‘‘(F) whether a widely disseminated print-
ed form, or the use of an Internet or other elec-
tronic means, can be developed to notify indi-
viduals of an estimation of their approximate 
eligibility for grant, work-study and loan assist-
ance upon completion and verification of the 
simplified application form; and 
‘‘(G) whether information provided on 
other Federal forms (such as the form applying 
for supplemental security income under title 
XVI of the Social Security Act, the form for ap-
plying for food stamps under the Food Stamp 
Act of 1977, and the schedule for applying for 
the earned income tax credit under section 32 
of the Internal Revenue Code of 1986) that are 
designed to determine eligibility for various 
Federal need-based assistance programs could 
be used to qualify potential students for the 
simplified needs test. 
‘‘(3) ADDITIONAL
CONSIDERATIONS.—In con-
ducting the feasibility study, the Advisory Commit-
tee’s primary objective under this subsection shall be 
simplifying the financial aid application forms and 
process and obtaining a substantial reduction in the 
number of required data items. In carrying out that
objective, the Advisory Committee shall pay special 
attention to the needs of low-income and moderate-
income students and families. 
‘‘(4) CONSULTATION.—
‘‘(A) IN
GENERAL.—The Advisory Com-
mittee shall consult with a broad range of inter-
ested parties in higher education, including par-
ents and students, high school guidance coun-
selors, financial aid and other campus adminis-
trators, and administrators of intervention and 
outreach programs. 
‘‘(B) FORMS DESIGN EXPERT.—With the 
goal of making significant changes to the form 
to make the questions more easily understand-
able, the Advisory Committee shall consult a 
forms design expert to ensure that the revised 
application form is easily readable and under-
stood by parents, students and other members 
of the public. 
‘‘(C) CONGRESSIONAL
CONSULTATION.—
The Advisory Committee shall consult on a reg-
ular basis with the Committee on Education 
and the Workforce of the House of Representa-
tives and the Committee on Health, Education, 
Labor and Pensions of the Senate in carrying
out the feasibility study required by this sub-
section. 
‘‘(D) DEPARTMENTAL
CONSULTATION.—
The Secretary of Education shall provide such 
assistance to the Advisory Committee as is re-
quested and practicable in conducting the study 
required by this subsection. 
‘‘(5) REPORT.—The Advisory Committee shall, 
not later than 2 years after the date of enactment 
of the Financial Aid Simplification Act, prepare and 
submit a report on the study required by this section 
to the Committee on Education and the Workforce 
of the House of Representatives and the Committee 
on Health, Education, Labor and Pensions of the 
Senate. 
‘‘(6) IMPLEMENTATION.—Within 1 year of sub-
mission of such report, the Secretary of Education 
shall consult with the Committee on Education and 
the Workforce of the House of Representatives and 
the Committee on Health, Education, Labor and 
Pensions of the Senate and shall subsequently ini-
tiate a redesign of the form required by the Sec-
retary under section 483. Such redesign shall in-
clude the testing of alternative simplified versions of 
the free Federal form. The Secretary shall report on
the progress of these efforts to the Committee on 
Education and the Workforce of the House of Rep-
resentatives and the Committee on Health, Edu-
cation, Labor and Pensions of the Senate not later 
than one year after receipt of the Advisory Com-
mittee report required by this section.’’. 
SEC. 3. SIMPLIFIED NEEDS TEST IMPROVEMENTS. 
Section 479 (20 U.S.C. 1087ss) is amended—
(1) by striking clause (i) of subsection (b)(1)(A) 
and inserting the following: 
‘‘(i) the student’s parents file a form 
described in paragraph (3) or certify that 
they are not required to file an income tax 
return, or the student’s parents or the stu-
dent received benefits under a means-test-
ed Federal benefit program;’’; 
(2) by striking clause (i) of subsection 
(b)(1)(B) and inserting the following: 
‘‘(i) the student (and the student’s 
spouse, if any) files a form described in 
paragraph (3) or certifies that the student 
(and the student’s spouse, if any) is not re-
quired to file an income tax return, or the 
student (or the student’s spouse, if any)
received benefits under a means-tested 
Federal benefit program;’’; 
(3) by striking subparagraph (A) of subsection 
(c)(1) and inserting the following: 
‘‘(A) the student’s parents file a form de-
scribed in subsection (b)(3) or certify that they 
are not required to file an income tax return, 
or the student’s parents or the student received 
benefits under a means-tested Federal benefit 
program;’’; 
(4) by striking subparagraph (A) of subsection 
(c)(2) and inserting the following: 
‘‘(A) the student (and the student’s 
spouse, if any) files a form described in sub-
section (b)(3) or certifies that the student (and 
the student’s spouse, if any) is not required to 
file an income tax return, or the student (or the 
student’s spouse, if any) received benefits under 
a means-tested Federal benefit program;’’; and 
(5) by adding at the end the following new sub-
section: 
‘‘(d) DEFINITION
OF
MEANS-TESTED
FEDERAL 
BENEFIT PROGRAM.—For purposes of this section, the 
term ‘means-tested Federal benefit program’ means a 
mandatory spending program of the Federal Government
in which eligibility for the programs’ 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, 
the food stamp program under the Food Stamp Act of 
1977, and the free and reduced price school lunch pro-
gram under the Richard B. Russell National School Lunch 
Act.’’. 
SEC. 4. EXPANDING INFORMATION DISSEMINATION RE-
GARDING ELIGIBILITY FOR PELL GRANTS. 
Sec 483(a) (20 U.S.C. 1090(a)) is amended by add-
ing at the end the following new paragraph: 
‘‘(8) EXPANDING INFORMATION DISSEMINATION 
REGARDING ELIGIBILITY FOR PELL GRANTS.—The 
Secretary shall make special efforts, in conjunction 
with State efforts, to notify students and their par-
ents who qualify for a free lunch under the Richard 
B. Russell National School Lunch Act (42 U.S.C. 
1751 et seq.), the Food Stamps program, or such 
programs as the Secretary shall determine, of their 
potential eligibility for a maximum Pell Grant, and 
shall disseminate such informational materials as the 
Secretary deems necessary.’’.
SEC. 5. IMPLEMENTATION. 
Sections 482(c) and 492 of the Higher Education Act 
of 1965 (20 U.S.C. 1089(c), 1098a) shall not apply to 
the regulations implementing the amendments made by 
section 2 of this Act.
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