I 
117TH CONGRESS 
1ST SESSION H. R. 3946 
To improve the structure of the Federal Pell Grant program, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 16, 2021 
Mr. POCAN (for himself, Mr. SCOTT of Virginia, Mr. KILMER, Mr. SUOZZI, 
Mr. SMITH of Washington, Mr. MICHAEL F. DOYLE of Pennsylvania, Mr. 
TONKO, Ms. NORTON, Mrs. DEMINGS, Mr. CARSON, Ms. BUSH, Ms. LEE 
of California, Mr. MORELLE, Mr. WELCH, Mr. LAWSON of Florida, Mr. 
KHANNA, Mrs. BEATTY, Ms. ROSS, Mr. AUCHINCLOSS, Mr. TAKANO, Ms. 
OMAR, Mrs. HAYES, Ms. TLAIB, Mr. DESAULNIER, Mr. LANGEVIN, Ms. 
MATSUI, Mr. NADLER, Mr. ESPAILLAT, Mr. THOMPSON of Mississippi, 
Ms. WILSON of Florida, Mr. LEVIN of Michigan, Mr. GALLEGO, Ms. 
BONAMICI, Ms. MENG, Mrs. MCBATH, Mr. SABLAN, Mr. CA´RDENAS, Ms. 
SCHAKOWSKY, Mr. RASKIN, Mr. MFUME, Mr. JONES, Ms. ROYBAL- 
ALLARD, Mrs. WATSON COLEMAN, Mr. SWALWELL, Mr. GRIJALVA, Mr. 
BRENDAN F. BOYLE of Pennsylvania, Ms. NEWMAN, Ms. JOHNSON of 
Texas, Mr. BLUMENAUER, Mr. GARAMENDI, Mr. COURTNEY, Ms. LEGER 
FERNANDEZ, Ms. JAYAPAL, Mr. EVANS, Mr. SIRES, Mr. CICILLINE, Mr. 
DANNY K. DAVIS of Illinois, and Mr. LOWENTHAL) introduced the fol-
lowing bill; which was referred to the Committee on Education and 
Labor, and in addition to the Committee on the Budget, for a period to 
be subsequently determined by the Speaker, in each case for consider-
ation of such provisions as fall within the jurisdiction of the committee 
concerned 
A BILL 
To improve the structure of the Federal Pell Grant program, 
and for other purposes. 
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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 ‘‘Pell Grant Preserva-
tion and Expansion Act of 2021’’. 
SEC. 2. FINDINGS. 
Congress finds the following: 
(1) The United States needs individuals with 
the knowledge, skills, and abilities that enable them 
to thrive as educated citizens in society and success-
fully participate in an interconnected economy. 
(2) Investments in higher education through 
student aid such as the Federal Pell Grant program 
under section 401 of the Higher Education Act of 
1965 (20 U.S.C. 1070a) help students and families 
reach, afford, and complete education and training 
opportunities beyond high school. 
(3) The Federal Pell Grant program is the larg-
est source of federally funded grant aid for postsec-
ondary education. 
(4) The Federal Pell Grant program allows mil-
lions of people of the United States to attend college 
and is especially vital for students of color. Three in 
5 African American undergraduate students, and 
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one-half of all Latino undergraduate students, rely 
on the Federal Pell Grant program. 
(5) The Federal Pell Grant program should 
continue to be a reliable source of funding for aspir-
ing students, their families, and future generations 
that they can count on to be there for them when 
they seek higher education. 
(6) To stabilize Federal Pell Grant funding and 
ensure the grant will continue to serve millions of 
students now and in the future, the program should 
become a fully mandatory program that grows with 
inflation. 
(7) Restoring prior eligibility cuts and expand-
ing access to underserved students will give millions 
of students and families the critical student aid sup-
port they need and deserve. 
SEC. 3. TABLE OF CONTENTS; REFERENCES. 
(a) TABLE OF CONTENTS.—The table of contents of 
this Act is as follows: 
Sec. 1. Short title. 
Sec. 2. Findings. 
