‘‘(I) permit residents of that 
State to complete simplified applica-
tion forms under paragraphs (3)(B) 
and (4)(A) of this subsection; and 
‘‘(II) not require any resident of 
that State to complete any non-
financial data previously 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 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 subpart 4 of 
part A) may only be determined by using the 
FAFSA developed by the Secretary pursuant to 
this subsection. No student may receive assist-
ance under parts A through E of this title 
(other than under subpart 4 of part A), except 
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by use of the FAFSA developed by the Sec-
retary pursuant to this subsection. No data col-
lected on a form for which a fee is charged shall 
be used to complete the FAFSA. 
‘‘(B) NOTICE.—Any entity that provides to 
students and parents, or charges students or 
parents for, any value-added services with re-
spect 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 
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 
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subsection as early as practicable prior to October 
15 of the year prior to the student’s planned year 
of enrollment.’’; 
(2) by adding at the end of subsection (a) the 
following paragraph: 
‘‘(13) EARLY APPLICATION AND AWARD DEM-
ONSTRATION PROGRAM.— 
‘‘(A) PROGRAM REQUIRED.—The Secretary 
shall, no later than two years after the date of 
enactment of the College Aid Made EZ Act, im-
plement an early application demonstration pro-
gram enabling dependent students to complete 
applications under this subsection in their jun-
ior year of high school, or in the academic year 
that is two years prior to their intended year of 
enrollment, and to be eligible to receive aid 
under this title and such aid as may be avail-
able from participants, including State financial 
assistance as provided under section 415C and 
other aid provided by participating institutions. 
‘‘(B) PURPOSE
AND
OBJECTIVES.—The 
purpose of the demonstration program under 
this paragraph shall be to measure the benefits, 
in terms of student aspirations and plans to at-
tend college, and the adverse effects, in terms 
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of program costs, integrity, distribution, and 
delivery of aid under this title, of implementing 
an early application system for all dependent 
students that allows dependent students to 
apply for financial aid using information from 
the year prior to the year prior to enrollment. 
Additional objectives associated with implemen-
tation of the demonstration program are the 
following: 
‘‘(i) Measure the feasibility of ena-
bling dependent students to apply for Fed-
eral, State, and institutional financial aid 
in their junior year of high school, using 
information from the year prior to the year 
prior to enrollment, by completing any of 
the application forms under this sub-
section. 
‘‘(ii) Identify whether receiving final 
financial aid awards no later than the fall 
of the senior year provides students with 
additional time to compete for the limited 
resources available for State and institu-
tional financial aid and positively impacts 
the college aspirations and plans of these 
students. 
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‘‘(iii) Measure the impact of using in-
come information from the years prior to 
enrollment on— 
‘‘(I) eligibility for financial aid 
under this title and for other institu-
tional aid; and 
‘‘(II) the cost of financial aid 
programs under this title. 
‘‘(iv) Effectively evaluate the benefits 
and adverse effects of the demonstration 
program on program costs, integrity, dis-
tribution, and delivery of aid. 
‘‘(C) PARTICIPANTS.—The Secretary shall 
select States and institutions within those 
States to participate in the demonstration pro-
gram under this paragraph that are partici-
pating in the programs under this title and that 
are willing to make final financial aid awards to 
students based on their application information 
from the year prior to the year prior to enroll-
ment. The Secretary shall also select as partici-
pants in the demonstration program secondary 
schools and dependent students that are located 
in the participating States. 
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‘‘(D) APPLICATION
PROCESS.—The Sec-
retary shall insure that the following provisions 
are included in the demonstration program: 
‘‘(i) Participating States and institu-
tions shall allow participating students to 
apply for financial aid during their junior 
year of high school using information from 
the year prior to the year prior to enroll-
ment and all provisions available under 
this title and shall award final financial aid 
awards to participating students based on 
the applications provided under this dem-
onstration program. 
‘‘(ii) Participating States and institu-
tions shall not require students partici-
pating in this demonstration program to 
complete an additional application in the 
year prior to enrollment in order to receive 
State aid under section 415C and any 
other institutional aid. 
‘‘(iii) Financial aid administrators at 
participating institutions shall be allowed 
to use their discretion in awarding finan-
cial aid to participating students, as out-
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lined under section 479A and section 
480(d)(7). 
