218 
HR 609 PCS 
(f) 
CREDIT
BUREAU
ORGANIZATION
AGREE-
MENTS.—Section 430A(a) (20 U.S.C. 1080a(a)) is 
amended by striking ‘‘agreements with credit bureau orga-
nizations’’ and inserting ‘‘an agreement with each national 
credit bureau organization (as described in section 603(p) 
of the Fair Credit Reporting Act)’’. 
(g) DEFAULT REDUCTION MANAGEMENT.—Section 
432 is further amended— 
(1) by striking subsection (n); and 
(2) by redesignating subsections (o) and (p) as 
subsections (n) and (o), respectively. 
(h) STUDENT LOAN INFORMATION.—Section 435(m) 
(20 U.S.C. 1085(m)) is amended by adding at the end 
the following new paragraph: 
‘‘(5) STUDENT LOAN INFORMATION.— 
‘‘(A) Notwithstanding any other provision 
of law or regulation, a lender, secondary mar-
ket, holder, or guaranty agency shall provide, 
free of charge and in a timely and effective 
manner, any student loan information main-
tained by that entity that is requested by an in-
stitution of higher education and any third- 
party servicer (as defined in section 481(c)) 
working on behalf of that institution to prevent 
student loan defaults. 
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‘‘(B) An institution and any third-party 
servicer obtaining access to information under 
subparagraph (A) shall safeguard that informa-
tion in order to prevent potential abuses of that 
information, including identity theft. 
‘‘(C) Any third party servicer that obtains 
information under this subparagraph shall only 
use the information in a manner directly related 
to the default prevention work the servicer is 
performing on behalf of the institution of higher 
education.’’. 
(i) DISABILITY DETERMINATIONS.—Section 437(a) 
(20 U.S.C. 1087(a)) is amended by adding at the end the 
following new sentence: ‘‘In making such determination of 
permanent and total disability, the Secretary shall provide 
that a borrower who has been certified as permanently and 
totally disabled by the Department of Veterans Affairs or 
the Social Security Administration shall not be required 
to present further documentation for purposes of this 
title.’’. 
(j) TREATMENT
OF
FALSELY
CERTIFIED
BOR-
ROWERS.—Section 437(c)(1) (20 U.S.C. 1087(c)(1)) is 
amended by inserting ‘‘or parent’s eligibility’’ after ‘‘such 
student’s eligibility’’. 
(k) ADDITIONAL TECHNICAL AMENDMENTS.— 
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(1) 
Section 
428(a)(2)(A) 
(20 
U.S.C. 
1078(a)(2)(A)) is amended— 
(A) by striking ‘‘and’’ at the end of sub-
clause (II) of clause (i); and 
(B) by moving the margin of clause (iii) 
two ems to the left. 
(2) Section 428G(e) (20 U.S.C. 1078–7(e)) is 
amended by striking ‘‘, made to a student to cover 
the cost of attendance at an eligible institution out-
side the United States,’’. 
PART C—FEDERAL WORK-STUDY PROGRAMS 
SEC. 441. AUTHORIZATION OF APPROPRIATIONS. 
Section 441(b) (42 U.S.C. 2751(b)) is amended— 
(1) by striking ‘‘1999’’ and inserting ‘‘2007’’; 
and 
(2) by striking ‘‘4 succeeding’’ and inserting ‘‘5 
succeeding’’. 
SEC. 442. COMMUNITY SERVICE. 
Section 441(c)(1) (42 U.S.C. 2751(c)(1)) is amended 
by striking ‘‘that are open and accessible to the commu-
nity’’. 
SEC. 443. ALLOCATION OF FUNDS. 
