248
(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 
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
249
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, 
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 an 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
250
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-
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
251
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;’’. 
(b) 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).’’. 
(c) 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: