AID Act
Bill: H.R.6425 | Sponsor: Rep. DeFazio, Peter A. (D-OR)
Policy area: Education

Summary:
Achieving Independence through Degrees Act or the AID Act
This bill revises certain federal student-aid programs. Among other changes, the bill expands access to Pell Grants, expands loan counseling requirements, revises the Federal Work-Study Program, updates the Free Application for Federal Student Aid (FAFSA) process, and extends Supplemental Nutrition Assistance Program (SNAP) benefits to certain students.
The bill expands access to Pell Grants by (1) increasing the maximum award and indexing it for inflation; (2) increasing the semester eligibility limit to 15 semesters; (3) extending eligibility to certain short-term workforce training programs; (4) excluding from gross income, for income tax purposes, any amount received as a Pell Grant; and (5) allowing Pell Grants to be used for living and non-tuition expenses.
The bill revises student loan counseling requirements applicable to institutions of higher education (IHEs) by requiring annual financial counseling and expanding exit counseling.
Additionally, the bill permanently reauthorizes the Federal Work-Study Program and otherwise revises the program, including by allocating program funds to IHEs based on the amount of Pell Grant funds received by each IHE. It establishes a pilot program that provides work-based learning opportunities for students who demonstrate exceptional financial need.
The bill requires the Department of Education (ED) to allow students to complete FAFSA as independent students under special circumstances. Further, the bill prohibits ED from asking about drug-related convictions on FAFSA.
The bill also allows certain students, including those who have an expected family contribution of zero, to qualify for SNAP benefits.

To amend the Higher Education Act of 1965 to increase the maximum 
           Federal Pell Grant amount, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Achieving Independence through 
Degrees Act'' or the ``AID Act''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
              TITLE I--ADJUSTMENTS TO FEDERAL PELL GRANTS

Sec. 101. Increase in maximum Federal Pell Grant amount.
Sec. 102. Increase in total semesters of Federal Pell Grant 
                            eligibility.
Sec. 103. Extending Federal Pell Grant eligibility of certain short-
                            term programs.
Sec. 104. Full exclusion from gross income for Pell Grants.
Sec. 105. Expanding the use for Pell Grants.
            TITLE II--FINANCIAL AID COUNSELING FOR BORROWERS

Sec. 201. Annual financial aid counseling.
Sec. 202. Exit counseling.
Sec. 203. Online counseling tools.
Sec. 204. Longitudinal study on the effectiveness of student loan 
                            counseling.
                TITLE III--ADJUSTMENTS TO THE FAFSA FORM

Sec. 301. Provisional independence for certain students.
Sec. 302. Revision of FAFSA form.
                 TITLE IV--FINANCIAL AID SHOPPING SHEET

Sec. 401. Secretarial requirements.
Sec. 402. Requirements for institutions of higher education.
                   TITLE V--SNAP AND HIGHER EDUCATION

Sec. 501. SNAP treatment of living expenses included in educational 
                            loans.
Sec. 502. Eligibility of students to participate in the supplemental 
                            nutrition assistance program.
  TITLE VI--ADJUSTMENTS TO CAMPUS-BASED STUDENT FINANCIAL AID PROGRAMS

      Part 1--Federal Supplemental Educational Opportunity Grants

Sec. 601. Purpose; appropriations authorized.
Sec. 602. Allocation of funds.
                  Part 2--Federal Work-Study Programs

Sec. 610. Purpose; authorization of appropriations.
Sec. 611. Allocation formula.
Sec. 612. Grants for Federal work-study programs.
Sec. 613. Flexible use of funds.
Sec. 614. Job location and development programs.
Sec. 615. Community service.
Sec. 616. Pilot grant program.
Sec. 617. Department activities.
Sec. 618. Study and report.

              TITLE I--ADJUSTMENTS TO FEDERAL PELL GRANTS

SEC. 101. INCREASE IN MAXIMUM FEDERAL PELL GRANT AMOUNT.

    (a) Award Year 2022-2023.--Section 401(b)(7)(C) of the Higher 
Education Act of 1965 (20 U.S.C. 1070a(b)(7)(C)) is amended by striking 
clauses (ii) and (iii) and inserting the following:
                            ``(ii) Award year 2022-2023.--For award 
                        year 2022-2023, the amount determined under 
                        this subparagraph for purposes of subparagraph 
                        (B)(iii) shall be increased to $13,000.''.
    (b) Award Year 2023-2024, and Each Subsequent Award Year.--Section 
401(b)(5) of the Higher Education Act of 1965 (20 U.S.C. 1070a(b)(5)), 
as amended by the FAFSA Simplification Act under section 703 of 
division FF of Public Law 116-260, is further amended to read as 
follows:
            ``(5) Total maximum federal pell grant.--
                    ``(A) Award year 2023-2024.--For award year 2023-
                2024, the total maximum Federal Pell Grant award per 
                student shall be equal to the sum of--
                            ``(i) $13,000; and
                            ``(ii) the amount specified as the maximum 
                        Federal Pell Grant in the last enacted 
                        appropriation Act applicable to that award 
                        year.
                    ``(B) Award year 2024-2025, and each subsequent 
                award year.--For award year 2024-2025 and each 
                subsequent award year, the total maximum Federal Pell 
                Grant award per student shall be equal to the sum of--
                            ``(i)(I) for award year 2024-2025, $13,000, 
                        increased by a percentage equal to the annual 
                        adjustment percentage for award year 2024-2025; 
                        and
                            ``(II) for award year 2025-2026 and each 
                        subsequent award year, the amount determined 
                        under this clause for the preceding year, 
                        increased by a percentage equal to the annual 
                        adjustment percentage for the award year for 
                        which the amount under this clause is being 
                        determined; and
                            ``(ii) the amount specified as the maximum 
                        Federal Pell Grant in the last enacted 
                        appropriation Act applicable to that award 
                        year.
                    ``(C) Rounding.--The total maximum Federal Pell 
                Grant for any award year shall be rounded to the 
                nearest $5.
                    ``(D) Annual adjustment percentage defined.--In 
                this paragraph, the term `annual adjustment percentage' 
                as applied to an award year, is equal to the estimated 
                percentage change in the Consumer Price Index (as 
                determined by the Secretary, using the definition in 
                section 478(f)) for the most recent calendar year 
                ending prior to the beginning of that award year.''.

SEC. 102. INCREASE IN TOTAL SEMESTERS OF FEDERAL PELL GRANT 
              ELIGIBILITY.

    (a) Award Year 2022-2023.--Section 401(c)(5) of the Higher 
Education Act of 1965 (20 U.S.C. 1070a(c)(5)) is amended by striking 
``12'' both places it appears and inserting ``15''.
    (b) Award Year 2023-2024, and Each Subsequent Award Year.--Section 
401(d)(5)(A) of the Higher Education Act of 1965 (20 U.S.C. 
1070a(d)(5)(A)), as amended by the FAFSA Simplification Act under 
section 703 of division FF of Public Law 116-260, is further amended by 
striking ``12'' both places it appears and inserting ``15''.

SEC. 103. EXTENDING FEDERAL PELL GRANT ELIGIBILITY OF CERTAIN SHORT-
              TERM PROGRAMS.