(a) ELIGIBILITY FOR ADDITIONAL ALLOCATIONS.— 
Section 442(a)(4) (42 U.S.C. 2752(a)(4)) is amended by 
striking subparagraph (B) and inserting the following: 
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‘‘(B) An otherwise eligible institution may receive a 
portion of the allocation described in subparagraph (A) 
if— 
‘‘(i) not less than 10 percent of the students at-
tending the institution receive Federal Pell Grants; 
and 
‘‘(ii)(I) in the case of an institution that offers 
programs of at least 4 years in duration, if its grad-
uation rate for Federal Pell Grant recipients attend-
ing the institution and graduating within the period 
of time equal to normal duration of the longest un-
dergraduate program offered by the institution, as 
measured from the first day of their enrollment, ex-
ceeds the median rate for the class of institution (as 
defined in section 131(f)(7)(C)); or 
‘‘(II) in the case of an institution that offers 
programs of at least 2, but less than 4, years in du-
ration, if its rate for Federal Pell Grant recipients 
attending the institution and graduating or transfer-
ring to an institution that offers programs of at 
least 4 years in duration within the period of time 
equal to the normal duration of the program offered, 
as measured from the first day of their enrollment, 
exceeds the median rate for the class of institution 
(as defined in section 131(f)(7)(C)).’’. 
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(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply with respect to any amounts ap-
propriated under section 441(b) of the Higher Education 
Act of 1965 (42 U.S.C. 2751(b)) for fiscal year 2008 or 
any succeeding fiscal year. 
SEC. 444. BOOKS AND SUPPLIES. 
Section 442(c)(4)(D) (42 U.S.C. 2752(c)(4)(D)) is 
amended by striking ‘‘$450’’ and inserting ‘‘$600’’. 
SEC. 445. JOB LOCATION AND DEVELOPMENT. 
Section 446(a)(1) (42 U.S.C. 2756(a)(1)) is amend-
ed— 
(1) by striking ‘‘10 percent or $50,000’’ and in-
serting ‘‘15 percent or $75,000’’; and 
(2) by inserting before the period at the end the 
following: ‘‘, except that not less than one-third of 
such amount shall be specifically allocated to locate 
and develop community service jobs’’. 
SEC. 446. WORK COLLEGES. 
Section 448 (42 U.S.C. 2756b) is amended— 
(1) by striking ‘‘work-learning’’ each place it 
appears and inserting ‘‘work-learning-service’’; 
(2) by amending subparagraph (C) of sub-
section (e)(1) to read as follows: 
‘‘(C) requires all resident students, includ-
ing at least one-half of all students who are en-
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rolled on a full-time basis, to participate in a 
comprehensive work-learning-service program 
for at least 5 hours each week, or at least 80 
hours during each period of enrollment, unless 
the student is engaged in an institutionally or-
ganized or approved study abroad or externship 
program; and’’; 
(3) by amending paragraph (2) of subsection 
(e) to read as follows: 
‘‘(2) the term ‘comprehensive student work- 
learning-service program’— 
‘‘(A) means a student work-learning-serv-
ice program that is an integral and stated part 
of the institution’s educational philosophy and 
program; 
‘‘(B) requires participation of all resident 
students for enrollment and graduation; 
‘‘(C) includes learning objectives, evalua-
tion, and a record of work performance as part 
of the student’s college record; 
‘‘(D) provides programmatic leadership by 
college personnel at levels comparable to tradi-
tional academic programs; 
‘‘(E) recognizes the educational role of 
work-learning-service supervisors; and 
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‘‘(F) 
includes 
consequences 
for 
non-
performance or failure in the work-learning- 
service program similar to the consequences for 
failure in the regular academic program.’’; and 
(4) in subsection (f), by striking ‘‘1999 and 
such sums as may be necessary for each of the 4 
succeeding fiscal years’’ and inserting ‘‘2007 and 
such sums as may be necessary for the 5 succeeding 
fiscal years’’. 
SEC. 447. WORK ASSISTANCE FOR STUDENTS IN COM-
PREHENSIVE POSTSECONDARY PROGRAMS 
FOR STUDENTS WITH MENTAL RETARDA-
TION. 
(a) AMENDMENT.—Part C of title IV (42 U.S.C. 
2751 et seq.) is further amended by adding at the end 
thereof the following new section: 
‘‘SEC. 449. WORK ASSISTANCE FOR STUDENTS IN COM-
PREHENSIVE POSTSECONDARY PROGRAMS 
FOR STUDENTS WITH MENTAL RETARDA-
TION. 
‘‘(a) PURPOSE.—It is the purpose of this section to 
enable an institution participating under this part that of-
fers a comprehensive postsecondary program for students 
with mental retardation to provide work assistance to such 
students enrolled in that program in order to assist these 
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students with the costs of postsecondary education and 
improve their academic and personal skills, independence, 
and employability. 