Sec. 3. Table of contents; references. 
Sec. 4. Doubling Federal Pell Grants and providing all Federal Pell Grants 
through mandatory funding. 
Sec. 5. Providing increased Federal Pell Grants and other assistance for recipi-
ents of means-tested benefits. 
Sec. 6. Federal Pell Grant eligibility for dreamer students. 
Sec. 7. Providing Federal Pell Grants for dependents of fallen heroes. 
Sec. 8. Restoring the total semesters of Federal Pell Grant eligibility. 
Sec. 9. Reducing financial aid penalties from satisfactory academic progress de-
terminations. 
Sec. 10. Conforming amendments. 
Sec. 11. Effective date. 
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(b) REFERENCES.—Except as otherwise expressly 
provided, whenever in this Act an amendment or repeal 
is expressed in terms of an amendment to, or repeal of, 
a section or other provision, the reference shall be consid-
ered to be made to a section or other provision of the 
Higher Education Act of 1965 (20 U.S.C. 1001 et seq.). 
SEC. 4. DOUBLING FEDERAL PELL GRANTS AND PRO-
VIDING 
ALL 
FEDERAL 
PELL 
GRANTS 
THROUGH MANDATORY FUNDING. 
(a) 
AMOUNT
OF
MINIMUM
FEDERAL
PELL 
GRANTS.—Section 401 (20 U.S.C. 1070a), as amended by 
section 703 of the FAFSA Simplification Act (title VII 
of division FF of Public Law 116–260) (referred to in 
this Act as the ‘‘FAFSA Simplification Act’’), is further 
amended— 
(1) in subsection (a)(2)(F), by striking ‘‘10 per-
cent’’ and inserting ‘‘5 percent’’; 
(2) in subsection (b)— 
(A) in paragraph (1)(B)(i), by striking 
‘‘paragraph (5)(A)’’ and inserting ‘‘paragraph 
(5)’’; 
(B) by striking paragraph (5) and insert-
ing the following: 
‘‘(5) MAXIMUM FEDERAL PELL GRANT.— 
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‘‘(A) AWARD YEAR 2023–2024.—For award 
year 2023–2024, the total maximum Federal 
Pell Grant award shall be $9,000. 
‘‘(B) AWARD YEAR 2024–2025.—For award 
year 2024–2025, the total maximum Federal 
Pell Grant award shall be $10,000. 
‘‘(C) AWARD YEAR 2025–2026.—For award 
year 2025–2026, the total maximum Federal 
Pell Grant award shall be $11,000. 
‘‘(D) AWARD YEAR 2026–2027.—For award 
year 2026–2027, the total maximum Federal 
Pell Grant award shall be $12,000. 
‘‘(E) AWARD YEAR 2027–2028.—For award 
year 2027–2028, the total maximum Federal 
Pell Grant award shall be $13,000. 
‘‘(F) AWARD YEAR 2028–2029 AND SUBSE-
QUENT
YEARS.—For award year 2028–2029, 
and each subsequent award year, the total max-
imum Federal Pell Grant award shall be 
$13,000— 
‘‘(i) increased by the adjustment per-
centage for the award year for which the 
amount under this subparagraph is being 
determined; and 
‘‘(ii) rounded to the nearest $50. 
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‘‘(G) DEFINITION OF ADJUSTMENT PER-
CENTAGE.—In this paragraph, the term ‘adjust-
ment percentage,’ as applied to an award year, 
is equal to the percentage increase in the Con-
sumer Price Index, as defined in section 478(f), 
between April 2026 and the April in the year 
prior to the beginning of the award year.’’; 
(C) by striking paragraphs (6) and (7) and 
inserting the following: 
‘‘(6) APPROPRIATION
OF
FUNDS.—There are 
authorized to be appropriated, and there are appro-
priated, out of any money in the Treasury not other-
wise appropriated, such sums as may be necessary 
for fiscal year 2023 and each subsequent fiscal year 
to provide the total maximum Federal Pell Grant for 
which a student shall be eligible under this section 
during an award year.’’; and 
(D) by redesignating paragraphs (8) and 
(9) as paragraphs (7) and (8), respectively; 
(3) in subsection (d)(5)(B)(ii)— 
(A) in subclause (I)(bb), by striking ‘‘or’’ 
after the semicolon; 
(B) in subclause (II)(bb)(CC), by striking 
the period and inserting ‘‘; or’’; and 
(C) by adding at the end the following: 
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‘‘(III) during a period for which 
the student did not receive a loan 
under this title but for which, if the 
student had received such a loan, the 
student would have qualified for loan 
forgiveness 
under 
subclause 
(II)(bb)(CC).’’; 
(4) by striking subsections (g) and (h); and 
(5) by redesignating subsections (i) and (j) as 
subsections (g) and (h), respectively. 
(b) REPEAL OF SCORING REQUIREMENT.— 
(1) IN GENERAL.—Section 406 of H. Con. Res. 
95 (109th Congress) is amended— 
(A) by striking subsection (b); and 
(B) by striking ‘‘(a) IN GENERAL.—Upon’’ 
and inserting the following: ‘‘Upon’’. 
(2) EFFECTIVE DATE.—The amendments made 
by paragraph (1) shall take effect beginning on July 
1, 2023. 
(c) ADJUSTMENT FOR AWARD YEAR 2022–2023.— 
Notwithstanding section 401(b)(7)(C)(iii) of the Higher 
Education Act of 1965 (20 U.S.C. 1070a(b)(7)(C)(iii)), 
the amount determined under such clause for purposes of 
section 401(b)(7)(B)(iii) of such Act for award year 2022– 
2023 shall be $2,535. 
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SEC. 5. PROVIDING INCREASED FEDERAL PELL GRANTS 
AND OTHER ASSISTANCE FOR RECIPIENTS 
OF MEANS-TESTED BENEFITS. 
(a) INCREASED AMOUNT
OF MAXIMUM FEDERAL 
PELL GRANTS FOR STUDENTS WITH NEGATIVE STU-
DENT
AID
INDEXES.—Section 401(b)(1) (20 U.S.C. 
1070a(b)(1)), as amended by section 4 and section 703 
of the FAFSA Simplification Act, is further amended— 
(1) in subparagraph (A)— 
(A) in the matter preceding clause (i), by 
striking ‘‘A student’’ and inserting ‘‘Except in 
the case of a student with a student aid index 
of less than zero, a student’’; 
(B) by striking clause (i); and 
(C) by redesignating clauses (ii) and (iii) 
as clauses (i) and (ii), respectively; 
(2) 
by 
redesignating 
subparagraphs 
(B) 
through (E) as subparagraphs (C) through (F), re-
spectively; 
(3) by inserting after subparagraph (A) the fol-
lowing: 
‘‘(B) A student with a student aid index of 
less than zero shall receive a Federal Pell Grant 
award that exceeds the total maximum Federal 
Pell Grant by an amount equal to the amount 
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by which the student’s student aid index is less 
than zero.’’; 
(4) in subparagraph (C), as redesignated by 
paragraph (2)— 
(A) in the matter preceding clause (i), by 
striking ‘‘subparagraph (A) for an academic 
year,’’ and inserting ‘‘subparagraph (A), or an 
increased Federal Pell Grant under subpara-
graph (B), for an academic year,’’; and 
(B) in clause (ii), by striking ‘‘, except that 
a student aid index of less than zero shall be 
considered to be zero for the purposes of this 
clause’’; 
(5) in subparagraph (D), as redesignated by 
paragraph (2), by striking ‘‘(A) or (B)’’ and insert-
ing ‘‘(A), (B), or (C)’’; 
(6) in subparagraph (E), as redesignated by 
paragraph (2), by inserting ‘‘or an increased Federal 
Pell Grant under subparagraph (B)’’ after ‘‘subpara-
graph (A)’’; or 
(7) in subparagraph (F), as redesignated by 
paragraph (2), by striking ‘‘or a minimum Federal 
Pell Grant under subparagraph (C)’’ and inserting 
‘‘an increased Federal Pell Grant under subpara-
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graph (B), or a minimum Federal Pell Grant under 
subparagraph (D)’’. 
