172 
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 
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
173 
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-
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
174 
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 
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-
175 
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 
‘‘(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
176 
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 
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 
Higher Education Budget Reconciliation 
Act of 2005 (including questions on the 
FAFSA for the purposes described in 
paragraph (6)), the Secretary, in coopera-
tion with representatives of agencies and 
organizations involved in student financial 
assistance, 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
177 
unless 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.— 
‘‘(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
178 
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. 
‘‘(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
179 
‘‘(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 
(4)(C) of this subsection for purposes 
of determining eligibility for State 
need-based financial aid; and 
‘‘(II) the State-specific data that 
the State agency requires for delivery 
of State need-based financial aid. 
‘‘(ii) ACCEPTANCE OF FORMS.—In the 
event that a State does not permit an ap-
plicant to file a form described in para-
graph (3)(B) or paragraph (4)(C) of this 
subsection for purposes of determining eli-
gibility for State need-based financial 
aid— 
‘‘(I) the State shall notify the 
Secretary if the State is not permitted
180 
to do so because of either State law or 
because of agency policy; and 
‘‘(II) the notification under sub-
clause (I) shall include an estimate of 
the program cost to permit applicants 
to complete simplified application 
forms under paragraphs (3)(B) and 
paragraph (4)(C) of this subsection. 
‘‘(iii) LACK OF NOTIFICATION BY THE 
STATE.—If a State does not notify the 
Secretary pursuant to clause (i), the Sec-
retary shall— 
‘‘(I) permit residents of that 
State to complete simplified applica-
tion forms under paragraphs (3)(B) 
and paragraph (4)(C) of this sub-
section; and 
‘‘(II) not require any resident of 
that State to complete any data pre-
viously required by that State under 
this section. 
‘‘(7) CHARGES
TO
STUDENTS
AND
PARENTS 
FOR USE OF FORMS PROHIBITED.— 
‘‘(A) FEES PROHIBITED.—The FAFSA, in 
whatever form (including the EZ–FAFSA,
181 
paper, electronic, simplified, or reapplication), 
shall be produced, distributed, and processed by 
the Secretary and no parent or student shall be 
charged a fee by any entity for the collection, 
processing, or delivery of financial aid through 
the use of the FAFSA. The need and eligibility 
of a student for financial assistance under parts 
A through E of this title (other than under sub-
part 4 of part A) may only be determined by 
using the FAFSA developed by the Secretary 
pursuant to this subsection. No student may re-
ceive assistance under parts A through E of 
this title (other than under subpart 4 of part 
A), except by use of the FAFSA developed by 
the Secretary pursuant to this subsection. No 
data collected on a form, worksheet, or other 
document for which a fee is charged shall be 
used to complete the FAFSA. 
‘‘(B) NOTICE.—Any entity that provides to 
students or parents, or charges students or par-
ents for, any value-added services with respect 
to or in connection with the FAFSA, such as 
completion of the FAFSA, submission of the 
FAFSA, or tracking of the FAFSA for a stu-
182 
dent, shall provide to students and parents 
clear and conspicuous notice that— 
‘‘(i) the FAFSA is a free Federal stu-
dent aid application; 
‘‘(ii) the FAFSA can be completed 
without professional assistance; and 
‘‘(iii) includes the current Internet ad-
dress for the FAFSA on the Department’s 
web site. 
‘‘(8) APPLICATION
PROCESSING
CYCLE.—The 
Secretary shall enable students to submit a form 
created under this subsection in order to meet the 
filing requirements of this section and in order to re-
ceive aid from programs under this title and shall 
initiate the processing of applications under this 
subsection as early as practicable prior to January 
1 of the student’s planned year of enrollment.’’. 
(2) MASTER CALENDAR.—Section 482(a)(1)(B) 
(20 U.S.C. 1089) is amended to read as follows: 
‘‘(B) by March 1: proposed modifications, 
updates, and notices pursuant to sections 478, 
479(c)(2)(C), and 483(a)(6) published in the 
Federal Register;’’.
183 
(c) INCREASING ACCESS TO TECHNOLOGY.—Section 
483 (20 U.S.C. 1090) is further amended by adding at 
the end the following: 
‘‘(f) ADDRESSING THE DIGITAL DIVIDE.—The Sec-
retary shall utilize savings accrued by moving more appli-
cants to the electronic forms described in subsection (a)(4) 
to improve access to the electronic forms described in sub-
section (a)(4) for applicants meeting the requirements of 
section 479(c).’’. 
