount prescribed by the Secretary 
under section 478) of $9,230 for award year 
2021–2022;’’. 
SEC. 4504. AMENDMENTS TO FAMILY CONTRIBUTION FOR 
INDEPENDENT STUDENTS WITHOUT DEPEND-
ENTS OTHER THAN A SPOUSE. 
(a) INDEPENDENT STUDENTS WITHOUT DEPEND-
ENTS OTHER THAN A SPOUSE.—Section 476(a)(1)(B) of 
the Higher Education Act of 1965 (20 U.S.C. 
1087pp(a)(1)(B)) is amended by inserting before ‘‘the 
family’s contribution’’ the following: ‘‘only in the case of 
a pathway three applicant,’’. 
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576 
(b) INCREASING SUPPORT
FOR WORKING INDE-
PENDENT STUDENTS WITHOUT DEPENDENTS OTHER 
THAN A SPOUSE.—Section 476 of the Higher Education 
Act of 1965 (20 U.S.C. 1087pp) is further amended— 
(1) in subsection (a)(2), by striking ‘‘award pe-
riod’’ and inserting ‘‘award year’’; and 
(2) by amending subsection (b)(1)(A)(iv) to 
read as follows: 
‘‘(iv) an income protection allowance 
(or a successor amount prescribed by the 
Secretary under section 478)— 
‘‘(I) for single or separated stu-
dents, or married students where both 
are enrolled pursuant to subsection 
(a)(2), of $14,360 for award year 
2021–2022; and 
‘‘(II) for married students where 
1 is enrolled pursuant to subsection 
(a)(2), of $23,030 for award year 
2021–2022;’’. 
SEC. 4505. AMENDMENTS TO FAMILY CONTRIBUTION FOR 
INDEPENDENT 
STUDENTS 
WITH 
DEPEND-
ENTS OTHER THAN A SPOUSE. 
(a) INDEPENDENT STUDENTS WITH DEPENDENTS 
OTHER THAN A SPOUSE.—Section 477(a)(1)(B) of the 
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577 
Higher 
Education 
Act 
of 
1965 
(20 
U.S.C. 
1087qq(a)(1)(B)) is amended by inserting before ‘‘the 
family’s contribution’’ the following: ‘‘only in the case of 
a pathway three applicant,’’. 
(b) INCREASING SUPPORT
FOR WORKING INDE-
PENDENT STUDENTS WITH DEPENDENTS OTHER THAN 
A SPOUSE.—Section 477 of the Higher Education Act of 
1965 (20 U.S.C. 1087qq) is amended— 
(1) in subsection (a)(3), by striking ‘‘award pe-
riod’’ and inserting ‘‘award year’’; and 
(2) by amending subsection (b)(4) to read as 
follows: 
‘‘(4) INCOME
PROTECTION
ALLOWANCE.—The 
income protection allowance is determined by the fol-
lowing table (or a successor table prescribed by the 
Secretary under section 478), for award year 2021– 
2022: 
‘‘Income Protection Allowance 
Family 
Size 
Number in College 
(including 
student) 
For each 
additional 
subtract: 
$36,370 
$30,160 
$6,180
45,290 
39,100 
$32,890 
55,920 
49,720 
43,540 
$37,300 
65,990 
59,750 
53,570 
47,360 
$41,180 
77,170 
70,960 
64,790 
58,540 
52,350 
For each 
additional 
add: 
8,710 
’’. 
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578 
SEC. 4506. INSTITUTIONAL CALCULATIONS FOR OFF-CAM-
PUS ROOM AND BOARD. 
(a) AUTHORITY TO PRESCRIBE REGULATIONS.—Sec-
tion 478(a) of the Higher Education Act of 1965 (20 
U.S.C. 1087rr(a)) is amended— 
(1) in paragraph (1)— 
(A) by striking ‘‘or’’ at the end of subpara-
graph (A); 
(B) by striking the period at the end of 
subparagraph (B) and inserting ‘‘; or’’; and 
(C) by adding at the end the following: 
‘‘(C) to prescribe— 
‘‘(i) one methodology that institutions 
of higher education (other than institutions 
that receive a waiver under clause (ii)) 
shall use, or a selection of two or more 
methodologies from which such institutions 
shall select and use a methodology, to de-
termine the allowance for room and board 
costs incurred by students described in 
subparagraph (A) of section 472(3) and by 
students described in subparagraph (D) of 
such section, which shall— 
‘‘(I) ensure that each such allow-
ance determination is sufficient to 
cover reasonable room and board costs 
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579 
incurred by the students for whom 
such allowance is being determined; 
and 
‘‘(II) include the sources of infor-
mation that institutions shall use in 
making each such allowance deter-
mination; and 
‘‘(ii) a process for granting institu-
tions of higher education a waiver from the 
requirements of clause (i), including— 
‘‘(I) a requirement that each in-
stitution of higher education seeking 
such a waiver submit to the Sec-
retary— 
‘‘(aa) a description of the 
methodology that the institution 
will use for each allowance deter-
mination described in clause (i); 
‘‘(bb) an assurance that 
each such allowance determina-
tion meets the requirements of 
clause (i)(I); and 
‘‘(cc) a demonstration that 
the institution will use reliable 
sources of information for each 
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580 
such 
allowance 
determination; 
and 
‘‘(II) a requirement that each in-
stitution of higher education that re-
ceives such a waiver publicly disclose 
on the website of the institution the 
methodology and sources of informa-
tion used by the institution for each 
allowance determination described in 
clause (i).’’; and 
(2) by adding at the end the following: 
‘‘(3) Any regulation proposed by the Secretary 
under paragraph (1)(C) of this subsection shall not 
be subject to the requirements of paragraph (2).’’. 
(b) REQUIREMENT TO PRESCRIBE REGULATIONS.— 
Not later than 18 months after the date of enactment of 
this Act, the Secretary of Education shall issue regulations 
that meet the requirements of subparagraph (C) of section 
478(a)(1) of the Higher Education Act of 1965 (20 U.S.C. 
1087rr(a)(1)), as added by subsection (a). 
