Title: Student Loan Repayment and FAFSA Simplification Act
Policy area: Education

Summary:
Student Loan Repayment and FAFSA Simplification Act
This bill replaces existing federal student loan repayment plans with one standard 10-year repayment plan and one income-based repayment plan. It also revises the process for filing a Free Application for Federal Student Aid.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 4247 Introduced in Senate (IS)]

<DOC>






116th CONGRESS
  2d Session
                                S. 4247

To simplify loan repayment for Federal student loans under title IV of 
   the Higher Education Act of 1965, to make it easier to apply for 
  Federal aid and making that aid predictable, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 21, 2020

 Mr. Alexander introduced the following bill; which was read twice and 
  referred to the Committee on Health, Education, Labor, and Pensions

_______________________________________________________________________

                                 A BILL


 
To simplify loan repayment for Federal student loans under title IV of 
   the Higher Education Act of 1965, to make it easier to apply for 
  Federal aid and making that aid predictable, 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 ``Student Loan Repayment and FAFSA 
Simplification Act''.

SEC. 2. SIMPLIFYING STUDENT LOAN REPAYMENT.

    (a) In General.--Section 455 of the Higher Education Act of 1965 
(20 U.S.C. 1087e) is amended--
            (1) in subsection (d)(1)--
                    (A) in subparagraph (D), by striking ``and'' after 
                the semicolon;
                    (B) in subparagraph (E), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(F) notwithstanding any other provision of law, 
                in the case of a loan described in subsection (a) that 
                enters repayment on or after October 1, 2020, or for 
                which a borrower seeks to change to a different 
                repayment plan on or after October 1, 2020, only a 
                repayment plan described in subsection (r).''; and
            (2) by adding at the end the following:
    ``(r) Repayment.--
            ``(1) In general.--For loans described under subsection (a) 
        that enter repayment on or after October 1, 2020, or for which 
        the borrower seeks to change to a different repayment plan on 
        or after October 1, 2020, only the following repayment options 
        shall be made available:
                    ``(A) A standard repayment plan, with a fixed 
                annual repayment amount paid over a fixed period of 
                time, not to exceed 10 years.
                    ``(B) An income determined repayment plan, with an 
                annual repayment amount in the amount determined in 
                accordance with paragraph (2).
            ``(2) Income determined repayment plans.--
                    ``(A) In general.--An income determined repayment 
                plan under paragraph (1)(B) shall require a borrower to 
                pay an amount equal to 10 percent of the result 
                obtained by calculating, on at least an annual basis, 
                the amount by which--
                            ``(i) the borrower's, and the borrower's 
                        spouse's (if applicable), adjusted gross 
                        income; exceeds
                            ``(ii) 150 percent of the poverty line 
                        applicable to the borrower's family size as 
                        determined under section 673(2) of the 
                        Community Services Block Grant Act (42 U.S.C. 
                        9902(2)).
                    ``(B) Exceptions.--
                            ``(i) Reduction for certain borrowers.--For 
                        a borrower, and the borrower's spouse (if 
                        applicable), whose adjusted gross income 
                        exceeds 800 percent of the poverty line 
                        applicable to the borrower's family size as 
                        determined under section 673(2) of the 
                        Community Services Block Grant Act (42 U.S.C. 
                        9902(2)), the percentage amount calculated 
                        under subparagraph (A)(ii) shall decrease by 5 
                        percent for each percentage point that the 
                        borrower's adjusted gross income exceeds 800 
                        percent.
                            ``(ii) Unavailability to certain 
                        borrowers.--The plan described in paragraph 
                        (1)(B) shall not be available to the borrower 
                        of a Federal Direct PLUS Loan made on behalf of 
                        a dependent student or a Federal Direct 
                        Consolidation Loan, if proceeds of such loan 
                        were used to discharge the liability on such 
                        Federal Direct PLUS Loan.
                    ``(C) Repayment period.--The amount of time a 
                borrower is permitted to repay such loans under 
                paragraph (1)(B) may exceed 10 years.
                    ``(D) Loan forgiveness.--
                            ``(i) In general.--The Secretary shall 
                        repay or cancel any outstanding balance of 
                        principal and interest due on any loan repaid 
                        under the repayment plan described under 
                        paragraph (1)(B)--
                                    ``(I) for any undergraduate 
                                borrower who has made payments under 
                                such plan for 20 years; or
                                    ``(II) for any graduate borrower 
                                who has made payments under such plan 
                                for 25 years.
                            ``(ii) Limitation.--Any period of time in 
                        which a borrower is in delinquency or default 
                        shall not count toward the repayment or 
                        cancellation described in clause (i).
            ``(3) Monthly payments.--The Secretary shall determine the 
        borrower's monthly payment obligation to satisfy the payment 
        amount determined in accordance with subparagraphs (A) or (B) 
        of paragraph (1).
            ``(4) Borrower choice.--A borrower who is repaying a loan 
        under paragraph (1)(B) may elect, at any time, to terminate 
        repayment pursuant to the income determined repayment plan and 
        repay such loan under the standard repayment plan under 
        paragraph (1)(A).''.
    (b) Public Service Loan Forgiveness Rules for Income-Determined 
Repayment Plans.--Section 455(m) of the Higher Education Act of 1965 
(20 U.S.C. 1087e(m)) is amended--
            (1) in paragraph (1)(A)--
                    (A) in clause (iii), by striking ``or'' after the 
                semicolon;
                    (B) in clause (iv), by striking ``; and'' and 
                inserting ``; or''; and
                    (C) by adding at the end the following:
                            ``(v) payments under an income determined 
                        repayment plan or a standard repayment plan 
                        under subsection (r), except as provided in 
                        paragraph (3); and'';
            (2) by redesignating paragraphs (3) and (4) as paragraphs 
        (4) and (5), respectively; and
            (3) by inserting after paragraph (2) the following:
            ``(3) Exception.--
                    ``(A) In general.--To be eligible for loan 
                cancellation under this subsection, a borrower who 
                elects an income determined repayment plan under 
                subsection (r) shall remain in such plan for the 
                duration of repayment until such loan is cancelled.
                    ``(B) Required notification and acknowledgement.--
                            ``(i) Notification.--If a borrower who has 
                        elected an income determined repayment plan 
                        under subsection (r) subsequently indicates 
                        that the borrower wishes to change repayment 
                        plans, the Secretary shall notify the borrower 
                        that changing repayment plans will cause any 
                        monthly payments made prior to such change to 
                        not qualify toward the 120 monthly payments 
                        required for loan cancellation under this 
                        subsection.
                            ``(ii) Acknowledgement.--The Secretary 
                        shall require acknowledgment of receipt of the 
                        notification under clause (i) from any borrower 
                        who has elected an income determined repayment 
                        plan under subsection (r) and subsequently 
                        indicates that the borrower wishes to change 
                        repayment plans.''.

SEC. 3. MAKING IT EASIER TO APPLY FOR FEDERAL AID AND MAKING THAT AID 
              PREDICTABLE.

    (a) Need Analysis.--
            (1) In general.--Section 471 of the Higher Education Act of 
        1965 (20 U.S.C. 1087kk) is amended to read as follows:

``SEC. 471. AMOUNT OF NEED.

    ``(a) In General.--Except as otherwise provided therein, beginning 
with award year 2022-2023, the amount of need of any student for 
financial assistance under this title (except subpart 1 or 2 of part A) 
is equal to--
            ``(1) the cost of attendance of such student, minus
            ``(2) the student aid index (as defined in section 473) for 
        such student, minus
            ``(3) other financial assistance not received under this 
        title (as defined in section 480(j)).
    ``(b) Effective Date of Changes.--The amendments made to this title 
under the Student Loan Repayment and FAFSA Simplification Act shall 
take effect beginning with award year 2022-2023. The amounts provided 
under such amendments for award year 2020-2021 shall be used solely as 
a base to determine adjustments for subsequent award years.''.
            (2) Maximum aid under part d.--Section 451 of the Higher 
        Education Act of 1965 (20 U.S.C. 1087a) is amended by adding at 
        the end the following:
    ``(c) Maximum Aid.--The maximum dollar amount of financial 
assistance provided under this part to a student shall not exceed the 
cost of attendance for such student.''.
            (3) Guidance to states.--The Secretary of Education shall 
        issue guidance for States on interpretation and implementation 
        of the terminology and formula adjustments made under the 
        amendments made by this Act, including the student aid index, 
        formerly known as the expected family contribution, and the 
        need analysis formulas.
    (b) Cost of Attendance and Student Aid Index.--Sections 472 and 473 
of the Higher Education Act of 1965 (20 U.S.C. 1087ll and 1087mm) are 
amended to read as follows:

``SEC. 472. COST OF ATTENDANCE.