(d) EXPANDING
THE DEFINITION
OF
AN INDE-
PENDENT
STUDENT.—Section 
480(d) 
(20 
U.S.C.1087vv(d)) is amended by striking paragraph (2) 
and inserting the following: 
‘‘(2) is an orphan, in foster care, or a ward of 
the court, or was in foster care or a ward of the 
court until the individual reached the age of 18;’’. 
SEC. 2126. ADDITIONAL NEED ANALYSIS AMENDMENTS. 
(a) INCOME PROTECTION ALLOWANCE FOR DEPEND-
ENT STUDENTS.—— 
(1) AMENDMENT.—Section 475(g)(2)(D) (20 
U.S.C. 1087oo(g)(2)(D)) is amended by striking 
‘‘$2,200’’ and inserting ‘‘$3,000’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
478(b) (20 U.S.C. 1087rr(b)) is amended by adding 
at the end the following new paragraph:
184 
‘‘(3) REVISED
AMOUNTS
AFTER
INCREASE.— 
Notwithstanding paragraph (2), for each academic 
year after academic year 2006–2007, the Secretary 
shall publish in the Federal Register a revised in-
come protection allowance for the purpose of section 
475(g)(2)(D). Such revised allowance shall be devel-
oped by increasing the dollar amount contained in 
such section by a percentage equal to the estimated 
percentage increase in the Consumer Price Index (as 
determined by the Secretary) between December 
2005 and the December next preceding the begin-
ning of such academic year, and rounding the result 
to the nearest $10.’’. 
(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply with respect to deter-
minations of need for periods of enrollment begin-
ning on or after July 1, 2006. 
(b) EMPLOYMENT EXPENSE ALLOWANCE.—Section 
478(h) (20 U.S.C. 1087rr(h)) is amended— 
(1) by striking ‘‘476(b)(4)(B),’’; and 
(2) by striking ‘‘meals away from home, apparel 
and upkeep, transportation, and housekeeping serv-
ices’’ and inserting ‘‘food away from home, apparel, 
transportation, and household furnishings and oper-
ations’’.
185 
(c) DISCRETION OF STUDENT FINANCIAL AID AD-
MINISTRATORS.—Section 479A(a) (20 U.S.C. 1087tt(a)) 
is amended— 
(1) by striking ‘‘(a) IN GENERAL.—’’ and in-
serting the following: 
‘‘(a) AUTHORITY TO MAKE ADJUSTMENTS.— 
‘‘(1) 
ADJUSTMENTS
FOR
SPECIAL
CIR-
CUMSTANCES.—’’; 
(2) by inserting before ‘‘Special circumstances 
may’’ the following: 
‘‘(2) SPECIAL CIRCUMSTANCES DEFINED.—’’; 
(3) by inserting ‘‘a student’s status as a ward 
of the court at any time prior to attaining 18 years 
of age, a student’s status as an individual who was 
adopted at or after age 13, a student’s status as a 
homeless or unaccompanied youth (as defined in sec-
tion 725 of the McKinney-Vento Homeless Assist-
ance Act),’’ after ‘‘487,’’; 
(4) by inserting before ‘‘Adequate documenta-
tion’’ the following: 
‘‘(3) DOCUMENTATION AND USE OF SUPPLE-
MENTARY INFORMATION.—’’; and 
(5) by inserting before ‘‘No student’’ the fol-
lowing:
186 
‘‘(4) FEES FOR SUPPLEMENTARY INFORMATION 
PROHIBITED.—’’. 
(d) TREATING ACTIVE DUTY MEMBERS
OF
THE 
ARMED FORCES AS INDEPENDENT STUDENTS.—Section 
480(d)(3) (20 U.S.C. 1087vv(d)(3)) is amended by insert-
ing before the semicolon at the end the following: ‘‘or is 
currently serving on active duty in the Armed Forces for 
other than training purposes’’. 