    (a) Award Year 2022-2023.--Section 401 of the Higher Education Act 
of 1965 (20 U.S.C. 1070a), is amended by inserting after subsection (j) 
the following:
    ``(k) Job Training Federal Pell Grant Program.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Eligible career pathway program.--The term 
                `eligible career pathway program' means a program 
                that--
                            ``(i) meets the requirements of section 
                        484(d)(2);
                            ``(ii) is a program of training services 
                        listed under included on the list established 
                        under section 122(d) of the Workforce 
                        Innovation and Opportunity Act (29 U.S.C. 
                        3152(d)); and
                            ``(iii) is part of a career pathway, as 
                        defined in section 3 of such Act (29 U.S.C. 
                        3102).
                    ``(B) Job training program.--The term `job training 
                program' means a career and technical education program 
                at an institution of higher education that--
                            ``(i) provides not less than 150, and not 
                        more than 600, clock hours of instructional 
                        time over a period of not less than 8, and not 
                        more than 15, weeks;
                            ``(ii) provides training aligned with the 
                        requirements of employers in the State or local 
                        area, which may include in-demand industry 
                        sectors or occupations, as defined in section 3 
                        of the Workforce Innovation and Opportunity Act 
                        (29 U.S.C. 3102), in the State or local area 
                        (as defined in such section);
                            ``(iii) is a program of training services 
                        that is provided through an eligible provider 
                        of training services listed under section 
                        122(d) of such Act (29 U.S.C. 3152(d));
                            ``(iv) provides a student, upon completion 
                        of the program, with a recognized postsecondary 
                        credential, as defined in section 3 of such 
                        Act, that is recognized by employers in the 
                        relevant industry, including credentials 
                        recognized by industry or sector partnerships 
                        in the State or local area where the industry 
                        is located;
                            ``(v) has been determined, by the 
                        institution of higher education, to provide 
                        academic content, an amount of instructional 
                        time, and a recognized postsecondary credential 
                        that are sufficient to--
                                    ``(I) meet the hiring requirements 
                                of potential employers; and
                                    ``(II) satisfy any applicable 
                                educational prerequisite requirement 
                                for professional licensure or 
                                certification, so that the student who 
                                completes the program and seeks 
                                employment qualifies to take any 
                                licensure or certification examination 
                                needed to practice or find employment 
                                in an occupation that the program 
                                prepares students to enter;
                            ``(vi) may include integrated or basic 
                        skills courses; and
                            ``(vii) may be offered as part of an 
                        eligible career pathway program.
            ``(2) Grant program.--For the award year beginning on July 
        1, 2022, and each subsequent award year, the Secretary shall 
        carry out a program through which the Secretary shall award job 
        training Federal Pell Grants to students in job training 
        programs. Each job training Federal Pell Grant awarded under 
        this subsection shall have the same terms and conditions, and 
        be awarded in the same manner, as a Federal Pell Grant awarded 
        under subsection (a), except as follows:
                    ``(A) A student who is eligible to receive a job 
                training Federal Pell Grant under this subsection is a 
                student who--
                            ``(i) has not yet attained a baccalaureate 
                        degree or postbaccalaureate degree;
                            ``(ii) attends an institution of higher 
                        education;
                            ``(iii) is enrolled, or accepted for 
                        enrollment, in a job training program at such 
                        institution of higher education; and
                            ``(iv) meets all other eligibility 
                        requirements for a Federal Pell Grant (except 
                        with respect to the type of program of study, 
                        as provided in clause (iii)).
                    ``(B) The amount of a job training Federal Pell 
                Grant for an eligible student shall be determined under 
                subsection (b)(2)(A), except that--
                            ``(i) the maximum Federal Pell Grant 
                        awarded under this subsection for an award year 
                        shall be 50 percent of the maximum Federal Pell 
                        Grant awarded under subsection (b)(2)(A) 
                        applicable to that award year; and
                            ``(ii) subsection (b)(4) shall not apply.
            ``(3) Inclusion in total eligibility period.--Any period 
        during which a student receives a job training Federal Pell 
        Grant under this subsection shall be included in calculating 
        the student's period of eligibility for Federal Pell Grants 
        under subsection (c), and any regulations under such subsection 
        regarding students who are enrolled in an undergraduate program 
        on less than a full-time basis shall similarly apply to 
        students who are enrolled in a job training program at an 
        eligible institution on less than a full-time basis.''.
    (b) Award Year 2023-2024, and Each Subsequent Award Year.--Section 
401 of the Higher Education Act of 1965 (20 U.S.C. 1070a), as amended 
by the FAFSA Simplification Act under section 703 of division FF of 
Public Law 116-260, is further amended by inserting after subsection 
(j), the following:
    ``(k) Job Training Federal Pell Grant Program.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Eligible career pathway program.--The term 
                `eligible career pathway program' means a program 
                that--
                            ``(i) meets the requirements of section 
                        484(d)(2);
                            ``(ii) is a program of training services 
                        listed under included on the list established 
                        under section 122(d) of the Workforce 
                        Innovation and Opportunity Act (29 U.S.C. 
                        3152(d)); and
                            ``(iii) is part of a career pathway, as 
                        defined in section 3 of such Act (29 U.S.C. 
                        3102).
                    ``(B) Job training program.--The term `job training 
                program' means a career and technical education program 
                at an institution of higher education that--
                            ``(i) provides not less than 150, and not 
                        more than 600, clock hours of instructional 
                        time over a period of not less than 8, and not 
                        more than 15, weeks;
                            ``(ii) provides training aligned with the 
                        requirements of employers in the State or local 
                        area, which may include in-demand industry 
                        sectors or occupations, as defined in section 3 
                        of the Workforce Innovation and Opportunity Act 
                        (29 U.S.C. 3102), in the State or local area 
                        (as defined in such section);
                            ``(iii) is a program of training services 
                        that is provided through an eligible provider 
                        of training services listed under section 
                        122(d) of such Act (29 U.S.C. 3152(d));
                            ``(iv) provides a student, upon completion 
                        of the program, with a recognized postsecondary 
                        credential, as defined in section 3 of such 
                        Act, that is recognized by employers in the 
                        relevant industry, including credentials 
                        recognized by industry or sector partnerships 
                        in the State or local area where the industry 
                        is located;
                            ``(v) has been determined, by the 
                        institution of higher education, to provide 
                        academic content, an amount of instructional 
                        time, and a recognized postsecondary credential 
                        that are sufficient to--
                                    ``(I) meet the hiring requirements 
                                of potential employers; and
                                    ``(II) satisfy any applicable 
                                educational prerequisite requirement 
                                for professional licensure or 
                                certification, so that the student who 
                                completes the program and seeks 
                                employment qualifies to take any 
                                licensure or certification examination 
                                needed to practice or find employment 
                                in an occupation that the program 
                                prepares students to enter;
                            ``(vi) may include integrated or basic 
                        skills courses; and
                            ``(vii) may be offered as part of an 
                        eligible career pathway program.
            ``(2) Grant program.--For the award year beginning on July 
        1, 2023, and each subsequent award year, the Secretary shall 
        carry out a program through which the Secretary shall award job 
        training Federal Pell Grants to students in job training 
        programs. Each job training Federal Pell Grant awarded under 
        this subsection shall have the same terms and conditions, and 
        be awarded in the same manner, as a Federal Pell Grant awarded 
        under subsection (a), except as follows:
                    ``(A) A student who is eligible to receive a job 
                training Federal Pell Grant under this subsection is a 
                student who--
                            ``(i) has not yet attained a baccalaureate 
                        degree or postbaccalaureate degree;
                            ``(ii) attends an institution of higher 
                        education;
                            ``(iii) is enrolled, or accepted for 
                        enrollment, in a job training program at such 
                        institution of higher education; and
                            ``(iv) meets all other eligibility 
                        requirements for a Federal Pell Grant (except 
                        with respect to the type of program of study, 
                        as provided in clause (iii)).
                    ``(B) The amount of a job training Federal Pell 
                Grant for an eligible student shall be determined under 
                subsection (b)(1), except that--
                            ``(i) the maximum Federal Pell Grant 
                        awarded under this subsection for an award year 
                        shall be 50 percent of the maximum Federal Pell 
                        Grant awarded under subsection (b)(5), 
                        applicable to that award year; and
                            ``(ii) the requirements related to the 
                        minimum Federal Pell Grant (as defined in 
                        section (a)(2)(F)) requirements shall not 
                        apply.
            ``(3) Inclusion in total eligibility period.--Any period 
        during which a student receives a job training Federal Pell 
        Grant under this subsection shall be included in calculating 
        the student's period of eligibility for Federal Pell Grants 
        under subsection (d), and any regulations under such subsection 
        regarding students who are enrolled in an undergraduate program 
        on less than a full-time basis shall similarly apply to 
        students who are enrolled in a job training program at an 
        eligible institution on less than a full-time basis.''.
    (c) Additional Safeguards.--Section 496(a)(4) of the Higher 
Education Act of 1965 (20 U.S.C. 1099b(a)(4)) is amended--
            (1) in subparagraph (A), by striking ``and'' after the 
        semicolon;
            (2) in subparagraph (B)(ii), by inserting ``and'' after the 
        semicolon; and
            (3) by adding at the end the following:
                    ``(C) if such agency or association has or seeks to 
                include within its scope of recognition the evaluation 
                of the quality of institutions of higher education 
                participating in the job training Federal Pell Grant 
                program under section 401(k), such agency or 
                association shall, in addition to meeting the other 
                requirements of this subpart, demonstrate to the 
                Secretary that, with respect to such job training 
                programs--
                            ``(i) the agency or association's standards 
                        include a process for determining whether the 
                        program provides training aligned with the 
                        requirements of employers in the State or local 
                        area served by the program; and
                            ``(ii) the agency or association requires a 
                        demonstration that the program--
                                    ``(I) has identified each 
                                recognized postsecondary credential 
                                offered and the corresponding industry 
                                or sector partnership that actively 
                                recognizes each credential in the 
                                relevant industry in the State or local 
                                area where the industry is located; and
                                    ``(II) provides the academic 
                                content and amount of instructional 
                                time that is sufficient to--
                                            ``(aa) meet the hiring 
                                        requirements of potential 
                                        employers; and
                                            ``(bb) satisfy any 
                                        applicable educational 
                                        prerequisites for professional 
                                        licensure or certification 
                                        requirements so that the 
                                        student who completes the 
                                        program and seeks employment 
                                        qualifies to take any licensure 
                                        or certification examination 
                                        that is needed to practice or 
                                        find employment in an 
                                        occupation that the program 
                                        prepares students to enter;''.

SEC. 104. FULL EXCLUSION FROM GROSS INCOME FOR PELL GRANTS.

    Section 117(b) of the Internal Revenue Code of 1986 is amended by 
adding at the end the following new paragraph:
            ``(3) Special rule for pell grants.--Amounts received under 
        a Federal Pell Grant under subpart 1 of part A of title IV of 
        the Higher Education Act of 1965 (20 U.S.C. 1070a et seq.) 
        shall be treated as an amount received as a qualified 
        scholarship notwithstanding whether such amount was used for 
        qualified tuition and related expenses.''.

SEC. 105. EXPANDING THE USE FOR PELL GRANTS.

    (a) Award Year 2022-2023.--Section 401(e) of the Higher Education 
Act of 1965 (20 U.S.C. 1070a(e)) is amended by striking ``Any 
disbursement allowed to be made by crediting the student's account 
shall be limited to tuition and fees and, in the case of 
institutionally owned housing, room and board. The student may elect to 
have the institution provide other such goods and services by crediting 
the student's account.'' and inserting ``Payments under this section 
may be used by the student for living and nontuition expenses.''.
    (b) Award Year 2023-2024, and Each Subsequent Award Year.--Section 
401(f) of the Higher Education Act of 1965 (20 U.S.C. 1070a), as 
amended by the FAFSA Simplification Act under section 703 of division 
FF of Public Law 116-260, is further amended by striking ``Any 
disbursement allowed to be made by crediting the student's account 
shall be limited to tuition and fees, and food and housing if that food 
and housing is institutionally owned or operated. The student may elect 
to have the institution provide other such goods and services by 
crediting the student's account.'' and inserting ``Payments under this 
section may be used by the student for living and nontuition 
expenses.''.

            TITLE II--FINANCIAL AID COUNSELING FOR BORROWERS

SEC. 201. ANNUAL FINANCIAL AID COUNSELING.

