a means-tested Federal benefit program as 
defined under subsection (d); and 
‘‘(B) the sum of the adjusted gross income 
of the student and spouse (if appropriate) is 
less than or equal to $25,000.’’; and 
(iii) by inserting after the last sen-
tence of such subsection the following: 
‘‘The Secretary shall annually adjust the 
income level necessary to qualify an appli-
cant for the zero expected family contribu-
tion under this subsection. The income 
level shall be adjusted according to in-
creases in the Consumer Price Index, as 
specified in section 478(f).’’; and 
(C) by adding at the end the following new 
subsections: 
‘‘(d) MEANS-TESTED
FEDERAL
BENEFIT
PRO-
GRAM.—For the purposes of this section, the term ‘means-
tested Federal benefit program’ means a mandatory 
spending program of the Federal Government in which eli-
gibility for the program’s benefits, or the amount of such 
benefits, or both, are determined on the basis of income 
or resources of the individual or family seeking the benefit, 
and includes the supplemental security income program 
under title XVI of the Social Security Act, the food stamp
program under the Food Stamp Act of 1977, the free and 
reduced price school lunch program established under the 
Richard B. Russell National School Lunch Act, the tem-
porary assistance to needy families program established 
under part A of title IV of the Social Security Act, and 
the women, infants and children program established 
under Section 17 of the Child Nutrition Act of 1966. 
‘‘(e) REPORTING REQUIREMENTS.—The Secretary 
shall regularly evaluate the impact of the eligibility guide-
lines in subsections (b)(1)(A)(i), (b)(1)(B)(i), (c)(1)(A) 
and (c)(2)(A) of this section. In particular, the Secretary 
shall evaluate whether the means-tested Federal benefit 
programs (as defined by subsection (d)) ensure that the 
Simplified Needs Test continues to be targeted to the 
maximum number of low- and moderate-income stu-
dents.’’. 
(b) IMPROVEMENTS
TO PAPER
AND ELECTRONIC 
FORMS.—
(1) COMMON FINANCIAL AID FORM DEVELOP-
MENT AND PROCESSING.—Section 483 (20 U.S.C. 
1090) is amended—
(A) in subsection (a)—
(i) by striking paragraphs (1), (2), 
and (5);
(ii) by redesignating paragraphs (3), 
(4), (6), and (7), as paragraphs (9), (10), 
(11), and (12), respectively; 
(iii) by inserting before paragraph (9), 
as redesignated by subparagraph (B), the 
following: 
‘‘(1) IN GENERAL.—The Secretary, in coopera-
tion with representatives of agencies and organiza-
tions involved in student financial assistance, shall 
produce, distribute, and process free of charge com-
mon financial reporting forms as described in this 
subsection to be used for application and reapplica-
tion to determine the need and eligibility of a stu-
dent for financial assistance under parts A through 
E (other than subpart 4 of part A). These forms 
shall be made available to applicants in both paper 
and electronic formats and shall be referred to as 
the ‘Free Application for Federal Student Aid’ or 
the ‘FAFSA’ . 
‘‘(2) EARLY ESTIMATES.—The Secretary shall 
permit applicants to complete such forms as de-
scribed in this subsection in the years prior to en-
rollment in order to obtain an estimate of the family 
contribution, as defined by section 473. Such appli-
cants shall be permitted to update information sub-
mitted on forms described in this subsection using 
the process required under paragraph (5)(A). 
‘‘(3) PAPER FORMAT.—
‘‘(A) IN
GENERAL.—The Secretary shall 
produce, distribute, and process common forms 
in paper format to meet the requirements of 
paragraph (1). The Secretary shall develop a 
common paper form for applicants who do not 
meet the requirements of subparagraph (B). 
‘‘(B) EZ FAFSA.—
‘‘(i) IN
GENERAL.—The Secretary 
shall develop and use a simplified paper 
application form, to be known as the ‘EZ 
FAFSA’, to be used for applicants meeting 
the requirements of section 479(c). 
‘‘(ii) 
REDUCED
DATA
REQUIRE-
MENTS.—The EZ FAFSA 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 
section 479(c). 
‘‘(iii) STATE
DATA.—The Secretary 
shall include on the EZ FAFSA such data 
items as may be necessary to award State
financial assistance, as provided under 
paragraph (6), except that the Secretary 
shall not include a State’s data if that 
State does not permit its applicants for 
State assistance to use the EZ FAFSA. 
‘‘(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-
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 
is downloaded and printed from an elec-
tronic file format in order to meet the fil-
ing 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 phase out the 
paper form described in subparagraph (A) 
of this paragraph. The Secretary’s report 
will specifically address the impact of the