‘‘(b) PROGRAM AUTHORITY.—(1) An institution of 
higher education participating under this part may, pursu-
ant to a plan developed in accordance with subsection (c) 
and approved by the Secretary, transfer funds allocated 
under section 442 for use under this section to award work 
assistance to students with mental retardation who are en-
rolled and maintaining satisfactory progress in a com-
prehensive postsecondary program for students with men-
tal retardation at that institution. 
‘‘(2)(A) Notwithstanding any other provisions of this 
Act, the following requirements do not apply to students 
seeking work assistance under this section: 
‘‘(i) Student eligibility requirements relating to 
enrollment in a program leading to a recognized 
education credential under section 484(a)(1). 
‘‘(ii) Satisfactory progress requirements under 
sections 484(a)(2) and (c). 
‘‘(iii) Student eligibility requirements relating to 
the satisfaction of secondary education standards 
under section 484(d). 
‘‘(iv) Determination of need in accordance with 
part F. 
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‘‘(v) The common financial reporting form de-
veloped and processed pursuant to section 483, and 
any related aid processing, disbursement, and deliv-
ery requirements as the Secretary may specify. 
‘‘(vi) Any reporting requirements that the Sec-
retary may specify. 
‘‘(B) Notwithstanding any other provisions of this 
Act, the requirement that a program lead to a degree or 
certificate, or meet the requirements of section 481(b), 
shall not apply to comprehensive postsecondary programs 
for students with mental retardation at institutions of 
higher education that are otherwise eligible to participate 
under this part. 
‘‘(c) AGREEMENT WITH THE SECRETARY.—An insti-
tution of higher education that wishes to provide work as-
sistance under this section shall prepare, and submit to 
the Secretary for approval, a plan describing how work 
assistance will be awarded under this section to students 
with mental retardation who are enrolled in a comprehen-
sive postsecondary program for students with mental re-
tardation at that institution. That plan shall include— 
‘‘(1) a description of how the institution will de-
termine which students in the program will receive 
work assistance, including what criteria will be used 
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for determining the student’s financial need for the 
assistance in lieu of a determination under part F; 
‘‘(2) a description of the types of jobs in which 
students in the program will be employed, at what 
rates of compensation, and the number of hours that 
a student may work; 
‘‘(3) the maximum dollar amount of assistance 
that the institution may award to a student in the 
program; and 
‘‘(4) a requirement that the Federal share of 
the compensation of a student in the program shall 
not exceed 75 percent. 
‘‘(d) DEFINITIONS.—For the purpose of this section: 
‘‘(1) COMPREHENSIVE
POSTSECONDARY
PRO-
GRAM
FOR
STUDENTS
WITH
MENTAL
RETARDA-
TION.—The term ‘comprehensive postsecondary pro-
gram for students with mental retardation’ means a 
degree, certificate, or nondegree program offered by 
an institution of higher education that— 
‘‘(A) is designed for students with mental 
retardation who seek to continue academic, vo-
cational, and independent living instruction at 
the institution to prepare for gainful employ-
ment; 
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‘‘(B) includes an advising and curriculum 
structure; and 
‘‘(C) includes enrollment by the student 
(through regular enrollment, auditing courses, 
participation in internships, or enrollment in 
noncredit, nondegree courses) in the equivalent 
of not less than half-time enrollment, as defined 
by the institution. 
‘‘(2) STUDENT WITH MENTAL RETARDATION.— 
The term ‘student with mental retardation’ means a 
student with significantly subaverage general intel-
lectual functioning, existing concurrently with defi-
cits in adaptive behavior and manifested during the 
developmental period, that adversely affects a stu-
dent’s educational performance. 
‘‘(3) SATISFACTORY
PROGRESS.—A student 
with mental retardation enrolled in a comprehensive 
postsecondary program for students with mental re-
tardation is maintaining satisfactory progress if— 
‘‘(A) the institution at which that student 
is enrolled reviews the progress of the student 
at the end of each academic year, or its equiva-
lent, as determined by the institution; and 
‘‘(B) the institution determines that the 
student is meeting or exceeding the program re-
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quirements and adequately progressing toward 
program completion.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall be effective for academic year 2007– 
2008 and succeeding academic years. 