‘‘(E) EVALUATION.—The Secretary shall 
conduct a rigorous evaluation of this dem-
onstration program in order to measure its ben-
efits and adverse effects as indicated under sub-
paragraph (A). 
‘‘(F) OUTREACH.—The Secretary shall 
make appropriate efforts in order to notify 
States of the demonstration program under this 
paragraph. Upon determination of participating 
States, the Secretary shall continue to make ef-
forts to notify institutions and dependent stu-
dents within participating States of the oppor-
tunity to participate in the demonstration pro-
gram and of the participation requirements.’’ 
(3) by striking subsection (b); and 
(4) by redesignating subsections (c), (d), and 
(e) as subsections (b), (c), and (d), respectively. 
(b) MASTER CALENDAR.—Section 482(a)(1) (20 
U.S.C. 1089(a)(1)) is amended by striking subparagraphs 
(B) and (C) and inserting the following: 
‘‘(B) by March 1: proposed modifications, 
updates, and notices pursuant to sections 
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479(c)(2)(C), 478, and 483(a)(6) published in 
the Federal Register; 
‘‘(C) by June 1: final modifications, up-
dates, and notices pursuant to sections 478, 
479(c)(2)(C), and 483(a)(6) published in the 
Federal Register;’’. 
SEC. 3. INCREASING ACCESS TO TECHNOLOGY. 
Section 483 (20 U.S.C. 1087ss) is further amended 
by adding at the end the following: 
‘‘(e) 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).’’ 
SEC. 4. DEFINITIONS. 
(a) TOTAL INCOME.—Section 480(a) (20 U.S.C. 
1087vv(a)) is amended— 
(1) in paragraph (1), by inserting before the pe-
riod at the end the following: ‘‘, except that the Sec-
retary may, by regulation, provide for the use of the 
previous tax year when and to the extent necessary 
to carry out the sense of Congress in section 5(a) of 
the College Aid Made EZ Act’’; and 
(2) in paragraph (2)— 
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(A) by striking ‘‘and no portion’’ and in-
serting ‘‘no portion’’; and 
(B) by inserting ‘‘and no distribution from 
any qualified education benefit described in sub-
section (f)(3) that is not subject to Federal in-
come tax,’’ after ‘‘1986,’’. 
(b) UNTAXED INCOME
AND BENEFITS.—Section 
480(b) (20 U.S.C. 1087vv(b)) is amended to read as fol-
lows: 
‘‘(b) UNTAXED INCOME AND BENEFITS.— 
‘‘(1) The term ‘untaxed income and benefits’ 
means— 
‘‘(A) child support received; 
‘‘(B) workman’s compensation; 
‘‘(C) veteran’s benefits such as death pen-
sion, dependency, and indemnity compensation, 
but excluding veterans’ education benefits as 
defined in subsection (c); 
‘‘(D) interest on tax-free bonds; 
‘‘(E) housing, food, and other allowances 
(excluding rent subsidies for low-income hous-
ing) for military, clergy, and others (including 
cash payments and cash value of benefits); 
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‘‘(F) cash support or any money paid on 
the student‘s behalf, except, for dependent stu-
dents, funds provided by the student’s parents; 
‘‘(G) untaxed portion of pensions; 
‘‘(H) payments to individual retirement ac-
counts and Keogh accounts excluded from in-
come for Federal income tax purposes; and 
‘‘(I) any other untaxed income and bene-
fits, such as Black Lung Benefits, Refugee As-
sistance, railroad retirement benefits, or Job 
Training Partnership Act noneducational bene-
fits or benefits received through participation in 
employment and training activities under title I 
of the Workforce Investment Act of 1998. 
‘‘(2) The term ‘untaxed income and benefits’ 
shall not include the amount of additional child tax 
credit claimed for Federal income tax purposes.’’. 
(c) ASSETS.—Section 480(f) (20 U.S.C. 1087vv(f)) 
is amended— 
(1) in paragraph (3), by striking ‘‘shall not be 
considered an asset of a student for purposes of sec-
tion 475’’ and inserting ‘‘shall be considered an 
asset of the parent for purposes of section 475’’; 
(2) by redesignating paragraphs (4) and (5) as 
paragraphs (5) and (6), respectively; and 
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