I 
114TH CONGRESS 
2D SESSION 
H. R. 4385 
To amend the Higher Education Act to improve higher education programs, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 13, 2016 
Mr. GRAYSON introduced the following bill; which was referred to the 
Committee on Education and the Workforce 
A BILL 
To amend the Higher Education Act to improve higher 
education programs, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘College for All Act’’. 
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TITLE I—FEDERAL-STATE PART-
NERSHIP TO ELIMINATE TUI-
TION 
SEC. 101. GRANT PROGRAM TO ELIMINATE TUITION AND 
REQUIRED FEES AT PUBLIC INSTITUTIONS 
OF HIGHER EDUCATION. 
(a) PROGRAM AUTHORIZED.— 
(1) GRANTS AUTHORIZED.—From amounts ap-
propriated under subsection (f), the Secretary of 
Education (referred to in this section as the ‘‘Sec-
retary’’) shall award grants, from allotments under 
subsection (b), to States having applications ap-
proved under subsection (d), to enable the States to 
eliminate tuition and required fees at public institu-
tions of higher education. 
(2) MATCHING
FUNDS
REQUIREMENT.—Each 
State that receives a grant under this section shall 
provide matching funds for a fiscal year in an 
amount that is equal to one half the amount received 
under this section for the fiscal year toward the cost 
of reducing the cost of attendance at public institu-
tions of higher education in the State. 
(b) DETERMINATION OF ALLOTMENT.— 
(1) INITIAL
ALLOTMENT.—For fiscal year 
2017, the Secretary shall allot to each eligible State 
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that submits an application under this section an 
amount that is equal to 67 percent of the total rev-
enue received by the State’s public system of higher 
education in the form of tuition and related fees for 
fiscal year 2017. For each of fiscal years 2018 
through 2020, the Secretary shall allot to each eligi-
ble State that submits an application under this sec-
tion— 
(A) an amount equal to the allotment the 
State received for fiscal year 2017, plus 
(B) if the State provides additional funds 
toward the cost of reducing the cost of attend-
ance at public institutions of higher education 
in the State for any of such fiscal years that is 
more than the matching funds requirement 
under subsection (a)(2), an amount equal to 
such additional funding provided by the State, 
which amount provided by the Secretary may be 
used for the activities described in subsection 
(e)(2). 
(2) SUBSEQUENT ALLOTMENTS.—Beginning in 
fiscal year 2021, the Secretary shall determine the 
median allotment per full-time equivalent student 
made to all eligible States under this section for fis-
cal year 2020 and incrementally reduce allotments 
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made to States under this section such that by fiscal 
year 2026, no State receives an allotment under this 
section per full-time equivalent student that exceeds 
the median allotment per full-time equivalent stu-
dent made under this section for fiscal year 2020. 
(c) STATE ELIGIBILITY REQUIREMENTS.—In order 
to be eligible to receive an allotment under this section 
for a fiscal year, a State shall— 
(1) ensure that public institutions of higher 
education in the State maintain per-pupil expendi-
tures on instruction at levels that meet or exceed the 
expenditures for the previous fiscal year; 
(2) ensure that tuition and required fees for in- 
State undergraduate students in the State’s public 
higher education system are eliminated; 
(3) maintain State operating expenditures for 
public institutions of higher education, excluding the 
amount of funds provided for a fiscal year under 
this section, at a level that meets or exceeds the level 
of such support for fiscal year 2016; 
(4) maintain State expenditures on need-based 
financial aid programs for enrollment in public insti-
tutions of higher education in the State at a level 
that meets or exceeds the level of such support for 
fiscal year 2016; 
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(5) ensure public institutions of higher edu-
cation in the State maintain funding for institutional 
need-based student financial aid in an amount that 
is equal to or exceeds the level of such funding for 
the previous fiscal year; 
(6) provide an assurance that not later than 5 
years after the date of enactment of this Act, not 
less than 75 percent of instruction at public institu-
tions of higher education in the State is provided by 
tenured or tenure-track faculty; 
(7) require that public institutions of higher 
education in the State provide, for each student en-
rolled at the institution who receives for the max-
imum Federal Pell Grant award under subpart 1 of 
part A of title IV of the Higher Education Act of 
1965 (20 U.S.C. 1070a et seq.), institutional stu-
dent financial aid in an amount equal to 100 percent 
of the difference between— 
(A) the cost of attendance at such institu-
tion (as determined in accordance with section 
472 of the Higher Education Act of 1965 (20 
U.S.C. 1087ll)), and 
(B) the sum of— 
(i) the amount of the maximum Fed-
eral Pell Grant award; and 
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(ii) the student’s expected family con-
tribution; and 
(8) ensure that public institutions of higher 
education in the State not adopt policies to reduce 
enrollment. 