PART D—FEDERAL DIRECT LOAN PROGRAM 
SEC. 451. INCOME CONTINGENT REPAYMENT. 
Section 455(e)(2) (20 U.S.C. 1087e(e)(2)) is amend-
ed by striking ‘‘and files a Federal income tax return 
jointly with the borrower’s spouse’’. 
PART E—FEDERAL PERKINS LOAN PROGRAM 
SEC. 461. REAUTHORIZATION OF PROGRAM. 
(a) PROGRAM AUTHORIZATION.— 
(1) AUTHORIZATION
OF
APPROPRIATIONS.— 
Section 461(b) (20 U.S.C. 1087aa(b)) is amended— 
(A) in paragraph (1)— 
(i) by striking ‘‘1999’’ and inserting 
‘‘2007’’; and 
(ii) by striking ‘‘4 succeeding’’ and in-
serting ‘‘5 succeeding’’; and 
(B) in paragraph (2), by striking ‘‘2003’’ 
each place it appears and inserting ‘‘2013’’. 
(2) FEDERAL CAPITAL CONTRIBUTION RECOV-
ERY.—Section 466 (20 U.S.C. 1087ff) is amended— 
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(A) by striking ‘‘2004’’ each place it ap-
pears in subsections (a) and (c) and inserting 
‘‘2013’’; 
(B) by striking ‘‘2003’’ each place it ap-
pears in subsections (a) and (b), and inserting 
‘‘2012’’; and 
(C) by striking ‘‘2012’’ in subsection (b) 
and inserting ‘‘2013’’. 
(b) BOOKS
AND SUPPLIES.—Section 462(c)(4)(D) 
(20 U.S.C. 1087bb(c)(4)(D)) is amended by striking 
‘‘$450’’ and inserting ‘‘$600’’. 
SEC. 462. LOAN TERMS AND CONDITIONS. 
(a) LOAN
LIMITS.—Section 464(a) (20 U.S.C. 
1087dd(a)) is amended— 
(1) in paragraph (2)(A)— 
(A) by striking ‘‘$4,000’’ in clause (i) and 
inserting ‘‘$5,500’’; and 
(B) by striking ‘‘$6,000’’ in clause (ii) and 
inserting ‘‘$8,000’’; and 
(2) in paragraph (2)(B)— 
(A) by striking ‘‘$40,000’’ in clause (i) and 
inserting ‘‘$60,000’’; 
(B) by striking ‘‘$20,000’’ in clause (ii) 
and inserting ‘‘$27,500’’; and 
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(C) by striking ‘‘$8,000’’ in clause (iii) and 
inserting ‘‘$11,000’’. 
(b) FORBEARANCE.—Section 464(e) (20 U.S.C. 
1087dd(e)) is amended by striking ‘‘, upon written re-
quest,’’. 
(c) SPECIAL REPAYMENT RULE.—Paragraph (2) of 
section 464(f) is amended to read as follows: 
‘‘(2) No compromise repayment of a defaulted loan 
as authorized by paragraph (1) may be made unless 
agreed to by the Secretary.’’. 
(d) REHABILITATION.—Section 464(h)(1)(A) (20 
U.S.C. 1087dd(h)(1)(A)) is amended by striking ‘‘12 
ontime’’ and inserting ‘‘9 on-time’’. 
SEC. 463. LOAN CANCELLATION. 
Section 465(a)(3)(A) (20 U.S.C. 1087ee(a)(3)(A)) is 
amended— 
(1) by inserting ‘‘(D),’’ after ‘‘subparagraph 
(A), (C),’’ in clause (i); 
(2) by inserting ‘‘or’’ after the semicolon at the 
end of clause (ii); 
(3) by striking clause (iii); and 
(4) by redesignating clause (iv) as clause (iii). 
SEC. 464. TECHNICAL AMENDMENTS. 
Part E is further amended as follows: 
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(1) Section 462(g)(1)(E)(i)(I) (20 U.S.C. 
1087bb(g)(1)(E)(i)(I)) is amended by inserting 
‘‘monthly’’ after ‘‘consecutive’’. 
