Title: Working Students Act
Policy area: Education

Summary:
Working Students Act
This bill increases the income protection allowance levels used to calculate a working student's expected family contribution and need for financial assistance. An income protection allowance is an amount for basic living expenses that is protected from being considered income available for postsecondary educational expenses.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 2655 Introduced in Senate (IS)]

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116th CONGRESS
  1st Session
                                S. 2655

   To amend title IV of the Higher Education Act of 1965 in order to 
    increase the amount of financial support available for working 
                               students.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 22, 2019

 Ms. Baldwin (for herself, Mr. Brown, Mr. Kaine, Mr. Sanders, and Mr. 
Reed) introduced the following bill; which was read twice and referred 
       to the Committee on Health, Education, Labor, and Pensions

_______________________________________________________________________

                                 A BILL


 
   To amend title IV of the Higher Education Act of 1965 in order to 
    increase the amount of financial support available for working 
                               students.

    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 ``Working Students Act''.

SEC. 2. INCREASING SUPPORT FOR WORKING STUDENTS BY 35 PERCENT.

    (a) Dependent Students.--Section 475(g)(2)(D) of the Higher 
Education Act of 1965 (20 U.S.C. 1087oo(g)(2)(D)) is amended to read as 
follows:
                    ``(D) an income protection allowance (or a 
                successor amount prescribed by the Secretary under 
                section 478) of $9,010 for academic year 2020-2021;''.
    (b) Independent Students Without Dependents Other Than a Spouse.--
Section 476(b)(1)(A)(iv) of the Higher Education Act of 1965 (20 U.S.C. 
1087pp(b)(1)(A)(iv)) is amended to read as follows:
                            ``(iv) an income protection allowance (or a 
                        successor amount prescribed by the Secretary 
                        under section 478)--
                                    ``(I) for single or separated 
                                students, or married students where 
                                both are enrolled pursuant to 
                                subsection (a)(2), of $14,010 for 
                                academic year 2020-2021; and
                                    ``(II) for married students where 1 
                                is enrolled pursuant to subsection 
                                (a)(2), of $22,460 for academic year 
                                2020-2021;''.
    (c) Independent Students With Dependents Other Than a Spouse.--
Section 477(b)(4) of the Higher Education Act of 1965 (20 U.S.C. 
1087qq(b)(4)) is amended to read as follows:
            ``(4) Income protection allowance.--The income protection 
        allowance is determined by the following table (or a successor 
        table prescribed by the Secretary under section 478), for 
        academic year 2020-2021:

                                          ``Income Protection Allowance
----------------------------------------------------------------------------------------------------------------
  Family  Size                                          Number in College
----------------------------------------------------------------------------------------------------------------
                                                                                                     For each
   (including           1               2               3               4               5           additional
    student)                                                                                        subtract:
----------------------------------------------------------------------------------------------------------------
      2              $36,370         $30,160                                                           $6,180
      3               45,290          39,100         $32,890
      4               55,920          49,720          43,540         $37,300
      5               65,990          59,750          53,570          47,360         $41,180
      6               77,170          70,960          64,790          58,540          52,370
For each
additional
   add:                8,710                                                                              ''.
----------------------------------------------------------------------------------------------------------------

    (d) Updated Tables and Amounts.--Section 478(b) of the Higher 
Education Act of 1965 (20 U.S.C. 1087rr(b)) is amended--
            (1) in paragraph (1), by striking subparagraphs (A) and (B) 
        and inserting the following:
                    ``(A) In general.--For each academic year after 
                academic year 2020-2021, the Secretary shall publish in 
                the Federal Register a revised table of income 
                protection allowances for the purpose of sections 
                475(c)(4) and 477(b)(4), subject to subparagraphs (B) 
                and (C).
                    ``(B) Table for independent students.--For each 
                academic year after academic year 2020-2021, the 
                Secretary shall develop the revised table of income 
                protection allowances by increasing each of the dollar 
                amounts contained in the table of income protection 
                allowances under section 477(b)(4) by a percentage 
                equal to the estimated percentage increase in the 
                Consumer Price Index (as determined by the Secretary 
                for the most recent calendar year ending prior to the 
                beginning of the academic year for which the 
                determination is being made), and rounding the result 
                to the nearest $10.''; and
            (2) in paragraph (2), by striking ``shall be developed'' 
        and all that follows through the period at the end and 
        inserting ``shall be developed for each academic year after 
        academic year 2020-2021, by increasing each of the dollar 
        amounts contained in such section for academic year 2020-2021 
        by a percentage equal to the estimated percentage increase in 
        the Consumer Price Index (as determined by the Secretary for 
        the most recent calendar year ending prior to the beginning of 
        the academic year for which the determination is being made), 
        and rounding the result to the nearest $10.''.
    (e) Effective Date.--The amendments made by this section shall take 
effect beginning on July 1, 2020 and shall apply to grant and award 
determinations made under title IV of the Higher Education Act of 1965 
(20 U.S.C. 1001 et seq.) beginning with the 2020-2021 award year.
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