‘‘(C) AMOUNTS.—In the case of a student 
receiving more than one Federal Pell Grant in 
a single award year under subparagraph (A), 
the total amount of the Federal Pell Grants 
awarded to such student for the award year 
shall not exceed an amount equal to 150 per-
cent of the amount of the maximum Federal 
Pell Grant for which such student is eligible, as 
specified in paragraph (2)(A) for that award 
year. 
‘‘(D) INCLUSION
IN
DURATION
LIMIT.— 
Any period of study covered by a Federal Pell 
Grant awarded under subparagraph (A) shall 
be included in determining a student’s duration 
limit under subsection (c)(5). 
‘‘(9) CROSSOVER PERIOD.—In any case where 
an eligible student is receiving a Federal Pell Grant 
for a payment period that spans 2 award years, the 
Secretary shall allow the eligible institution in which 
the student is enrolled to determine the award year 
to which the additional period shall be assigned.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall take effect on July 1, 2017. 
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SEC. 7. EXPANSION OF PELL GRANT EXCLUSION FROM 
GROSS INCOME. 
(a) IN GENERAL.—Paragraph (1) of section 117(b) 
of the Internal Revenue Code of 1986 is amended by strik-
ing ‘‘received by an individual’’ and all that follows and 
inserting ‘‘received by an individual— 
‘‘(A) as a scholarship or fellowship grant 
to the extent the individual establishes that, in 
accordance with the conditions of the grant, 
such amount was used for qualified tuition and 
related expenses, or 
‘‘(B) as a Federal Pell Grant under section 
401 of the Higher Education Act of 1965 (as 
amended by the Pathways to an Affordable 
Education Act).’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2015. 
SEC. 8. FEDERAL PELL GRANT EARLY COMMUNICATION. 
Section 485E of the Higher Education Act of 1965 
(20 U.S.C. 1092f) is amended— 
(1) in subsection (a), by inserting ‘‘elementary 
schools,’’ before ‘‘secondary schools,’’; and 
(2) in subsection (b)— 
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(A) in paragraph (1)(A), by striking ‘‘stu-
dents’’ and inserting ‘‘students and parents of 
students’’; and 
(B) in paragraph (2)— 
(i) in the paragraph heading, by in-
serting ‘‘ELEMENTARY AND’’ before ‘‘SEC-
ONDARY’’; 
(ii) by inserting ‘‘elementary schools,’’ 
after ‘‘financial aid,’’; 
(iii) by striking ‘‘notify students in 
secondary school’’ and inserting ‘‘notify 
students 
in 
elementary 
or 
secondary 
school’’; 
(iv) by striking ‘‘students’ junior year 
of secondary school’’ and inserting ‘‘stu-
dents’ sixth grade year of school’’; and 
(v) by striking ‘‘students in secondary 
school’’ and inserting ‘‘students in sixth 
grade’’. 
SEC. 9. CONTRIBUTION FROM ADJUSTED AVAILABLE IN-
COME. 
(a) AMENDMENTS.— 
(1) DEPENDENT STUDENTS.—Section 475(b) of 
the Higher Education Act of 1965 (20 U.S.C. 
1087oo(b)) is amended in the matter following para-
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graph (3), by striking ‘‘except that’’ and inserting 
‘‘except that for purposes other than subpart 1 of 
part A of this title’’. 
(2) INDEPENDENT
STUDENTS
WITHOUT
DE-
PENDENTS.—Section 476(a) of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1087pp(a)) is amend-
ed in the matter following paragraph (3), by striking 
‘‘except that’’ and inserting ‘‘except that for pur-
poses other than subpart 1 of part A of this title’’. 
(3) INDEPENDENT STUDENTS WITH DEPEND-
ENTS.—Section 477(a) of the Higher Education Act 
of 1965 (20 U.S.C. 1087qq(a)) is amended the mat-
ter following paragraph (4), by striking ‘‘except 
that’’ and inserting ‘‘except that for purposes other 
than subpart 1 of part A of this title’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall apply with respect to award year 
2017–2018 and each succeeding award year. 
Æ 
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