(2) 
Section 
464(c)(1)(D) 
(20 
U.S.C. 
1087dd(c)(1)(D)) is amended by redesignating sub-
clauses (I) and (II) as clauses (i) and (ii), respec-
tively. 
(3) Section 465(a)(2) (20 U.S.C. 1087ee(a)(2)) 
is amended in subparagraph (A), by striking ‘‘sec-
tion 111(c)’’ and inserting ‘‘section 1113(a)(5)’’. 
(4) Section 467(b) (20 U.S.C. 1087gg(b)) is 
amended by striking ‘‘(5)(A), (5)(B)(i), or (6)’’ and 
inserting ‘‘(4)(A), (4)(B), or (5)’’. 
(5) Section 469(c) (20 U.S.C. 1087ii(c)) is 
amended— 
(A) by striking ‘‘sections 602 and 632’’ 
and inserting ‘‘sections 602(3) and 632(5)’’; 
(B) by striking ‘‘qualified professional pro-
vider of early intervention services’’ and insert-
ing ‘‘early intervention services’’; and 
(C) by striking ‘‘section 672(2)’’ and in-
serting ‘‘section 632(4)’’. 
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HR 609 PCS 
PART F—NEED ANALYSIS 
SEC. 471. SIGNIFICANTLY SIMPLIFYING THE STUDENT AID 
APPLICATION PROCESS. 
(a) IMPROVEMENTS
TO PAPER
AND ELECTRONIC 
FORMS.— 
(1) COMMON FINANCIAL AID FORM DEVELOP-
MENT AND PROCESSING.—Section 483(a) (20 U.S.C. 
1090(a)) is amended— 
(A) by striking paragraphs (1), (2), and 
(5); 
(B) by redesignating paragraphs (3), (4), 
(6), and (7), as paragraphs (9), (10), (11), and 
(12), respectively; 
(C) by inserting before paragraph (9), as 
redesignated by subparagraph (B), the fol-
lowing: 
‘‘(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 
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and electronic formats and shall be referred to as 
the ‘Free Application for Federal Student Aid’ or 
the ‘FAFSA’. 
‘‘(2) EARLY ESTIMATES.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
permit applicants to complete such forms as de-
scribed in this subsection in the 4 years prior 
to enrollment in order to obtain a non-binding 
estimate of the family contribution, as defined 
in section 473. The estimate shall clearly and 
conspicuously indicate that it is only an esti-
mate of family contribution, and may not re-
flect the actual family contribution of the appli-
cant that shall be used to determine the grant, 
loan, or work assistance that the applicant may 
receive under this title when enrolled in a pro-
gram of postsecondary education. Such appli-
cants shall be permitted to update information 
submitted on forms described in this subsection 
using the process required under paragraph 
(5)(A). 
‘‘(B) EVALUATION.—Two years after the 
early estimates are implemented under this 
paragraph and from data gathered from the 
early estimates, the Secretary shall evaluate the 
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differences between initial, non-binding early es-
timates and the final financial aid award made 
available under this title. 
‘‘(C) REPORT.—The Secretary shall pro-
vide a report to the authorizing committees on 
the results of the evaluation. 
‘‘(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 form under this subpara-
graph shall permit an applicant to submit, 
for financial assistance purposes, only the 
data elements required to make a deter-
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CCOLEMAN on PROD1PC71 with BILLS
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mination of whether the applicant meets 
the requirements under section 479(c). 
‘‘(iii) STATE
DATA.—The Secretary 
shall include on the form under this sub-
paragraph such data items as may be nec-
essary 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 form under this subparagraph. 
‘‘(iv) FREE AVAILABILITY AND PROC-
ESSING.—The provisions of paragraph (7) 
shall apply to the form under this subpara-
graph, and the data collected by means of 
the form under this subparagraph shall be 
available to institutions of higher edu-
cation, guaranty agencies, and States in 
accordance with paragraph (9). 
‘‘(v) TESTING.—The Secretary shall 
conduct appropriate field testing on the 
form under this subparagraph. 