    Section 485(l) of the Higher Education Act of 1965 (20 U.S.C. 
1092(l)) is amended to read as follows:
    ``(l) Annual Financial Aid Counseling.--
            ``(1) Annual disclosure required.--
                    ``(A) In general.--Each eligible institution shall 
                ensure that each individual who receives a loan made 
                under part D (other than a Federal Direct Consolidation 
                Loan) receives comprehensive information on the terms 
                and conditions of such loan and the responsibilities 
                the individual has with respect to such loan. Such 
                information shall be provided, for each award year for 
                which the individual receives such loan, in a simple 
                and understandable manner--
                            ``(i) during a counseling session conducted 
                        in person;
                            ``(ii) online, with the individual 
                        acknowledging receipt of the information; or
                            ``(iii) through the use of the online 
                        counseling tool described in subsection 
                        (k)(1)(B).
                    ``(B) Use of interactive programs.--In the case of 
                institutions not using the online counseling tool 
                described in subsection (k)(1)(B), the Secretary shall 
                require such institutions to carry out the requirements 
                of subparagraph (A) through the use of interactive 
                programs, during an annual counseling session that is 
                in person or online, that test the individual's 
                understanding of the terms and conditions of the loan 
                awarded to the individual, using simple and 
                understandable language and clear formatting.
            ``(2) All individuals.--The information to be provided 
        under paragraph (1)(A) to each individual receiving counseling 
        under this subsection shall include the following:
                    ``(A) An explanation of how the individual may 
                budget for typical educational expenses and a sample 
                budget based on the cost of attendance for the 
                institution.
                    ``(B) An explanation that an individual has a right 
                to annually request a disclosure of information 
                collected by a consumer reporting agency pursuant to 
                section 612(a) of the Fair Credit Reporting Act (15 
                U.S.C. 1681j(a)).
                    ``(C) Based on the most recent data available from 
                the American Community Survey available from the 
                Department of Commerce, the estimated average income 
                and percentage of employment in the State of domicile 
                of the individual for individuals with--
                            ``(i) a high school diploma or equivalent;
                            ``(ii) some postsecondary education without 
                        completion of a degree or certificate; and
                            ``(iii) a bachelor's degree.
                    ``(D) An introduction to the financial management 
                resources provided by the Financial Literacy and 
                Education Commission.
            ``(3) Borrowers receiving loans made under part d (other 
        than parent plus loans).--The information to be provided under 
        paragraph (1)(A) to a borrower of a loan made under part D 
        (other than a Federal Direct PLUS Loan made on behalf of a 
        dependent student) shall include the following:
                    ``(A) To the extent practicable, the effect of 
                accepting the loan to be disbursed on the eligibility 
                of the borrower for other forms of student financial 
                assistance.
                    ``(B) An explanation of the use of the master 
                promissory note.
                    ``(C) An explanation that the borrower is not 
                required to accept the full amount of the loan offered 
                to the borrower.
                    ``(D) An explanation that the borrower should 
                consider accepting any grant, scholarship, or State or 
                Federal work-study jobs for which the borrower is 
                eligible prior to accepting Federal student loans.
                    ``(E) A recommendation to the borrower to exhaust 
                the borrower's Federal student loan options prior to 
                taking out private education loans, an explanation that 
                Federal student loans typically offer better terms and 
                conditions than private education loans, an explanation 
                of treatment of loans made under part D and private 
                education loans in bankruptcy, and an explanation that 
                if a borrower decides to take out a private education 
                loan--
                            ``(i) the borrower has the ability to 
                        select a private educational lender of the 
                        borrower's choice;
                            ``(ii) the proposed private education loan 
                        may impact the borrower's potential eligibility 
                        for other financial assistance, including 
                        Federal financial assistance under this title; 
                        and
                            ``(iii) the borrower has a right--
                                    ``(I) to accept the terms of the 
                                private education loan within 30 
                                calendar days following the date on 
                                which the application for such loan is 
                                approved and the borrower receives the 
                                required disclosure documents, pursuant 
                                to section 128(e) of the Truth in 
                                Lending Act (15 U.S.C. 1638(e)); and
                                    ``(II) to cancel such loan within 3 
                                business days of the date on which the 
                                loan is consummated, pursuant to 
                                section 128(e)(7) of such Act (15 
                                U.S.C. 1638(e)(7)).
                    ``(F) An explanation of the approved educational 
                expenses for which the borrower may use a loan made 
                under part D.
                    ``(G) Information on the annual and aggregate loan 
                limits for Federal Direct Stafford Loans and Federal 
                Direct Unsubsidized Stafford Loans.
                    ``(H) Information on how interest accrues and is 
                capitalized during periods when the interest is not 
                paid by either the borrower or the Secretary.
                    ``(I) In the case of a Federal Direct PLUS Loan or 
                a Federal Direct Unsubsidized Stafford Loan, the option 
                of the borrower to pay the interest while the borrower 
                is in school.
                    ``(J) The definition of half-time enrollment at the 
                institution, during regular terms and summer school, if 
                applicable, and the consequences of not maintaining at 
                least half-time enrollment.
                    ``(K) An explanation of the importance of 
                contacting the appropriate offices at the institution 
                of higher education if the borrower withdraws prior to 
                completing the borrower's program of study so that the 
                institution can provide exit counseling, including 
                information regarding the borrower's repayment options 
                and loan consolidation.
                    ``(L) For a first-time borrower--
                            ``(i) a statement of the anticipated 
                        balance on the loan for which the borrower is 
                        receiving counseling under this subsection;
                            ``(ii) based on such anticipated balance, 
                        the anticipated monthly payment amount under, 
                        at minimum--
                                    ``(I) the standard repayment plan; 
                                and
                                    ``(II) an income-based repayment 
                                plan under section 493C, as determined 
                                using regionally available data from 
                                the Bureau of Labor Statistics of the 
                                average starting salary for the 
                                occupation in which the borrower has an 
                                interest in or intends to be employed;
                            ``(iii) an estimate of the projected 
                        monthly payment amount under each repayment 
                        plan described in clause (ii), based on the 
                        average cumulative indebtedness at graduation 
                        for borrowers of loans made under part D who 
                        are in the same program of study as the 
                        borrower; and
                            ``(iv) an explanation of how interest 
                        accrues once a student borrower enters into 
                        repayment status.
                    ``(M) For a borrower with an outstanding balance of 
                principal or interest due on a loan made under this 
                title--
                            ``(i) a current statement of the amount of 
                        such outstanding balance and interest accrued;
                            ``(ii) based on such outstanding balance, 
                        the anticipated monthly payment amount under, 
                        at minimum, the standard repayment plan and, 
                        using regionally available data from the Bureau 
                        of Labor Statistics of the average starting 
                        salary for the occupation the borrower intends 
                        to be employed, an income-based repayment plan 
                        under section 493C;
                            ``(iii) an estimate of the projected 
                        monthly payment amount under each repayment 
                        plan described in clause (ii), based on--
                                    ``(I) the outstanding balance 
                                described in clause (i);
                                    ``(II) the anticipated outstanding 
                                balance on the loan for which the 
                                student is receiving counseling under 
                                this subsection;
                                    ``(III) a projection for any other 
                                loans made under part D that the 
                                borrower is reasonably expected to 
                                accept during the borrower's program of 
                                study based on at least the expected 
                                increase in the cost of attendance of 
                                such program; and
                            ``(iv) an explanation of how interest 
                        accrues once a student borrower enters into 
                        repayment status.
                    ``(N) The obligation of the borrower to repay the 
                full amount of the loan, regardless of whether the 
                borrower completes or does not complete the program in 
                which the borrower is enrolled within the regular time 
                for program completion.
                    ``(O) The likely consequences of default on the 
                loan, including adverse credit reports, delinquent debt 
                collection procedures under Federal law, and 
                litigation, and a notice of the institution's most 
                recent cohort default rate (defined in section 435(m)), 
                an explanation of the cohort default rate, the most 
                recent national average cohort default rate, and the 
                most recent national average cohort default rate for 
                the category of institution described in section 
                435(m)(4) to which the institution belongs.
                    ``(P) Information on the National Student Loan Data 
                System and how the borrower can access the borrower's 
                records.
                    ``(Q) The contact information for the institution's 
                financial aid office or other appropriate office at the 
                institution the borrower may contact if the borrower 
                has any questions about the borrower's rights and 
                responsibilities or the terms and conditions of the 
                loan.
            ``(4) Borrowers receiving parent plus loans for dependent 
        students.--The information to be provided under paragraph 
        (1)(A) to a borrower of a Federal Direct PLUS Loan made on 
        behalf of a dependent student shall include the following:
                    ``(A) The information described in subparagraphs 
                (A) through (C) and (N) through (Q) of paragraph (3).
                    ``(B) The option of the borrower to pay the 
                interest on the loan while the loan is in deferment.
                    ``(C) For a first-time borrower of such loan--
                            ``(i) a statement of the anticipated 
                        balance on the loan for which the borrower is 
                        receiving counseling under this subsection;
                            ``(ii) based on such anticipated balance, 
                        the anticipated monthly payment amount under 
                        the standard repayment plan; and
                            ``(iii) an estimate of the projected 
                        monthly payment amount under the standard 
                        repayment plan, based on the average cumulative 
                        indebtedness of other borrowers of Federal 
                        Direct PLUS Loans made on behalf of dependent 
                        students who are in the same program of study 
                        as the student on whose behalf the borrower 
                        borrowed the loan.
                    ``(D) For a borrower with an outstanding balance of 
                principal or interest due on such loan--
                            ``(i) a statement of the amount of such 
                        outstanding balance;
                            ``(ii) based on such outstanding balance, 
                        the anticipated monthly payment amount under 
                        the standard repayment plan; and
                            ``(iii) an estimate of the projected 
                        monthly payment amount under the standard 
                        repayment plan, based on--
                                    ``(I) the outstanding balance 
                                described in clause (i);
                                    ``(II) the anticipated outstanding 
                                balance on the loan for which the 
                                borrower is receiving counseling under 
                                this subsection; and
                                    ``(III) a projection for any other 
                                Federal Direct PLUS Loan made on behalf 
                                of the dependent student that the 
                                borrower is reasonably expected to 
                                accept during the program of study of 
                                such student based on at least the 
                                expected increase in the cost of 
                                attendance of such program.
                    ``(E) Debt management strategies that are designed 
                to facilitate the repayment of such indebtedness.
                    ``(F) An explanation that the borrower has the 
                options to prepay each loan, pay each loan on a shorter 
                schedule, and change repayment plans.
                    ``(G) For each Federal Direct PLUS Loan made on 
                behalf of a dependent student for which the borrower is 
                receiving counseling under this subsection, the contact 
                information for the loan servicer of the loan and a 
                link to such servicer's website.
            ``(5) Annual loan acceptance.--Prior to making the first 
        disbursement of a loan made under part D (other than a Federal 
        Direct Consolidation Loan) to a borrower for an award year, an 
        eligible institution, shall, as part of carrying out the 
        counseling requirements of this subsection for the loan, ensure 
        that after receiving the applicable counseling under paragraphs 
        (2), (3), and (4) for the loan the borrower accepts the loan 
        for such award year by--
                    ``(A) signing the master promissory note for the 
                loan;
                    ``(B) signing and returning to the institution a 
                separate written statement that affirmatively states 
                that the borrower accepts the loan; or
                    ``(C) electronically signing an electronic version 
                of the statement described in subparagraph (B).''.

SEC. 202. EXIT COUNSELING.

    Section 485(b) of the Higher Education Act of 1965 (20 U.S.C. 
1092(b)) is amended--
            (1) in paragraph (1)(A)--
                    (A) in the matter preceding clause (i), by striking 
                ``through financial aid offices or otherwise'' and 
                inserting ``through the use of an interactive program, 
                during an exit counseling session that is in person or 
                online, or through the use of the online counseling 
                tool described in subsection (k)(1)(A)'';
                    (B) by redesignating clauses (i) through (ix) as 
                clauses (iv) through (xii), respectively;
                    (C) by inserting before clause (iv), as so 
                redesignated, the following:
            ``(i) a summary of the outstanding balance of principal and 
        interest due on the loans made to the borrower under part B, D, 
        or E;
            ``(ii) an explanation of the grace period preceding 
        repayment and the expected date that the borrower will enter 
        repayment;
            ``(iii) an explanation that the borrower has the option to 
        pay any interest that has accrued while the borrower was in 
        school or that may accrue during the grace period preceding 
        repayment or during an authorized period of deferment or 
        forbearance, prior to the capitalization of the interest; and
            ``(iv) an explanation of how interest accrues once a 
        student borrower enters into repayment status, and an 
        estimation of how much interest will accrue over time under the 
        standard repayment plan and an income-based repayment plan 
        under section 493C;'';
                    (D) in clause (iv), as so redesignated--
                            (i) by striking ``sample information 
                        showing the average'' and inserting 
                        ``information, based on the borrower's 
                        outstanding balance described in clause (i), 
                        showing the borrower's''; and
                            (ii) by striking ``of each plan'' and 
                        inserting ``of at least the standard repayment 
                        plan and the income-based repayment plan under 
                        section 493C'';
                    (E) in clause (ix), as so redesignated--
                            (i) by inserting ``decreased credit 
                        score,'' after ``credit reports,''; and
                            (ii) by inserting ``reduced ability to rent 
                        or purchase a home or car, potential difficulty 
                        in securing employment,'' after ``Federal 
                        law,'';
                    (F) in clause (x), as so redesignated, by striking 
                ``consolidation loan under section 428C or a'';
                    (G) in clauses (xi) and (xii), as so redesignated, 
                by striking ``and'' at the end; and
                    (H) by adding at the end the following:
            ``(xiii) for each of the borrower's loans made under part 
        B, D, or E for which the borrower is receiving counseling under 
        this subsection, the contact information for the loan servicer 
        of the loan and a link to such servicer's website; and
            ``(xiv) an explanation that an individual has a right to 
        annually request a disclosure of information collected by a 
        consumer reporting agency pursuant to section 612(a) of the 
        Fair Credit Reporting Act (15 U.S.C. 1681j(a)).'';
            (2) in paragraph (1)(B)--
                    (A) by inserting ``online or'' before ``in 
                writing''; and
                    (B) by adding before the period at the end the 
                following: ``, except that in the case of an 
                institution using the online counseling tool described 
                in subsection (k)(1)(A), the Secretary shall attempt to 
                provide such information to the student in the manner 
                described in subsection (k)(3)(C)''; and
            (3) in paragraph (2)(C), by inserting ``, such as the 
        online counseling tool described in subsection (k)(1)(A),'' 
        after ``electronic means''.

SEC. 203. ONLINE COUNSELING TOOLS.

    Section 485(k) of the Higher Education Act of 1965 (20 U.S.C. 1092) 
is amended to read as follows:
    ``(k) Online Counseling Tools.--
            ``(1) In general.--Beginning not later than 1 year after 
        the date of the enactment of the Achieving Independence through 
        Degrees Act, the Secretary shall maintain--
                    ``(A) an online counseling tool that provides the 
                exit counseling required under subsection (b) and meets 
                the applicable requirements of this subsection; and
                    ``(B) an online counseling tool that provides the 
                annual counseling required under subsection (l) and 
                meets the applicable requirements of this subsection.
            ``(2) Requirements of tools.--In maintaining the online 
        counseling tools described in paragraph (1), the Secretary 
        shall ensure that each such tool is--
                    ``(A) consumer tested, in consultation with other 
                relevant Federal agencies, to ensure that the tool is 
                effective in helping individuals understand their 
                rights and obligations with respect to borrowing a loan 
                made under part D;
                    ``(B) understandable to students who are borrowers 
                of loans made under part D; and
                    ``(C) freely available to all eligible 
                institutions.
            ``(3) Record of counseling completion.--The Secretary 
        shall--
                    ``(A) use each online counseling tool described in 
                paragraph (1) to keep a record of which individuals 
                have received counseling using the tool, and notify the 
                applicable institutions of the individual's completion 
                of such counseling;
                    ``(B) in the case of a borrower who receives annual 
                counseling for a loan made under part D using the tool 
                described in paragraph (1)(B), notify the borrower by 
                when the borrower should accept, in a manner described 
                in subsection (l)(6), the loan for which the borrower 
                has received such counseling; and
                    ``(C) in the case of a borrower described in 
                subsection (b)(1)(B) at an institution that uses the 
                online counseling tool described in paragraph (1)(A) of 
                this subsection, the Secretary shall attempt to provide 
                the information described in subsection (b)(1)(A) to 
                the borrower through such tool.''.

SEC. 204. LONGITUDINAL STUDY ON THE EFFECTIVENESS OF STUDENT LOAN 
              COUNSELING.