(d) SUBMISSION AND CONTENTS OF APPLICATION.— 
For each fiscal year for which a State desires a grant 
under this section, the State agency with jurisdiction over 
higher education, or another agency designated by the 
Governor or chief executive of the State to administer the 
program under this section, shall submit an application 
to the Secretary at such time, in such manner, and con-
taining such information as the Secretary may require. 
(e) USE OF FUNDS.— 
(1) IN
GENERAL.—A State that receives a 
grant under this section shall use the grant funds 
and the matching funds required under this section 
to eliminate tuition and required fees for students at 
public institutions of higher education in the State. 
(2) ADDITIONAL FUNDING.—Once tuition and 
required fees have been eliminated pursuant to para-
graph (1), a State that receives a grant under this 
section shall use any remaining grant funds and 
matching funds required under this section to in-
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crease the quality of instruction and student support 
services by carrying out the following: 
(A) Expanding academic course offerings 
to students. 
(B) Increasing the number and percentage 
of full-time instructional faculty. 
(C) Providing all faculty with professional 
supports to help students succeed, such as pro-
fessional 
development 
opportunities, 
office 
space, and shared governance in the institution. 
(D) Compensating part-time faculty for 
work done outside of the classroom relating to 
instruction, such as holding office hours. 
(E) Strengthening and ensuring all stu-
dents have access to student support services 
such as academic advising, counseling, and tu-
toring. 
(F) Any other additional activities that im-
prove instructional quality and academic out-
comes for students as approved by the Sec-
retary through a peer review process. 
(3) PROHIBITION.—A State that receives a 
grant under this section may not use grant funds or 
matching funds required under this section— 
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(A) for the construction of nonacademic fa-
cilities, such as student centers or stadiums; 
(B) for merit-based student financial aid; 
or 
(C) to pay the salaries or benefits of school 
administrators. 
(f) AUTHORIZATION
AND APPROPRIATION.—There 
are authorized to be appropriated to carry out this section 
$47,000,000,000 for fiscal year 2017, and such sums as 
may be necessary for each of the fiscal years 2018 through 
2026. 
TITLE II—STUDENT LOANS 
SEC. 201. RESTORATION OF CERTAIN INTEREST RATE PRO-
VISIONS. 
Section 455(b) of the Higher Education Act of 1965 
(20 U.S.C. 1087e(b)) is amended— 
(1) in paragraph (8)— 
(A) in the heading, by striking ‘‘ON OR 
AFTER
JULY
1, 2013’’ and inserting ‘‘ON
OR 
AFTER
JULY
1, 2013, AND
BEFORE
JULY
1, 
2016’’; and 
(B) by striking ‘‘on or after July 1, 2013’’ 
and inserting ‘‘on or after July 1, 2013, and 
before July 1, 2016’’ each place the term ap-
pears; 
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(2) by redesignating paragraphs (9) and (10) 
as paragraphs (10) and (11), respectively; and 
(3) by inserting the following after paragraph 
(8): 
‘‘(9) INTEREST
RATE
PROVISIONS
FOR
NEW 
LOANS ON OR AFTER JULY 1, 2016.— 
‘‘(A) RATES FOR FDSL AND FDUSL.—Not-
withstanding the preceding paragraphs of this 
subsection, for Federal Direct Stafford Loans 
and Federal Direct Unsubsidized Stafford 
Loans for which the first disbursement is made 
on or after July 1, 2016, the applicable rate of 
interest shall, during any 12-month period be-
ginning on July 1 and ending on June 30, be 
determined on the preceding June 1 and be 
equal to— 
‘‘(i) the bond equivalent rate of 91- 
day Treasury bills auctioned at the final 
auction held prior to such June 1; plus 
‘‘(ii) 2.3 percent, 
except that such rate shall not exceed 8.25 per-
cent. 
‘‘(B) IN
SCHOOL
AND
GRACE
PERIOD 
RULES.—Notwithstanding the preceding para-
graphs of this subsection, with respect to any 
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Federal Direct Stafford Loan or Federal Direct 
Unsubsidized Stafford Loan for which the first 
disbursement is made on or after July 1, 2016, 
the applicable rate of interest for interest which 
accrues— 
‘‘(i) prior to the beginning of the re-
payment period of the loan; or 
‘‘(ii) during the period in which prin-
cipal need not be paid (whether or not 
such principal is in fact paid) by reason of 
a provision described in subsection (f), 
shall be determined under subparagraph (A) by 
substituting ‘1.7 percent’ for ‘2.3 percent’. 