‘‘(C) PROMOTING
THE
USE
OF
ELEC-
TRONIC FAFSA.— 
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CCOLEMAN on PROD1PC71 with BILLS
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‘‘(i) IN
GENERAL.—The Secretary 
shall— 
‘‘(I) develop a form that uses 
skip logic to simplify the application 
process for applicants; and 
‘‘(II) make all efforts to encour-
age applicants to utilize the electronic 
forms described 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 
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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 
digital divide on the following student pop-
ulations: dependent students, independent 
students without dependents, and inde-
pendent students with dependents other 
than a spouse. 
‘‘(4) ELECTRONIC FORMAT.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
produce, distribute, and process common forms 
in electronic format to meet the requirements of 
paragraph (1). The Secretary shall develop 
common electronic forms for applicants who do 
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not meet the requirements of subparagraph (C) 
of this paragraph. 
‘‘(B) STATE
DATA.—The Secretary shall 
include on the common electronic forms space 
for information that needs to be submitted from 
the applicant to be eligible for State financial 
assistance, as provided under paragraph (6), ex-
cept the Secretary shall not require applicants 
to complete data required by any State other 
than the applicant’s State of residence. 
‘‘(C) SIMPLIFIED APPLICATIONS: FAFSA ON 
THE WEB.— 
‘‘(i) IN
GENERAL.—The Secretary 
shall develop and use a simplified elec-
tronic application form to be used by appli-
cants meeting the requirements under sub-
section (c) of section 479 and an addi-
tional, separate simplified electronic appli-
cation form to be used by applicants meet-
ing the requirements under subsection (b) 
of section 479. 
‘‘(ii) 
REDUCED
DATA
REQUIRE-
MENTS.—The simplified electronic applica-
tion forms shall permit an applicant to 
submit for financial assistance purposes, 
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only the data elements required to make a 
determination of whether the applicant 
meets the requirements under subsection 
(b) or (c) of section 479. 
‘‘(iii) STATE
DATA.—The Secretary 
shall include on the simplified electronic 
application forms such data items as may 
be necessary to award state financial as-
sistance, as provided under paragraph (6), 
except that the Secretary shall not require 
applicants to complete data required by 
any State other than the applicant’s State 
of residence. 
‘‘(iv) 
AVAILABILITY
AND
PROC-
ESSING.—The data collected by means of 
the simplified electronic application forms 
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 
forms developed under this subparagraph. 
‘‘(D) USE
OF
FORMS.—Nothing in this 
subsection shall be construed to prohibit the use 
of the forms developed by the Secretary pursu-
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ant to this paragraph by an eligible institution, 
eligible lender, guaranty agency, State grant 
agency, private computer software provider, a 
consortium thereof, or such other entities as the 
Secretary may designate. 
‘‘(E) PRIVACY.—The Secretary shall en-
sure that data collection under this paragraph 
complies with section 552a of title 5, United 
States Code, and that any entity using the elec-
tronic version of the forms developed by the 
Secretary pursuant to this paragraph shall 
maintain reasonable and appropriate adminis-
trative, technical, and physical safeguards to 
ensure the integrity and confidentiality of the 
information, and to protect against security 
threats, or unauthorized uses or disclosures of 
the information provided on the electronic 
version of the forms. Data collected by such 
electronic version of the forms shall be used 
only for the application, award, and administra-
tion of aid awarded under this title, State aid, 
or aid awarded by eligible institutions or such 
entities as the Secretary may designate. No 
data collected by such electronic version of the 
forms shall be used for making final aid awards 
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under this title until such data have been proc-
essed by the Secretary or a contractor or des-
ignee of the Secretary, and an expected family 
contribution has been calculated by the Sec-
retary, except as may be permitted under this 
title. 
‘‘(F) SIGNATURE.—Notwithstanding any 
other provision of this Act, the Secretary may 
permit an electronic form under this paragraph 
to be submitted with an electronic signature. 
‘‘(5) STREAMLINING.— 
‘‘(A) STREAMLINED REAPPLICATION PROC-
ESS.— 
‘‘(i) IN
GENERAL.—The Secretary 
shall develop streamlined reapplication 
forms and processes, including both paper 
and electronic reapplication processes, con-
sistent with the requirements of this sub-
section, for an applicant who applies for fi-
nancial assistance under this title— 
‘‘(I) in the academic year suc-
ceeding the year in which such appli-
cant first applied for financial assist-
ance under this title; or 
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‘‘(II) in any succeeding academic 
years. 