    (a) In General.--Not later than 1 year after the date of the 
enactment of this Act, the Secretary of Education, acting through the 
Director of the Institute of Education Sciences, shall begin conducting 
a rigorous, longitudinal study of the impact and effectiveness of the 
student loan counseling--
            (1) provided under subsections (b), (l), and (k) of section 
        485 of the Higher Education Act of 1965 (20 U.S.C. 1092), as 
        amended by this Act; and
            (2) provided through such other means as the Secretary of 
        Education may determine.
    (b) Contents.--
            (1) Borrower information.--The longitudinal study carried 
        out under subsection (a) shall include borrower information, in 
        the aggregate and disaggregated by race, ethnicity, gender, 
        income, and status as an individual with a disability, on--
                    (A) student persistence;
                    (B) degree attainment;
                    (C) program completion;
                    (D) successful entry into student loan repayment;
                    (E) cumulative borrowing levels; and
                    (F) such other factors as the Secretary of 
                Education may determine.
            (2) Exception.--The disaggregation under paragraph (1) 
        shall not be required in a case in which the number of 
        borrowers in a category is insufficient to yield statistically 
        reliable information or the results would reveal personally 
        identifiable information about an individual borrower.
    (c) Interim Reports.--Not later than 18 months after the 
commencement of the study under subsection (a), and annually 
thereafter, the Secretary of Education shall evaluate the progress of 
the study and report any short-term findings to the appropriate 
committees of Congress.

                TITLE III--ADJUSTMENTS TO THE FAFSA FORM

SEC. 301. PROVISIONAL INDEPENDENCE FOR CERTAIN STUDENTS.

    (a) Award Year 2022-2023.--Section 483 of the Higher Education Act 
of 1965 (20 U.S.C. 1090) is amended--
            (1) in subsection (h)(1), by inserting the following before 
        the semicolon: ``, including the special circumstances under 
        which a student may qualify for a determination of 
        independence''; and
            (2) by adding at the end the following:
    ``(i) Provisional Independent Students.--
            ``(1) Requirements for the secretary.--The Secretary 
        shall--
                    ``(A) enable each student who, based on the special 
                circumstance specified in subsection (h)(1), may 
                qualify for an adjustment under section 479A that will 
                result in a determination of independence under such 
                section and section 480(d)(1)(I), to complete the forms 
                developed by the Secretary under subsection (a) as an 
                independent student for the purpose of a provisional 
                determination of the student's Federal financial aid 
                award, but subject to verification under paragraph 
                (2)(E) for the purpose of the final determination of 
                the award;
                    ``(B) upon completion of the forms developed by the 
                Secretary under subsection (a), provide an estimate of 
                the student's Federal Pell Grant award, based on the 
                assumption the student is determined to be an 
                independent student;
                    ``(C) ensure that, on each form developed under 
                this section, there is a single and easily understood 
                screening question to identify an applicant for aid who 
                wishes to provisionally apply for independent status 
                under sections 479A and 480(d)(1)(I); and
                    ``(D) specify, on the forms, the consequences under 
                section 490(a) of knowingly and willfully completing 
                the forms as an independent student under subparagraph 
                (A) without meeting the special circumstances to 
                qualify for such a determination.
            ``(2) Requirements for financial aid administrators.--With 
        respect to a student accepted for admission who completes the 
        forms as an independent student under paragraph (1)(A), a 
        financial aid administrator--
                    ``(A) shall notify the student of the institutional 
                process and requirements for an adjustment under 
                sections 479A and 480(d)(1)(I) that will result in a 
                determination of independence under such sections 
                within a reasonable time after the student completes 
                the forms developed by the Secretary under subsection 
                (a) as an independent student for the purpose of a 
                provisional determination of the student's Federal 
                financial aid award;
                    ``(B) may make an adjustment under sections 479A 
                and 480(d)(1)(I) for a determination of independence in 
                the absence of conflicting information;
                    ``(C) shall provide a final determination of the 
                student's Federal financial aid award to the student in 
                the same manner as, and by not later than the date 
                that, the administrator provides most other 
                provisionally independent students their final 
                determinations of Federal financial aid awards, or 
                during the award year in which the student initially 
                submits an application, whichever comes sooner;
                    ``(D) shall, in making a final determination of the 
                student's Federal financial aid award, use the 
                discretion provided under sections 479A and 
                480(d)(1)(I) to verify whether the student meets the 
                special circumstances to qualify as an independent 
                student;
                    ``(E) in accordance with paragraph (B), may 
                consider as adequate verification that a student 
                qualifies for an adjustment under sections 479A and 
                480(d)(1)(I)--
                            ``(i) submission of a court order or 
                        official Federal or State documentation that 
                        the student's parent or legal guardian is 
                        incarcerated in any Federal or State penal 
                        institution;
                            ``(ii) a documented phone call with, or a 
                        written statement from--
                                    ``(I) a child welfare agency 
                                authorized by a State or county;
                                    ``(II) a Tribal child welfare 
                                authority;
                                    ``(III) an independent living case 
                                worker; or
                                    ``(IV) a public or private agency, 
                                facility, or program serving the 
                                victims of abuse, neglect, assault, or 
                                violence;
                            ``(iii) a documented phone call with, or a 
                        written statement from, an attorney, a guardian 
                        ad litem, or a court appointed special 
                        advocate, documenting that person's 
                        relationship to the student;
                            ``(iv) a documented phone call with, or a 
                        written statement from, a representative of a 
                        program under chapter 1 or 2 of subpart 2 of 
                        part A; or
                            ``(v) submission of a copy of the student's 
                        biological or adoptive parents' or legal 
                        guardians'--
                                    ``(I) certificates of death; or
                                    ``(II) verified obituaries;
                    ``(F) if a student does not have, and cannot get, 
                documentation from any of the designated authorities 
                described in subparagraph (E) of whether a student may 
                qualify for an adjustment under sections 479A and 
                480(d)(1)(I) that will result in a determination of 
                independence, may base the verification and final 
                determination on--
                            ``(i) a documented interview with the 
                        student that is limited to whether the student 
                        meets the requirements, and not about the 
                        reasons for the student's situations; and
                            ``(ii) an attestation from the student that 
                        they meet the requirements, which includes a 
                        description of the approximate dates that the 
                        student ended the financial or caregiving 
                        relationship with their parent or legal 
                        guardian, to the best of the student's 
                        knowledge;
                    ``(G) retain all documents related to the 
                adjustment under sections 479A and 480(d)(1)(I), 
                including documented interviews, for the duration of 
                the student's enrollment at the institution and for a 
                minimum of 1 year after the student is no longer 
                enrolled at the institution; and
                    ``(H) shall presume that any student who has 
                obtained an adjustment under sections 479A and 
                480(d)(1)(I) and a final determination of independence 
                for a preceding award year at an institution to be 
                independent for a subsequent award year at the same 
                institution unless--
                            ``(i) the student informs the institution 
                        that circumstances have changed; or
                            ``(ii) the institution has specific 
                        conflicting information about the student's 
                        independence.''.
    (b) Award Year 2023-2024, and Each Subsequent Award Year.--Section 
483 of the Higher Education Act of 1965 (20 U.S.C. 1090), as amended by 
the FAFSA Simplification Act under section 703 of division FF of Public 
Law 116-260, is further amended--
            (1) in subsection (b)(1)(A), by inserting the following 
        before the semicolon: ``, including the special circumstances 
        under which a student may qualify for a determination of 
        independence''; and
            (2) by adding at the end the following:
    ``(e) Provisional Independent Students.--
            ``(1) Requirements for the secretary.--The Secretary 
        shall--
                    ``(A) enable each student who, based on the special 
                circumstance specified in subsection (b)(1)(A), may 
                qualify for an adjustment under section 479A that will 
                result in a determination of independence under such 
                section and section 480(d), to complete the forms 
                developed by the Secretary under subsection (a) as an 
                independent student for the purpose of a provisional 
                determination of the student's Federal financial aid 
                award, but subject to verification under paragraph 
                (2)(E) for the purpose of the final determination of 
                the award;
                    ``(B) upon completion of the forms developed by the 
                Secretary under subsection (a), provide an estimate of 
                the student's Federal Pell Grant award, based on the 
                assumption the student is determined to be an 
                independent student;
                    ``(C) ensure that, on each form developed under 
                this section, there is a single and easily understood 
                screening question to identify an applicant for aid who 
                wishes to provisionally apply for independent status 
                under sections 479A and 480(d); and
                    ``(D) specify, on the forms, the consequences under 
                section 490(a) of knowingly and willfully completing 
                the forms as an independent student under subparagraph 
                (A) without meeting the special circumstances to 
                qualify for such a determination.
            ``(2) Requirements for financial aid administrators.--With 
        respect to a student accepted for admission who completes the 
        forms as an independent student under paragraph (1)(A), a 
        financial aid administrator--
                    ``(A) shall notify the student of the institutional 
                process and requirements for an adjustment under 
                sections 479A and 480(d) that will result in a 
                determination of independence under such sections 
                within a reasonable time after the student completes 
                the forms developed by the Secretary under subsection 
                (a) as an independent student for the purpose of a 
                provisional determination of the student's Federal 
                financial aid award;
                    ``(B) may make an adjustment under sections 479A 
                and 480(d) for a determination of independence in the 
                absence of conflicting information;
                    ``(C) shall provide a final determination of the 
                student's Federal financial aid award to the student in 
                the same manner as, and by not later than the date 
                that, the administrator provides most other 
                provisionally independent students their final 
                determinations of Federal financial aid awards, or 
                during the award year in which the student initially 
                submits an application, whichever comes sooner;
                    ``(D) shall, in making a final determination of the 
                student's Federal financial aid award, use the 
                discretion provided under sections 479A(c) and 480(d) 
                to verify whether the student meets the special 
                circumstances to qualify as an independent student;
                    ``(E) in accordance with paragraph (B), may 
                consider as adequate verification that a student 
                qualifies for an adjustment under sections 479A(c) and 
                480(d)--
                            ``(i) submission of a court order or 
                        official Federal or State documentation that 
                        the student's parent or legal guardian is 
                        incarcerated in any Federal or State penal 
                        institution;
                            ``(ii) a documented phone call with, or a 
                        written statement from--
                                    ``(I) a child welfare agency 
                                authorized by a State or county;
                                    ``(II) a Tribal child welfare 
                                authority;
                                    ``(III) an independent living case 
                                worker; or
                                    ``(IV) a public or private agency, 
                                facility, or program serving the 
                                victims of abuse, neglect, assault, or 
                                violence;
                            ``(iii) a documented phone call with, or a 
                        written statement from, an attorney, a guardian 
                        ad litem, or a court appointed special 
                        advocate, documenting that person's 
                        relationship to the student;
                            ``(iv) a documented phone call with, or a 
                        written statement from, a representative of a 
                        program under chapter 1 or 2 of subpart 2 of 
                        part A; or
                            ``(v) submission of a copy of the student's 
                        biological or adoptive parents' or legal 
                        guardians'--
                                    ``(I) certificates of death; or
                                    ``(II) verified obituaries;
                    ``(F) if a student does not have, and cannot get, 
                documentation from any of the designated authorities 
                described in subparagraph (E) of whether a student may 
                qualify for an adjustment under sections 479A and 
                480(d) that will result in a determination of 
                independence, may base the verification and final 
                determination on--
                            ``(i) a documented interview with the 
                        student that is limited to whether the student 
                        meets the requirements, and not about the 
                        reasons for the student's situations; and
                            ``(ii) an attestation from the student that 
                        they meet the requirements, which includes a 
                        description of the approximate dates that the 
                        student ended the financial or caregiving 
                        relationship with their parent or legal 
                        guardian, to the best of the student's 
                        knowledge;
                    ``(G) retain all documents related to the 
                adjustment under sections 479A and 480(d), including 
                documented interviews, for the duration of the 
                student's enrollment at the institution and for a 
                minimum of 1 year after the student is no longer 
                enrolled at the institution; and
                    ``(H) shall presume that any student who has 
                obtained an adjustment under sections 479A and 480(d) 
                and a final determination of independence for a 
                preceding award year at an institution to be 
                independent for a subsequent award year at the same 
                institution unless--
                            ``(i) the student informs the institution 
                        that circumstances have changed; or
                            ``(ii) the institution has specific 
                        conflicting information about the student's 
                        independence.''.