(e) EXCLUDABLE
INCOME.—Section 480(e) (20 
U.S.C. 1087vv(e)) is amended— 
(1) by striking ‘‘and’’ at the end of paragraph 
(3); 
(2) by striking the period at the end of para-
graph (4) and inserting ‘‘; and’’; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(5) any part of any distribution from a quali-
fied tuition program established under section 529 
of the Internal Revenue Code of 1986 that is not in-
cludable in gross income under such section 529.’’. 
(f) TREATMENT OF SAVINGS PLANS.— 
(1) AMENDMENT.—Section 480(f) (20 U.S.C. 
1087vv(f)) is amended— 
(A) in paragraph (1), by inserting ‘‘quali-
fied tuition programs established under section
187 
529 of the Internal Revenue Code of 1986 (26 
U.S.C. 529), except as provided in paragraph 
(2),’’ after ‘‘tax shelters,’’; 
(B) by redesignating paragraph (2) as 
paragraph (3); and 
(C) by inserting after paragraph (1) the 
following new paragraph: 
‘‘(2) A qualified tuition program shall not be consid-
ered an asset of a dependent student under section 475 
of this part. The value of a qualified tuition program for 
purposes of determining the assets of parents or inde-
pendent students shall be— 
‘‘(A) the refund value of any tuition credits or 
certificates purchased under section 529 of the In-
ternal Revenue Code of 1986 (26 U.S.C. 529) on be-
half of a beneficiary; or 
‘‘(B) the current balance of any account which 
is established under such section for the purpose of 
meeting the qualified higher education expenses of 
the designated beneficiary of the account.’’. 
(2) CONFORMING AMENDMENT.—Section 480(j) 
(20 U.S.C. 1087vv(j)) is amended— 
(A) by striking ‘‘; TUITION PREPAYMENT 
PLANS’’ in the heading of such subsection; 
(B) by striking paragraph (2);
188 
(C) in paragraph (3), by inserting ‘‘, or a 
distribution that is not includable in gross in-
come under section 529 of such Code,’’ after 
‘‘1986’’; and 
(D) by redesignating paragraph (3) as 
paragraph (2). 
(g) TREATMENT OF FAMILY OWNERSHIP OF SMALL 
BUSINESSES.—Section 480(f)(3) of the Higher Education 
Act of 1965 (20 U.S.C. 1087vv(f)(3)), as redesignated by 
subsection (f) of this section, is amended— 
(1) in subparagraph (A), by striking ‘‘or’’; 
(2) in subparagraph (B), by striking the period 
at the end and inserting ‘‘; or’’; and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(C) a small business with not more than 100 
full-time or full-time equivalent employees (or any 
part of such a small business) that is owned and 
controlled by the family.’’. 
(h) DESIGNATED ASSISTANCE.—Section 480(j) (20 
U.S.C. 1087vv(j)) is amended by adding after paragraph 
(2) (as redesignated by subsection (f)(2)(D) of this sec-
tion) the following new paragraph: 
‘‘(3) Notwithstanding paragraph (1) and section 472, 
assistance not received under this title may be excluded
189 
from both estimated financial assistance and cost of at-
tendance, if that assistance is provided by a State and is 
designated by such State to offset a specific component 
of the cost of attendance. If that assistance is excluded 
from either estimated financial assistance or cost of at-
tendance, it shall be excluded from both.’’. 
SEC. 2127. DEFINITION OF ELIGIBLE PROGRAM. 
Section 481(b) (20 U.S.C. 1088(b)) is amended by 
adding at the end the following new paragraph: 
‘‘(3) For purposes of this title, an eligible program 
includes an instructional program that utilizes direct as-
sessment of student learning, or recognizes the direct as-
sessment of student learning, in lieu of credit hours or 
clock hours as the measure of student learning. In the case 
of a program being determined eligible for the first time 
under this paragraph, such determination shall be made 
by the Secretary before such program is considered to be 
eligible. The Secretary shall provide an annual report to 
Congress identifying the programs made eligible under 
this paragraph.’’. 
SEC. 2128. DISTANCE EDUCATION. 