‘‘(C) PLUS LOANS.—Notwithstanding the 
preceding paragraphs of this subsection, with 
respect to Federal Direct PLUS Loan for which 
the first disbursement is made on or after July 
1, 2016, the applicable rate of interest shall be 
determined under subparagraph (A)— 
‘‘(i) by substituting ‘3.1 percent’ for 
‘2.3 percent’; and 
‘‘(ii) by substituting ‘9.0 percent’ for 
‘8.25 percent’. 
‘‘(D) CONSOLIDATION
LOANS.—Notwith-
standing the preceding paragraphs of this sub-
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section, any Federal Direct Consolidation loan 
for which the application is received on or after 
July 1, 2016, shall bear interest at an annual 
rate on the unpaid principal balance of the loan 
that is equal to the lesser of— 
‘‘(i) the weighted average of the inter-
est rates on the loans consolidated, round-
ed to the nearest higher 1⁄8 of 1 percent; 
or 
‘‘(ii) 8.25 percent.’’. 
SEC. 202. BORROWER MODIFICATION OF INTEREST RATES 
UNDER TITLE IV. 
Section 455(b) of the Higher Education Act of 1965 
(20 U.S.C. 1087e(b)), as amended by section 201, is fur-
ther amended by adding at the end the following: 
‘‘(12) BORROWER MODIFICATION OF INTEREST 
RATE.— 
‘‘(A) 
MODIFICATION.—Notwithstanding 
any other provision of law, the borrower of a 
Federal Stafford Loan under section 428, a 
Federal Direct Stafford Loan, a Federal Un-
subsidized Stafford Loan under section 428H, a 
Federal Direct Unsubsidized Stafford Loan, a 
Federal PLUS Loan under section 428B, a 
Federal Direct PLUS Loan, a Federal Consoli-
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dation Loan under section 428C, or a Federal 
Direct Consolidation Loan may elect to modify 
the interest rate of the loan to be equal to— 
‘‘(i) in the case of a Federal Direct 
Stafford Loan, a Federal Direct Unsub-
sidized Stafford Loan, a Federal Direct 
PLUS Loan, or a Federal Direct Consoli-
dation Loan, the interest rate that would 
be applicable to such loan if such loan were 
first disbursed (or in the case of a Federal 
Direct Consolidation Loan, first applied 
for) on the date on which such borrower 
elects to modify the interest rate of such 
loan; and 
‘‘(ii) in the case of a Federal Stafford 
Loan, a Federal Unsubsidized Stafford 
Loan, a Federal PLUS Loan, or a Federal 
Consolidation Loan, the weighted average 
of the interest rates applicable to loans 
under part B on the date the loan was first 
disbursed (or in the case of a Federal Con-
solidation Loan, first applied for). 
‘‘(B) FIXED RATE.—Except as provided in 
subparagraph (C), an interest rate elected 
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under subparagraph (A) for a loan shall be 
fixed for the life of the loan. 
‘‘(C) CONTINUING
AUTHORITY
TO
MOD-
IFY.—A borrower may elect to modify the inter-
est rate of a loan in accordance with subpara-
graph (A) at any time during the life of the 
loan.’’. 
TITLE III—FEDERAL WORK- 
STUDY PROGRAMS 
SEC. 301. AUTHORIZATION OF APPROPRIATIONS. 
Section 441(b) of the Higher Education Act of 1965 
(42 U.S.C. 2751(b)) is amended to read as follows: 
‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this part— 
‘‘(1) $975,000,000 for fiscal year 2017; 
‘‘(2) $1,500,000,000 for fiscal year 2018; 
‘‘(3) $2,000,000,000 for fiscal year 2019; 
‘‘(4) $2,500,000,000 for fiscal year 2020; and 
‘‘(5) $3,000,000,000 for fiscal year 2021.’’. 
SEC. 302. FEDERAL WORK-STUDY ALLOCATION OF FUNDS. 
Section 442 of the Higher Education Act of 1965 (42 
U.S.C. 2752) is amended— 
(1) by striking subsection (a) and inserting the 
following: 
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graduate students, as described in paragraph (2), 
and eligible graduate and professional students, as 
described in paragraph (3), that shall take into ac-
count the number of Federal Pell Grant eligible low- 
and moderate-income students that an eligible insti-
tution serves and provide considerations for eligible 
institutions that successfully demonstrate improved 
employment outcomes. The Secretary shall promul-
gate any regulations necessary to carry out the re-
vised methods of determining an eligible institution’s 
self-help need under this subsection.’’; and 
(3) by adding at the end the following: 
‘‘(f) FUNDS TO EXPAND JOB LOCATION DEVELOP-
MENT PROGRAMS.—Notwithstanding any other provision 
of this part, to promote career readiness and improve the 
employment skills of Federal Pell Grant-eligible students, 
the Secretary is authorized to enter into agreements with 
eligible institutions under which such institution may not 
use more than 20 percent or $150,000 of its allotment 
under this section, whichever amount is less, to expand 
job location development programs, which can be coordi-
nated with State and local workforce development 
boards.’’. 