SEC. 302. REVISION OF FAFSA FORM.

    (a) Award Year 2022-2023.--Section 483 of the Higher Education Act 
of 1965 (20 U.S.C. 1090), as amended by section 301, is further amended 
by adding at the end the following:
    ``(j) Convictions.--The Secretary shall not include any question 
about the conviction of an applicant for the possession or sale of 
illegal drugs on the FAFSA (or any other form developed under 
subsection (a)).''.
    (b) Award Year 2023-2024, and Each Subsequent Award Year.--Section 
483 of the Higher Education Act of 1965 (20 U.S.C. 1090), as amended by 
the FAFSA Simplification Act under section 703 of division FF of Public 
Law 116-260, is further amended by adding at the end the following:
    ``(f) Convictions.--The Secretary shall not include any question 
about the conviction of an applicant for the possession or sale of 
illegal drugs on the Free Application for Federal Student Aid (or any 
other form developed under this section).''.

                 TITLE IV--FINANCIAL AID SHOPPING SHEET

SEC. 401. SECRETARIAL REQUIREMENTS.

    (a) In General.--Not later than 1 year after the date of the 
enactment of this Act, the Secretary of Education, in consultation with 
the Secretaries of Defense and Veterans Affairs, shall develop and 
finalize a financial shopping sheet that ensures each institution of 
higher education provides meaningful information about the financial 
cost and quality of such institution to students (including students 
who have authorized the Department of Education to send the student's 
Institutional Student Information Record to such institution) to assist 
such students in determining how to use financial aid to attend such 
institution, and which--
            (1) is standardized so that it can be used by all 
        institutions of higher education;
            (2) is consumer tested, and presented in a manner that is 
        simple and easily understandable; and
            (3) is personalized for each student who receives such 
        sheet by including--
                    (A) the cost of attendance of the educational 
                program in which the student is enrolled or seeks to be 
                enrolled;
                    (B) the type of Federal educational benefits 
                available to assist in covering such cost of 
                attendance, including loans and grants under title IV 
                of the Higher Education Act of 1965;
                    (C) the amount of financial aid, including Federal, 
                State, institutional, or other aid that can be used to 
                assist in covering such cost of attendance;
                    (D) information about student outcomes for students 
                who graduate from such educational program, including, 
                based upon the most recent data available--
                            (i) the graduation rate;
                            (ii) the loan repayment rate; and
                            (iii) the estimated loan debt upon 
                        graduation; and
                    (E) any other information that facilitates 
                comparison of aid packages offered by different 
                institutions of higher education.
    (b) Definitions.--In this subsection:
            (1) Cost of attendance.--The term ``cost of attendance'' 
        has the meaning given the term in section 472 of the Higher 
        Education Act of 1965 (20 U.S.C. 1087ll).
            (2) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning given the 
        term in section 102 of the Higher Education Act of 1965 (20 
        U.S.C. 1002).

SEC. 402. REQUIREMENTS FOR INSTITUTIONS OF HIGHER EDUCATION.

    Section 487(a) of the Higher Education Act of 1965 (20 U.S.C. 
1094(a)) is amended by adding at the end the following:
            ``(30) The institution will use a financial aid shopping 
        sheet described in 401(a) of the Achieving Independence through 
        Degrees Act as its sole financial award letter or include such 
        sheet as a supplemental cover to such financial award 
        letter.''.

                   TITLE V--SNAP AND HIGHER EDUCATION

SEC. 501. SNAP TREATMENT OF LIVING EXPENSES INCLUDED IN EDUCATIONAL 
              LOANS.

    Section 5 of the Food and Nutrition Act of 2008 (7 U.S.C. 2014) is 
amended--
            (1) in subsection (d)--
                    (A) in paragraph (3)(B) by striking ``other than'' 
                and inserting ``including''; and
                    (B) in the proviso of paragraph (5) by striking ``, 
                and no portion'' and all that follows through 
                ``expenses,''; and
            (2) in subsection (k)--
                    (A) by striking paragraph (3); and
                    (B) by redesignating paragraph (4) as paragraph 
                (3).

SEC. 502. ELIGIBILITY OF STUDENTS TO PARTICIPATE IN THE SUPPLEMENTAL 
              NUTRITION ASSISTANCE PROGRAM.

    Section 6 of the Food and Nutrition Act of 2008 (7 U.S.C. 2015) is 
amended--
            (1) in subsection (e)--
                    (A) in paragraph (4), by striking ``employed'' and 
                inserting ``attending an institution of higher 
                education (as defined in section 102 of the Higher 
                Education Act of 1965 (20 U.S.C. 1002)) or employed, in 
                the aggregate,'';
                    (B) in paragraph (7), by striking ``or'' at the 
                end;
                    (C) in paragraph (8), by striking the period at the 
                end and inserting a semicolon; and
                    (D) by adding at the end the following:
            ``(9) has an expected family contribution of zero, as 
        determined by the procedures established in part F of title IV 
        of the Higher Education Act of 1965 (20 U.S.C. 1087kk-1087vv); 
        or
            ``(10) is determined to be `independent' based on one of 
        the criteria specified in subparagraphs (B), (C), (D), (G), and 
        (H) of section 480(d)(1) of the Higher Education Act (20 U.S.C. 
        1087vv).''; and
            (2) in subsection (o)(2)(A), by striking ``work'' and 
        inserting ``attending an institution of higher education (as 
        defined in section 102 of the Higher Education Act of 1965 (20 
        U.S.C. 1002)) or work, in the aggregate,''.

  TITLE VI--ADJUSTMENTS TO CAMPUS-BASED STUDENT FINANCIAL AID PROGRAMS

      PART 1--FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS

SEC. 601. PURPOSE; APPROPRIATIONS AUTHORIZED.

    Section 413A of the Higher Education Act of 1965 (20 U.S.C. 1070b) 
is amended--
            (1) by amending subsection (a) to read as follows:
    ``(a) Purpose of Subpart.--It is the purpose of this subpart to--
            ``(1) provide, through institutions of higher education, 
        supplemental grants to assist in making available the benefits 
        of postsecondary education to qualified students who 
        demonstrate financial need in accordance with the provisions of 
        part F of this title; and
            ``(2) to establish demonstration projects at various 
        institutions of higher education, as defined in section 101, to 
        determine best practices and policies regarding the 
        distribution of emergency grant aid to assist students in 
        completing their program of study, notwithstanding aid they may 
        have received in accordance with the provisions of part F of 
        this title.'';
            (2) in subsection (b)(1), by striking ``appropriated'' and 
        all that follows through the end and inserting ``appropriated--
                    ``(A) $1,150,000,000 for fiscal year 2022;
                    ``(B) $1,300,000,000 for fiscal year 2023;
                    ``(C) $1,450,000,000 for fiscal year 2024;
                    ``(D) $1,600,000,000 for fiscal year 2025; and
                    ``(E) $1,750,000,000 for fiscal year 2026 and each 
                succeeding fiscal year.'';
            (3) by redesignating paragraph (2) as paragraph (3); and
            (4) by inserting after paragraph (1) the following:
            ``(2) For the purpose of enabling the Secretary to fund 
        demonstration projects under section 413(F), there are 
        allocated, from funds authorized under paragraph (b)(1), 
        $1,250,000 for fiscal year 2022 and each of the 3 succeeding 
        fiscal years.''.

SEC. 602. ALLOCATION OF FUNDS.

    Section 413D of the Higher Education Act of 1965 (20 U.S.C. 1070b-
3) is amended to read as follows:

``SEC. 413D. ALLOCATION OF FUNDS.

    ``(a) Allocation Formula for Fiscal Years 2022 Through 2026.--
            ``(1) In general.--From the amount appropriated under 
        section 413A(b)(1) for a fiscal year, the Secretary shall 
        allocate to each institution--
                    ``(A) for fiscal year 2022, an amount equal to the 
                greater of--
                            ``(i) 90 percent of the amount the 
                        institution received under subsection (a) for 
                        fiscal year 2021, as such subsection was in 
                        effect with respect to such fiscal year (in 
                        this subparagraph referred to as `the 2021 
                        amount for the institution'); or
                            ``(ii) the fair share amount for the 
                        institution determined under subsection (c);
                    ``(B) for fiscal year 2023, an amount equal to the 
                greater of--
                            ``(i) 80 percent of the 2021 amount for the 
                        institution; or
                            ``(ii) the fair share amount for the 
                        institution determined under subsection (c);
                    ``(C) for fiscal year 2024, an amount equal to the 
                greater of--
                            ``(i) 60 percent of the 2021 amount for the 
                        institution; or
                            ``(ii) the fair share amount for the 
                        institution determined under subsection (c);
                    ``(D) for fiscal year 2025, an amount equal to the 
                greater of--
                            ``(i) 40 percent of the 2021 amount for the 
                        institution; or
                            ``(ii) the fair share amount for the 
                        institution determined under subsection (c); 
                        and
                    ``(E) for fiscal year 2026, an amount equal to the 
                greater of--
                            ``(i) 20 percent of the 2021 amount for the 
                        institution; or
                            ``(ii) the fair share amount for the 
                        institution determined under subsection (c).
            ``(2) Ratable reduction.--
                    ``(A) In general.--If the amount appropriated under 
                section 413A(b)(1) for a fiscal year is less than the 
                amount required to be allocated to the institutions 
                under this subsection, then the amount of the 
                allocation to each institution shall be ratably 
                reduced.
                    ``(B) Additional appropriations.--If the amounts 
                allocated to each institution are ratably reduced under 
                subparagraph (A) for a fiscal year and additional 
                amounts are appropriated for such fiscal year, the 
                amount allocated to each institution from the 
                additional amounts shall be increased on the same basis 
                as the amounts under subparagraph (A) were reduced 
                (until each institution receives the amount required to 
                be allocated under this subsection).
    ``(b) Allocation Formula for Fiscal Year 2027 and Each Succeeding 
Fiscal Year.--From the amount appropriated under section 413A(b)(1) for 
fiscal year 2027 and each succeeding fiscal year, the Secretary shall 
allocate to each institution the fair share amount for the institution 
determined under subsection (c).
    ``(c) Determination of Fair Share Amount.--
            ``(1) In general.--Subject to paragraph (2), the fair share 
        amount for an institution for a fiscal year shall be equal to 
        the sum of the institution's undergraduate student need 
        described in paragraph (2) for the preceding fiscal year.
            ``(2) Institutional undergraduate student need.--The 
        undergraduate student need for an institution for a fiscal year 
        shall be equal to the sum of the following:
                    ``(A) An amount equal to 50 percent of the amount 
                that bears the same proportion to the available 
                appropriated amount for such fiscal year as the total 
                amount of Federal Pell Grant funds awarded at the 
                institution for the preceding fiscal year bears to the 
                total amount of Federal Pell Grant funds awarded at all 
                institutions participating under this part for the 
                preceding fiscal year.
                    ``(B) An amount equal to 50 percent of the amount 
                that bears the same proportion to the available 
                appropriated amount for such fiscal year as the total 
                amount of the undergraduate student need at the 
                institution for the preceding fiscal year bears to the 
                total amount of undergraduate student need at all 
                institutions participating under this part for the 
                preceding fiscal year.
            ``(3) Eligibility for fair share amount.--The Secretary may 
        not allocate funds under this part to any institution that, for 
        2 or more fiscal years during any 3 fiscal year period 
        beginning not earlier than the first day of the first fiscal 
        year that is 2 years after the date of the enactment of this 
        paragraph, has a student population with less than 7 percent of 
        undergraduate students who are recipients of Federal Pell 
        Grants.''.

                  PART 2--FEDERAL WORK-STUDY PROGRAMS

SEC. 610. PURPOSE; AUTHORIZATION OF APPROPRIATIONS.