SEC. 4507. UPDATED TABLES AND AMOUNTS TO NEED 
ANALYSIS. 
Section 478 of the Higher Education Act of 1965 (20 
U.S.C. 1087rr) is further amended— 
(1) in subsection (b)— 
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581 
(A) in paragraph (1), by striking subpara-
graphs (A) and (B) and inserting the following: 
‘‘(A) IN GENERAL.—For each award year 
after award year 2021–2022, the Secretary 
shall publish in the Federal Register a revised 
table of income protection allowances for the 
purpose of sections 475(c)(4) and 477(b)(4), 
subject to subparagraphs (B) and (C). 
‘‘(B) TABLE
FOR
INDEPENDENT
STU-
DENTS.—For each award year after award year 
2021–2022, the Secretary shall develop the re-
vised table of income protection allowances by 
increasing each of the dollar amounts contained 
in the table of income protection allowances 
under section 477(b)(4) by a percentage equal 
to the estimated percentage increase in the 
Consumer Price Index (as determined by the 
Secretary for the most recent calendar year 
ending prior to the beginning of the award year 
for which the determination is being made), and 
rounding the result to the nearest $10.’’; and 
(B) in paragraph (2)— 
(i) in the first sentence, by striking 
‘‘academic year after academic year 2007– 
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582 
2008’’ and inserting ‘‘award year after 
award year 2021–2022’’; and 
(ii) in the second sentence, by striking 
‘‘shall be developed’’ and all that follows 
through the period at the end and insert-
ing ‘‘shall be developed for each award 
year after award year 2021–2022, by in-
creasing each of the dollar amounts con-
tained in such section for award year 
2021–2022 by a percentage equal to the 
estimated percentage increase in the Con-
sumer Price Index (as determined by the 
Secretary for the most recent calendar 
year ending prior to the beginning of the 
award year for which the determination is 
being made), and rounding the result to 
the nearest $10.’’; and 
(2) in subsection (e)(1), by striking ‘‘academic 
year’’ and inserting ‘‘award year’’. 
SEC. 4508. ZERO EXPECTED FAMILY CONTRIBUTION. 
Section 479 of the Higher Education Act of 1965 (20 
U.S.C. 1087ss) is amended to read as follows: 
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583 
‘‘SEC. 479. ZERO EXPECTED FAMILY CONTRIBUTION. 
‘‘(a) IN GENERAL.—The Secretary shall consider an 
applicant to have an expected family contribution equal 
to zero if— 
‘‘(1) in the case of a dependent student— 
‘‘(A)(i) the student’s parents are not re-
quired to file— 
‘‘(I) a Federal income tax return; or 
‘‘(II) with respect to Internal Revenue 
Service Form 1040, any of the following 
forms: Schedule A, Schedule B, Schedule 
C, Schedule C–EZ, Schedule D, Schedule 
E, Schedule F, Schedule H, Schedule J, 
and Schedule SE; and 
‘‘(ii) the sum of the adjusted gross income 
of the parents is less than or equal to $34,000; 
or 
‘‘(B) the student’s parents, or the student, 
received a benefit at some time during the pre-
vious 24-month period under a means-tested 
Federal benefit program; 
‘‘(2) in the case of an independent student 
without regard to whether the student has depend-
ents other than a spouse— 
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584 
‘‘(A)(i) the student (and the student’s 
spouse, if any) certifies that the student (and 
the student’s spouse, if any)— 
‘‘(I) is not required to file a Federal 
income tax return; or 
‘‘(II) with respect to Internal Revenue 
Service Form 1040, any of the following 
forms: Schedule A, Schedule B, Schedule 
C, Schedule C–EZ, Schedule D, Schedule 
E, Schedule F, Schedule H, Schedule J, 
and Schedule SE; and 
‘‘(ii) the sum of the adjusted gross income 
of the student and spouse (if appropriate) is 
less than or equal to $34,000; or 
‘‘(B) the student received a benefit at some 
time during the previous 24-month period 
under a means-tested Federal benefit program; 
or 
‘‘(3) the applicant is a pathway one applicant 
under section 483(a)(13). 
‘‘(b) EARNED INCOME CREDIT.—An individual is not 
required to qualify or file for the earned income credit in 
order to be eligible under this section. 
‘‘(c) ADJUSTMENTS.—The Secretary shall annually 
adjust the income level necessary to qualify an applicant 
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585 
for the zero expected family contribution. The income level 
shall be annually increased by the estimated percentage 
change in the Consumer Price Index, as defined in section 
478(f), for the most recent calendar year ending prior to 
the beginning of an award year, and rounded to the near-
est $1,000. 
‘‘(d) MEANS-TESTED FEDERAL BENEFIT PROGRAM 
DEFINED.—For purposes of this title, a ‘means-tested 
Federal benefit program’ means a mandatory spending 
program of the Federal Government, other than a pro-
gram under this title, in which eligibility for the program’s 
benefits, or the amount of such benefits, are determined 
on the basis of income or resources of the individual or 
family seeking the benefit, and may include such programs 
as— 
‘‘(1) the supplemental security income program 
under title XVI of the Social Security Act (42 
U.S.C. 1381 et seq.); 
‘‘(2) the supplemental nutrition assistance pro-
gram under the Food and Nutrition Act of 2008 (7 
U.S.C. 2011 et seq.), a nutrition assistance program 
carried out under section 19 of such Act (7 U.S.C. 
2028), and a supplemental nutrition assistance pro-
gram carried out under section 1841(c) of title 48 
of the United States Code; 
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586 
‘‘(3) the program of block grants for States for 
temporary assistance for needy families established 
under part A of title IV of the Social Security Act 
(42 U.S.C. 601 et seq.); 
‘‘(4) the special supplemental nutrition program 
for women, infants, and children established by sec-
tion 17 of the Child Nutrition Act of 1966 (42 
U.S.C. 1786); 
‘‘(5) the State Medicaid program under title 
XIX of the Social Security Act (42 U.S.C. 1396 et 
seq.); and 
‘‘(6) any other program identified by the Sec-
retary.’’. 