(a) DISTANCE EDUCATION: ELIGIBLE PROGRAM.— 
Section 481(b) (20 U.S.C. 1088(b)) is amended by adding 
after paragraph (3) (as added by section 2127 of this Act) 
the following new paragraph:
190 
‘‘(4) An otherwise eligible program that is offered in 
whole or in part through telecommunications is eligible for 
the purposes of this title if the program is offered by an 
institution, other than a foreign institution, that has been 
evaluated and determined (before or after the date of en-
actment of this paragraph) to have the capability to effec-
tively deliver distance education programs by an accred-
iting agency or association that— 
‘‘(A) is recognized by the Secretary under sub-
part 2 of Part H; and 
‘‘(B) has evaluation of distance education pro-
grams within the scope of its recognition, as de-
scribed in section 496(n)(3).’’. 
(b) CORRESPONDENCE COURSES.—Section 484(l)(1) 
(20 U.S.C. 1091(l)(1)) is amended— 
(1) in subparagraph (A)— 
(A) by striking ‘‘for a program of study of 
1 year or longer’’; and 
(B) by striking ‘‘unless the total’’ and all 
that follows through ‘‘courses at the institu-
tion’’; and 
(2) by amending subparagraph (B) to read as 
follows: 
‘‘(B) 
EXCEPTION.—Subparagraph 
(A) 
does not apply to an institution or school de-
191 
scribed in section 3(3)(C) of the Carl D. Per-
kins Vocational and Technical Education Act of 
1998.’’. 
SEC. 2129. STUDENT ELIGIBILITY. 
(a) 
FRAUD: 
REPAYMENT
REQUIRED.—Section 
484(a) (20 U.S.C. 1091(a)) is amended— 
(1) by striking the period at the end of para-
graph (5) and inserting ‘‘; and’’; and 
(2) by adding at the end the following new 
paragraph: 
‘‘(6) if the student has been convicted of, or has 
pled nolo contendere or guilty to, a crime involving 
fraud in obtaining funds under this title, have com-
pleted the repayment of such funds to the Secretary, 
or to the holder in the case of a loan under this title 
obtained by fraud.’’. 
(b) TECHNICAL AMENDMENT.—Section 484(b)(5) 
(20 U.S.C. 1091(b)(5)) is amended by inserting ‘‘or par-
ent (on behalf of a student)’’ after ‘‘student’’. 
(c) LOAN INELIGIBILITY BASED ON INVOLUNTARY 
CIVIL COMMITMENT FOR SEXUAL OFFENSES.—Section 
484(b)(5) (20 U.S.C. 1091(b)(5)) is further amended by 
inserting before the period the following: ‘‘, and no student 
who is subject to an involuntary civil commitment upon 
completion of a period of incarceration for a sexual offense
192 
(as determined under regulations of the Secretary) is eligi-
ble to receive a loan under this title’’. 
(d) FREELY ASSOCIATED STATES.—Section 484(j) 
(20 U.S.C. 1091(j)) is amended by inserting ‘‘and shall 
be eligible only for assistance under subpart 1 of part A 
thereafter,’’ after ‘‘part C,’’. 
(e) VERIFICATION
OF INCOME DATE.—Paragraph 
(1) of section 484(q) (20 U.S.C. 1091(q)) is amended to 
read as follows: 
‘‘(1) CONFIRMATION WITH IRS.—The Secretary 
of Education, in cooperation with the Secretary of 
the Treasury, is authorized to confirm with the In-
ternal Revenue Service the information specified in 
section 6103(l)(13) of the Internal Revenue Code of 
1986 reported by applicants (including parents) 
under this title on their Federal income tax returns 
for the purpose of verifying the information reported 
by applicants on student financial aid applications.’’. 
(f) SUSPENSION
OF ELIGIBILITY
FOR DRUG OF-
FENSES.—Section 484(r)(1) (20 U.S.C. 1091(r)(1)) is 
amended by striking everything preceding the table and 
inserting the following: 
‘‘(1) IN GENERAL.—A student who is convicted 
of any offense under any Federal or State law in-
volving the possession or sale of a controlled sub-
193 
stance for conduct that occurred during a period of 
enrollment for which the student was receiving any 
grant, loan, or work assistance under this title shall 
not be eligible to receive any grant, loan, or work as-
sistance under this title from the date of that convic-
tion for the period of time specified in the following 
table:’’. 
SEC. 2130. INSTITUTIONAL REFUNDS. 