    ``(a) In General.--For the purpose of this title, the term `cost of 
attendance' means--
            ``(1) tuition and fees normally assessed a student carrying 
        the same academic workload as determined by the institution, 
        and including costs for rental or purchase of any equipment, 
        materials, or supplies required of all students in the same 
        course of study;
            ``(2) an allowance for books, supplies, and transportation, 
        including a reasonable allowance for the documented rental or 
        purchase of suggested electronic equipment, as determined by 
        the institution;
            ``(3) an allowance for miscellaneous personal expenses, for 
        a student attending the institution on at least a half-time 
        basis, as determined by the institution;
            ``(4) an allowance for living expenses, including food and 
        housing costs, to be incurred by the student attending the 
        institution on at least a half-time basis, as determined by the 
        institution, which includes--
                    ``(A) for students electing institutionally owned 
                or operated food services, such as board or meal plans, 
                shall be a standard allowance for such services that 
                provides the equivalent of three meals each day;
                    ``(B) for students not electing institutionally 
                owned or operated food services, such as board or meal 
                plans, shall be a standard allowance for purchasing 
                food off campus that provides the equivalent of three 
                meals each day, which shall not exceed the standard 
                allowance provided in paragraph (A);
                    ``(C) for students without dependents residing in 
                institutionally owned or operated housing, shall be a 
                standard allowance determined by the institution based 
                on average or median amount assessed to such residents 
                for housing charges, whichever is greater;
                    ``(D) for students with dependents residing in 
                institutionally owned or operated housing, shall be a 
                standard allowance determined by the institution based 
                on the average or median amount assessed to such 
                residents for housing charges, whichever is greater;
                    ``(E) for students living off campus, and not in 
                institutionally owned or operated housing, shall be a 
                standard allowance for rent or other housing costs, 
                which, if applicable, shall not exceed the standard 
                allowance provided in paragraph (C) or (D) with respect 
                to whether the student has dependents;
                    ``(F) for dependent students residing at home with 
                parents shall be a standard allowance determined by the 
                institution;
                    ``(G) for students who live in housing located on a 
                military base or for which a basic allowance is 
                provided under section 403(b) of title 37, United 
                States Code, shall be a standard allowance for food 
                based upon a student's choice of purchasing food on-
                campus or off-campus (determined respectively in 
                accordance with subparagraph (A) or (B)), but not for 
                housing costs; and
                    ``(H) for all other students shall be an allowance 
                based on the expenses reasonably incurred by such 
                students for housing and food;
            ``(5) for a student engaged in a program of study by 
        correspondence, only tuition and fees and, if required, books 
        and supplies, travel, and housing and food costs incurred 
        specifically in fulfilling a required period of residential 
        training;
            ``(6) for incarcerated students, only tuition, fees, books, 
        supplies, and the cost of obtaining a license, certification, 
        or a first professional credential in accordance with paragraph 
        (13);
            ``(7) for a student enrolled in an academic program in a 
        program of study abroad approved for credit by the student's 
        home institution, reasonable costs associated with such study 
        (as determined by the institution at which such student is 
        enrolled);
            ``(8) for a student with one or more dependents, an 
        allowance based on the estimated actual expenses incurred for 
        such dependent care, based on the number and age of such 
        dependents, except that--
                    ``(A) such allowance shall not exceed the 
                reasonable cost in the community in which such student 
                resides for the kind of care provided; and
                    ``(B) the period for which dependent care is 
                required includes, but is not limited to, class-time, 
                study-time, field work, internships, and commuting 
                time;
            ``(9) for a student with a disability, an allowance (as 
        determined by the institution) for those expenses related to 
        the student's disability, including special services, personal 
        assistance, transportation, equipment, and supplies that are 
        reasonably incurred and not provided for by other assisting 
        agencies;
            ``(10) for a student receiving all or part of the student's 
        instruction by means of telecommunications technology, no 
        distinction shall be made with respect to the mode of 
        instruction in determining costs;
            ``(11) for a student engaged in a work experience under a 
        cooperative education program, an allowance for reasonable 
        costs associated with such employment (as determined by the 
        institution);
            ``(12) for a student who receives a Federal student loan 
        made under this title or any other Federal law, to cover a 
        student's cost of attendance at the institution, an allowance 
        for the actual cost of any loan fee, origination fee, or 
        insurance premium charged to such student or such parent on 
        such loan; and
            ``(13) for a student in a program requiring professional 
        licensure, certification, or a first professional credential 
        the cost of obtaining the license, certification, or a first 
        professional credential.
    ``(b) Special Rule for Living Expenses for Less-Than-Half-Time 
Students.--An institution of higher education may include an allowance 
for living expenses, including food and housing costs in accordance 
with subsection (a)(4) for up to three semesters, or the equivalent, 
with no more than two semesters being consecutive.
    ``(c) Disclosure of Cost of Attendance Elements.--Each institution 
shall make publicly available on the institution's website a list of 
all the elements of cost of attendance described in subsection (a), 
including, for a student with one or more dependents, an allowance 
based on the estimated actual expenses incurred for dependent care, as 
described in subsection (a)(8).