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TITLE 
IV—OFFERING 
NEC-
ESSARY 
ELIGIBILITY 
FOR 
TIMELY INSTITUTIONAL MA-
TRICULATION AND ENROLL-
MENT 
SEC. 401. FAFSA PILOT PROGRAM. 
Part G of title IV of the Higher Education Act of 
1965 (20 U.S.C. 1088 et seq.) is amended by inserting 
after section 483 the following: 
‘‘SEC. 483A. FAFSA PILOT PROGRAM. 
‘‘(a) PURPOSES.—The purposes of this section are— 
‘‘(1) to streamline the annual process by which 
students apply for Federal financial assistance; 
‘‘(2) to reduce the need for students to reapply 
for such assistance each year; 
‘‘(3) to lower the cost of student borrowing by 
maintaining important student loan protections, 
such as the in-school interest subsidy; 
‘‘(4) to strengthen the middle class and reduce 
income inequality by targeting financial aid to low- 
and middle-income students; and 
‘‘(5) to ensure that the financial aid application 
uses income data from prior tax years readily avail-
able to students and families to facilitate the wide-
spread and increased use of automated processes, 
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such as at the IRS–Data Retrieval Tool (IRS– 
DRT), with the goal of reducing errors and easing 
the time and rigor of the application process. 
‘‘(b) PILOT PROGRAM AUTHORIZED.—The Secretary 
is authorized to establish a pilot program and select 5 eli-
gible States— 
‘‘(1) in which a student who attends an institu-
tion of higher education in the eligible State may 
submit a single Free Application for Federal Stu-
dent Aid, as described in section 483 and modified 
under subsection (d) (referred to in this section as 
the ‘FAFSA’), to be used as the application to de-
termine the need and eligibility of the student for fi-
nancial assistance under this title during the official 
length of the student’s proposed postsecondary de-
gree program; and 
‘‘(2) that shall each receive a grant in accord-
ance with subsection (e). 
‘‘(c) ELIGIBLE STATES.—The Secretary shall select 
5 eligible States that are determined by the Secretary to 
have a strong record of increasing college access and af-
fordability, especially for low-income students, to partici-
pate in the pilot program described in subsection (b). The 
selection of eligible States shall be based on the extent 
to which the State has— 
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‘‘(1) invested, and continues to invest, signifi-
cantly in public higher education, resulting in a com-
paratively lower net price for low-income students; 
‘‘(2) allocated State financial aid primarily on 
the basis of need; and 
‘‘(3) agreed, as a condition of the State’s appli-
cation for the pilot program under this section, to 
provide all in-State students (as determined by the 
State) with an offer for State financial aid that— 
‘‘(A) is valid for not less than 2 years and 
not more than 4 years, as determined by the 
State; and 
‘‘(B) shall be subject to change only upon 
certain conditions, such as significant changes 
in a student’s financial circumstances. 
‘‘(d) SINGLE FAFSA SUBMISSION.—The Secretary 
shall implement, in consultation with the 5 selected eligible 
States, a pilot program to streamline the process of appli-
cation to determine the need and eligibility of a student 
for financial assistance under this title that incorporates 
the following: 
‘‘(1) An option for students that are enrolled in 
an institution of higher education in a selected eligi-
ble State to submit a single FAFSA at the begin-
ning of the student’s postsecondary degree program 
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and receive a determination of financial assistance 
under this title that shall, on a contingent basis, be 
valid for not less than 2 years and not more than 
4 years, as determined by the State. 
‘‘(2) The determination of financial assistance 
under paragraph (1) shall be made in accordance 
with part F, except that relevant calculations shall 
be made using a multi-year average, of 2 or 3 years, 
from the most recent tax years for which data are 
available. A student may use previously submitted 
student and parent taxpayer data to prepopulate the 
electronic version of the FAFSA, as described in sec-
tion 483(f). 
‘‘(3) As a condition of the continued receipt of 
financial assistance under this section, the Secretary 
may require a student who submits the single 
FAFSA to respond to a short number of questions 
(which may be determined by the Secretary), on an 
annual basis, to determine if there is a change in the 
financial status of the student (such as whether the 
student or the student’s parent has experienced a 
substantial increase in annual income) in order to 
ensure that the student continues to receive the ap-
propriate amount of financial assistance under this 
title. 
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