(b) SPECIAL STUDENT AID INDEX RULE FOR RE-
CIPIENTS OF MEANS-TESTED BENEFITS.—Section 473 
(20 U.S.C. 1087mm), as amended by section 702(b) of 
the FAFSA Simplification Act, is further amended by 
adding at the end the following: 
‘‘(d) SPECIAL RULE FOR MEANS-TESTED BENEFIT 
RECIPIENTS.—Notwithstanding subsection (b), for an ap-
plicant (or, as applicable, an applicant and spouse, or an 
applicant’s parents) who, at any time during the previous 
24-month period, received a benefit under a means-tested 
Federal benefit program (or whose parent or spouse re-
ceived such a benefit, as applicable), the Secretary shall 
for the purposes of this title consider the student aid index 
as equal to –$1,500 for the applicant.’’. 
SEC. 6. FEDERAL PELL GRANT ELIGIBILITY FOR DREAMER 
STUDENTS. 
Section 484 (20 U.S.C. 1091), as amended by section 
702(n) of the FAFSA Simplification Act, is further 
amended— 
(1) in subsection (a)(5), by inserting ‘‘, or be a 
Dreamer student, as defined in subsection (u)’’ after 
‘‘becoming a citizen or permanent resident’’; and 
(2) by adding at the end the following: 
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‘‘(u) DREAMER STUDENTS.— 
‘‘(1) IN GENERAL.—In this section, the term 
‘Dreamer student’ means an individual who— 
‘‘(A)(i) is not a citizen or national of the 
United States; and 
‘‘(ii) is inadmissible or deportable under 
the Immigration and Nationality Act (8 U.S.C. 
1101 et seq.)); and 
‘‘(B)(i) in the case of such an individual 
who was younger than 18 years of age on the 
date on which the individual initially entered 
the United States— 
‘‘(I) has earned a high school diploma, 
the recognized equivalent of such diploma 
from a secondary school, or a high school 
equivalency diploma recognized by State 
law, or is scheduled to complete the re-
quirements for such a diploma or equiva-
lent before the next academic year begins; 
‘‘(II) is enrolled at an institution of 
higher education pursuant to subsection 
(d); 
‘‘(III) has served in the uniformed 
services (as such term is defined in section 
101 of title 10, United States Code) for 
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not less than 2 years and, if discharged, 
received an honorable discharge; 
‘‘(IV) has acquired a degree, certifi-
cate, or recognized postsecondary creden-
tial from an institution of higher education 
or area career and technical education 
school (as such term is defined in section 
3 of the Carl D. Perkins Career and Tech-
nical Education Act of 2006 (20 U.S.C. 
2302)); or 
‘‘(V) has completed not less than 2 
years in a postsecondary program at an in-
stitution of higher education, or area ca-
reer and technical education school, in the 
United States and has made satisfactory 
academic progress, as defined in subsection 
(c), during such time period; or 
‘‘(ii)(I) is, or at any time was, eligible for 
a grant of deferred action pursuant to— 
‘‘(aa) the memorandum of the De-
partment of Homeland Security entitled 
‘Exercising Prosecutorial Discretion with 
Respect to Individuals Who Came to the 
United States as Children’ issued on June 
15, 2012; or 
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‘‘(bb) the memorandum of the De-
partment of Homeland Security entitled 
‘Exercising Prosecutorial Discretion with 
Respect to Individuals Who Came to the 
United States as Children and with Re-
spect to Certain Individuals Who Are the 
Parents of U.S. Citizens or Permanent 
Residents’ issued on November 20, 2014; 
or 
‘‘(II) would have been eligible for such a 
grant of deferred action if the applicable memo-
randum described in subclause (I) had been 
fully in effect since the date on which it was 
issued. 
‘‘(2) HARDSHIP
EXCEPTION.—The Secretary 
shall issue regulations that direct when the Depart-
ment shall waive the age requirement of paragraph 
(1)(B)(i) for an individual to qualify as a Dreamer 
student under such paragraph, if the individual dem-
onstrates compelling circumstances.’’. 