SEC. 4509. AMENDMENTS TO DEFINITIONS IN NEED ANAL-
YSIS. 
(a) USING DATA FROM THE SECOND PRECEDING 
YEAR.—Section 480(a)(1)(B) of the Higher Education 
Act of 1965 (20 U.S.C. 1087vv(a)(1)(B)) is amended by 
striking ‘‘may’’ in both places it appears and inserting 
‘‘shall’’. 
(b) CHANGES
TO UNTAXED INCOME
AND BENE-
FITS.—Section 480(b) of the Higher Education Act of 
1965 (20 U.S.C. 1087vv(b)) is amended— 
(1) in paragraph (1), to read as follows: 
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‘‘(1) The term ‘untaxed income and benefits’ 
means— 
‘‘(A) child support received; 
‘‘(B) untaxed portion of pensions; 
‘‘(C) payments to individual retirement ac-
counts and Keogh accounts excluded from in-
come for Federal income tax purposes; and 
‘‘(D) cash support or any money paid on 
the student’s behalf, except, for dependent stu-
dents, funds provided by the student’s par-
ents.’’; and 
(2) in paragraph (2)— 
(A) by striking ‘‘or’’ at the end of subpara-
graph (E); 
(B) by striking the period at the end of 
subparagraph (F) and inserting a semicolon; 
and 
(C) by adding at the end the following: 
‘‘(G) worker’s compensation; 
‘‘(H) veteran’s benefits such as death pen-
sion, dependency, or indemnity compensation, 
or veterans’ education benefits as defined in 
subsection (c); 
‘‘(I) interest on tax-free bonds; 
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‘‘(J) housing, food, or other allowances (in-
cluding rent subsidies for low-income housing) 
for military, clergy, and others (including cash 
payments and cash value of benefits), or the 
value of on-base military housing or the value 
of basic allowance for housing determined under 
section 403(b) of title 37, United States Code, 
received by the parents, in the case of a de-
pendent student, or the student or student’s 
spouse, in the case of an independent student; 
or 
‘‘(K) any other untaxed income and bene-
fits, such as Black Lung Benefits, Refugee As-
sistance, or railroad retirement benefits, or ben-
efits received through participation in employ-
ment and training activities under title I of the 
Workforce Innovation and Opportunity Act (29 
U.S.C. 3111 et seq.).’’. 
(c) AMENDMENT
TO
THE DEFINITION
OF INDE-
PENDENT STUDENT AS IT RELATES TO FOSTER AND 
HOMELESS YOUTH.—Section 480(d)(1)(H) of the Higher 
Education Act of 1965 (20 U.S.C. 1087vv(d)(1)(H)) is 
amended— 
(1) in the matter preceding clause (i)— 
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589 
(A) by striking ‘‘during the school year in 
which the application is submitted’’; 
(B) by inserting ‘‘age 23 or younger’’ after 
‘‘unaccompanied youth’’; and 
(C) by striking ‘‘terms are’’ and inserting 
‘‘term is’’; 
(2) in clause (i), by inserting ‘‘, or a designee 
of the liaison’’ after ‘‘Act’’; 
(3) in clause (ii), by striking ‘‘a program fund-
ed under the Runaway and Homeless Youth Act’’ 
and inserting ‘‘an emergency or transitional shelter, 
street outreach program, homeless youths drop-in 
center, or other program serving homeless youths,’’; 
and 
(4) in clause (iii), by striking ‘‘program funded 
under subtitle B of title IV of the McKinney-Vento 
Homeless Assistance Act (relating to emergency 
shelter grants)’’ and inserting ‘‘Federal TRIO pro-
gram or a Gaining Early Awareness and Readiness 
for Undergraduate program under chapter 1 or 2 of 
subpart 2 of part A,’’. 
(d) STREAMLINING
THE
DETERMINATION
AND 
VERIFICATION PROCESS FOR FOSTER AND HOMELESS 
YOUTH.—Section 480(d) of the Higher Education Act of 
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590 
1965 (20 U.S.C. 1087vv(d)) is further amended by adding 
at the end the following: 
‘‘(3) SIMPLIFYING THE DETERMINATION PROC-
ESS FOR UNACCOMPANIED YOUTH.— 
‘‘(A) VERIFICATION.—A financial aid ad-
ministrator shall accept a determination of 
independence made by any individual author-
ized to make such determinations under clause 
(i), (ii), or (iii) of paragraph (1)(H) in the ab-
sence of conflicting information. A documented 
phone call with, or a written statement from, 
one of the authorized individuals is sufficient 
verification when needed. For purposes of this 
paragraph, a financial aid administrator’s dis-
agreement with the determination made by an 
authorized individual shall not be considered 
conflicting information. 
‘‘(B) 
DETERMINATION
OF
INDEPEND-
ENCE.—A financial aid administrator shall 
make a determination of independence under 
paragraph (1)(H) if a student does not have, 
and cannot obtain, documentation from any of 
the other designated authorities described in 
such paragraph. Such a determination shall 
be— 
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591 
‘‘(i) based on the definitions outlined 
in paragraph (1)(H); 
‘‘(ii) distinct from a determination of 
independence under paragraph (1)(I); 
‘‘(iii) based on a documented inter-
view with the student; and 
‘‘(iv) limited to whether the student 
meets the definitions in paragraph (1)(H) 
and not about the reasons for the student’s 
homelessness. 
‘‘(C) ADDITIONAL
STREAMLINING
PER-
MITTED.—Nothing in this paragraph prohibits 
an institution from implementing polices that— 
‘‘(i) streamline the determination of 
independence under paragraph (1)(H); and 
‘‘(ii) improve a student’s access to fi-
nancial aid because that student is an un-
accompanied youth. 
‘‘(4) SIMPLIFYING THE VERIFICATION PROCESS 
FOR FOSTER CARE YOUTH.— 
‘‘(A) VERIFICATION OF INDEPENDENCE.— 
If an institution requires documentation to 
verify that a student is independent based on a 
status described in paragraph (1)(B), a finan-
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592 
cial aid administrator shall consider any of the 
following as adequate verification: 
‘‘(i) Submission of a court order or of-
ficial State documentation that the student 
received Federal or State support in foster 
care. 