    Section 441 of the Higher Education Act of 1965 (20 U.S.C. 1087-51) 
is amended--
            (1) in subsection (b), by striking ``part, such sums as may 
        be necessary for fiscal year 2009 and each of the five 
        succeeding fiscal years.'' and inserting ``part--
            ``(1) $1,500,000,000 for fiscal year 2022;
            ``(2) $1,750,000,000 for fiscal year 2023;
            ``(3) $2,000,000,000 for fiscal year 2024;
            ``(4) $2,250,000,000 for fiscal year 2025; and
            ``(5) $2,500,000,000 for fiscal year 2026 and each 
        succeeding fiscal year.'';
            (2) in subsection (c)--
                    (A) in paragraph (3), by striking ``and'';
                    (B) in paragraph (4)(C), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(5) work-based learning designed to give students 
        experience in any activity described in paragraph (1), (2), 
        (3), or (4), whether or not credit is awarded.''; and
            (3) by adding at the end the following:
    ``(d) Work-Based Learning Defined.--For purposes of this part, the 
term `work-based learning' means sustained interactions with industry, 
community, or academic professionals in real workplace settings that--
            ``(1) foster in-depth, first-hand engagement with the tasks 
        required of a given career field that are aligned to a 
        student's field of study; and
            ``(2) may include internships, fellowships, and 
        apprenticeships.''.

SEC. 611. ALLOCATION FORMULA.

    Section 442 of the Higher Education Act of 1965 (20 U.S.C. 1087-52) 
is amended to read as follows:
    ``(a) Reservations.--
            ``(1) Reservation for improved institutions.--
                    ``(A) Amount of reservation for improved 
                institutions.--Beginning with the first fiscal year 
                that is 2 years after the date of the enactment of the 
                AID Act, for a fiscal year in which the amount 
                appropriated under section 441(b) exceeds $700,000,000, 
                the Secretary shall--
                            ``(i) reserve the lesser of--
                                    ``(I) an amount equal to 20 percent 
                                of the amount by which the amount 
                                appropriated under section 441(b) 
                                exceeds $700,000,000; or
                                    ``(II) $150,000,000; and
                            ``(ii) allocate the amount reserved under 
                        clause (i) to each improved institution in an 
                        amount equal to the greater of the following:
                                    ``(I) The amount that bears the 
                                same proportion to the amount reserved 
                                under clause (i) as the total amount of 
                                all Federal Pell Grant funds awarded at 
                                the improved institution for the second 
                                preceding fiscal year bears to the 
                                total amount of Federal Pell Grant 
                                funds awarded at improved institutions 
                                participating under this part for the 
                                second preceding fiscal year.
                                    ``(II) $5,000.
                    ``(B) Improved institution described.--For purposes 
                of this paragraph, an improved institution is an 
                institution that, on the date the Secretary makes an 
                allocation under subparagraph (A)(ii)--
                            ``(i) is an institution of higher education 
                        (as defined under section 101);
                            ``(ii) meets the requirements of subsection 
                        (d)(5); and
                            ``(iii) is with respect to--
                                    ``(I) the completion rate or 
                                graduation rate of Federal Pell Grant 
                                recipients at the institution, in the 
                                top 75 percent of all institutions 
                                participating under this part for the 
                                preceding fiscal year;
                                    ``(II) the percentage of Federal 
                                Pell Grant recipients at the 
                                institution, in the top 50 percent of 
                                the institutions described in subclause 
                                (I); and
                                    ``(III) the annual increase in the 
                                completion rate or graduation rate of 
                                Federal Pell Grant recipients at the 
                                institution, in the top 50 percent of 
                                the institutions described in 
                                subclauses (I) and (II).
                    ``(C) Completion rate or graduation rate.--For 
                purposes of determining the completion rate or 
                graduation rate under this section, a Federal Pell 
                Grant recipient who is either a full-time student or a 
                part-time student shall be counted as a completer or 
                graduate if, within 150 percent of the normal time for 
                completion of or graduation from the program, the 
                student has completed or graduated from the program, or 
                enrolled in any program of an institution participating 
                in any program under this title for which the prior 
                program provides substantial preparation.
            ``(2) Reservation for grant program.--From the amount 
        appropriated under section 441(b) for a fiscal year and 
        remaining after the Secretary reserves funds under subparagraph 
        (A), the Secretary shall reserve $30,000,000 to carry out 
        grants under section 449.
            ``(3) Reallocation of amount returned by improved 
        institutions.--If an institution returns to the Secretary any 
        portion of the sums allocated to such institution under this 
        subsection for any fiscal year, the Secretary shall reallot 
        such excess to improved institutions on the same basis as under 
        paragraph (1)(A).
            ``(4) Publication.--Beginning 1 year after the first 
        allocations are made to improved institutions under paragraph 
        (1)(A) and annually thereafter, the Secretary shall make 
        publicly available--
                    ``(A) a list of the improved institutions that 
                received funding under such paragraph in the prior 
                fiscal year;
                    ``(B) the percentage of students at each such 
                improved institution that are Federal Pell Grant 
                recipients;
                    ``(C) the completion rate or graduation rate for 
                the students described in subparagraph (B) with respect 
                to each such improved institution; and
                    ``(D) a comparison between the information 
                described in subparagraphs (A), (B), and (C) for the 
                prior fiscal year for such improved institution, and 
                such information for the year prior to such year.
    ``(b) Allocation Formula for Fiscal Years 2022 Through 2026.--
            ``(1) In general.--From the amount appropriated under 
        section 441(b) for a fiscal year and remaining after the 
        Secretary reserves funds under subsection (a), the Secretary 
        shall allocate to each institution--
                    ``(A) for fiscal year 2022, an amount equal to the 
                greater of--
                            ``(i) 90 percent of the amount the 
                        institution received under this subsection and 
                        subsection (a) for fiscal year 2022, as such 
                        subsections were in effect with respect to such 
                        fiscal year (in this subparagraph referred to 
                        as `the 2022 amount for the institution'); or
                            ``(ii) the fair share amount for the 
                        institution determined under subsection (d);
                    ``(B) for fiscal year 2023, an amount equal to the 
                greater of--
                            ``(i) 80 percent of the 2022 amount for the 
                        institution; or
                            ``(ii) the fair share amount for the 
                        institution determined under subsection (d);
                    ``(C) for fiscal year 2024, an amount equal to the 
                greater of--
                            ``(i) 60 percent of the 2022 amount for the 
                        institution; or
                            ``(ii) the fair share amount for the 
                        institution determined under subsection (d);
                    ``(D) for fiscal year 2025, an amount equal to the 
                greater of--
                            ``(i) 40 percent of the 2022 amount for the 
                        institution; or
                            ``(ii) the fair share amount for the 
                        institution determined under subsection (d); 
                        and
                    ``(E) for fiscal year 2026, an amount equal to the 
                greater of--
                            ``(i) 20 percent of the 2022 amount for the 
                        institution; or
                            ``(ii) the fair share amount for the 
                        institution determined under subsection (d).
            ``(2) Ratable reduction.--
                    ``(A) In general.--If the amount appropriated under 
                section 441(b) for a fiscal year and remaining after 
                the Secretary reserves funds under subsection (a) is 
                less than the amount required to be allocated to the 
                institutions under this subsection, then the amount of 
                the allocation to each institution shall be ratably 
                reduced.
                    ``(B) Additional appropriations.--If the amounts 
                allocated to each institution are ratably reduced under 
                subparagraph (A) for a fiscal year and additional 
                amounts are appropriated for such fiscal year, the 
                amount allocated to each institution from the 
                additional amounts shall be increased on the same basis 
                as the amounts under subparagraph (A) were reduced 
                (until each institution receives the amount required to 
                be allocated under this subsection).
    ``(c) Allocation Formula for Fiscal Year 2027 and Each Succeeding 
Fiscal Year.--Except as provided in subsection (d)(5), from the amount 
appropriated under section 441(b) for fiscal year 2027 and each 
succeeding fiscal year and remaining after the Secretary reserves funds 
under subsection (a), the Secretary shall allocate to each institution 
the fair share amount for the institution determined under subsection 
(d).
    ``(d) Determination of Fair Share Amount.--
            ``(1) In general.--Subject to paragraph (2), the fair share 
        amount for an institution for a fiscal year shall be equal to 
        the sum of--
                    ``(A) 100 percent of the institution's 
                undergraduate student need described in paragraph (2) 
                for the preceding fiscal year; and
                    ``(B) 25 percent of the institution's graduate 
                student need described in paragraph (3) for the 
                preceding fiscal year.
            ``(2) Institutional undergraduate student need.--The 
        undergraduate student need for an institution for a fiscal year 
        shall be equal to the sum of the following:
                    ``(A) An amount equal to 50 percent of the amount 
                that bears the same proportion to the available 
                appropriated amount for such fiscal year as the total 
                amount of Federal Pell Grant funds awarded at the 
                institution for the preceding fiscal year bears to the 
                total amount of Federal Pell Grant funds awarded at all 
                institutions participating under this part for the 
                preceding fiscal year.
                    ``(B) An amount equal to 50 percent of the amount 
                that bears the same proportion to the available 
                appropriated amount for such fiscal year as the total 
                amount of the undergraduate student need at the 
                institution for the preceding fiscal year bears to the 
                total amount of undergraduate student need at all 
                institutions participating under this part for the 
                preceding fiscal year.
            ``(3) Institutional graduate student need.--The graduate 
        student need for an institution for a fiscal year shall be 
        equal to the amount that bears the same proportion to the 
        available appropriated amount for such fiscal year as the total 
        amount of the graduate student need at the institution for the 
        preceding fiscal year bears to the total amount of graduate 
        student need at all institutions participating under this part 
        for the preceding fiscal year.
            ``(4) Eligibility for fair share amount.--The Secretary may 
        not allocate funds under this part to any institution that, for 
        two or more fiscal years during any three fiscal year period 
        beginning not earlier than the first day of the first fiscal 
        year that is 2 years after the date of the enactment of this 
        paragraph, has--
                    ``(A) a student population with less than 7 percent 
                of undergraduate students who are recipients of Federal 
                Pell Grants; or
                    ``(B) if the institution only enrolls graduate 
                students, a student population with less than 5 percent 
                of students that have an expected family contribution 
                of zero.
            ``(5) Definitions.--In this subsection:
                    ``(A) Available appropriated amount.--In this 
                section, the term `available appropriated amount' 
                means--
                            ``(i) the amount appropriated under section 
                        441(b) for a fiscal year, minus
                            ``(ii) the amounts reserved under 
                        subsection (a) for such fiscal year.
                    ``(B) Average cost of attendance.--The term 
                `average cost of attendance' means, with respect to an 
                institution, the average of the attendance costs for a 
                fiscal year for students which shall include--
                            ``(i) tuition and fees, computed on the 
                        basis of information reported by the 
                        institution to the Secretary, which shall 
                        include--
                                    ``(I) total revenue received by the 
                                institution from undergraduate and 
                                graduate tuition and fees for the 
                                second year preceding the year for 
                                which it is applying for an allocation; 
                                and
                                    ``(II) the institution's enrollment 
                                for such second preceding year;
                            ``(ii) standard living expenses equal to 
                        150 percent of the difference between the 
                        income protection allowance for a family of 
                        five with one in college and the income 
                        protection allowance for a family of six with 
                        one in college for a single independent 
                        student; and
                            ``(iii) books and supplies, in an amount 
                        not exceeding $1,000.
                    ``(C) Graduate student need.--The term `graduate 
                student need' means, with respect to a graduate student 
                for a fiscal year, the lesser of the following:
                            ``(i) The amount equal to (except the 
                        amount computed by this clause shall not be 
                        less than zero)--
                                    ``(I) the average cost of 
                                attendance for the preceding fiscal 
                                year, minus
                                    ``(II) each such graduate student's 
                                expected family contribution (computed 
                                in accordance with part F of this 
                                title) for the preceding fiscal year.
                            ``(ii) The total loan limit for a Federal 
                        Direct Unsubsidized Stafford Loan.
                    ``(D) Undergraduate student need.--The term 
                `undergraduate student need' means, with respect to an 
                undergraduate student for a fiscal year, the lesser of 
                the following:
                            ``(i) The total of the amount equal to 
                        (except the amount computed by this clause 
                        shall not be less than zero)--
                                    ``(I) the average cost of 
                                attendance for the fiscal year, minus
                                    ``(II) each such undergraduate 
                                student's expected family contribution 
                                (computed in accordance with part F of 
                                this title) for the preceding fiscal 
                                year.
                            ``(ii) The total loan limit for a Federal 
                        Direct Unsubsidized Stafford Loan and a Federal 
                        Direct Loan.
    ``(e) Return of Surplus Allocated Funds.--
            ``(1) In general.--Except with respect to funds returned 
        under subsection (a)(3), if an institution returns to the 
        Secretary any portion of the sums allocated to such institution 
        under this section for any fiscal year, the Secretary shall 
        reallot such excess to institutions that used at least 10 
        percent of the total amount of funds granted to such 
        institution under this section to compensate students employed 
        during a qualified period of nonenrollment (as such term is 
        defined in section 443(f)) on the same basis as excess eligible 
        amounts are allocated under subsection (d).
            ``(2) Use of funds.--Funds received by institutions 
        pursuant to this subsection shall be used to compensate 
        students employed in work-based learning positions.
            ``(3) Retained funds.--
                    ``(A) Amount returned.--If an institution returns 
                more than 10 percent of its allocation under paragraph 
                (1), the institution's allocation for the next fiscal 
                year shall be reduced by the amount returned.
                    ``(B) Waiver.--The Secretary may waive this 
                paragraph for a specific institution if the Secretary 
                finds that enforcing this paragraph would be contrary 
                to the interest of the program.
    ``(f) Filing Deadlines.--The Secretary may require applications 
under this section, at such time, in such manner, and containing such 
information as the Secretary may require.''.