SEC. 7. PROVIDING FEDERAL PELL GRANTS FOR DEPEND-
ENTS OF FALLEN HEROES. 
(a) IN GENERAL.—Part A of title IV (20 U.S.C. 
1070 et seq.), as amended by section 703 of the FAFSA 
Simplification Act, is amended— 
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(1) in section 401— 
(A) in subsection (c)— 
(i) in paragraph (2)— 
(I) by striking subparagraph (A); 
and 
(II) by redesignating subpara-
graphs (B) and (C) as subparagraphs 
(A) and (B), respectively; 
(ii) in paragraph (3), by striking 
‘‘(2)(B)(i)’’ and inserting ‘‘(2)(A)(i)’’; 
(iii) by redesignating paragraph (5) as 
paragraph (7); and 
(iv) by inserting after paragraph (4) 
the following: 
‘‘(5) PREVENTION OF DOUBLE BENEFITS.—No 
eligible student described in paragraph (2) may re-
ceive a grant under both this subsection and sub-
section (b) concurrently. 
‘‘(6) TERMS AND CONDITIONS.—The Secretary 
shall award grants under this subsection in the same 
manner and with the same terms and conditions, in-
cluding the length of the period of eligibility, as the 
Secretary awards Federal Pell Grants under sub-
section (b), except that— 
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‘‘(A) the award rules and determination of 
need applicable to the calculation of Federal 
Pell Grants under subsection (b)(1) shall not 
apply to grants made under this subsection; and 
‘‘(B) the maximum period determined 
under subsection (d)(5) shall be determined by 
including all grants made under this section re-
ceived by the eligible student and all grants so 
received under subpart 10 before the effective 
date of this subsection.’’; and 
(2) by striking subpart 10 of part A (20 U.S.C. 
1070h). 
(b) TRANSITION.—The Secretary shall take such 
steps as are necessary to transition from the Iraq and Af-
ghanistan Service Grants program under subpart 10 of 
part A of title IV of the Higher Education Act of 1965 
(20 U.S.C. 1070h), as in effect on the day before the effec-
tive date of this section, and the provision of Federal Pell 
Grants under section 401(c) of the Higher Education Act 
of 1965 (20 U.S.C. 1070a(c)), as amended by the FAFSA 
Simplification Act and this section. 
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SEC. 8. RESTORING THE TOTAL SEMESTERS OF FEDERAL 
PELL GRANT ELIGIBILITY. 
Section 401(c)(5)(A), as added by section 703 of the 
FAFSA Simplification Act, is amended by striking ‘‘12’’ 
each place the term appears and inserting ‘‘18’’. 
SEC. 9. REDUCING FINANCIAL AID PENALTIES FROM SATIS-
FACTORY ACADEMIC PROGRESS DETERMINA-
TIONS. 
Section 484(c) of the Higher Education Act of 1965 
(20 U.S.C. 1091(c)) is amended to read as follows: 
‘‘(c) SATISFACTORY PROGRESS.— 
‘‘(1) DEFINITIONS.—In this subsection: 
‘‘(A) APPEAL.—The term ‘appeal’ means a 
process by which a student who is not meeting 
the institution’s satisfactory academic progress 
standards petitions the institution for reconsid-
eration of the student’s eligibility for assistance 
under this title. 
‘‘(B) FINANCIAL
AID
PROBATION.—The 
term ‘financial aid probation’ means a status 
assigned by an institution to a student who fails 
to make satisfactory academic progress and 
who has appealed and has had eligibility for aid 
reinstated. 
‘‘(C) FINANCIAL AID WARNING.—The term 
‘financial aid warning’ means a status assigned 
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to a student who fails to make satisfactory aca-
demic progress at the end of the semester or 
equivalent period in which the student first fails 
to make such progress. 
‘‘(D) PAYMENT PERIOD.—The term ‘pay-
ment period’ means the applicable payment pe-
riod described in section 668.4 of title 34, Code 
of Federal Regulations, or any successor regula-
tion. 
