Title: Equitable Student Aid Access Act
Policy area: Education

Summary:
Equitable Student Aid Access Act
This bill revises certain income requirements for calculating federal student financial aid amounts, and it requires the Department of Education (ED) to publish certain requirements for financial aid offers.
Specifically, the bill eliminates the simplified needs test in financial aid applications for families with income below a specified threshold, and it increases the income threshold that automatically qualifies a student for certain financial aid.
When determining the total income of an applicant or an applicant's household, ED shall provide for the use of data from the second preceding tax year to simplify applications used for the estimation and determination of financial aid eligibility.
ED must also conduct consumer testing to serve as the basis for determining requirements for financial aid offers. A financial aid offer must contain information such as cost of attendance and sources of available financial aid, as well as a standardized quick reference box to enable comparison of information on college costs and financial aid.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4680 Introduced in House (IH)]

<DOC>






116th CONGRESS
  1st Session
                                H. R. 4680

To amend the Higher Education Act of 1965 to simplify the financial aid 
              application process, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 15, 2019

 Mr. Doggett (for himself, Mrs. Davis of California, Mrs. Beatty, Mr. 
 Blumenauer, Ms. Brownley of California, Mr. Cardenas, Mr. Cartwright, 
  Ms. Judy Chu of California, Ms. Clarke of New York, Mr. Cohen, Ms. 
    Dean, Ms. DeGette, Ms. DeLauro, Mr. DeSaulnier, Mr. Engel, Mr. 
Espaillat, Mr. Foster, Mr. Gallego, Mr. Garamendi, Ms. Garcia of Texas, 
   Mr. Green of Texas, Mr. Grijalva, Ms. Haaland, Mr. Hastings, Mrs. 
Hayes, Mr. Higgins of New York, Mr. Himes, Ms. Jackson Lee, Mr. Johnson 
 of Georgia, Ms. Kaptur, Mr. Kilmer, Mr. Krishnamoorthi, Mr. Larson of 
 Connecticut, Ms. Lee of California, Mr. Levin of Michigan, Mr. Lewis, 
  Mr. Sean Patrick Maloney of New York, Mr. McGovern, Mr. Meeks, Ms. 
Moore, Mr. Moulton, Mr. Nadler, Mrs. Napolitano, Ms. Norton, Mr. Price 
    of North Carolina, Mr. Raskin, Mr. Ruppersberger, Mr. Ryan, Ms. 
Sanchez, Mr. Sarbanes, Ms. Schakowsky, Ms. Sewell of Alabama, Mr. Soto, 
Ms. Speier, Mr. Swalwell of California, Mr. Thompson of California, Ms. 
  Titus, Mr. Tonko, Mr. Welch, Mr. Lujan, Ms. Roybal-Allard, and Mr. 
   Kennedy) introduced the following bill; which was referred to the 
                    Committee on Education and Labor

_______________________________________________________________________

                                 A BILL


 
To amend the Higher Education Act of 1965 to simplify the financial aid 
              application process, 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 ``Equitable Student Aid Access Act''.

SEC. 2. ZERO EXPECTED FAMILY CONTRIBUTION.

    Section 479 of the Higher Education Act of 1965 (20 U.S.C. 1087ss) 
is amended to read as follows:

``SEC. 479. ZERO EXPECTED FAMILY CONTRIBUTION.

    ``(a) In General.--The Secretary shall consider an applicant to 
have an expected family contribution equal to zero if--
            ``(1) in the case of a dependent student--
                    ``(A)(i) the student's parents are not required to 
                file--
                            ``(I) a Federal income tax return; or
                            ``(II) with respect to Internal Revenue 
                        Service Form 1040, any of the following forms: 
                        Schedule A, Schedule B, Schedule C, Schedule C-
                        EZ, Schedule D, Schedule E, Schedule F, 
                        Schedule H, Schedule J, and Schedule SE; and
                    ``(ii) the sum of the adjusted gross income of the 
                parents is less than or equal to $34,000; or
                    ``(B) the student's parents, or the student, 
                received a benefit at some time during the previous 24-
                month period under a means-tested Federal benefit 
                program; or
            ``(2) in the case of an independent student without regard 
        to whether the student has dependents other than a spouse--
                    ``(A)(i) the student (and the student's spouse, if 
                any) certifies--
                            ``(I) that the student (and the student's 
                        spouse, if any)--
                                    ``(aa) is not required to file a 
                                Federal income tax return; or
                                    ``(bb) with respect to Internal 
                                Revenue Service Form 1040, any of the 
                                following forms: Schedule A, Schedule 
                                B, Schedule C, Schedule C-EZ, Schedule 
                                D, Schedule E, Schedule F, Schedule H, 
                                Schedule J, and Schedule SE; and
                    ``(ii) the sum of the adjusted gross income of the 
                student and spouse (if appropriate) is less than or 
                equal to $34,000; or
                    ``(B) the student received a benefit at some time 
                during the previous 24-month period under a means-
                tested Federal benefit program.
    ``(b) Earned Income Credit.--An individual is not required to 
qualify or file for the earned income credit in order to be eligible 
under this section.
    ``(c) Adjustments.--The Secretary shall annually adjust the income 
level necessary to qualify an applicant for the zero expected family 
contribution. The income level shall be annually increased by the 
estimated percentage change in the Consumer Price Index, as defined in 
section 478(f), for the most recent calendar year ending prior to the 
beginning of an award year, and rounded up to the nearest $1,000.
    ``(d) Means-Tested Federal Benefit Program Defined.--For purposes 
of this paragraph, a `means-tested Federal benefit program' means a 
mandatory spending program of the Federal Government, other than a 
program under this title, in which eligibility for the program's 
benefits, or the amount of such benefits, are determined on the basis 
of income or resources of the individual or family seeking the benefit, 
and may include such programs as--
            ``(1) the supplemental security income program under title 
        XVI of the Social Security Act (42 U.S.C. 1381 et seq.);
            ``(2) the supplemental nutrition assistance program under 
        the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.), a 
        nutrition assistance program carried out under section 19 of 
        such Act (7 U.S.C. 2028), and a supplemental nutrition 
        assistance program carried out under section 1841(c) of title 
        48 of the United States Code;
            ``(3) the program of block grants for States for temporary 
        assistance for needy families established under part A of title 
        IV of the Social Security Act (42 U.S.C. 601 et seq.);
            ``(4) 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);
            ``(5) the State Medicaid program under title XIX of the 
        Social Security Act (42 U.S.C. 1396 et seq.); and
            ``(6) any other program identified by the Secretary.''.

SEC. 3. USING DATA FROM SECOND PRECEDING YEAR.

    Section 480(a)(1)(B) of the Higher Education Act of 1965 (20 U.S.C. 
1087vv(a)(1)(B)) is amended--
            (1) by striking ``may'' in both places it appears and 
        inserting ``shall''; and
            (2) by striking ``sharing of data between'' and inserting 
        ``sharing of data, to the extent such data is available, 
        between''.

SEC. 4. FINANCIAL AID OFFERS.

    Section 485 of the Higher Education Act of 1965 (20 U.S.C. 1092) is 
amended by adding at the end the following:
    ``(n) Financial Aid Offers.--
            ``(1) Requirements for offers.--
                    ``(A) Secretarial requirements.--Not later than 18 
                months after the date of enactment of the Equitable 
                Student Aid Access Act, the Secretary shall, based on 
                the consumer testing conducted under subparagraph (E), 
                publish requirements for financial aid offers that 
                shall--
                            ``(i) include a requirement that financial 
                        aid offers shall serve as the primary source 
                        for Federal, State, and institutional financial 
                        aid information provided by an institution of 
                        higher education participating in any program 
                        under this title to each prospective student 
                        accepted for admission and each enrolled 
                        student at such institution;
                            ``(ii) include a requirement that such 
                        offers include a standardized quick reference 
                        box described in subparagraph (D);
                            ``(iii) establish standardized terms and 
                        definitions, including for the elements listed 
                        in subparagraph (C), that shall be included in 
                        each such offer;
                            ``(iv) establish formatting requirements 
                        with respect to the organization of the 
                        elements listed in subparagraph (C), which 
                        shall include a requirement that prohibits such 
                        offers from displaying loans in a manner that 
                        indicates or implies that such loans reduce the 
                        amount owed to the institution or reduce the 
                        net price; and
                            ``(v) specify the simple, plain-language, 
                        and consumer-friendly information to be 
                        included in each such offer with respect to the 
                        financial aid being offered to a student, which 
                        shall include--
                                    ``(I) an explanation of differences 
                                among each such type of financial aid, 
                                including clear explanations that--
                                            ``(aa) grants and 
                                        scholarships do not have to be 
                                        repaid;
                                            ``(bb) loans (including 
                                        loans made under part D and 
                                        private education loans (as 
                                        defined in section 140 of the 
                                        Truth in Lending Act)) must be 
                                        repaid with interest; and
                                            ``(cc) payments under 
                                        Federal-work study programs 
                                        under part C are contingent on 
                                        finding qualified employment 
                                        and are typically disbursed 
                                        incrementally in paychecks;
                                    ``(II) information encouraging 
                                students to consider loans made under 
                                part D before such private education 
                                loans;
                                    ``(III) information clarifying that 
                                students may--
                                            ``(aa) decline to accept a 
                                        loan made under part D; or
                                            ``(bb) accept an amount of 
                                        such loan that is less than the 
                                        amount of such loan included in 
                                        the financial aid offer; and
                                    ``(IV) in a case in which the 
                                institution offers a student such a 
                                loan in an amount that is less than the 
                                maximum amount for which the student is 
                                eligible, an explanation that the 
                                student is eligible for additional 
                                loans under part D.
                    ``(B) Institutional requirements.--Beginning with 
                the award year that begins not less than 1 year after 
                the Secretary publishes requirements under subparagraph 
                (A), each institution of higher education described in 
                subparagraph (A)(i) shall provide a financial aid offer 
                to each student described in such subparagraph prior to 
                each academic year that--
                            ``(i) shall comply with the requirements 
                        published by the Secretary under subparagraph 
                        (A); and
                            ``(ii) may be supplemented by the 
                        institution with additional, non-contradictory 
                        information related to financial aid as long as 
                        such supplementary information uses the 
                        standardized terms and definitions described in 
                        subparagraph (A)(iii).
                    ``(C) Elements.--A financial aid offer provided by 
                an institution of higher education shall include the 
                following elements with respect to the academic year 
                for which the offer is being provided:
                            ``(i) The cost of attendance, which shall 
                        include separately calculated subtotals of--
                                    ``(I) an itemized list of estimated 
                                direct costs owed to the institution; 
                                and
                                    ``(II) an itemized list of 
                                anticipated student expenses not 
                                covered under subclause (I).
                            ``(ii) Federal, State, and institutional 
                        financial aid available to the student, which 
                        shall include separately calculated subtotals 
                        of--
                                    ``(I) grants and scholarships;
                                    ``(II) loans made under part D 
                                (excluding Federal Direct Parent PLUS 
                                Loans); and
                                    ``(III) Federal-work study programs 
                                under part C and other on-campus 
                                employment.
                            ``(iii) Other options that may be available 
                        to students to cover the cost of attendance 
                        (including Federal Direct Parent PLUS Loans, 
                        tuition payment plans, savings, and earnings 
                        from other employment).
                            ``(iv) The net price, which shall be 
                        determined by calculating the difference 
                        between--
                                    ``(I) the cost of attendance 
                                described in clause (i); and
                                    ``(II) the grants and scholarships 
                                described in clause (ii)(I).
                            ``(v) Next step instructions, including--
                                    ``(I) the process and deadlines for 
                                accepting the financial aid; and
                                    ``(II) information about where to 
                                find additional information on the 
                                financial aid offered.
                            ``(vi) Any other information determined 
                        necessary by the Secretary based on the 
                        consumer testing conducted under subparagraph 
                        (E), which may include the following:
                                    ``(I) An estimate of the net direct 
                                cost, which shall be determined by 
                                calculating the difference between--
                                            ``(aa) the direct costs 
                                        owed to the institution 
                                        described in clause (i)(I); and
                                            ``(bb) the grants and 
                                        scholarships described in 
                                        clause (ii)(I).
                                    ``(II) Information on average 
                                student debt, loan repayment and 
                                default rates, loan repayment options, 
                                and graduation rates.
                                    ``(III) In the case of a 
                                prospective student, the process and 
                                deadlines for enrolling at the 
                                institution.
                                    ``(IV) Information regarding the 
                                enrollment period covered by the aid 
                                offer, and whether the cost and aid 
                                estimates are based on full-time or 
                                part-time enrollment.
                                    ``(V) Information developed in 
                                consultation with the Internal Revenue 
                                Service regarding any education-related 
                                tax benefits for which a student may 
                                qualify, including American Opportunity 
                                and Lifetime Learning tax credits, 
                                deductions, exclusions, and any other 
                                such benefits.
                    ``(D) Standardized quick reference box.--A 
                financial aid offer provided by an institution of 
                higher education shall include a standardized quick 
                reference box to enable students to quickly and easily 
                compare key information on college costs and financial 
                aid--
                            ``(i) that shall be included in an 
                        identical fashion for each student receiving a 
                        financial aid offer from the institution on the 
                        first page of such offer;
                            ``(ii) the contents and structure of which 
                        shall be developed through consumer testing 
                        conducted under paragraph (E); and
                            ``(iii) that shall include not more than 8 
                        elements, which, at a minimum, shall include--
                                    ``(I) the cost of attendance;
                                    ``(II) grants and scholarships; and
                                    ``(III) net price (as calculated 
                                under subparagraph (C)(iv)).
                    ``(E) Consumer testing.--The Secretary shall--
                            ``(i) conduct consumer testing that shall 
                        serve as the basis in determining the 
                        requirements for financial aid offers published 
                        under subparagraph (A), which shall include 
                        students (including low-income students, 
                        English learners, first generation college 
                        students, veteran students, graduate students, 
                        and undergraduate students (including 
                        prospective students and returning students)), 
                        students' families (including low-income 
                        families, families of English learners, and 
                        families with first generation college 
                        students), institutions of higher education 
                        (including representatives from two- and four-
                        year institutions, public and private 
                        institutions, and minority-serving 
                        institutions), secondary school and 
                        postsecondary counselors, financial aid 
                        administrators, nonprofit college access 
                        organizations, and nonprofit consumer groups; 
                        and
                            ``(ii) not later than 60 days after the 
                        publication of the requirements under 
                        subparagraph (A)--
                                    ``(I) issue a report on the 
                                findings of the consumer testing under 
                                this subparagraph; and
                                    ``(II) specify ways in which the 
                                findings are reflected in such 
                                requirements.
            ``(2) Definitions.--In this subsection--
                    ``(A) the term `cost of attendance' has the meaning 
                given the term in section 472;
                    ``(B) the term `English learner' has the meaning 
                given the term in section 8101(20) of the Elementary 
                and Secondary Education Act of 1965 (20 U.S.C. 
                7801(20)), except that such term does not include 
                individuals described in subparagraph (B) of such 
                section;
                    ``(C) the term `first generation college student' 
                has the meaning given the term in section 402A(h);
                    ``(D) the term `low-income student' has the meaning 
                given the term in section 419N(b)(7); and
                    ``(E) the term `minority-serving institution' means 
                an institution of higher education described in section 
                371(a).''.

SEC. 5. EFFECTIVE DATE.

    The amendments made by this Act shall apply with respect to award 
years (as that term is defined in section 481(a)(1) of the Higher 
Education Act of 1965 (20 U.S.C. 1088(a)(1))) beginning after the date 
of the enactment of this Act.
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