‘‘(ii) A documented phone call with, a 
written statement from, or verifiable data 
match with— 
‘‘(I) a child welfare agency au-
thorized by a State or county; 
‘‘(II) a Tribal child welfare au-
thority; 
‘‘(III) an Independent Living 
case worker; 
‘‘(IV) a public or private foster 
care placing agency or foster care fa-
cility or placement; 
‘‘(V) another program serving or-
phans, foster care youth, or wards of 
the court; or 
‘‘(VI) a probation officer. 
‘‘(iii) A documented phone call with, 
or a written statement from, an attorney, 
a guardian ad litem, or a Court Appointed 
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593 
Special Advocate, documenting that per-
son’s relationship to the student. 
‘‘(iv) A documented phone call with, 
or a written statement from, a representa-
tive of a Federal TRIO program or a 
Gaining Early Awareness and Readiness 
for Undergraduate program under chapter 
1 or 2 of subpart 2 of part A. 
‘‘(v) Verification of the student’s eligi-
bility for an education and training vouch-
er under the John H. Chafee Foster Care 
Independence Program (42 U.S.C. 677). 
‘‘(vi) Documentation of foster care 
provided pursuant to section 475(5)(I) of 
the 
Social 
Security 
Act 
(45 
U.S.C. 
675(5)(I)). 
‘‘(vii) Submission of a copy of the stu-
dent’s biological or adoptive parents’ or 
legal guardians’— 
‘‘(I) Certificates of Death; or 
‘‘(II) verifiable obituaries. 
‘‘(viii) An attestation from the stu-
dent, which includes a description of why 
the student may qualify for a status de-
scribed in paragraph (1)(B), including the 
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594 
approximate dates that the student was in 
foster care, dependent, or a ward of the 
court, to the best of the student’s knowl-
edge after making reasonable efforts to 
provide any requested documentation. 
‘‘(B) ADDITIONAL
STREAMLINING
PER-
MITTED.—Nothing in this paragraph prohibits 
an institution from implementing polices that 
streamline the determination of independent 
status and improve a student’s access to finan-
cial aid because that student is an orphan, in 
foster care, or a ward of the court, or was an 
orphan, in foster care, or a ward of the court 
at any time since such student was 13 years of 
age or older. 
‘‘(5) TIMING; USE
OF
EARLIER
DETERMINA-
TION.— 
‘‘(A) TIMING.—A determination under 
subparagraph (B) or (H) of paragraph (1) for 
a student— 
‘‘(i) shall be made as quickly as prac-
ticable; 
‘‘(ii) may be made as early as the year 
before the award year for which the stu-
dent initially submits an application; and 
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595 
‘‘(iii) shall be made no later than dur-
ing the award year for which the student 
initially submits an application. 
‘‘(B) USE OF EARLIER DETERMINATION.— 
Any student who is determined to be inde-
pendent under subparagraph (B) or (H) of 
paragraph (1) for a preceding award year at an 
institution shall be presumed to be independent 
for each subsequent award year at the same in-
stitution unless— 
‘‘(i) the student informs the institu-
tion that circumstances have changed; or 
‘‘(ii) the institution has specific con-
flicting information about the student’s 
independence, and has informed the stu-
dent of this information and the oppor-
tunity 
to 
challenge 
such 
information 
through a documented interview or an im-
partial review by the Borrower Advocate 
pursuant to section 141(f)(6)(C). 
‘‘(6) RETENTION OF DOCUMENTS.—A financial 
aid administrator shall retain all documents related 
to the determination of independence under subpara-
graph (B) or (H) of paragraph (1), including docu-
mented interviews, for the duration of the student’s 
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596 
enrollment at the institution and for a minimum of 
1 year after the student is no longer enrolled at the 
institution.’’. 
(e) EXCLUDABLE INCOME.—Section 480(e) of the 
Higher Education Act of 1965 (20 U.S.C. 1087vv(e)) is 
amended by striking paragraph (5) and inserting the fol-
lowing: 
‘‘(5) payments made and services provided 
under part E of title IV of the Social Security Act 
to or on behalf of any child or youth over whom the 
State agency has responsibility for placement, care, 
or supervision, including the value of vouchers for 
education and training and amounts expended for 
room and board for youth who are not in foster care 
but are receiving services under section 477 of such 
Act; and’’. 
PART G—GENERAL PROVISIONS RELATING TO 
STUDENT ASSISTANCE PROGRAMS 
SEC. 4601. DEFINITION OF ELIGIBLE PROGRAM. 
(a) ELIGIBLE PROGRAM.—Section 481(b) of the 
Higher Education Act of 1965 (20 U.S.C. 1088(b))— 
(1) in paragraph (1)(A)(i), by striking ‘‘profes-
sion’’ and inserting ‘‘occupation’’; 
(2) in paragraph (2)— 
(A) in subparagraph (A)— 
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597 
(i) by redesignating clause (iii) as 
clause (vi); and 
(ii) by inserting after clause (ii) the 
following: 
‘‘(iii) has a verified annual earnings rate 
among individuals who completed the program, 
as determined under subparagraph (D), that is 
not less than the average or median annual 
earnings rate of individuals with only a high 
school diploma (or the equivalent) based on the 
most recently available data from the Bureau of 
Labor Statistics or the Bureau of the Census 
with respect to— 
‘‘(I) such average or median earnings 
rate in the United States; or 
‘‘(II) subject to subparagraph (E), 
such average or median earnings rate in 
the State or local area in which the institu-
tion offering the program is located; 
‘‘(iv) prepares students for gainful employ-
ment in a recognized occupation; 
‘‘(v) has been in operation for not less 
than two consecutive years; and’’; and 
(B) by adding at the end the following: 
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598 
‘‘(C)(i) For each subsequent year for which a 
program seeks eligibility under this paragraph, the 
Secretary shall reevaluate whether the program con-
tinues to meet the requirements of clauses (i), (iii), 
(iv), and (vi) of subparagraph (A). A program that 
does not meet such requirements for two consecutive 
award years (or, in the case of a program that does 
not meet the requirements under subparagraph 
(A)(iv), for a period of time determined by the Sec-
retary) shall be ineligible to participate in programs 
under this title— 
‘‘(I) for the period of two award years fol-
lowing the last award year for which the pro-
gram was eligible to participate in such pro-
grams; and 
‘‘(II) for any subsequent award year, un-
less the program reapplies for eligibility in ac-
cordance with clause (iii) and the Secretary de-
termines that the program meets the require-
ments of such clauses. 
