Title: Simplifying Financial Aid for Students Act of 2019
Policy area: Education

Summary:
Simplifying Financial Aid for Students Act of 2019
This bill revises the Free Application for Federal Student Aid (FAFSA) process and modifies federal student aid eligibility for certain students.
Among other things, the bill revises FAFSA to
The bill also modifies the student eligibility criteria for federal student financial aid to
Additionally, the IRS must disclose certain tax return information to the Department of Education (ED) for the purpose of administering financial aid and loan programs.
The bill also authorizes ED to carry out an early federal Pell Grant commitment program.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 1346 Introduced in Senate (IS)]

<DOC>






116th CONGRESS
  1st Session
                                S. 1346

 To amend the Higher Education Act of 1965 to require the Secretary to 
provide for the use of data from the second preceding tax year to carry 
     out the simplification of applications for the estimation and 
  determination of financial aid eligibility, to increase the income 
  threshold to qualify for a student aid index equal to or less than 
                     zero, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 7, 2019

   Mr. Booker (for himself, Mr. Merkley, Ms. Cortez Masto, and Mrs. 
  Gillibrand) introduced the following bill; which was read twice and 
  referred to the Committee on Health, Education, Labor, and Pensions

_______________________________________________________________________

                                 A BILL


 
 To amend the Higher Education Act of 1965 to require the Secretary to 
provide for the use of data from the second preceding tax year to carry 
     out the simplification of applications for the estimation and 
  determination of financial aid eligibility, to increase the income 
  threshold to qualify for a student aid index equal to or less than 
                     zero, 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 ``Simplifying Financial Aid for 
Students Act of 2019''.

SEC. 2. REFERENCES; GENERAL EFFECTIVE DATE.

    (a) References.--Except as otherwise expressly provided, whenever 
in this Act there is a reference to, or an amendment or repeal is 
expressed in terms of an amendment to, or a repeal of, a section or 
other provision, the reference shall be considered to be made to a 
section or other provision of the Higher Education Act of 1965 (20 
U.S.C. 1001 et seq.).
    (b) General Effective Date.--Except as otherwise provided in this 
Act or the amendments made by this Act, this Act and the amendments 
made by this Act shall be effective with respect to determinations of 
need under part F of title IV of the Higher Education Act of 1965 (20 
U.S.C. 1087kk et seq.) for the award year beginning July 1, 2020.

SEC. 3. EARLY ESTIMATES OF AVAILABLE AID.

    Section 483(a) (20 U.S.C. 1090(a)) is amended by adding at the end 
the following:
            ``(13) Evaluation of early estimate tools.--Not later than 
        the award year beginning July 1, 2020, the Secretary shall--
                    ``(A) evaluate any early estimate tools authorized 
                under paragraph (9); and
                    ``(B) identify and implement opportunities to 
                streamline those tools to align with the provisions 
                under part F.''.

SEC. 4. STUDENT AID INDEX.

    (a) Conforming Amendments.--The Act (20 U.S.C. 1001 et seq.) is 
amended--
            (1) by striking ``an expected family contribution'' each 
        place the term appears and inserting ``a student aid index'';
            (2) by striking ``expected family contributions'' each 
        place the term appears and inserting ``student aid indexes'';
            (3) by striking ``expected family contribution'' each place 
        the term appears and inserting ``student aid index'';
            (4) in section 474--
                    (A) in the section heading, by striking ``expected 
                family contribution'' and inserting ``student aid 
                index''; and
                    (B) in subsection (a), in the heading, by striking 
                ``Expected Family Contribution'' and inserting 
                ``Student Aid Index'';
            (5) in section 475--
                    (A) in the section heading, by striking ``family 
                contribution'' and inserting ``student aid index''; and
                    (B) in subsection (a), in the heading, by striking 
                ``Expected Family Contribution'' and inserting 
                ``Student Aid Index'';
            (6) in section 476--
                    (A) in the section heading, by striking ``family 
                contribution'' and inserting ``student aid index''; and
                    (B) in subsection (a), in the heading, by striking 
                ``Expected Family Contribution'' and inserting 
                ``Student Aid Index'';
            (7) in section 477--
                    (A) in the section heading, by striking ``family 
                contribution'' and inserting ``student aid index''; and
                    (B) in subsection (a), in the heading, by striking 
                ``Expected Family Contribution'' and inserting 
                ``Student Aid Index'';
            (8) by striking ``family contribution'' each place the term 
        appears and inserting ``student aid index''; and
            (9) by striking ``family contributions'' each place the 
        term appears and inserting ``student aid indexes''.
    (b) Calculation of Negative Student Aid Index.--The Act (20 U.S.C. 
1001 et seq.) is amended--
            (1) in section 475--
                    (A) in subsection (b), by striking ``requested;'' 
                and all that follows through the period at the end and 
                inserting ``requested.''; and
                    (B) in subsection (g)(1), by striking ``paragraph 
                (5);'' and all that follows through the period at the 
                end and inserting ``paragraph (5).'';
            (2) in section 476(a), by striking ``enrollment;'' and all 
        that follows through the period at the end and inserting 
        ``enrollment.'';
            (3) in section 477(a), by striking ``enrollment;'' and all 
        that follows through the period at the end and inserting 
        ``enrollment.''; and
            (4) in section 479(a)(2)(B), by inserting ``whose student 
        aid index would otherwise be a positive number using only the 
        elements of the simplified needs test under subsection 
        (b)(2),'' after ``requirements of subsection (c),''.
    (c) Negative Student Aid Index.--Section 471 (20 U.S.C. 1087kk) is 
amended to read as follows:

``SEC. 471. AMOUNT OF NEED.

    ``(a) In General.--The maximum dollar amount of financial 
assistance provided under this title to a student shall not exceed the 
cost of attendance for such student.
    ``(b) Negative Student Aid Index.--For purposes of determining 
eligibility for Federal financial aid under this part, any negative 
student aid index shall be treated as zero.''.

SEC. 5. CALCULATION OF STUDENT AID INDEX.

    (a) Student Aid Index.--Section 473 (20 U.S.C. 1087mm) is amended--
            (1) in the section heading, by striking ``family 
        contribution'' and inserting ``student aid index''; and
            (2) in subsection (b)--
                    (A) by striking the subsection heading and 
                inserting ``Student Aid Index Equal to or Less Than 
                Zero'';
                    (B) in paragraph (1), by adding ``or (3)'' after 
                ``paragraph (2)'';
                    (C) in paragraph (2)--
                            (i) by striking the paragraph heading and 
                        inserting ``Children of certain deceased 
                        veterans'';
                            (ii) in each of subparagraphs (B) and (C), 
                        by redesignating clauses (i) and (ii) as 
                        subclauses (I) and (II), respectively and 
                        adjusting the margins accordingly;
                            (iii) by redesignating subparagraphs (A), 
                        (B), and (C), as clauses (i), (ii), and (iii), 
                        respectively; and
                            (iv) by striking ``Paragraph (1) shall'' 
                        and inserting the following:
                    ``(A) Applicability.--Paragraph (1) shall'';
                    (D) in paragraph (3)--
                            (i) in subparagraph (A), by striking 
                        ``subparagraphs (A), (B)(i), and (C) of 
                        paragraph (2)'' and inserting ``clause (i), 
                        (ii)(I), and (iii) of subparagraph (A)''; and
                            (ii) in subparagraph (B)--
                                    (I) by striking ``subparagraphs 
                                (A), (B)(ii), and (C) of paragraph 
                                (2)'' and inserting ``clause (i), 
                                (ii)(II), and (iii) of subparagraph 
                                (A)'';
                                    (II) by redesignating clauses (i) 
                                through (iii) as subclauses (I) through 
                                (III), respectively, and adjusting the 
                                margins accordingly; and
                                    (III) by redesignating 
                                subparagraphs (A) and (B) as clauses 
                                (i) and (ii), respectively, and 
                                adjusting the margins accordingly;
                    (E) by redesignating paragraph (3) as subparagraph 
                (B) of paragraph (2), and adjusting the margins 
                accordingly;
                    (F) by redesignating paragraphs (4) and (5) as 
                paragraphs (5) and (6), respectively; and
                    (G) by inserting after paragraph (2)(B), as 
                redesignated by subparagraph (E), the following:
            ``(3) Recipients of certain means-tested benefits.--
                    ``(A) In general.--Paragraph (1) shall apply to a 
                student if--
                            ``(i) that student is a dependent student 
                        whose parent participated in a means-tested 
                        benefits program at any time during the period 
                        encompassed from the beginning of the second 
                        prior calendar year through the date of filing; 
                        or
                            ``(ii) that student is independent and the 
                        student or spouse of that student participated 
                        in a means-tested benefits program at any time 
                        during the period encompassed from the 
                        beginning of the second prior calendar year 
                        through the date of filing.
                    ``(B) Means-tested benefits program.--In this 
                paragraph, the term `means-tested Federal benefits 
                program' means--
                            ``(i) the supplemental security income 
                        program under title XVI of the Social Security 
                        Act (42 U.S.C. 1381 et seq.);
                            ``(ii) the supplemental nutrition 
                        assistance program established under the Food 
                        and Nutrition Act of 2008 (7 U.S.C. 2011 et 
                        seq.);
                            ``(iii) the Medicaid program under title 
                        XIX of the Social Security Act (42 U.S.C. 1396 
                        et seq.);
                            ``(iv) the free and reduced price school 
                        lunch program established under the Richard B. 
                        Russell National School Lunch Act (42 U.S.C. 
                        1751 et seq.);
                            ``(v) a State program funded under the 
                        temporary assistance for needy families program 
                        under part A of title IV of the Social Security 
                        Act (42 U.S.C. 601 et seq.);
                            ``(vi) the special supplemental nutrition 
                        program for women, infants, and children 
                        established by section 17 of the Child 
                        Nutrition Act of 1966 (42 U.S.C. 1786); and
                            ``(vii) any other program determined by the 
                        Secretary to be appropriate based on--
                                    ``(I) the reliability under which 
                                the need for benefits from the program 
                                is established; and
                                    ``(II) the feasibility of data 
                                linkages.
            ``(4) Determination for state and institutional aid.--For 
        each student whose student aid index is deemed to be zero under 
        paragraph (1), the Secretary shall also calculate the student 
        aid index for the student, using the simplified version of the 
        Free Application for Federal Student Aid form in accordance 
        with section 479, to identify students who have a negative 
        student aid index and may be eligible for additional State or 
        institutional aid.''.
    (b) Simplified Needs Test.--Section 479 (20 U.S.C. 1087ss) is 
amended to read as follows:

``SEC. 479. SIMPLIFIED NEEDS TESTS.

    ``(a) Simplified Application Section.--
            ``(1) In general.--The Secretary shall develop and use a 
        simplified version of the Free Application for Federal Student 
        Aid form prescribed under section 483(a) for families described 
        in subsections (b) and (c) of this section.
            ``(2) Reduced data requirements.--The simplified version 
        shall--
                    ``(A) in the case of a family meeting the 
                requirements of subsection (b)(1), permit such family 
                to submit only the data elements required under 
                subsection (b)(2) for the purposes of establishing 
                eligibility for student financial aid under this part; 
                and
                    ``(B) in the case of a family meeting the 
                requirements of subsection (c), permit such family to 
                be treated as having a student aid index equal to or 
                less than zero for purposes of establishing such 
                eligibility and to submit only the data elements 
                required to make a determination under subsection (c).
    ``(b) Simplified Needs Test.--
            ``(1) Eligibility.--An applicant is eligible to file a 
        simplified version containing the elements required by 
        paragraph (2) if--
                    ``(A) in the case of an applicant who is a 
                dependent student--
                            ``(i) the student's parents include at 
                        least one parent who is a dislocated worker; 
                        and
                            ``(ii) the total adjusted gross income of 
                        the parents (excluding any income of the 
                        dependent student) is less than $50,000; or
                    ``(B) in the case of an applicant who is an 
                independent student--
                            ``(i) the student (and the student's 
                        spouse, if any) is a dislocated worker or has a 
                        spouse who is a dislocated worker; and
                            ``(ii) the adjusted gross income of the 
                        student (and the student's spouse, if any) is 
                        less than $50,000.
            ``(2) Simplified test elements.--The six elements to be 
        used for the simplified needs analysis are--
                    ``(A) adjusted gross income,
                    ``(B) Federal taxes paid,
                    ``(C) untaxed income and benefits,
                    ``(D) the number of family members,
                    ``(E) the number of family members in postsecondary 
                education, and
                    ``(F) an allowance (A) for State and other taxes, 
                as defined in section 475(c)(2) for dependent students 
                and in section 477(b)(2) for independent students with 
                dependents other than a spouse, or (B) for State and 
                other income taxes, as defined in section 476(b)(2) for 
                independent students without dependents other than a 
                spouse.
            ``(3) Qualifying forms.--In the case of an independent 
        student, the student, or in the case of a dependent student, 
        the family, files a form described in this subsection, or 
        subsection (c), as the case may be, if the student or family, 
        as appropriate, files--
                    ``(A) a form 1040 (including any prepared or 
                electronic version of such form) required pursuant to 
                the Internal Revenue Code of 1986; or
                    ``(B) an income tax return (including any prepared 
                or electronic version of such return) required pursuant 
                to the tax code of the Commonwealth of Puerto Rico, 
                Guam, American Samoa, the Virgin Islands, the Republic 
                of the Marshall Islands, the Federated States of 
                Micronesia, or Palau.
    ``(c) Student Aid Index Equal to or Less Than Zero.--
            ``(1) In general.--The Secretary shall consider an 
        applicant to have a student aid index equal to or less than 
        zero if--
                    ``(A) in the case of a dependent student--
                            ``(i) the student's parents--
                                    ``(I) certify that the parents are 
                                not required to file a Federal income 
                                tax return; and
                                    ``(II) include at least one parent 
                                who is a dislocated worker; or
                            ``(ii) the sum of the adjusted gross annual 
                        income of the parents is less than or equal to 
                        $36,000;
                    ``(B) in the case of an independent student with 
                dependents other than a spouse--
                            ``(i) the student (and the student's 
                        spouse, if any)--
                                    ``(I) certifies that the student 
                                (and the student's spouse, if any) is 
                                not required to file a Federal income 
                                tax return; and
                                    ``(II) is a dislocated worker or 
                                has a spouse who is a dislocated 
                                worker; or
                            ``(ii) the sum of the adjusted gross annual 
                        income of the student and spouse (if 
                        appropriate) is less than or equal to $36,000; 
                        or
                    ``(C) in the case of an independent students 
                without dependents--
                            ``(i) the student--
                                    ``(I) certifies that the student is 
                                not required to file a Federal income 
                                tax return; and
                                    ``(II) is a dislocated worker; or
                            ``(ii) the sum of the adjusted gross annual 
                        income of the student is less than or equal to 
                        $23,000.
            ``(2) Eligibility.--An individual is not required to 
        qualify or file for the earned income credit in order to be 
        eligible under this subsection. The Secretary shall annually 
        adjust the income level necessary to qualify an applicant for 
        the student aid index of equal to or less than zero. The income 
        level shall be adjusted by a percentage equal to increases in 
        the Consumer Price Index between the calendar year preceding 
        the beginning of such academic year, and the second preceding 
        year, rounding the result to the nearest $1,000.
    ``(d) Dislocated Worker.--In this section, the term `dislocated 
worker' has the meaning given the term in section 3 of the Workforce 
Innovation and Opportunity Act.''.

SEC. 6. FAFSA SIMPLIFICATION.

    (a) FAFSA Simplification.--Section 483(f) (20 U.S.C. 1090(f)) is 
amended to read as follows:
    ``(f) Reduction of Income and Asset Information To Determine 
Eligibility for Student Financial Aid.--
            ``(1) Use of internal revenue service data to populate 
        fafsa.--The Secretary shall--
                    ``(A) make every effort to make available and allow 
                applicants to utilize the data that is available to the 
                Secretary pursuant to section 6103(l)(13) of the 
                Internal Revenue Code of 1986 to reduce the amount of 
                original data entry by applicants and strengthen the 
                reliability of data used to calculate a student aid 
                index to--
                            ``(i) allow an applicant to automatically 
                        populate the electronic version of the forms 
                        under this section with data available from the 
                        Internal Revenue Service;
                            ``(ii) direct an applicant to appropriate 
                        questions on such forms based on the 
                        applicant's answers to previous questions;
                            ``(iii) identify the type of form filed and 
                        whether certain forms or schedules, as 
                        identified by the Secretary, were filed with 
                        Federal form 1040;
                            ``(iv) transfer all applicable schedule 
                        information; and
                            ``(v) allow an applicant to verify that the 
                        applicant or the family of the applicant did 
                        not file a Federal tax return without 
                        additional action on the part of the student; 
                        and
                    ``(B) allow single taxpayers, married taxpayers 
                filing jointly, and married taxpayers filing separately 
                to utilize such data retrieval tool to its full 
                capacity.
            ``(2) Strengthening the irs data.--The Secretary shall work 
        with the Secretary of the Treasury to expand the capabilities 
        of transferring relevant Internal Revenue Service data by--
                    ``(A) incorporating all fields from Federal tax 
                returns and W-2 forms relevant to need analysis; and
                    ``(B) incorporating line items from forms and 
                schedules identified by the Secretary.
            ``(3) Cross agency linkages.--
                    ``(A) In general.--The Secretary, in coordination 
                with the head of each agency that administers a 
                specified means-tested Federal benefits program (as 
                defined in section 473(b)(3)), shall examine how the 
                agency can verify an applicant or an applicant's 
                family's receipt of specified means-tested Federal 
                benefits in order to compute a student aid index for 
                low-income students in order to simplify, for students, 
                the application process for student financial 
                assistance.
                    ``(B) Connection to other means tested benefits.--
                The Secretary shall enter into data sharing agreements, 
                as necessary, to enable the sharing of FAFSA data for 
                the purpose of conducting outreach regarding, and 
                connecting students to, State or Federal means-tested 
                benefits programs (including means-tested Federal 
                benefits programs as defined in section 473(b)(3)) for 
                which the students may be eligible and for which, if 
                eligible, could reduce the applicant's need to borrow 
                or work during college.
                    ``(C) Automatic maximum federal pell grant.--The 
                Secretary shall ensure that a student who is described 
                in section 473(b)(3) or whose income or family income 
                is less than $36,000 at any point during the 24-month 
                period preceding the date of the determination, is a 
                full-time student, and submits a form under this 
                section, shall receive a maximum Federal Pell Grant and 
                a determination of a student aid index of equal to or 
                less than zero without additional action on the part of 
                the student or the family of the student.
                    ``(D) Part-time students.--The Secretary shall 
                ensure that a part-time student who is described in 
                section 473(b)(3) and submits a form under this section 
                shall receive a determination of a student aid index of 
                equal to or less than zero.
            ``(4) Prohibition against requesting information more than 
        once.--Any information requested during the process of creating 
        an account for completing the web-based free application under 
        this subsection, shall not be required a second time for the 
        same award year, or in a duplicative manner, when completing 
        such web-based free application.
            ``(5) Change in family size.--The Secretary shall provide a 
        process by which an applicant shall confirm the accuracy of 
        family size or may update the family size with respect to such 
        applicant for purposes of determining the need of such 
        applicant for financial assistance under this title based on a 
        change in family size from the tax year data used for such 
        determination.
            ``(6) Report.--The Secretary shall report to Congress 
        annually on the Department's progress in maintaining and 
        expanding the Internal Revenue Service data retrieval tool and 
        in establishing cross agency linkages, as described in this 
        subsection, and simultaneously make such reports publicly 
        available.''.
    (b) Mobile Use.--Section 483(a)(3) (20 U.S.C. 1090(a)(3)) is 
amended by adding at the end the following:
                    ``(I) Mobile device format.--The Secretary shall 
                make the electronic version of the forms under this 
                paragraph available through a technology tool that can 
                be used on mobile devices. Such technology tool shall, 
                at a minimum, enable applicants to--
                            ``(i) save data; and
                            ``(ii) submit the electronic version of the 
                        forms under this paragraph to the Secretary 
                        through such tool.''.
    (c) Languages for FAFSA.--Section 483 (20 U.S.C. 1090 et seq.) is 
amended by adding at the end the following:
    ``(i) Languages for FAFSA.--The Secretary, in conjunction with the 
Director of the Census Bureau, shall determine the most common 
languages spoken at home in the United States and shall develop 
versions of the FAFSA form in each of those languages.''.
    (d) Outreach by Financial Aid Advisors.--Section 483 (20 U.S.C. 
1090 et seq.), as amended by subsection (c), is further amended by 
adding at the end the following:
    ``(j) Outreach by Financial Aid Advisors.--An institution of higher 
education may use information provided on a FAFSA to reach out to and 
counsel a student on the student's eligibility for means-tested 
benefits in which the student is not enrolled and outside scholarships 
for which a student is eligible.''.

SEC. 7. PRIOR-PRIOR YEAR AND DEFINITIONS OF TOTAL INCOME AND ASSETS.

    (a) Total Income.--Section 480(a)(1) (20 U.S.C. 1087vv(a)(1)) is 
amended to read as follows:
            ``(1) In general.--
                    ``(A) Determination.--Except as provided in 
                paragraph (2), the term `total income' is equal to--
                            ``(i) in the case of an individual who has 
                        not filed, and is not required to file, any 
                        Federal tax return or in the case of a 
                        qualified recipient of a means-tested Federal 
                        benefits program, as defined in section 
                        473(b)(3)(B), earned income for the second 
                        preceding tax year minus excludable income (as 
                        defined in subsection (e)); and
                            ``(ii) in the case of an individual who 
                        filed a Federal tax return or in the case of an 
                        individual who filed a foreign tax return in 
                        lieu of a Federal tax return, adjusted gross 
                        income from applicable schedule plus untaxed 
                        income and benefits for the second preceding 
                        fiscal tax year minus excludable income (as 
                        defined in subsection (e)).
                    ``(B) Use of data.--Notwithstanding section 478(a), 
                the Secretary shall provide for the use of data from 
                the second preceding tax year when and to the extent 
                necessary to carry out the simplification of 
                applications (including simplification for a subset of 
                applications) used for the estimation and determination 
                of financial aid eligibility. Such simplification shall 
                include the sharing of data between the Internal 
                Revenue Service and the Department, pursuant to the 
                consent of the taxpayer.''.
    (b) Conforming Amendment.--Section 480(a) (20 U.S.C. 1087vv(a)) is 
amended--
            (1) by moving paragraph (2) two ems to the right; and
            (2) in paragraph (2), by striking ``No portion'' and 
        inserting the following: ``Amounts not included.--No portion''.
    (c) Untaxed Income and Benefits.--Section 480(b) (20 U.S.C. 
1087vv(b)) is amended to read as follows:
    ``(b) Untaxed Income and Benefits.--The term `untaxed income and 
benefits' means--
            ``(1) the aggregate amount of losses taken into account for 
        determining adjusted gross income on Federal form 1040 and 
        applicable schedules;
            ``(2) the amount of any tax-exempt interest income reported 
        on Federal form 1040; and
            ``(3) amounts of foreign income excluded from adjusted 
        gross income and reported on Federal form 2555.''.
    (d) Excludable Income.--Section 480(e) (20 U.S.C. 1087vv(e)) is 
amended to read as follows:
    ``(e) The term `excludable income' means--
            ``(1) any student financial assistance awarded based on 
        need as determined in accordance with the provisions of this 
        part, including any income earned from work under part C of 
        this title; and
            ``(2) payments made and services provided under part E of 
        title IV of the Social Security Act (42 U.S.C. 670 et seq.) to 
        or on behalf of any child or youth over whom the State agency 
        has responsibility for placement, care, or supervision, 
        including the value of vouchers for education and training and 
        amounts expended for room and board for youth who are not in 
        foster care but are receiving services under section 477 of 
        such Act (42 U.S.C. 677).''.
    (e) Assets.--Section 480(f)(1) (20 U.S.C. 1087vv(f)(1)) is amended 
by striking ``The term'' and all that follows through the period at the 
end and inserting the following:
                    ``(A) In determining the value of assets in a 
                determination of need under this title in the case of 
                an individual who has not filed, and is not required to 
                file, any Federal tax return or in the case of a 
                qualified recipient of a means-tested Federal benefits 
                program, as defined in section 473(b)(3)(B), the 
                individual's assets shall be considered to be equal to 
                zero.
                    ``(B) In the case of an individual who filed a form 
                1040 with forms or schedules, the term assets means 
                amounts held in money market savings accounts or funds, 
                capital gains, prize or award money, gambling winnings, 
                time deposits, trusts, stocks, bonds, other securities, 
                mutual funds, tax shelters, business income, rental 
                real estate, royalties, partnerships, S corporations, 
                qualified education benefits (except as provided in 
                paragraph (3)), and the net value of real estate, 
                income producing property, and business and farm 
                assets, excluding the primary home.''.
    (f) Special Combat Pay.--Section 480 (20 U.S.C. 1087vv) is 
amended--
            (1) in subsection (j), by striking paragraph (4); and
            (2) by striking subsection (n).

SEC. 8. ELIMINATING UNNECESSARY AND BURDENSOME QUESTIONS.

    Section 483(a) (20 U.S.C. 1090(a)), as amended by section 3, is 
further amended by adding at the end the following:
            ``(14) Prohibition of unnecessary and burdensome 
        questions.--Notwithstanding any other provision of law, the 
        Secretary shall not include on any form developed under this 
        section a question about the applicant's criminal history, 
        registration for selective service, student taxable earnings 
        from need-based employment like work study, student combat pay, 
        student cooperative education program earnings, student IRA 
        deductions, student tax exempt interest income, student untaxed 
        portions of IRA distributions, student untaxed portions of 
        pensions, student military or clergy living allowances, student 
        veteran noneducation benefits, student other untaxed income, 
        parent child support paid, child support received, parent 
        taxable earnings from need-based employment like work-study, 
        parent college grant or scholarship aid reported to the 
        Internal Revenue Service, parent combat pay, parent cooperative 
        education program earnings, parent IRA deductions, parent tax 
        exempt interest income, parent untaxed portions of pensions, 
        parent military or clergy living allowances, parent veteran 
        noneducation benefits, or parent other untaxed income.''.

SEC. 9. EXCEPTION TO REQUIRED REGISTRATION WITH SELECTIVE SERVICE 
              SYSTEM; DEPARTMENT OF EDUCATION DATA MATCHING.

    (a) Student Eligibility.--Subsection (n) of section 484 (20 U.S.C. 
1091) is repealed.
    (b) Repeal of Ineligibility for Certain Assistance for Failure To 
Register With System.--Section 12 of the Military Selective Service Act 
(50 U.S.C. 3811) is amended--
            (1) by striking subsection (f); and
            (2) by redesignating subsection (g) as subsection (f).

SEC. 10. REPEAL OF SUSPENSION OF ELIGIBILITY FOR DRUG-RELATED OFFENSES; 
              NOTICE CONCERNING PENALTIES FOR DRUG VIOLATIONS.

    (a) Repeal.--Subsection (r) of section 484 (20 U.S.C. 1091(r)) is 
repealed.
    (b) Conforming Amendments.--The Act is amended--
            (1) in section 428(b)(3) (20 U.S.C. 1078(b)(3))--
                    (A) in subparagraph (C), by striking ``485(l)'' and 
                inserting ``485(k)''; and
                    (B) in subparagraph (D), by striking ``485(l)'' and 
                inserting ``485(k)'';
            (2) in section 435(d)(5) (20 U.S.C. 1085(d)(5))--
                    (A) in subparagraph (E), by striking ``485(l)'' and 
                inserting ``485(k)''; and
                    (B) in subparagraph (F), by striking ``485(l)'' and 
                inserting ``485(k)'';
            (3) in section 485 (20 U.S.C. 1092)--
                    (A) by striking subsection (k); and
                    (B) by redesignating subsections (l) and (m) as 
                subsections (k) and (l), respectively; and
            (4) in section 487(e)(2)(B)(ii)(IV) (20 U.S.C. 
        1094(e)(2)(B)(ii)(IV)), by striking ``(l) of section 485'' and 
        inserting ``(k) of section 485''.

SEC. 11. IMPROVING FINANCIAL AID FOR HOMELESS AND FOSTER CARE CHILDREN 
              AND YOUTH.

    (a) Independent Student.--Section 480(d)(1)(H) (20 U.S.C. 
1087vv(d)(1)(H)) is amended--
            (1) in the matter preceding clause (i)--
                    (A) by striking ``during the school year in which 
                the application is submitted'';
                    (B) by inserting ``age 23 or younger'' after 
                ``unaccompanied youth''; and
                    (C) by striking ``terms are'' and inserting ``term 
                is'';
            (2) in clause (i), by inserting ``, or a designee of the 
        liaison'' after ``Act'';
            (3) in clause (ii), by striking ``a program funded under 
        the Runaway and Homeless Youth Act'' and inserting ``an 
        emergency or transitional shelter, street outreach program, 
        homeless youth drop-in center, or other program serving 
        homeless youth,''; and
            (4) in clause (iii), by striking ``program funded under 
        subtitle B of title IV of the McKinney-Vento Homeless 
        Assistance Act (relating to emergency shelter grants)'' and 
        inserting ``Federal TRIO program or a Gaining Early Awareness 
        and Readiness for Undergraduate program under chapter 1 or 2 of 
        subpart 2 of part A,''.
    (b) Foster Care Children and Youth.--Section 103 (20 U.S.C. 1003) 
is amended--
            (1) by redesignating paragraphs (10) through (24) as 
        paragraphs (11) through (25), respectively; and
            (2) by inserting after paragraph (9) the following:
            ``(10) Foster care children and youth.--The term `foster 
        care children and youth'--
                    ``(A) means children and youth whose care and 
                placement are the responsibility of the State or Tribal 
                agency that administers a State or Tribal plan under 
                part B or E of title IV of the Social Security Act (42 
                U.S.C. 621 et seq. and 670 et seq.), without regard to 
                whether foster care maintenance payments are made under 
                section 472 of such Act (42 U.S.C. 672) on behalf of 
                such children and youth; and
                    ``(B) includes individuals who were age 13 or older 
                when their care and placement were the responsibility 
                of a State or Tribal agency that administered a State 
                or Tribal plan under part B or E of title IV of the 
                Social Security Act (42 U.S.C. 621 et seq. and 670 et 
                seq.) and who are no longer under the care and 
                responsibility of such a State or Tribal agency, 
                without regard to any such individual's subsequent 
                adoption, guardianship arrangement, or other form of 
                permanency outcome.''.
    (c) Streamlining Determinations and Verification.--Section 480(d) 
(20 U.S.C. 1087vv(d)) is amended by adding at the end the following:
            ``(3) Simplifying the determination process for 
        unaccompanied youth.--
                    ``(A) Verification.--A financial aid administrator 
                shall accept a determination of independence made by 
                any individual authorized to make such determinations 
                under clause (i), (ii), or (iii) of paragraph (1)(H) in 
                the absence of conflicting information. A documented 
                phone call with, or a written statement from, one of 
                the authorized individuals is sufficient verification 
                when needed. For purposes of this paragraph, a 
                financial aid administrator's disagreement with the 
                determination made by an authorized individual shall 
                not be considered conflicting information.
                    ``(B) Determination of independence.--A financial 
                aid administrator shall make a determination of 
                independence under paragraph (1)(H) if a student does 
                not have, and cannot get, documentation from any of the 
                other designated authorities described in such 
                paragraph. Such a determination shall be--
                            ``(i) based on the definitions outlined in 
                        paragraph (1)(H);
                            ``(ii) distinct from a determination of 
                        independence under paragraph (1)(I);
                            ``(iii) based on a documented interview 
                        with the student; and
                            ``(iv) limited to whether the student meets 
                        the definitions in paragraph (1)(H) and not 
                        about the reasons for the student's 
                        homelessness.
                    ``(C) Additional streamlining permitted.--Nothing 
                in this paragraph prohibits an institution from 
                implementing polices that--
                            ``(i) streamline the determination of 
                        independence under paragraph (1)(H); and
                            ``(ii) improve a student's access to 
                        financial aid because that student is an 
                        unaccompanied youth.
            ``(4) Simplifying the verification process for foster care 
        youth.--
                    ``(A) Verification of independence.--If an 
                institution requires documentation to verify that a 
                student is independent based on a status described in 
                paragraph (1)(B), a financial aid administrator shall 
                consider any of the following as adequate verification:
                            ``(i) Submission of a court order or 
                        official State documentation that the student 
                        received Federal or State support in foster 
                        care.
                            ``(ii) A documented phone call with, 
                        written statement from, or verifiable 
                        electronic data match with--
                                    ``(I) a child welfare agency 
                                authorized by a State or county;
                                    ``(II) a Tribal child welfare 
                                authority;
                                    ``(III) an independent living case 
                                worker;
                                    ``(IV) a public or private foster 
                                care placing agency or foster care 
                                facility or placement;
                                    ``(V) another program serving 
                                orphans, foster care youth, or wards of 
                                the court; or
                                    ``(VI) a probation officer.
                            ``(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 
                        Federal TRIO program or a Gaining Early 
                        Awareness and Readiness for Undergraduate 
                        Program under chapter 1 or 2 of subpart 2 of 
                        part A.
                            ``(v) Verification of the student's 
                        eligibility for an education and training 
                        voucher under the John H. Chafee Foster Care 
                        Independence Program under section 477 of the 
                        Social Security Act (42 U.S.C. 677).
                            ``(vi) Submission of a copy of the 
                        student's biological or adoptive parents' or 
                        legal guardians'--
                                    ``(I) certificates of death; or
                                    ``(II) verifiable obituaries.
                            ``(vii) An attestation from the student, 
                        which includes a description of why the student 
                        may qualify for a status described in paragraph 
                        (1)(B), including the approximate dates that 
                        the student was an orphan, in foster care, or a 
                        ward of the court, to the best of the student's 
                        knowledge after making reasonable efforts to 
                        provide any requested documentation.
                    ``(B) Additional streamlining permitted.--Nothing 
                in this paragraph prohibits an institution from 
                implementing polices that streamline the determination 
                of independent status and improve a student's access to 
                financial aid because that student is an orphan, in 
                foster care, or a ward of the court, or was an orphan, 
                in foster care, or a ward of the court at any time when 
                the student was 13 years of age or older.
            ``(5) Timing; use of earlier determination.--
                    ``(A) Timing.--A determination under subparagraph 
                (B) or (H) of paragraph (1) for a student--
                            ``(i) shall be made as quickly as 
                        practicable;
                            ``(ii) may be made as early as the year 
                        before the award year for which the student 
                        initially submits an application; and
                            ``(iii) shall be made no later than during 
                        the award year for which the student initially 
                        submits an application.
                    ``(B) Use of earlier determination.--Any student 
                who is determined to be independent under subparagraph 
                (B) or (H) of paragraph (1) for a preceding award year 
                at an institution shall be presumed to be independent 
                for each 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, and has informed the student of 
                        this information and the opportunity to 
                        challenge such information through a documented 
                        interview or an impartial review by the Student 
                        Loan Ombudsman pursuant to section 141(f)(3).
            ``(6) Retention of documents.--A financial aid 
        administrator shall retain all documents related to the 
        determination of independence under subparagraph (B) or (H) of 
        paragraph (1), 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.''.
    (d) Consolidating Questions Regarding Homeless Status on the 
FAFSA.--Section 483(a)(4) (20 U.S.C. 1090(a)(4)) is amended by adding 
at the end the following:
                    ``(C) Single question regarding homeless status.--
                The Secretary shall ensure that, on each form developed 
                under this section for which the information is 
                applicable, there is a single, easily understood 
                screening question to identify an applicant for aid who 
                is--
                            ``(i) an unaccompanied homeless child or 
                        youth (as such term is defined in section 725 
                        of the McKinney-Vento Homeless Assistance Act); 
                        or
                            ``(ii) an unaccompanied youth who is self-
                        supporting and at risk of homelessness.''.
    (e) Data Transparency on the Number of Financial Aid Applicants.--
Section 483 (20 U.S.C. 1090), as amended by section 6, is further 
amended by adding at the end the following:
    ``(k) Data Transparency on the Number of Applicants.--
            ``(1) In general.--The Secretary shall annually publish 
        data on the number of individuals who apply for Federal student 
        aid pursuant to this section who are homeless individuals 
        described in section 725 of the McKinney-Vento Homeless 
        Assistance Act (42 U.S.C. 11434a), including unaccompanied 
        youth, and foster care youth.
            ``(2) Contents.--The data described in paragraph (1) with 
        respect to homeless individuals shall include, at a minimum, 
        for each application cycle--
                    ``(A) the total number of all applicants who were 
                determined to be (or to be at risk of becoming) 
                unaccompanied homeless youth, under section 
                480(d)(1)(H);
                    ``(B) the number of applicants described in 
                subparagraph (A), disaggregated--
                            ``(i) by State; and
                            ``(ii) by the sources of determination as 
                        described in clauses (i) through (iv) of 
                        section 480(d)(1)(H); and
                    ``(C) the number of undetermined requests for 
                homelessness consideration, including statuses that 
                remain unknown because no determination had been made 
                in response the applicant's request for the institution 
                to consider the applicant's special circumstance of 
                being homeless.''.

SEC. 12. ELIGIBILITY FOR DREAMERS, TEMPORARY PROTECTED STATUS 
              BENEFICIARIES, AND DEFERRED ENFORCED DEPARTURE GRANTEES.

    Section 484 (20 U.S.C. 1091), as amended by sections 9 and 10, is 
further amended--
            (1) in subsection (a)(5), by inserting ``or be a Dreamer 
        student or a temporary protected status or deferred enforced 
        departure student'' after ``becoming a citizen or permanent 
        resident''; and
            (2) by inserting after subsection (q) the following:
    ``(r) Definitions for Dreamer Students and Temporary Protected 
Status or Deferred Enforcement Departure Students.--In this section:
            ``(1) Dreamer students.--
                    ``(A) In general.--The term `Dreamer student' means 
                an alien (as defined in section 101(a) of the 
                Immigration and Nationality Act (8 U.S.C. 1101(a))) 
                who--
                            ``(i) has been continuously physically 
                        present in the United States for not less than 
                        the 4-year period preceding the date of 
                        enactment of the Simplifying Financial Aid for 
                        Students Act of 2019;
                            ``(ii) was younger than 18 years of age on 
                        the date on which the alien initially entered 
                        the United States;
                            ``(iii)(I) has been admitted to an 
                        institution of higher education;
                            ``(II) in the United States, has--
                                    ``(aa) earned a high school diploma 
                                or a commensurate alternative award 
                                from a public or private high school;
                                    ``(bb) obtained a General 
                                Educational Development credential, or 
                                other equivalent of a high school 
                                diploma, recognized under State law; or
                                    ``(cc) obtained a recognized 
                                postsecondary credential that is 
                                recognized by the Secretary of 
                                Education, the Secretary of Labor, or a 
                                State under the Workforce Innovation 
                                and Opportunity Act; or
                            ``(III) is enrolled in secondary school or 
                        in an education program assisting students in--
                                    ``(aa) obtaining a regular high 
                                school diploma or a General Educational 
                                Development credential, or other 
                                equivalent of a high school diploma, 
                                recognized under State law;
                                    ``(bb) passing the General 
                                Educational Development examinations, a 
                                State-recognized high school diploma 
                                equivalency examination, or other 
                                similar State-authorized examination;
                                    ``(cc) obtaining a certificate or 
                                credential from an area career and 
                                technical education school, as defined 
                                in section 3 of the Carl D. Perkins 
                                Career and Technical Education Act of 
                                2006, providing education at the 
                                secondary level; or
                                    ``(dd) obtaining a recognized 
                                postsecondary credential; and
                            ``(iv)(I) is not inadmissible under 
                        paragraph (2), (3), (6)(E), (6)(G), (8), 
                        (10)(A), (10)(C), (10)(D), or (10)(E) of 
                        section 212(a) of the Immigration and 
                        Nationality Act (8 U.S.C. 1182(a));
                            ``(II) has not ordered, incited, assisted, 
                        or otherwise participated in the persecution of 
                        any person on account of race, religion, 
                        nationality, membership in a particular social 
                        group, or political opinion; and
                            ``(III) excluding any offense under State 
                        law for which an essential element is the 
                        alien's immigration status and any minor 
                        traffic offense, has not been convicted of--
                                    ``(aa) any offense under Federal or 
                                State law that is punishable by a 
                                maximum term of imprisonment of more 
                                than 1 year; or
                                    ``(bb) 3 or more offenses under 
                                Federal or State law for which the 
                                alien was convicted on different dates 
                                for each of the 3 offenses and 
                                imprisoned for an aggregate of 90 days 
                                or more.
                    ``(B) Hardship exception.--The Secretary of 
                Homeland Security shall issue regulations that direct 
                when the Department shall waive the requirement of 
                clause (i) or (ii), or both, of subparagraph (A) for an 
                individual to qualify as a Dreamer student, under such 
                subparagraph, if the individual--
                            ``(i) demonstrates compelling circumstances 
                        for the inability to satisfy the requirement of 
                        such clause (i) or (ii), or both; and
                            ``(ii) satisfies the requirement of clauses 
                        (iii) and (iv) of subparagraph (A).
            ``(2) Temporary protected status or deferred enforced 
        departure student.--The term `temporary protected status or 
        deferred enforced departure student' means an alien (as defined 
        in section 101(a) of the Immigration and Nationality Act (8 
        U.S.C. 1101(a))) who--
                    ``(A)(i) has been continuously physically present 
                in the United States for a period of not less than 3 
                years before the date of enactment of the Simplifying 
                Financial Aid for Students Act of 2019; and
                    ``(ii) is a national of a foreign state (or part 
                thereof), (or in the case of an alien having no 
                nationality, is a person who last habitually resided in 
                such state), with a designation under subsection (b) of 
                section 244 of the Immigration and Nationality Act (8 
                U.S.C. 1254a(b)) on September 25, 2016, who had or was 
                otherwise eligible for temporary protected status on 
                such date; or
                    ``(B) was under a grant of deferred enforced 
                departure as of September 28, 2016.''.

SEC. 13. PROVISIONAL INDEPENDENCE FOR CERTAIN STUDENTS.

    Section 483 (20 U.S.C. 1090), as amended by section 11, is further 
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:
    ``(l) Provisional Independent Students.--
            ``(1) Requirements for the secretary.--The Secretary 
        shall--
                    ``(A) enable each student who, based on a special 
                circumstance specified in accordance with 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 subparagraph (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 
                        the student meets 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) shall 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.''.

SEC. 14. SECURE DISCLOSURE OF TAX RETURN INFORMATION TO CARRY OUT THE 
              HIGHER EDUCATION ACT OF 1965.

    (a) Amendments to the Internal Revenue Code of 1986.--
            (1) In general.--Paragraph (13) of section 6103(l) of the 
        Internal Revenue Code of 1986 is amended to read as follows:
            ``(13) Disclosure of return information to carry out the 
        higher education act of 1965.--
                    ``(A) Income-contingent or income-based repayment 
                and total and permanent disability discharge.--The 
                Secretary shall, upon written request from the 
                Secretary of Education, disclose to officers, 
                employees, and contractors of the Department of 
                Education, as specifically authorized and designated by 
                the Secretary of Education, only for the purpose of 
                (and to the extent necessary in) establishing, 
                renewing, administering, and conducting analyses and 
                forecasts for estimating costs related to income 
                contingent or income-based repayment programs, and the 
                discharge of loans based on a total and permanent 
                disability (within the meaning of section 437(a) of the 
                Higher Education Act of 1965), under title IV of the 
                Higher Education Act of 1965, the following return 
                information (as defined in subsection (b)(2)) with 
                respect to taxpayers identified by the Secretary of 
                Education as participating in the loan programs under 
                title IV of such Act, for taxable years specified by 
                such Secretary:
                            ``(i) Taxpayer identity information with 
                        respect to such taxpayer.
                            ``(ii) The filing status of such taxpayer.
                            ``(iii) Type of tax return from which the 
                        return information is provided.
                            ``(iv) The adjusted gross income of such 
                        taxpayer.
                            ``(v) Total number of exemptions claimed, 
                        or total number of individuals and dependents 
                        claimed, as applicable, on the return.
                            ``(vi) Number of children with respect to 
                        which tax credits under section 24 are claimed 
                        on the return.
                            ``(vii) Other information determined to be 
                        necessary by agreement between the Secretary 
                        and the Secretary of Education to administer 
                        the Federal financial aid programs as required 
                        by the Higher Education Act of 1965.
                    ``(B) Federal student financial aid.--The Secretary 
                shall, upon written request from the Secretary of 
                Education, disclose to officers, employees, and 
                contractors of the Department of Education, as 
                specifically authorized and designated by the Secretary 
                of Education, only for the purpose of (and to the 
                extent necessary in) determining eligibility for, and 
                amount of, Federal student financial aid under programs 
                authorized by title IV of the Higher Education Act of 
                1965 and conducting analyses and forecasts for 
                estimating costs related to such programs, the 
                following return information (as defined in subsection 
                (b)(2)) with respect to taxpayers identified by the 
                Secretary of Education as applicants for Federal 
                student financial aid under title IV of such Act, for 
                taxable years specified by such Secretary:
                            ``(i) Taxpayer identity information with 
                        respect to such taxpayer.
                            ``(ii) The filing status of such taxpayer.
                            ``(iii) Type of tax return from which the 
                        return information is provided.
                            ``(iv) The adjusted gross income of such 
                        taxpayer.
                            ``(v) The amount of any net earnings from 
                        self-employment (as defined in section 1402), 
                        wages (as defined in section 3121(a) or 
                        3401(a)), business income, investment income, 
                        and taxable income from a farming business (as 
                        defined in section 236A(e)(4)) for the period 
                        reported on the return.
                            ``(vi) The total income tax of such 
                        taxpayer.
                            ``(vii) Total number of exemptions claimed, 
                        or total number of individuals and dependents 
                        claimed, as applicable, on the return.
                            ``(viii) Number of children with respect to 
                        which tax credits under section 24 are claimed 
                        on the return.
                            ``(ix) Amount of any credit claimed under 
                        section 25A for the taxable year.
                            ``(x) Amount of individual retirement 
                        account distributions not included in adjusted 
                        gross income for the taxable year.
                            ``(xi) Amount of individual retirement 
                        account contributions and payments to self-
                        employed SEP, Keogh, and other qualified plans 
                        which were deducted from income for the taxable 
                        year.
                            ``(xii) The amount of tax-exempt interest.
                            ``(xiii) Amounts from retirement pensions 
                        and annuities not included in adjusted gross 
                        income for the taxable year.
                            ``(xiv) If applicable, the fact that there 
                        is no return filed for such taxpayer for the 
                        applicable year.
                            ``(xv) Other information determined to be 
                        necessary by agreement between the Secretary 
                        and the Secretary of Education to administer 
                        the Federal financial aid programs as required 
                        by the Higher Education Act of 1965.
                    ``(C) Restriction on use of disclosed 
                information.--
                            ``(i) In general.--Return information 
                        disclosed under subparagraphs (A) and (B) may 
                        be used by officers, employees, and contractors 
                        of the Department of Education, as specifically 
                        authorized and designated by the Secretary of 
                        Education, only for the purposes and to the 
                        extent necessary described in such 
                        subparagraphs and for mitigating risks (as 
                        defined in clause (ii)) relating to the 
                        programs described in such subparagraphs.
                            ``(ii) Mitigating risks.--For purposes of 
                        this subparagraph, the term `mitigating risks' 
                        means, with respect to the programs described 
                        in subparagraphs (A) and (B)--
                                    ``(I) analyzing or estimating costs 
                                associated with potential changes to 
                                the need-analysis formula;
                                    ``(II) oversight activities by the 
                                Office of Inspector General of the 
                                Department of Education as authorized 
                                by the Inspector General Act of 1978, 
                                as amended;
                                    ``(III) developing or administering 
                                statistical models that inform support 
                                to populations of Federal student loan 
                                borrowers who are at risk of default or 
                                delinquency;
                                    ``(IV) reducing the net cost of 
                                improper payments to Federal financial 
                                aid recipients; and
                                    ``(V) producing aggregate 
                                statistics for reporting, research, or 
                                consumer information on the performance 
                                of programs or institutions of higher 
                                education participating in the programs 
                                under title IV of the Higher Education 
                                Act of 1965.
                        Such term does not include the conduct of 
                        criminal investigations or prosecutions.
                            ``(iii) Redisclosure to institutions of 
                        higher education, state higher education 
                        agencies, and designated scholarship 
                        organizations.--The Secretary of Education, and 
                        officers, employees, and contractors of the 
                        Department of Education, may disclose return 
                        information received under subparagraph (B), 
                        solely for the use in the application, award, 
                        and administration of Federal student financial 
                        aid, State aid, or aid awarded by eligible 
                        institutions or such entities as the Secretary 
                        of Education may designate, to the following 
                        persons:
                                    ``(I) An institution of higher 
                                education with which the Secretary of 
                                Education has an agreement under 
                                subpart 1 of part A, or part D or E, of 
                                title IV of the Higher Education Act of 
                                1965.
                                    ``(II) A State higher education 
                                agency.
                                    ``(III) A scholarship organization 
                                which is designated by the Secretary of 
                                Education as of the date of the 
                                enactment of the Simplifying Financial 
                                Aid for Students Act of 2019 as an 
                                organization eligible to receive the 
                                information provided under this clause.
                        The preceding sentence shall only apply to the 
                        extent that the taxpayer with respect to whom 
                        the return information relates provides consent 
                        for such disclosure to the Secretary of 
                        Education as part of the application for 
                        Federal student financial aid under title IV of 
                        the Higher Education Act of 1965.
                    ``(D) Required notification periods.--
                            ``(i) Notification to congress.--The 
                        Secretary and the Secretary of Education shall 
                        issue joint notifications to the Committees on 
                        Finance and Health, Education, Labor, and 
                        Pensions of the Senate and the Committees on 
                        Ways and Means and Education and Labor of the 
                        House of Representatives not less than 120 days 
                        prior to the first disclosure of any type of 
                        return information under subparagraph (A)(vii) 
                        or (B)(xv) with respect to which such a 
                        notification has not been previously made.
                            ``(ii) Public notice and comment.--There 
                        shall be a public notice and comment period 
                        beginning not less than 60 days prior to the 
                        first disclosure of any type of return 
                        information under subparagraph (A)(vii) or 
                        (B)(xv) with respect to which such a 
                        notification has not been previously made, 
                        subsequent to the period allotted for 
                        congressional comment under clause (i).''.
            (2) Confidentiality of return information.--Section 
        6103(a)(3) of such Code is amended by inserting ``, (13)(A), 
        (13)(B)'' after ``(12)''.
            (3) Conforming amendments.--Section 6103(p)(4) of such Code 
        is amended--
                    (A) by inserting ``(A), (13)(B)'' after ``(13)'' 
                each place it occurs; and
                    (B) by inserting ``, (13)(A), (13)(B)'' after 
                ``(l)(10)'' each place it occurs.
    (b) Effective Date.--The amendments made by this section shall 
apply to disclosures made under section 6103(l)(13) of the Internal 
Revenue Code of 1986 (as amended by this section) after the date of the 
enactment of this Act.

SEC. 15. NOTIFICATION OF REQUEST FOR TAX RETURN INFORMATION.

    (a) In General.--Part G of title IV (20 U.S.C. 1088 et seq.) is 
amended by adding at the end the following:

``SEC. 494. NOTIFICATION OF REQUEST FOR TAX RETURN INFORMATION.

    ``The Secretary shall advise students and borrowers who submit an 
application for Federal student financial aid under this title or for 
the discharge of a loan based on permanent and total disability, as 
described in section 437(a), or who request an income-contingent or 
income-based repayment plan on their loan (as well as parents and 
spouses who sign such an application or request or a Master Promissory 
Note on behalf of those students and borrowers) that the Secretary has 
the authority to request that the Internal Revenue Service disclose 
their tax return information (as well as that of parents and spouses 
who sign such an application or request or a Master Promissory Note on 
behalf of those students and borrowers) to officers, employees, and 
contractors of the Department of Education as authorized under section 
6103(1)(13) of the Internal Revenue Code of 1986, to the extent 
necessary for the Secretary to carry out this title.''.
    (b) Conforming Amendments Related to Student Eligibility.--Section 
484, as amended by sections 9, 10, and 12, is further amended--
            (1) by striking subsection (q);
            (2) by redesignating subsections (o), (p), (s), and (t) as 
        subsections (n), (o), (p), and (q), respectively; and
            (3) by transferring subsections (p) and (q), as 
        redesignated by paragraph (2), so as to precede subsection (r) 
        (as added by section 12(b)).

SEC. 16. EARLY FEDERAL PELL GRANT COMMITMENT PROGRAM.

    Subpart 1 of part A of title IV (20 U.S.C. 1070a et seq.) is 
amended by adding at the end the following:

``SEC. 401B. EARLY FEDERAL PELL GRANT COMMITMENT PROGRAM.