SEC. 612. GRANTS FOR FEDERAL WORK-STUDY PROGRAMS.

    Section 443 of the Higher Education Act of 1965 (20 U.S.C. 1087-53) 
is amended--
            (1) in subsection (b)--
                    (A) by amending paragraph (2)(A) to read as 
                follows:
                    ``(A) for fiscal year 2022 and succeeding fiscal 
                years, an institution shall (unless the Secretary 
                determines that enforcing this subparagraph would cause 
                hardship for students at the institution) use--
                            ``(i) at least 7 percent of the total 
                        amount of funds granted to such institution 
                        under this section for such fiscal year to 
                        compensate students employed in work-based 
                        learning positions; and
                            ``(ii) at least 3 percent of the total 
                        amount of funds granted to such institution 
                        under this section for such fiscal year to 
                        compensate students who have exceptional need 
                        (as defined in section 413C(c)(2)) and are 
                        employed in a work-based learning position 
                        during a qualified period of nonenrollment, as 
                        defined in subsection (f).'';
                    (B) in paragraph (4)--
                            (i) by striking ``$300'' and inserting 
                        ``$500''; and
                            (ii) by inserting ``except as provided 
                        under subsection (f),'' before ``provide'';
                    (C) in paragraph (5), by striking ``75 percent'' 
                each place it appears and inserting ``75 percent in the 
                first year after the date of the enactment of the AID 
                Act, 65 percent in the first succeeding fiscal year, 60 
                percent in the second succeeding fiscal year, 55 
                percent in the third succeeding fiscal year, and 50 
                percent each succeeding fiscal year'';
                    (D) in paragraph (6)--
                            (i) by inserting ``who demonstrate 
                        exceptional need (as defined in section 
                        413C(c)(2))'' after ``students''; and
                            (ii) by inserting after ``institution'', 
                        ``and prioritize employment for students who 
                        are currently or formerly homeless children and 
                        youths (as such term is defined in section 725 
                        of the McKinney-Vento Homeless Assistance Act 
                        (42 U.S.C. 11434a)) or foster care children and 
                        youth'';
                    (E) in paragraph (7), by striking ``vocational'' 
                and inserting ``career'';
                    (F) in paragraph (8)(A)(i), by striking ``or 
                vocational goals'' and inserting ``career goals'';
                    (G) in paragraph (10), by striking ``; and'' and 
                inserting a semicolon;
                    (H) in paragraph (11), by striking the period at 
                the end and inserting a semicolon; and
                    (I) by adding at the end the following:
            ``(12) provide assurances that compensation of students 
        employed in the work-study program in accordance with the 
        agreement shall include reimbursement for reasonable travel 
        (not including the purchase of a vehicle) directly related to 
        such work-study program;
            ``(13) provide assurances that the institution will 
        administer and use feedback from the surveys required under 
        section 450, to improve the experiences of students employed in 
        the work-study program in accordance with the agreement;
            ``(14) provide assurances that the institution will collect 
        data from students and employers such that the employment made 
        available from funds under this part will, to the maximum 
        extent practicable, complement and reinforce the educational 
        goals or career goals of each student receiving assistance 
        under this part; and
            ``(15) provide assurances that if the institution receives 
        funds under section 442(a)(1)(A), such institution shall--
                    ``(A) use such funds to compensate students 
                employed in the work-study program in accordance with 
                the agreement; and
                    ``(B) prioritize the awarding of such funds (and 
                increasing the amount of each award) to students--
                            ``(i) who demonstrate exceptional need (as 
                        defined in section 413C(c)(2)); and
                            ``(ii) who are employed in work-based 
                        learning opportunities through the work-study 
                        program in accordance with the agreement.'';
            (2) in subsection (c)--
                    (A) by striking paragraph (2);
                    (B) by inserting after paragraph (1) the following:
            ``(2) provide assurances that compensation of students 
        employed in the work-study program in accordance with the 
        agreement shall include reimbursement for reasonable travel 
        (not including the purchase of a vehicle) directly related to 
        such work-study program.''; and
                    (C) in paragraph (4), by inserting ``and complement 
                and reinforce the educational goals or career goals of 
                each student receiving assistance under this part'' 
                after ``academically relevant'';
            (3) in subsection (d)(1)--
                    (A) by striking ``In any academic year to which 
                subsection (b)(2)(A) applies, an institution shall 
                ensure that'' and inserting ``An institution may use 
                the''; and
                    (B) by striking ``travel'' and inserting 
                ``reasonable travel (not including the purchase of a 
                vehicle)'';
            (4) in subsection (e)(3), by striking ``75'' and inserting 
        ``50''; and
            (5) by adding at the end the following:
    ``(f) Qualified Period of Nonenrollment.--
            ``(1) In general.--A student may be awarded work-study 
        employment during a qualified period of nonenrollment if--
                    ``(A) the student demonstrates exceptional need (as 
                defined in section 413C(c)(2)) in the award year prior 
                to the qualified period of nonenrollment;
                    ``(B) the student is employed in a work-based 
                learning position; and
                    ``(C) the employment--
                            ``(i) involves less than 25 percent 
                        administrative work; and
                            ``(ii) is for at least 20 hours per week, 
                        unless the institution waives such 
                        requirement--
                                    ``(I) at the request of the 
                                student; or
                                    ``(II) based on a finding by the 
                                institution that such requirement 
                                presents a hardship in finding a work-
                                based learning position for the 
                                student.
            ``(2) Funds earned.--
                    ``(A) In general.--Any funds earned by a student 
                (beyond standard living expenses (as such term is 
                described in section 413D(c)(3)(C))) during the 
                qualified period of nonenrollment less than or equal to 
                $2,500 may not be applied to such student's cost of 
                attendance for the next period in which the student is 
                enrolled.
                    ``(B) Excess funds.--Any funds earned by a student 
                (beyond standard living expenses (as such term is 
                described in section 413D(c)(3)(C))) during the 
                qualified period of nonenrollment in excess of $2,500 
                shall be applied to such student's cost of attendance 
                for the next period in which the student is enrolled.
            ``(3) Definition of qualified period of nonenrollment.--In 
        this subsection, the term `qualified period of nonenrollment' 
        means, with respect to a student, a period of nonenrollment 
        that--
                    ``(A) occurs between a period of enrollment and a 
                period of anticipated enrollment; and
                    ``(B) the duration of which is no longer than 6 
                months.''.

SEC. 613. FLEXIBLE USE OF FUNDS.

    Section 445 of the Higher Education Act of 1965 (20 U.S.C. 1087-55) 
is amended--
            (1) in subsection (a), by adding at the end the following:
            ``(3) In addition to the carry-over sums authorized under 
        paragraph (1) of this section, an institution may permit a 
        student who completed the previous award period to continue to 
        earn unearned portions of the student's work-study award from 
        that previous period if--
                    ``(A) any reduction in the student's need upon 
                which the award was based is accounted for in the 
                remaining portion; and
                    ``(B) the student is currently employed in a work-
                based learning position.''; and
            (2) by striking ``10 percent'' both places it appears and 
        inserting ``20 percent''.

SEC. 614. JOB LOCATION AND DEVELOPMENT PROGRAMS.

    (a) Amendments.--Section 446 of the Higher Education Act of 1965 
(20 U.S.C. 1087-56) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by striking ``10 percent or 
                $75,000'' and inserting ``20 percent or $150,000''; and
                    (B) in paragraph (2), by striking ``vocational'' 
                and inserting ``career''; and
            (2) in subsection (b)--
                    (A) by striking paragraphs (1) and (2);
                    (B) by inserting before paragraph (3) the 
                following:
            ``(1) provide satisfactory assurance that the institution 
        will prioritize placing students with exceptional need (as 
        defined in section 413C(c)(2)) and Federal work-study 
        recipients in jobs located and developed under this section; 
        and
            ``(2) provide satisfactory assurances that the funds 
        available under this section will be used to locate and develop 
        work-based learning positions;''; and
                    (C) in paragraph (6), by striking the period and 
                inserting ``, including--
                    ``(A) the number of students employed in work-based 
                learning positions through such program;
                    ``(B) the number of students demonstrating 
                exceptional need (as defined in section 413C(c)(2)) and 
                Federal work-study recipients employed through such 
                program; and
                    ``(C) the number of students demonstrating 
                exceptional need (as defined in section 413C(c)(2)) and 
                Federal work-study recipients employed in work-based 
                learning positions through such program.''.
    (b) Clarification on Carry-Over Authority.--Of the sums granted to 
an eligible institution under part C of title IV of the Higher 
Education Act (20 U.S.C. 1087-51) for any fiscal year, 10 percent may, 
at the discretion of the institution, remain available for expenditure 
during the succeeding fiscal year to carry out programs under such 
part, including the job location and development programs under section 
446 of such Act (20 U.S.C. 1087-56).

SEC. 615. COMMUNITY SERVICE.

    Section 447 of the Higher Education Act of 1965 (20 U.S.C. 1087-57) 
is amended to read as follows:

``SEC. 447. ADDITIONAL FUNDS TO CONDUCT COMMUNITY SERVICE WORK-STUDY 
              PROGRAMS.

    ``Each institution participating under this part may use up to 10 
percent of the funds made available under section 489(a) and 
attributable to the amount of the institution's expenditures under this 
part to conduct that institution's program of community service-
learning, including--
            ``(1) development of mechanisms to assure the academic 
        quality of the student experience;
            ``(2) assuring student access to educational resources, 
        expertise, and supervision necessary to achieve community 
        service objectives;
            ``(3) assuring, to the maximum extent practicable, that the 
        community service-learning program will support the educational 
        goals or career goals of students participating in such 
        program;
            ``(4) collaboration with public and private nonprofit 
        agencies, and programs assisted under the National and 
        Community Service Act of 1990 in the planning, development, and 
        administration of such programs; and
            ``(5) to recruit and compensate students for community 
        service-learning (including compensation for time spent in 
        training and for reasonable travel (not including the purchase 
        of a vehicle) directly related to such community service).''.

SEC. 616. PILOT GRANT PROGRAM.

    Part C of title IV of the Higher Education Act (20 U.S.C. 1087-51 
et seq.) is amended by adding at the end the following:

``SEC. 449. WORK-BASED LEARNING OPPORTUNITIES PILOT GRANT PROGRAM.