‘‘(ii) Not later than 60 days after receiving no-
tification from the Secretary of the loss of eligibility 
under clause (i), a program may appeal a loss of eli-
gibility to the Secretary. The Secretary may restore 
the eligibility of a program under this paragraph if 
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599 
the program demonstrates to the Secretary that ex-
tenuating circumstances led to the loss of eligibility. 
‘‘(iii) The Secretary shall issue a decision on 
any appeal submitted by a program under clause (ii) 
not later than 45 days after its submission. 
‘‘(iv) After the expiration of the two-year period 
described in clause (i)(I), a program that lost eligi-
bility under clause (i) may reapply to the Secretary 
for a determination of eligibility under this para-
graph. 
‘‘(D)(i) In this subsection, the term ‘verified an-
nual earnings rate’ means the mean or median an-
nual earnings rate (whichever is higher) of individ-
uals who completed a program calculated as of the 
date that is approximately one year after the date on 
which such individuals completed the program. 
‘‘(ii) For the first year for which a program 
seeks eligibility under this paragraph, the institution 
that offers such program shall— 
‘‘(I) determine the verified annual earnings 
rate using data obtained on individuals who 
completed the program; 
‘‘(II) obtain an audit of such determination 
from an independent auditor; 
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600 
‘‘(III) together with the auditor described 
in subclause (II), certify the accuracy of the 
verified annual earnings rate to the Secretary; 
and 
‘‘(IV) determine the completion rate for 
the program, as described in subparagraph 
(A)(i), and certify to the Secretary the accuracy 
of such determination. 
‘‘(iii) For each subsequent year for which a pro-
gram seeks eligibility under this paragraph, the Sec-
retary shall determine the verified annual earnings 
rate and completion rate for the program using data 
made available to the Secretary through the postsec-
ondary student data system established under sec-
tion 132(l) or a successor system (whichever in-
cludes the most recent data). 
‘‘(E)(i) Except as provided in clause (ii), for 
purposes of calculating the average annual earnings 
rate of individuals with only a high school diploma 
(or the equivalent) under subparagraph (A)(ii) the 
Secretary shall apply the national average or median 
earnings rate in the United States. 
‘‘(ii) The Secretary may apply the average or 
median earnings rate in the State or local area in 
which the institution offering a program is located, 
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601 
in lieu of the national average earnings rate, if the 
institution provides sufficient justification to the 
Secretary. 
‘‘(F) Using the postsecondary student data sys-
tem established under section 132(l) or a successor 
system to streamline reporting requirements and 
minimize reporting burdens, and in coordination 
with the National Center for Education Statistics 
and each institution of higher education offering an 
eligible program under this paragraph, the Secretary 
shall, on at least an annual basis, collect data with 
respect to each such eligible program, including the 
following: 
‘‘(i) The number and demographics of stu-
dents who enroll in the program. 
‘‘(ii) The number of credits attempted and 
accumulated annually by students enrolled in 
the program. 
‘‘(iii) The share of such students who cease 
enrollment on or before the completion of 60 
percent of the payment period or period of en-
rollment. 
‘‘(iv) The verified completion rate for the 
program, as described in subparagraph (A)(i). 
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602 
‘‘(v) The mean and median annual earn-
ings of graduates and the verified annual earn-
ings rate for the program, as described in sub-
paragraph (A)(ii). 
‘‘(vi) The number and demographics of 
students who complete the program. 
‘‘(vii) The outcomes of the students who 
complete the program, including— 
‘‘(I) the share of such students who 
continue enrollment at the institution of 
higher education offering the program; 
‘‘(II) the share of such students who 
transfer to another institution of higher 
education; 
‘‘(III) the share of such students who 
complete a subsequent certificate or degree 
program; 
‘‘(IV) the share of such students who 
secure employment 6 months and 1 year, 
respectively— 
‘‘(aa) after completion of such 
program; or 
‘‘(bb) in the case of a program 
that prepares students for a profes-
sional license or certification exam, 
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603 
after acquiring such license or certifi-
cation; and 
‘‘(V) in the case of a program that 
prepares students for a professional license 
or certification exam, the share of such 
students who pass such exam.’’; and 
(3) in paragraph (4), by inserting ‘‘or in addi-
tion to’’ after ‘‘in lieu of’’. 
(b) REPORT.—Not later than 3 years after the date 
of enactment of this Act, the Secretary of Education 
shall— 
(1) submit to the Committee on Education and 
Labor of the House of Representatives and the Com-
mittee on Health, Education, Labor, and Pensions 
of the Senate a report on the impact of eligible pro-
grams described in section 481(b)(2) of the Higher 
Education Act of 1965 (20 U.S.C. 1088(b)(2)), as 
amended by this Act, based on the most recent data 
collected under subparagraph (F) of such section; 
and 
(2) make the report described in paragraph (1) 
publicly available on the website of the Department 
of Education. 
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604 
SEC. 4602. DEFINITION OF THIRD PARTY SERVICER. 
Section 481(c) of the Higher Education Act of 1965 
(20 U.S.C. 1088(c)) is amended— 
(1) in paragraph (1), by striking ‘‘or’’ at the 
end; 
(2) by redesignating paragraph (2) as para-
graph (3); and 
(3) by inserting after paragraph (1) the fol-
lowing: 
‘‘(2) any eligible institution of higher education 
to recruit students; or’’. 
SEC. 4603. FAFSA SIMPLIFICATION. 