‘‘(ii) MECHANISMS
FOR
REAPPLICA-
TION.—The Secretary shall develop appro-
priate mechanisms to support reapplica-
tion. 
‘‘(iii) IDENTIFICATION
OF
UPDATED 
DATA.—The Secretary shall determine, in 
cooperation with States, institutions of 
higher education, agencies, and organiza-
tions involved in student financial assist-
ance, the data elements that can be up-
dated from the previous academic year’s 
application. 
‘‘(iv) REDUCED DATA AUTHORIZED.— 
Nothing in this title shall be construed as 
limiting the authority of the Secretary to 
reduce the number of data elements re-
quired of reapplicants. 
‘‘(v) ZERO FAMILY CONTRIBUTION.— 
Applicants determined to have a zero fam-
ily contribution pursuant to section 479(c) 
shall not be required to provide any finan-
cial data in a reapplication form, except 
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that which is necessary to determine eligi-
bility under such section. 
‘‘(B) REDUCTION OF DATA ELEMENTS.— 
‘‘(i) REDUCTION
ENCOURAGED.—Of 
the number of data elements on the 
FAFSA on the date of enactment of the 
College Access and Opportunity Act of 
2006 (including questions on the FAFSA 
for the purposes described in paragraph 
(6)), the Secretary, in cooperation with 
representatives of agencies and organiza-
tions involved in student financial assist-
ance, shall continue to reduce the number 
of such data elements following the date of 
enactment. Reductions of data elements 
under 
paragraph 
(3)(B), 
(4)(C), 
or 
(5)(A)(iv) shall not be counted towards the 
reduction referred to in this paragraph un-
less those data elements are reduced for all 
applicants. 
‘‘(ii) REPORT.—The Secretary shall 
annually report to the House of Represent-
atives and the Senate on the progress 
made of reducing data elements. 
‘‘(6) STATE REQUIREMENTS.— 
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CCOLEMAN on PROD1PC71 with BILLS
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‘‘(A) IN
GENERAL.—The Secretary shall 
include on the forms developed under this sub-
section, such State-specific data items as the 
Secretary determines are necessary to meet 
State requirements for State need-based finan-
cial aid under section 415C, except as provided 
in paragraphs (3)(B)(iii) and (4)(C)(iii) of this 
subsection. Such items shall be selected in con-
sultation with State agencies in order to assist 
in the awarding of State financial assistance in 
accordance with the terms of this subsection, 
except as provided in paragraphs (3)(B)(iii) and 
(4)(C)(iii) of this subsection. The number of 
such data items shall not be less than the num-
ber included on the form on October 7, 1998, 
unless a State notifies the Secretary that the 
State no longer requires those data items for 
the distribution of State need-based financial 
aid. 
‘‘(B) ANNUAL
REVIEW.—The Secretary 
shall conduct an annual review process to deter-
mine which forms and data items the States re-
quire to award State need-based financial aid 
and other application requirements that the 
States may impose. 
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CCOLEMAN on PROD1PC71 with BILLS
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‘‘(C) STATE USE OF SIMPLIFIED FORMS.— 
The Secretary shall encourage States to take 
such steps as necessary to encourage the use of 
simplified application forms, including those de-
scribed in paragraphs (3)(B) and (4)(C), to 
meet the requirements under subsection (b) or 
(c) of section 479. 
‘‘(D) FEDERAL
REGISTER
NOTICE.—The 
Secretary shall publish on an annual basis a no-
tice in the Federal Register requiring State 
agencies to inform the Secretary— 
‘‘(i) if the State agency is unable to 
permit applicants to utilize the simplified 
application forms described in paragraphs 
(3)(B) and (4)(C); and 
‘‘(ii) of the State-specific data that 
the State agency requires for delivery of 
State need-based financial aid. 
‘‘(E) STATE NOTIFICATION TO THE SEC-
RETARY.— 
‘‘(i) IN GENERAL.—Each State agency 
shall notify the Secretary— 
‘‘(I) whether the State permits 
an applicant to file a form described 
in paragraph (3)(B) or paragraph 
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