‘‘(2) SATISFACTORY ACADEMIC PROGRESS POL-
ICY.—An institution shall establish a reasonable sat-
isfactory academic progress policy for determining 
whether an otherwise eligible student is making sat-
isfactory academic progress in the student’s edu-
cational program and may receive assistance under 
this title. The Secretary shall consider the institu-
tion’s policy to be reasonable if— 
‘‘(A) the policy is at least as strict as the 
policy the institution applies to a student who 
is not receiving assistance under this title; 
‘‘(B) the policy provides for consistent ap-
plication of standards to all students, including 
full-time, part-time, undergraduate, and grad-
uate students, and all educational programs es-
tablished by the institution; 
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the required grade point average or who is not 
making progress toward completion in the stu-
dent’s educational program— 
‘‘(i) at the time of each evaluation 
with respect to a student who is in an edu-
cational program of 2 academic years or 
less in length; or 
‘‘(ii) at the end of the second aca-
demic year with respect to a student who 
is in an educational program of more than 
2 academic years in length; 
‘‘(G) the policy describes when students 
will be placed on financial aid warning or finan-
cial aid probation, in accordance with para-
graph (4), and provides that— 
‘‘(i) a student on financial aid warn-
ing— 
‘‘(I) may receive assistance under 
this title for one payment period de-
spite a determination that the student 
is not making satisfactory academic 
progress; and 
‘‘(II) may be assigned such sta-
tus without an appeal or other action 
by the student; and 
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‘‘(ii)(I) a student on financial aid pro-
bation may receive assistance under this 
title for one payment period and the insti-
tution may require the student to fulfill 
specific terms and conditions, such as tak-
ing a reduced course load or enrolling in 
specific courses; and 
‘‘(II) at the end of such one payment 
period, the student is required to meet the 
institution’s satisfactory academic progress 
standards, or meet the requirements of the 
academic plan developed by the institution 
and the student, in order to qualify for 
continued assistance under this title; 
‘‘(H) if the institution permits a student to 
appeal a determination by the institution that 
the student is not making satisfactory academic 
progress, the policy describes— 
‘‘(i) how the student may reestablish 
the student’s eligibility to receive assist-
ance under this title; 
‘‘(ii) the basis on which the student 
may file an appeal, including because of 
the death of a relative, an injury or illness 
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of the student, or another special cir-
cumstance; and 
‘‘(iii) information the student is re-
quired to submit regarding why the stu-
dent failed to make satisfactory academic 
progress, and what has changed in the stu-
dent’s situation that will allow the student 
to 
demonstrate 
satisfactory 
academic 
progress at the next evaluation; 
‘‘(I) if the institution does not permit a 
student to appeal a determination by the insti-
tution that the student is not making satisfac-
tory academic progress, the policy describes 
how the student may reestablish the student’s 
eligibility to receive assistance under this title; 
‘‘(J) the policy provides for notification to 
students of the results of an evaluation that im-
pacts the student’s eligibility for assistance 
under this title; and 
‘‘(K) the policy does not impose satisfac-
tory progress limitations on need-based institu-
tional aid that are more stringent than the 
standard applied under this subsection without 
demonstrating to the Secretary the effectiveness 
of such limitations on improving student per-
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sistence in, and completion of, postsecondary 
study. 
‘‘(3) REGAINING ELIGIBILITY.— 
‘‘(A) 
STUDENTS
WHO
REMAIN
IN 
SCHOOL.—Whenever a student fails to meet the 
eligibility requirements of subsection (a)(2) as a 
result of the application of this subsection and, 
subsequent to that failure, the student has aca-
demic standing for any grading period con-
sistent with the requirements for staying on 
track to graduate within 150 percent of the 
published length of the educational program, as 
determined by the institution, the student shall 
again be eligible under subsection (a)(2) for a 
grant, loan, or work assistance under this title, 
as long as the student maintains satisfactory 
academic progress under paragraph (2) begin-
ning on and after the date that the student re-
gains eligibility. 