Section 483 of the Higher Education Act of 1965 (20 
U.S.C. 1090) is amended— 
(1) in subsection (a)— 
(A) in paragraph (2)— 
(i) in subparagraph (A), by striking 
‘‘process’’ and all that follows through the 
end of clause (ii) and inserting ‘‘process a 
paper version of the forms described in 
this subsection, in accordance with sub-
paragraph (B).’’; 
(ii) by striking subparagraph (B); 
(iii) by redesignating subparagraph 
(C) as subparagraph (B); and 
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605 
(iv) in subparagraph (B), as so redes-
ignated, by striking ‘‘subparagraphs (A) 
and (B)’’ and inserting ‘‘subparagraph 
(A)’’; 
(B) in paragraph (3)— 
(i) in subparagraph (A), by striking 
the end sentence; 
(ii) by striking subparagraph (B), and 
redesignating subparagraphs (C) through 
(H) as subparagraphs (B) through (G), re-
spectively; 
(iii) in subparagraph (D), as so redes-
ignated— 
(I) by striking ‘‘The Secretary’’ 
and inserting the following: 
‘‘(i) IN
GENERAL.—The Secretary’’; 
and 
(II) by adding at the end the fol-
lowing: 
‘‘(ii) SCHOLARSHIP GRANTING ORGA-
NIZATIONS.— 
‘‘(I) AUTHORIZATION.—An insti-
tution of higher education may, with 
explicit written consent of an appli-
cant who has completed a form devel-
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606 
oped under this section, provide such 
information collected from such form 
as is necessary to an organization de-
scribed in subclause (II) that is des-
ignated by the applicant to assist the 
applicant in applying for and receiving 
financial assistance for any component 
of the applicant’s cost of attendance 
at that institution. 
‘‘(II) DEFINITION OF ORGANIZA-
TION.—An organization described in 
this subclause— 
‘‘(aa) means a scholarship 
granting organization, including 
a tribal organization (defined in 
section 4 of the Indian Self-De-
termination and Education As-
sistance Act (25 U.S.C. 5304)) 
or an organization assisting an 
applicant in applying for and re-
ceiving Federal, State, local, or 
tribal assistance; and 
‘‘(bb) shall be subject to the 
requirements of clause (i).’’; and 
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607 
(iv) in subparagraph (E), as so redes-
ignated, by striking ‘‘subparagraph (G)’’ 
and inserting ‘‘subparagraph (F)’’; 
(C) in paragraph (4)— 
(i) by striking ‘‘academic year’’ each 
place it appears and inserting ‘‘award 
year’’; 
(ii) in subparagraph (A), by striking 
clause (iv); and 
(iii) by adding at the end the fol-
lowing: 
‘‘(C) 
SINGLE
QUESTION
REGARDING 
HOMELESS
STATUS.—The Secretary shall en-
sure that, on each form developed under this 
section for which the information is applicable, 
there is a single, easily understood screening 
question to identify an applicant for aid who 
is— 
‘‘(i) an unaccompanied homeless child 
or youth (as such term is defined in sec-
tion 725 of the McKinney-Vento Homeless 
Assistance Act); or 
‘‘(ii) an unaccompanied youth who is 
self-supporting and at risk of homeless-
ness. 
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608 
‘‘(D) INCARCERATED INDIVIDUALS.— 
‘‘(i) IN
GENERAL.—The Secretary 
shall streamline the forms and processes 
for an incarcerated individual (as defined 
in section 401(n)(4)) to apply for a Fed-
eral Pell Grant under section 401, which— 
‘‘(I) shall be used to determine 
the expected family contribution for 
such individual as of the date of en-
rollment in the course for which the 
individual is applying for such Federal 
Pell Grant; and 
‘‘(II) may include— 
‘‘(aa) flexibility in the sub-
mission of any required docu-
mentation required to verify eligi-
bility for a Federal Pell Grant; 
and 
‘‘(bb) assistance in rehabili-
tating loans under section 428F. 
‘‘(ii) REPORT.—Not later than 1 year 
after the date of enactment of the College 
Affordability Act, the Secretary shall sub-
mit to the Committee on Education and 
Labor of the House of Representatives and 
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609 
the Committee on Health, Education, 
Labor, and Pensions of the Senate, and 
make publicly available on the website of 
the Department, a report on how the 
forms and processes are being streamlined 
under clause (i).’’; 
(D) in paragraph (5)— 
(i) in subparagraph (A), by striking 
‘‘paragraphs 
(2)(B)(iii), 
(3)(B), 
and 
(4)(A)(ii)’’ 
and 
inserting 
‘‘paragraph 
(4)(A)(ii)’’; 
(ii) in subparagraph (B)— 
(I) by striking ‘‘determine’’ and 
all that follows through ‘‘which’’ and 
inserting ‘‘determine which’’; and 
(II) by striking clause (ii); 
(iii) in subparagraph (C), by striking 
‘‘Beginning’’ and all that follows through 
‘‘of the State-specific’’ and inserting ‘‘The 
Secretary shall publish on an annual basis 
a notice in the Federal Register requiring 
State agencies to inform the Secretary of 
the State-specific’’; and 
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610 
(iv) by striking subparagraphs (D) 
through (F), and redesignating subpara-
graph (G) as subparagraph (D); and 
(E) by adding at the end the following: 
‘‘(13) FAFSA PATHWAYS.— 
‘‘(A) 
MEMORANDUM
OF
UNDER-
STANDING.—Not later than the effective date of 
the College Affordability Act, the Secretary 
shall seek to enter into a Memorandum of Un-
derstanding with the Secretary of Health and 
Human Services, the Secretary of Agriculture, 
and the Secretary of the Treasury, under which 
any information exchanged under an income 
and eligibility verification system established 
pursuant to section 1137 of the Social Security 
Act by State agencies administering a program 
listed in paragraph (1), (4), or (5) of subsection 
(b) of such section which may be of use in es-
tablishing or verifying eligibility or benefit 
amounts under such program shall be made 
available to the Secretary of Education to assist 
in determining whether the applicant (or, in the 
case of a dependent applicant, whether the ap-
plicant or the applicant’s parents) received a 
benefit at some time during the previous 24- 
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611 
month period under a means-tested Federal 
benefit program, but subject to the require-
ments of Federal law. 
