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 
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) Determine the feasibility, bene-
fits, and adverse effects of implementing a 
data match with the Internal Revenue 
Service (IRS). 
‘‘(iii) 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. 
‘‘(iv) Measure the impact of using in-
come information from the year prior to 
the year prior to enrollment on—
‘‘(I) eligibility for financial aid 
under this title and for other institu-
tional 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. 
‘‘(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 allow participating students to 
apply for financial aid during their junior 
year of high school using information from 
the year prior to the year prior to enroll-
ment and all provisions available under 
this title and shall award final financial aid 
awards to participating students based on 
the applications provided under this dem-
onstration program. 
‘‘(ii) Participating States and institu-
tions shall not require students partici-
pating in this demonstration program to 
complete an additional application in the 
year prior to enrollment in order to receive 
State aid under section 415C and any 
other institutional aid.
‘‘(iii) Financial aid administrators at 
participating institutions shall be allowed 
to use their discretion in awarding finan-
cial aid to participating students, as out-
lined under section 479A and section 
480(d)(7). 
‘‘(E) DATA MATCH WITH THE INTERNAL 
REVENUE
SERVICE.—The Secretary shall in-
clude in this demonstration project a data 
match with the Internal Revenue Service in 
order to verify data provided by participating 
students and gauge the feasibility of imple-
menting such a data match for all students ap-
plying for aid under this title. 
‘‘(F) 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). 
‘‘(G) 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-