‘‘(B) STUDENTS WHO LEAVE SCHOOL.— 
‘‘(i) IN GENERAL.—If a student has 
not been enrolled in any institution of 
higher education for the immediately pre-
ceding 2 years, any previous failure to 
meet the eligibility requirements of sub-
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section (a)(2) shall not be used in any de-
termination of eligibility of such student 
under such subsection. Such student shall, 
on the date of enrollment subsequent to 
such 2-year period, have the student’s eli-
gibility for a grant, loan, or work assist-
ance under this title reset and be deemed 
as meeting the requirements described in 
paragraph (2). Beginning on and after 
such date, the student’s satisfactory aca-
demic progress shall be determined in ac-
cordance with paragraph (2)(E)(ii). 
‘‘(ii) 
MAXIMUM
NUMBER
OF 
RESETS.—A student shall be eligible for a 
reset of eligibility pursuant to this sub-
paragraph not more than 2 times. 
‘‘(C) DUTIES OF THE SECRETARY.—The 
Secretary shall— 
‘‘(i) send, to each student who failed 
to meet the eligibility requirements of sub-
section (a)(2) and who has not regained 
eligibility for a grant, loan, or work assist-
ance under subparagraph (A), a notice, 
two years after such failure, that in-
cludes— 
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‘‘(I) a notification that, if the 
student has not been enrolled in any 
institution of higher education for the 
preceding two years and has not re-
ceived two resets of eligibility under 
subparagraph (B), the student may 
use grant, loan, or work assistance 
under this title for enrollment at any 
eligible institution, including an insti-
tution other than the institution in 
which the student was previously en-
rolled; 
‘‘(II) a notification that, if the 
student has remained enrolled, or re-
sumed enrollment, at an institution of 
higher education, the student may be 
eligible for a grant, loan, or work as-
sistance under this title subject to the 
requirements of subparagraph (A); 
‘‘(III) information on how many 
semesters of eligibility for a grant, 
loan, or work assistance under this 
title to which the student still has ac-
cess; and 
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‘‘(IV) a notification that the stu-
dent should ask any prospective eligi-
ble institution how many of the stu-
dent’s previously completed credits the 
student would be able to transfer; and 
‘‘(ii) submit an annual report to Con-
gress on the outcomes of students who 
have received a reset of eligibility pursuant 
to this paragraph, including— 
‘‘(I) the number of students who 
reenroll in an eligible institution after 
such reset, disaggregated by race or 
ethnicity, sex, age, socioeconomic sta-
tus, and disability status; 
‘‘(II) the 250 eligible institutions 
with the highest numbers of enrolled 
students receiving grant, loan, or 
work assistance under this title after 
such a reset; 
‘‘(III) the 250 eligible institu-
tions with the highest share of en-
rolled students receiving grant, loan, 
or work assistance under this title 
after such a reset; and 
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‘‘(IV) the average completion 
rate and time to completion for stu-
dents who reenroll in an eligible insti-
tution after such reset, disaggregated 
by institution. 
‘‘(4) EVALUATION OF ACADEMIC PROGRESS.— 
‘‘(A) IN
GENERAL.—An institution that 
determines that a student is not making satis-
factory academic progress under its policy may 
disburse funds provided through student finan-
cial assistance programs under this title (in-
cluding work-study programs under subtitle C) 
to the student in accordance with subpara-
graphs (B), (C), and (D). 
‘‘(B) PAYMENT PERIOD FOLLOWING NOT 
MAKING SATISFACTORY ACADEMIC PROGRESS.— 
For the payment period following the payment 
period in which a student did not make satis-
factory academic progress, the institution shall 
place the student on financial aid warning and 
disburse funds under this title to the student. 