‘‘(B) REQUIREMENT FOR ALL APPLICANTS 
AND THE SECRETARY.—For any award year for 
which an applicant applies for financial assist-
ance under this title (except for any award year 
for which, pursuant to paragraph (14), the ap-
plicant is not required to submit a FAFSA)— 
‘‘(i) the applicant shall provide on the 
form described in this subsection whether 
the applicant received (or, in the case of a 
dependent applicant, whether the applicant 
or the parents of the applicant received) a 
benefit at some time during the previous 
24-month period under a means-tested 
Federal benefit program; and 
‘‘(ii) the Secretary, to the extent prac-
ticable and pursuant to the Memorandum 
of Understanding entered into under sub-
paragraph (A), and without any further 
action by the applicant, shall verify the ap-
plicant’s (or, in the case of a dependent 
applicant, the applicant’s or the applicant’s 
parents’) receipt of such benefit. 
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612 
‘‘(C) PATHWAY ONE APPLICANTS.— 
‘‘(i) IN GENERAL.—With respect to an 
applicant who received (or, in the case of 
a dependent applicant, an applicant who 
received or whose parents received) a ben-
efit at some time during the previous 24- 
month period under a means-tested Fed-
eral benefit program, the applicant shall 
not be required to provide any further in-
come or asset information on the form 
under this subsection. 
‘‘(ii) DESIGNATION.—For purposes of 
this section and part F, an applicant de-
scribed in clause (i) shall be referred to as 
a ‘pathway one applicant’. 
‘‘(D) PATHWAY TWO APPLICANTS.— 
‘‘(i) IN GENERAL.—With respect to an 
applicant who is not a pathway one appli-
cant and who is described in clause (ii), 
the Secretary, to the extent practicable, 
shall use the data retrieval tool under sec-
tion 484(p) to obtain any information for 
the applicant beyond the information de-
scribed in subparagraph (A) for purposes 
of the form under this subsection. 
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613 
‘‘(ii) REQUIREMENTS.—An applicant 
described in this clause is an applicant who 
certifies that— 
‘‘(I) the applicant is not required 
to file or, in the case of a dependent 
applicant, no parent of the applicant 
is required to file— 
‘‘(aa) a Federal income tax 
return; or 
‘‘(bb) with respect to Inter-
nal Revenue Service Form 1040, 
any of the following forms: 
Schedule A, Schedule B, Sched-
ule C, Schedule C–EZ, Schedule 
D, Schedule E, Schedule F, 
Schedule H, Schedule J, and 
Schedule SE; and 
‘‘(II) the sum of the adjusted 
gross income of the applicant or, in 
the case of a dependent applicant, the 
parents of the applicant, is less than 
or equal to $60,000. 
‘‘(iii) DESIGNATION.—For purposes of 
this section and part F, an applicant de-
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614 
scribed in clause (i) shall be referred to as 
a ‘pathway two applicant’. 
‘‘(E) PATHWAY THREE APPLICANTS.— 
‘‘(i) IN GENERAL.—With respect to an 
applicant who is not a pathway one appli-
cant or a pathway two applicant, the Sec-
retary, to the extent practicable, shall use 
the data retrieval tool under section 484(p) 
to obtain any information for the applicant 
beyond the information described in sub-
paragraph (A) for purposes of the form 
under this subsection. 
‘‘(ii) DESIGNATION.—For purposes of 
this section and part F, an applicant de-
scribed in clause (i) shall be referred to as 
a ‘pathway three applicant’. 
‘‘(F) MEANS-TESTED
FEDERAL
BENEFIT 
PROGRAM
DEFINED.—For purposes of this 
paragraph, the term ‘means-tested Federal ben-
efit program’ has the meaning given the term 
in section 479(d). 
‘‘(14) ONE-TIME FAFSA FILING.— 
‘‘(A) IN GENERAL.—Notwithstanding any 
other provision of this section and subject to 
subparagraphs (B) and (C), an applicant who 
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615 
submits a FAFSA for the first time for an 
award year for the period required for the com-
pletion of the first undergraduate baccalaureate 
course of study being pursued by such applicant 
and is eligible to receive a Federal Pell Grant 
for such award year, for any succeeding award 
year— 
‘‘(i) for which the applicant does not 
submit a FAFSA and for which the appli-
cant submits a certification form described 
in subparagraph (D) that does not indicate 
a change in the dependency status of such 
applicant, such applicant— 
‘‘(I) shall not be required to sub-
mit a FAFSA to receive financial as-
sistance under this title; and 
‘‘(II) shall have an expected fam-
ily contribution for such year that is 
equal to the expected family contribu-
tion of the applicant determined for 
the award year for which the appli-
cant submitted a FAFSA for such pe-
riod, except that an adjustment may 
be made under section 479A that re-
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616 
sults in a change in such expected 
family contribution; 
‘‘(ii) for which the applicant submits a 
certification form described in subpara-
graph (D) that indicates a change in the 
dependency status of the applicant, such 
applicant— 
‘‘(I) shall be required to submit a 
FAFSA with respect to such award 
year to receive financial assistance 
under this title; and 
‘‘(II) shall have an expected fam-
ily contribution for such year that is 
determined based on such FAFSA; 
‘‘(iii) for which the applicant submits 
a FAFSA, such applicant— 
‘‘(I) shall have an expected fam-
ily contribution for such year that is 
determined based on such FAFSA; 
and 
‘‘(II) shall be required to submit 
a FAFSA for any other award year 
for which the applicant seeks financial 
assistance under this title; and 
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617 
‘‘(iv) for which the applicant does not 
submit a certification form described in 
subparagraph (D), such applicant shall 
submit a FAFSA for such succeeding 
award year and any other award year for 
which the applicant seeks financial assist-
ance under this title. 
