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-