    ``(a) Program Authority.--The Secretary shall carry out an Early 
Federal Pell Grant Commitment Program (referred to in this section as 
the `Program') under which the Secretary--
            ``(1) makes a commitment to award Federal Pell Grants to 
        eligible students in accordance with this section; and
            ``(2) awards grants to States with approved applications 
        under subsection (c), to enable the States to administer the 
        Program, support eligible students, and carry out a targeted 
        information campaign described in subsection (d) in the State.
    ``(b) Program Requirements.--The Program shall meet the following 
requirements:
            ``(1) Eligible students.--A student shall be eligible to 
        receive a commitment from the Secretary under paragraph (2) if 
        the student--
                    ``(A) is in any of the grades 8 through 12; and
                    ``(B) is a member of a household receiving 
                assistance under the supplemental nutrition assistance 
                program established under the Food and Nutrition Act of 
                2008 (7 U.S.C. 2011 et seq.).
            ``(2) Federal pell grant commitment.--
                    ``(A) In general.--Each eligible student shall 
                receive a commitment from the Secretary to receive a 
                Federal Pell Grant during the first 2 academic years 
                that the student is in attendance at an institution of 
                higher education as an undergraduate student, if the 
                student--
                            ``(i) applies for Federal financial aid 
                        (via the Free Application for Federal Student 
                        Aid under section 483) during the student's 
                        senior year of secondary school and during the 
                        succeeding academic year; and
                            ``(ii) enrolls at such institution of 
                        higher education--
                                    ``(I) not later than 3 years after 
                                such student receives a secondary 
                                school diploma or its recognized 
                                equivalent; or
                                    ``(II) if such student becomes a 
                                member of the armed forces, not later 
                                than 3 years after such student is 
                                discharged, separated, or released from 
                                the Armed Forces.
                    ``(B) Determination of continued eligibility.--When 
                an eligible student receiving a Federal Pell Grant 
                pursuant to the commitment under subparagraph (A) 
                enters the student's second academic year, the 
                Secretary shall notify the student--
                            ``(i) of the upcoming conclusion of the 
                        commitment; and
                            ``(ii) that the student will remain 
                        eligible for a Federal Pell Grant under section 
                        401 if the student, at the time of application, 
                        is--
                                    ``(I) a member of a household 
                                receiving assistance under the 
                                supplemental nutrition assistance 
                                program established under the Food and 
                                Nutrition Act of 2008 (7 U.S.C. 2011 et 
                                seq.) at the time of such application; 
                                or
                                    ``(II) is receiving benefits 
                                under--
                                            ``(aa) the supplemental 
                                        security income program under 
                                        title XVI of the Social 
                                        Security Act (42 U.S.C. 1381 et 
                                        seq.);
                                            ``(bb) a State program 
                                        funded under the temporary 
                                        assistance for needy families 
                                        program under part A of title 
                                        IV of the Social Security Act 
                                        (42 U.S.C. 601 et seq.);
                                            ``(cc) the Medicaid program 
                                        under title XIX of the Social 
                                        Security Act (42 U.S.C. 1396 et 
                                        seq.); or
                                            ``(dd) a means-tested 
                                        Federal benefit program, not 
                                        described in subclause (I), 
                                        (II), or (III), that is 
                                        determined appropriate by the 
                                        Secretary.
            ``(3) Applicability of federal pell grant requirements.--
                    ``(A) In general.--The requirements of section 401 
                shall apply to Federal Pell Grants awarded pursuant to 
                this section, except that with respect to each eligible 
                student in the Program, the amount of each such 
                eligible student's Federal Pell Grant only shall be 
                calculated by deeming such student to have a student 
                aid index equal to zero.
                    ``(B) Determination for state and institutional 
                aid.--For each student whose student aid index is 
                deemed to be zero under subparagraph (A), the Secretary 
                shall also calculate the student aid index for the 
                student, using the simplified version of the Free 
                Application for Federal Student Aid form in accordance 
                with section 479, to identify students who have a 
                negative student aid index and may be eligible for 
                additional State or institutional aid.
    ``(c) State Applications.--
            ``(1) In general.--Each State desiring to participate in 
        the Program shall submit an application to the Secretary at 
        such time and in such manner as the Secretary may require.
            ``(2) Contents.--Each application shall include--
                    ``(A) a description of the State's proposed 
                targeted information campaign for the Program, in 
                accordance with subsection (d), and a copy of the plan 
                described in subsection (d)(2);
                    ``(B) an assurance that the State will fully 
                cooperate with the ongoing evaluation of the Program 
                under subsection (e);
                    ``(C) a description of how the State will--
                            ``(i) encourage participating secondary 
                        students to enroll in rigorous and challenging 
                        curricula and coursework, in order to reduce 
                        the need for remedial coursework at the 
                        postsecondary level;
                            ``(ii) increase the number of eligible 
                        students who--
                                    ``(I) obtain a secondary school 
                                diploma; and
                                    ``(II) complete applications for 
                                and enroll in a program of 
                                postsecondary education;
                            ``(iii) introduce eligible students to 
                        institutions of higher education, through trips 
                        and school-based sessions;
                            ``(iv) provide eligible students with 
                        assistance in the admissions and application 
                        process for institutions of higher education or 
                        other postsecondary education programs; and
                            ``(v) ensure that each eligible student has 
                        an educational development plan; and
                    ``(D) such other information as the Secretary may 
                require.
            ``(3) Educational development plan.--In this subsection, 
        the term `educational development plan' means an individualized 
        plan for a student that--
                    ``(A) contains a series of steps to help promote 
                the student's career awareness and exploration; and
                    ``(B) assists students in identifying--
                            ``(i) postsecondary options, including 
                        baccalaureate and subbaccalaureate degree 
                        programs; or
                            ``(ii) career and technical programs of 
                        study, including career and technical programs 
                        of study as defined in section 3 of the Carl D. 
                        Perkins Career and Technical Education Act of 
                        2006 (20 U.S.C. 2302).
    ``(d) Targeted Information Campaign and Plan.--
            ``(1) In general.--Each State receiving a grant under this 
        section shall, in cooperation with the participating local 
        educational agencies within the State and the Secretary, 
        develop a targeted information campaign for the Program.
            ``(2) Plan.--Each State receiving a grant under this 
        section shall include in the application submitted under 
        subsection (c) a written plan for their proposed targeted 
        information campaign. The plan shall include the following:
                    ``(A) Outreach.--Outreach to students and their 
                families, at a minimum, at the beginning and end of 
                each academic year.
                    ``(B) Distribution.--How the State plans to provide 
                the outreach described in subparagraph (A) and to 
                provide the information described in subparagraph (C).
                    ``(C) Information.--The annual provision by the 
                State to all students and families participating in the 
                Program of information regarding--
                            ``(i) the average net price of in-State 
                        institutions of higher education, disaggregated 
                        by sector and by income quintile;
                            ``(ii) Federal Pell Grants, including--
                                    ``(I) the maximum Federal Pell 
                                Grant for each academic year;
                                    ``(II) when and how to apply for a 
                                Federal Pell Grant; and
                                    ``(III) what the application 
                                process for a Federal Pell Grant 
                                requires;
                            ``(iii) State-specific postsecondary 
                        education savings programs;
                            ``(iv) State-based financial aid;
                            ``(v) Federal financial aid available to 
                        students, including eligibility criteria for 
                        the Federal financial aid and an explanation of 
                        the Federal financial aid programs; and
                            ``(vi) financial aid that may be available 
                        from nongovernmental sources.
            ``(3) Annual information.--The information described in 
        paragraph (2)(C) shall be provided to eligible students 
        annually for the duration of the students' participation in the 
        Program.
            ``(4) Reservation.--Each State receiving a grant under this 
        section shall reserve $200,000 of the grant funds received each 
        fiscal year to carry out the targeted information campaign 
        described in this subsection.
            ``(5) Information campaign in non-participating states.--In 
        the case of a State does not apply for a grant under this 
        section, or applies but does not satisfy the requirements of 
        the grant, the Secretary shall carry out an information 
        campaign and administer the Program for the State, in order to 
        ensure that eligible students in the State are assisted under 
        the Program.
    ``(e) Evaluation.--
            ``(1) In general.--From amounts appropriated under 
        subsection (f) for a fiscal year, the Secretary shall reserve 
        not more than $1,000,000 to award a grant or contract to an 
        organization outside the Department for an independent 
        evaluation of the impact of the Program.
            ``(2) Competitive basis.--The grant or contract shall be 
        awarded on a competitive basis.
            ``(3) Matters evaluated.--The evaluation described in this 
        subsection shall consider metrics established by the Secretary 
        that emphasize college access and success, encouraging low-
        income students to pursue higher education, and the cost 
        effectiveness of the program.
            ``(4) Dissemination.--The findings of the evaluation shall 
        be widely disseminated to the public by the organization 
        conducting the evaluation as well as by the Secretary.
    ``(f) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be 
necessary.''.
                                 <all>