‘‘(B) ADJUSTMENT OF EXPECTED FAMILY 
CONTRIBUTION.—With respect to an applicant 
described in subparagraph (A)(i) who receives 
an adjustment under section 479A that results 
in a change to the expected family contribution 
of the applicant, for any succeeding award year 
after the award year for which the adjustment 
was made, subclause (II) of such subparagraph 
shall be applied to such applicant by sub-
stituting ‘expected family contribution of the 
applicant as most recently changed as a result 
of an adjustment under section 479A for such 
applicant’ for the ‘expected family contribution 
of the applicant determined for the award year 
for which the applicant submitted a FAFSA for 
such period’. 
‘‘(C) RULE
FOR
CERTAIN
STUDENTS.— 
With respect to an applicant who submits a 
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618 
FAFSA for award year 2021–2022 and enrolls 
in an institution of higher education for such 
year, subparagraph (A) shall be applied— 
‘‘(i) in the matter preceding clause (i), 
by substituting ‘award year 2021–2022’ 
for ‘the first time for an award year’; and 
‘‘(ii) in clause (i)(II), by substituting 
‘award year 2021–2022’ for ‘the award 
year for which the applicant submitted a 
FAFSA for such period’. 
‘‘(D) STUDENT
CERTIFICATION
FORM.— 
The Secretary, in cooperation with representa-
tives of agencies and organizations involved in 
student financial assistance, shall use behav-
ioral science insights to produce, distribute, and 
process free of charge a short and simple con-
sumer-tested certification form that uses skip 
logic to bypass fields that are inapplicable to an 
applicant. Such form shall not require an appli-
cant to provide data that the Secretary may 
otherwise obtain with respect to the applicant 
(such as age or active duty military status), and 
may only contain the data elements required for 
purposes of subparagraph (A)(i)— 
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619 
‘‘(i) to confirm whether the applicant 
is— 
‘‘(I) a dependent student; 
‘‘(II) a single independent stu-
dent or a married independent stu-
dent without dependents (other than a 
spouse); or 
‘‘(III) an independent student 
with dependents other than a spouse; 
‘‘(ii) to allow the applicant to update 
the contact information of such applicant 
or the Federal School Code of the institu-
tion of higher education in which the appli-
cant is, or will be enrolled, for the award 
year for which the applicant submits such 
form; and 
‘‘(iii) to ask whether the applicant’s 
need and eligibility for financial assistance 
under this title has not changed substan-
tially since the most recent of the fol-
lowing: 
‘‘(I) The applicant submitted a 
FAFSA. 
‘‘(II) The applicant received an 
adjustment under section 479A that 
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620 
results in a change to the expected 
family contribution of the applicant. 
‘‘(E) DEFINITIONS.—In this paragraph: 
‘‘(i) 
DEPENDENCY
STATUS.—The 
term ‘dependency status’ means the status 
of an applicant as— 
‘‘(I) a dependent student; 
‘‘(II) a single independent stu-
dent or a married independent stu-
dent without dependents (other than a 
spouse); or 
‘‘(III) an independent student 
with dependents other than a spouse. 
‘‘(ii) SUCCEEDING
AWARD
YEAR.— 
The term ‘succeeding award year’— 
‘‘(I) when used with respect to 
an applicant who submits a FAFSA 
for the first time for an award year 
for the period required for the comple-
tion of the first undergraduate bacca-
laureate course of study being pur-
sued by such applicant, means any 
award year for such period that fol-
lows the award year for which the ap-
plicant submits such FAFSA; and 
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‘‘(II) when used with respect to 
an applicant described in subpara-
graph (C), means any award year 
after award year 2021–2022 for the 
period required for the completion of 
the first undergraduate baccalaureate 
course of study being pursued by such 
applicant. 
‘‘(15) FAFSA IN VARIOUS LANGUAGES.—The 
Secretary shall— 
‘‘(A) translate the form developed under 
this subsection into not fewer than 11 foreign 
languages based on the languages most often 
spoken by English learner students and their 
parents, and make the translated form available 
and accessible to applicants in paper and elec-
tronic formats; and 
‘‘(B) ensure that the form developed under 
this subsection is available in formats accessible 
to individuals with disabilities.’’; 
(2) in subsection (c), by striking the last sen-
tence; 
(3) in subsection (d)(3)— 
(A) in subparagraph (A), by striking ‘‘and 
EZ FAFSA’’; and 
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622 
(B) in subparagraph (B), by striking ‘‘and 
EZ FAFSA’’; 
(4) in subsection (e)— 
(A) in paragraph (3) by striking ‘‘or, as 
appropriate, an EZ FAFSA’’; and 
(B) in paragraph (5)(D), by striking ‘‘or, 
as appropriate, an EZ FAFSA,’’; 
(5) by amending subsection (f) to read as fol-
lows: 
‘‘(f) USE OF INTERNAL REVENUE SERVICE DATA 
RETRIEVAL TOOL TO POPULATE FAFSA.— 
‘‘(1) SIMPLIFICATION
EFFORTS.—The Sec-
retary shall— 
‘‘(A) make every effort to allow applicants 
to utilize the data retrieval tool to transfer data 
available from the Internal Revenue Service to 
reduce the amount of original data entry by ap-
plicants and strengthen the reliability of data 
used to calculate expected family contributions, 
including through the use of technology to— 
‘‘(i) allow an applicant to automati-
cally populate the electronic version of the 
forms under this paragraph with data 
available from the Internal Revenue Serv-
ice; and 
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‘‘(ii) direct an applicant to appro-
priate questions on such forms based on 
the applicant’s answers to previous ques-
tions; and 
‘‘(B) allow taxpayers, regardless of filing 
status, 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 Serv-
ice can be used to generate an expected family con-
tribution without additional action on the part of the 
student and taxpayer. 
‘‘(3) REPORTS ON FAFSA SIMPLIFICATION EF-
FORTS.—Not less than once every other year, the 
Secretary shall report to the authorizing committees 
and the Committees on Appropriations of the House 
of Representatives and the Senate on the progress of 
the simplification efforts under this subsection.’’; 
(6) by repealing subsection (g); 
(7) redesignating subsection (h) as subsection 
(g); and 
(8) by adding at the end the following: 
‘‘(h) DATA TRANSPARENCY ON THE NUMBER OF AP-
PLICANTS.— 
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