Section 484B (20 U.S.C. 1091b) is amended— 
(1) in subsection (a)(1), by inserting ‘‘subpart 
4 of part A or’’ after ‘‘received under’’; 
(2) in subsection (a)(2), by striking ‘‘takes a 
leave’’ and by inserting ‘‘takes one or more leaves’’; 
(3) in subsection (a)(3)(B)(ii), by inserting ‘‘(as 
determined in accordance with subsection (d))’’ after 
‘‘student has completed’’; 
(4) in subsection (a)(4), by amending subpara-
graph (A) to read as follows: 
‘‘(A) IN GENERAL.—After determining the 
eligibility of the student for a late disbursement 
or post-withdrawal disbursement (as required in 
regulations prescribed by the Secretary), the in-
stitution of higher education shall contact the 
borrower and obtain confirmation that the loan 
funds are still required by the borrower. In
194 
making such contact, the institution shall ex-
plain to the borrower the borrower’s obligation 
to repay the funds following any such disburse-
ment. The institution shall document in the 
borrower’s file the result of such contact and 
the final determination made concerning such 
disbursement.’’; 
(5) in subsection (b)(1), by inserting ‘‘no later 
than 45 days from the determination of withdrawal’’ 
after ‘‘return’’; 
(6) in subsection (b)(2), by amending subpara-
graph (C) to read as follows: 
‘‘(C) GRANT
OVERPAYMENT
REQUIRE-
MENTS.— 
‘‘(i) IN
GENERAL.—Notwithstanding 
subparagraphs (A) and (B), a student 
shall only be required to return grant as-
sistance in the amount (if any) by which— 
‘‘(I) the amount to be returned 
by the student (as determined under 
subparagraphs (A) and (B)), exceeds 
‘‘(II) 50 percent of the total 
grant assistance received by the stu-
dent under this title for the payment 
period or period of enrollment.
195 
‘‘(ii) MINIMUM.—A student shall not 
be required to return amounts of $50 or 
less.’’; and 
(7) in subsection (d), by striking ‘‘(a)(3)(B)(i)’’ 
and inserting ‘‘(a)(3)(B)’’. 
SEC. 2131. COLLEGE ACCESS INITIATIVE. 
Part G is further amended by inserting after section 
485C (20 U.S.C. 1092c) the following new section: 
‘‘SEC. 485D. COLLEGE ACCESS INITIATIVE. 
‘‘(a) STATE-BY-STATE
INFORMATION.—The Sec-
retary shall direct each guaranty agency with which the 
Secretary has an agreement under section 428(c) to pro-
vide to the Secretary the information necessary for the de-
velopment of web links and access for students and fami-
lies to a comprehensive listing of the postsecondary edu-
cation opportunities, programs, publications, Internet Web 
sites, and other services available in the States for which 
such agency serves as the designated guarantor. 
‘‘(b) GUARANTY AGENCY ACTIVITIES.— 
‘‘(1) PLAN
AND
ACTIVITY
REQUIRED.—Each 
guaranty agency with which the Secretary has an 
agreement under section 428(c) shall develop a plan 
and undertake the activity necessary to gather the 
information required under subsection (a) and to 
make such information available to the public and to
196 
the Secretary in a form and manner as prescribed 
by the Secretary. 
‘‘(2) ACTIVITIES.—Each guaranty agency shall 
undertake such activities as are necessary to pro-
mote access to postsecondary education for students 
through providing information on college planning, 
career preparation, and paying for college. The guar-
anty agency shall publicize such information and co-
ordinate such activities with other entities that ei-
ther provide or distribute such information in the 
States for which such guaranty agency serves as the 
designated guarantor. 
‘‘(3) FUNDING.—The activities required by this 
section may be funded from the guaranty agency’s 
operating account established pursuant to section 
422B and, to the extent funds remain, from earn-
ings on the restricted account established pursuant 
to section 422(h)(4). 
‘‘(c) ACCESS TO INFORMATION.— 
‘‘(1) SECRETARY’S RESPONSIBILITY.—The Sec-
retary shall ensure the availability of the information 
provided by the guaranty agencies in accordance 
with this section to students, parents, and other in-
terested individuals, through web links or other 
methods prescribed by the Secretary.
197 
‘‘(2) GUARANTY
AGENCY
RESPONSIBILITY.— 
The guaranty agencies shall ensure that the infor-
mation required by this section is available without 
charge in printed format for students and parents 
requesting such information. 