‘‘(C) PAYMENT
PERIOD
FOLLOWING
FI-
NANCIAL AID WARNING.—For the payment pe-
riod following a payment period during which a 
student was on financial aid warning, the insti-
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tution may place the student on financial aid 
probation, and disburse funds under this title to 
the student if— 
‘‘(i) the institution evaluates the stu-
dent’s progress and determines that stu-
dent did not make satisfactory academic 
progress during the payment period the 
student was on financial aid warning; 
‘‘(ii) the student appeals the deter-
mination; and 
‘‘(iii)(I) the institution determines 
that the student should be able to meet the 
institution’s satisfactory academic progress 
standards by the end of the subsequent 
payment period; or 
‘‘(II) the institution develops an aca-
demic plan for the student that, if fol-
lowed, will ensure that the student is able 
to meet the institution’s satisfactory aca-
demic progress standards by a specific 
point in time. 
‘‘(D) PAYMENT
PERIOD
FOLLOWING
FI-
NANCIAL AID PROBATION.—A student on finan-
cial aid probation for a payment period may not 
receive funds under this title for the subsequent 
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payment period unless the student makes satis-
factory academic progress or the institution de-
termines that the student met the requirements 
specified by the institution in the academic plan 
for the student developed under subparagraph 
(C)(iii)(II). 
‘‘(E) FREQUENCY OF ACADEMIC PROGRESS 
EVALUATION AND COMMUNICATION.— 
‘‘(i) IN GENERAL.—Subject to clause 
(ii), for the purpose of determining wheth-
er presently enrolled students are main-
taining satisfactory progress, each institu-
tion of higher education that enrolls stu-
dents who receive any grant, loan, or work 
assistance under this title shall review the 
progress of such students at the end of 
each payment period. 
‘‘(ii) SHORTER PAYMENT PERIODS.— 
For each institution described in clause (i) 
that has payment periods that are shorter 
than on the semester system basis (such as 
on a quarterly or trimester system basis or 
by clock hour program or non-term pro-
gram), such institution shall review the 
progress of presently enrolled students at 
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the end of each semester or equivalent pe-
riod of 12 to 18 weeks. 
‘‘(iii) FINANCIAL
AID
WARNING.—At 
the end of each payment period (or, in the 
case of an institution described in clause 
(ii), at the end of each semester or equiva-
lent period), each institution shall send a 
financial aid warning to presently enrolled 
students that do not meet the grade point 
average requirement described in para-
graph (2), or its equivalent or academic 
standing consistent with the requirements 
for graduation, as determined by the insti-
tution, that informs the students of their 
risk of being determined to not be main-
taining satisfactory progress and therefore 
losing eligibility for grant, loan, or work 
assistance under this title and provides in-
formation on— 
‘‘(I) the specific criteria of the in-
stitution’s academic requirements that 
the student is not meeting and the 
specific improvements needed to meet 
the requirements; and 
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‘‘(II) how to meet with the stu-
dent’s academic advisor to get the 
academic support the student needs. 
‘‘(5) DETAILING
REQUIREMENTS
TO
STU-
DENTS.—Each institution of higher education that 
enrolls students who receive any grant, loan, or work 
assistance under this title shall detail the institu-
tion’s requirements regarding students maintaining 
satisfactory academic progress— 
‘‘(A) to such students before the students 
begin classes at the institution through a de-
tailed communication that may be separate 
from a financial aid offer; and 
‘‘(B) on the financial aid webpage of the 
website of the institution. 
‘‘(6) CONSUMER TESTING.—The Secretary— 
‘‘(A) shall conduct consumer testing to de-
velop exemplary practices and templates— 
‘‘(i) to support institutions of higher 
education in carrying out paragraph (5); 
and 
‘‘(ii) which shall be available as re-
sources for institutions of higher edu-
cation; and 
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(5) in section 894(f)(2)(C)(ii)(I) (20 U.S.C. 
1161y(f)(2)(C)(ii)(I)), 
by 
striking 
‘‘section 
401(b)(2)(A)’’ and inserting ‘‘section 401(b)(1)’’. 
SEC. 11. EFFECTIVE DATE. 
Except as otherwise provided, the amendments made 
by this Act shall take effect and apply as if included in 
section 703 of the FAFSA Simplification Act and in ac-
cordance with section 701(b) of such Act. 
Æ 
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