    ``(a) Establishment.--
            ``(1) In general.--The Secretary shall establish a program 
        to provide grants to eligible institutions participating under 
        this part to establish or expand a program to develop work-
        based learning positions.
            ``(2) Limitations.--
                    ``(A) Duration.--A grant awarded under this section 
                shall be for a period of not more than 4 years, but may 
                be renewed by the Secretary for a period of 2 years.
                    ``(B) Amount.--A grant under this section may not 
                be in an amount greater than $1,000,000.
    ``(b) Application.--To be selected to receive a grant under this 
section an eligible institution participating under this part shall 
submit an application to the Secretary at such time, in such manner, 
and containing such information as the Secretary may require, including 
a plan that describes how the eligible institution will establish or 
expand a program to develop work-based learning positions that will--
            ``(1) benefit students who demonstrate exceptional need (as 
        defined in section 413C(c)(2));
            ``(2) identify high-demand occupations (as determined by 
        the Bureau of Labor and Statistics, State departments of labor, 
        and local workforce investment boards) and develop partnerships 
        with high-demand employers (including nonprofit organizations, 
        for-profit firms, or public agencies);
            ``(3) involve participating employers in evaluating and 
        improving such program;
            ``(4) track and report academic and employment outcomes for 
        participating students; and
            ``(5) be able to continue after the end of the grant term.
    ``(c) Use of Funds.--Grant funds awarded under this program shall 
be used to pay wages for students participating under this program and 
develop work-based learning positions that--
            ``(1) are for a period of at least 12 weeks;
            ``(2) serve students who demonstrate exceptional need (as 
        defined in section 413C(c)(2));
            ``(3) limit administrative work to no more than 25 percent 
        of such position;
            ``(4) provide a minimum of 15 hours of work per week during 
        periods of enrollment and 30 hours per week during periods of 
        nonenrollment, except such requirement may be waived by the 
        institution in consultation with a student;
            ``(5) include career coaching from participating employers 
        (including mock interviews, resume writing assistance, and 
        counseling on applying for and attaining employment); and
            ``(6) provide participating students with opportunities to 
        meet with employers in fields or industries related to those of 
        participating employers.
    ``(d) Report.--On a date that is before the date on which the 
period of the grant received by an eligible institution under this 
section terminates, such institution shall submit a report to the 
Secretary including--
            ``(1) the graduation rate or completion rate (as described 
        under section 442(a)(1)(C)) with respect to students 
        participating in work-based learning positions under the pilot 
        program; and
            ``(2) the results of the work-based learning opportunities 
        program for which such institution received such grant, 
        including--
                    ``(A) participating students' satisfaction with the 
                program as reported in surveys under section 450;
                    ``(B) the types of jobs in which participating 
                students were employed and the types of duties 
                performed in such jobs;
                    ``(C) the academic programs of the participating 
                students;
                    ``(D) the share of participating students who 
                worked at another job, in addition to the one under the 
                pilot program;
                    ``(E) the percentage of participating students who, 
                during the second quarter after completing their 
                academic program, are in education or training 
                activities or unsubsidized employment;
                    ``(F) the percentage of participating students 
                employed in high-demand occupations within 2 quarters 
                of completing their academic programs; and
                    ``(G) other items as deemed relevant by the 
                Secretary.
    ``(e) Reservation of Funding for Such Program.--From the amount 
appropriated under section 441(b) for a fiscal year and remaining after 
the Secretary reserves funds under section 442(a)(1), the Secretary 
shall reserve $30,000,000 to carry out grants under this section.''.

SEC. 617. DEPARTMENT ACTIVITIES.

    Part C of title IV of the Higher Education Act of 1965 (20 U.S.C. 
1087-51 et seq.) is further amended by adding at the end the following:

``SEC. 450. DEPARTMENT ACTIVITIES.

    ``(a) Surveys.--Not later than 1 year after the date of the 
enactment of this section, the Secretary shall develop, in consultation 
with work-study administrators from institutions of higher education, 
participating employers, and participating students--
            ``(1) a consumer-tested electronic survey for students 
        awarded work-study employment under the Federal work-study 
        program under this part that, not less than once every 4 
        years--
                    ``(A) measures each such student's satisfaction 
                with the Federal work-study program, including--
                            ``(i) any complaints the student has with 
                        respect to the program;
                            ``(ii) the amount and quality of the on-
                        the-job training the student received;
                            ``(iii) the amount and quality of on-the-
                        job supervision and employer feedback the 
                        student received;
                            ``(iv) the amount and quality of 
                        information provided by the institution about 
                        the work-study program and job opportunities 
                        and the availability of work-study staff at the 
                        institution;
                            ``(v) the quality of the assistance 
                        provided by the institution to the student in 
                        finding a work-study job and the availability 
                        of types of jobs; and
                            ``(vi) the student's overall satisfaction 
                        with the work-study program;
                    ``(B) measures the applicability of work-study 
                employment to the educational goals and career goals of 
                each such student;
                    ``(C) elicits an assessment by each such student of 
                the capacity to manage time between work-study 
                employment and coursework;
                    ``(D) measures, with respect to the program--
                            ``(i) the award amounts under the program;
                            ``(ii) the average number of hours students 
                        worked per week, and the wages received for 
                        such work;
                            ``(iii) the number of on campus jobs and 
                        off campus jobs;
                            ``(iv) how students located work-study 
                        positions;
                            ``(v) the work performed at each job;
                            ``(vi) whether students worked additional 
                        jobs while employed in a work-study job (and 
                        the reason for such additional job);
                            ``(vii) whether the work-study employment 
                        had an impact on the student's academic 
                        performance; and
                            ``(viii) the voluntarily disclosed 
                        demographics of students awarded work-study 
                        employment; and
                    ``(E) includes such information as the Secretary 
                may require;
            ``(2) a consumer-tested electronic survey for employers of 
        students described in paragraph (1) that--
                    ``(A) measures each such employer's satisfaction 
                with the Federal work-study program, including--
                            ``(i) the extent to which the employer is 
                        satisfied with its ability to accommodate 
                        students' schedules;
                            ``(ii) the extent to which student-
                        employees are prepared for the duties 
                        advertised for the job; and
                            ``(iii) the extent to which the employer is 
                        satisfied with opportunities to make 
                        recommendations for improving institutions' 
                        academic programs;
                    ``(B) elicits an assessment by each such employer 
                of--
                            ``(i) any complaints the employer had with 
                        respect to the program;
                            ``(ii) any skills or knowledge necessary 
                        for the job that student-employees are lacking; 
                        and
                            ``(iii) the extent of outreach from 
                        institutions to the employer; and
                    ``(C) includes such information as the Secretary 
                may require; and
            ``(3) a consumer-tested electronic survey that, not less 
        than once every 4 years, with respect to each institution of 
        higher education participating in the Federal work-study 
        program, measures--
                    ``(A) methods used to recruit on-campus and off-
                campus employers;
                    ``(B) if an institution operates a job location 
                development program--
                            ``(i) the share of jobs filled on-campus 
                        and off-campus;
                            ``(ii) the share of jobs filled by--
                                    ``(I) work-study recipients; and
                                    ``(II) students who demonstrate 
                                exceptional need (as defined in section 
                                413C(c)(2));
                            ``(iii) the primary factors considered in 
                        matching work-study students and jobs;
                            ``(iv) the share of students employed in 
                        work-based learning opportunities; and
                            ``(v) the share of students employed during 
                        qualified periods of nonenrollment, including 
                        the share of students with exceptional need (as 
                        defined in section 413C(c)(2)) employed during 
                        qualified periods of nonenrollment;
                    ``(C) the institution's Federal and non-Federal 
                contributions toward work-study wages;
                    ``(D) the primary factors considered in awarding 
                students work-study and in determining the amount of 
                the award;
                    ``(E) the acceptance rate among students who were 
                offered work-study aid; and
                    ``(F) other information the Secretary may require.
    ``(b) Results.--The Secretary shall develop an online portal--
            ``(1) for students, employers, and institutions of higher 
        education to access the surveys required under subsection (a); 
        and
            ``(2) to compile the results of such surveys.
    ``(c) Report.--Not less than once every 4 years after the date of 
the enactment of this subsection, the Secretary shall submit a report 
to Congress that includes--
            ``(1) the data collected under this section (redacted for 
        personal information);
            ``(2) with respect to students employed in work-study 
        through the Federal work-study program--
                    ``(A) the types of jobs such students participated 
                in;
                    ``(B) the average hours worked per week;
                    ``(C) the average award amount;
                    ``(D) the average wage rates;
                    ``(E) the extent to which students enter employment 
                with skills and knowledge gained from work-study 
                participation that have prepared them for the job; and
                    ``(F) the students' satisfaction with the program 
                and primary complaints;
            ``(3) the extent to which institutions conduct outreach to 
        employers and engage them in discussions on improving academic 
        programs;
            ``(4) the extent to which institutions conduct outreach to 
        students and make jobs readily available;
            ``(5) the extent to which the work-study employment aligns 
        with students' academic programs or career goals;
            ``(6) the employers' satisfaction with the program and 
        primary complaints; and
            ``(7) recommendations for improving the program.
    ``(d) Consultation.--In consulting with the entities described in 
subsection (a) to create the electronic surveys required under such 
subsection, the Secretary shall engage with--
            ``(1) a representative sample of institutions of higher 
        education participating in the Federal work-study program;
            ``(2) a representative sample of employers participating in 
        the Federal work-study program; and
            ``(3) a representative sample of students participating in 
        the Federal work-study program.
    ``(e) Technical Assistance.--The Secretary shall--
            ``(1) provide technical assistance to institutions 
        participating under the Federal work-study program under this 
        part to--
                    ``(A) comply with the amendments made by part B of 
                title VI of the AID Act and the regulations issued 
                pursuant to this subtitle;
                    ``(B) administer the surveys described in 
                subsection (a) to students and employers participating 
                in the Federal work-study program;
                    ``(C) ensure that Federal work-study positions 
                align with students' educational goals or career goals 
                to the maximum extent practicable; and
                    ``(D) satisfy the requirements under section 
                443(b)(7); and
            ``(2) issue guidance and provide technical assistance to 
        institutions to support improved partnerships and coordination 
        among financial aid, career services, and academic advisors to 
        administer the Federal work-study program.
    ``(f) Response Rate.--In the case of an institution participating 
under the Federal work-study program under this part with a response 
rate for students and employers with respect to the surveys described 
in subsection (a)(1) of less than 75 percent, the Secretary shall 
require such institution--
            ``(1) to submit to the Secretary an improvement plan to 
        increase such response rate; and
            ``(2) if the response rate has not improved 2 years after 
        the date on which an improvement plan was submitted under 
        paragraph (1), submit to the Secretary a revised improvement 
        plan.
    ``(g) Authorization of Appropriations.--There is authorized to be 
appropriated $2,000,000 to carry out subsection (a).''.

SEC. 618. STUDY AND REPORT.

    (a) Study.--Not later than 180 days after the date of the enactment 
of this Act, the Comptroller General of the United States shall conduct 
a study on best practices for assisting students participating in the 
Federal work-study program under part C of title IV of the Higher 
Education Act (42 U.S.C. 1087-51 et seq.) with--
            (1) connecting to off-campus employers;
            (2) procuring work-based learning opportunities through 
        such program;
            (3) procuring employment that aligns with students' 
        educational goals or career goals;
            (4) locating employment through job location and 
        development programs;
            (5) procuring employment in high-demand occupations;
            (6) balancing employment with academic programs to improve 
        graduation and completion rates; and
            (7) with respect to students with exceptional need (as 
        defined in section 413C(c)(2) of the Higher Education Act of 
        1965 (20 U.S.C. 1070b-2(c)(2)))--
                    (A) locating and coordinating work-study employment 
                during qualified periods of nonenrollment;
                    (B) increasing participation of such students in 
                such work-study program; and
                    (C) limiting the need for additional employment 
                outside the work-study program.
    (b) Report.--Not later than one year after the date on which the 
study required under subsection (a) is completed, the Comptroller 
General of the United States shall submit to Congress a report 
summarizing the findings of such study.
    (c) Publish Report.--The Comptroller General of the United States 
shall make the report required under subsection (b) available to the 
public on the website of the Government Accountability Office.
                                 <all>