‘‘(3) PUBLICITY.—Within 270 days after the 
date of enactment of the Higher Education Budget 
Reconciliation Act of 2005, the Secretary and guar-
anty agencies shall publicize the availability of the 
information required by this section, with special 
emphasis on ensuring that populations that are tra-
ditionally underrepresented in postsecondary edu-
cation are made aware of the availability of such in-
formation.’’. 
SEC. 2132. CANCELLATION OF STUDENT LOAN INDEBTED-
NESS FOR SURVIVORS OF VICTIMS OF THE 
SEPTEMBER 11, 2001, ATTACKS. 
(a) DEFINITIONS.—For purposes of this section: 
(1) ELIGIBLE PUBLIC SERVANT.—The term ‘‘el-
igible public servant’’ means an individual who, as 
determined in accordance with regulations of the 
Secretary— 
(A) served as a police officer, firefighter, 
other safety or rescue personnel, or as a mem-
ber of the Armed Forces; and
198 
(B) died (or dies) or became (or becomes) 
permanently and totally disabled due to injuries 
suffered in the terrorist attacks on September 
11, 2001. 
(2) ELIGIBLE VICTIM.—The term ‘‘eligible vic-
tim’’ means an individual who, as determined in ac-
cordance with regulations of the Secretary, died (or 
dies) or became (or becomes) permanently and to-
tally disabled due to injuries suffered in the terrorist 
attacks on September 11, 2001. 
(3) ELIGIBLE
PARENT.—The term ‘‘eligible 
parent’’ means the parent of an eligible victim if— 
(A) the parent owes a Federal student loan 
that is a consolidation loan that was used to 
repay a PLUS loan incurred on behalf of such 
eligible victim; or 
(B) the parent owes a Federal student loan 
that is a PLUS loan incurred on behalf of an 
eligible victim. 
(4) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Education. 
(5) FEDERAL
STUDENT
LOAN.—The term 
‘‘Federal student loan’’ means any loan made, in-
sured, or guaranteed under part B, D, or E of title 
IV of the Higher Education Act of 1965.
199 
(b) RELIEF FROM INDEBTEDNESS.— 
(1) IN GENERAL.—The Secretary shall provide 
for the discharge or cancellation of— 
(A) the Federal student loan indebtedness 
of the spouse of an eligible public servant, as 
determined in accordance with regulations of 
the Secretary, including any consolidation loan 
that was used jointly by the eligible public serv-
ant and his or her spouse to repay the Federal 
student loans of the spouse and the eligible 
public servant; 
(B) the portion incurred on behalf of the 
eligible victim (other than an eligible public 
servant), of a Federal student loan that is a 
consolidation loan that was used jointly by the 
eligible victim and his or her spouse, as deter-
mined in accordance with regulations of the 
Secretary, to repay the Federal student loans of 
the eligible victim and his or her spouse; 
(C) the portion of the consolidation loan 
indebtedness of an eligible parent that was in-
curred on behalf of an eligible victim; and 
(D) the PLUS loan indebtedness of an eli-
gible parent that was incurred on behalf of an 
eligible victim.
200 
(2) METHOD
OF
DISCHARGE
OR
CANCELLA-
TION.—A loan required to be discharged or canceled 
under paragraph (1) shall be discharged or canceled 
by the method used under section 437(a), 455(a)(1), 
or 464(c)(1)(F) of the Higher Education Act of 
1965 
(20 
U.S.C. 
1087(a), 
1087e(a)(1), 
1087dd(c)(1)(F)), whichever is applicable to such 
loan. 
(c) FACILITATION
OF
CLAIMS.—The Secretary 
shall— 
(1) establish procedures for the filing of appli-
cations for discharge or cancellation under this sec-
tion by regulations that shall be prescribed and pub-
lished within 90 days after the date of enactment of 
this Act and without regard to the requirements of 
section 553 of title 5, United States Code; and 
(2) take such actions as may be necessary to 
publicize the availability of discharge or cancellation 
of Federal student loan indebtedness under this sec-
tion. 
(d) AVAILABILITY
OF FUNDS
FOR PAYMENTS.— 
Funds available for the purposes of making payments to 
lenders in accordance with section 437(a) for the dis-
charge of indebtedness of deceased or disabled individuals