``SEC. 473. SPECIAL RULES FOR STUDENT AID INDEX.

    ``(a) In General.--For the purpose of this title, other than 
subpart 1 or 2 of part A, the term `student aid index' means, with 
respect to a student, an index that reflects an evaluation of a 
student's approximate financial resources to contribute toward the 
student's postsecondary education for the academic year, as determined 
in accordance with this part.
    ``(b) Special Rule for Students Eligible for the Total Maximum Pell 
Grant.--The Secretary shall consider an applicant to automatically have 
a student aid index equal to zero if the applicant is eligible for the 
total maximum Federal Pell Grant under subpart 1 of part A, except 
that, if the applicant has a calculated student aid index of less than 
zero the Secretary shall consider the negative number as the student 
aid index for the applicant.
    ``(c) Special Rule for Nonfilers.--For an applicant (or, as 
applicable, an applicant and spouse, or an applicant's parents) who is 
not required to file a Federal tax return for the second preceding tax 
year, the Secretary shall for the purposes of this title consider the 
student aid index as equal to -$1,500 for the applicant.
    ``(d) Special Rule for Recipients of Means-Tested Benefits.--For an 
applicant (including the student, the student's parent, or the 
student's spouse, as applicable) who at any time during the previous 
24-month period, received a benefit under a means-tested Federal 
benefit program, the Secretary shall consider an applicant to 
automatically have a student aid index equal to zero, except if the 
applicant has a calculated student aid index of less than zero the 
Secretary shall consider the negative number as the student aid index 
for the applicant.
    ``(e) Means-Tested Federal Benefit Program.--In this section, the 
term `means-tested Federal benefit program' means any of the following:
            ``(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.).
            ``(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 Medicaid program under title XIX of the Social 
        Security Act (42 U.S.C. 1396 et seq.).
            ``(6) Federal housing assistance programs, including 
        tenant-based assistance under section 8(o) of the United States 
        Housing Act of 1937 (42 U.S.C. 1437f(o)), and public housing, 
        as defined in section 3(b)(1) of such Act (42 U.S.C. 
        1437a(b)(1)).
            ``(7) Other means-tested programs determined by the 
        Secretary to be approximately consistent with the income 
        eligibility requirements of the means-tested programs under 
        paragraphs (1) through (6).
    ``(f) Special Rule for Nonfilers Who Are Also Recipients of Means-
Tested Benefits.--For an applicant (or, as applicable, and applicant 
and spouse, or an applicant's parents) who is not required to file a 
Federal tax return for the second preceding tax year and who at any 
time during the previous 24-month period received a benefit under a 
means-tested Federal benefit program, the Secretary shall, for the 
purposes of this title, consider the student aid index as equal to 
-$1,500 for the applicant.''.
    (c) Determination of Student Aid Index.--Section 474 of the Higher 
Education Act of 1965 (20 U.S.C. 1087nn) is amended to read as follows:

``SEC. 474. DETERMINATION OF STUDENT AID INDEX.

    ``The student aid index--
            ``(1) for a dependent student shall be determined in 
        accordance with section 475;
            ``(2) for a single independent student or a married 
        independent student without dependents (other than a spouse) 
        shall be determined in accordance with section 476; and
            ``(3) for an independent student with dependents other than 
        a spouse shall be determined in accordance with section 477.''.
    (d) Student Aid Index for Dependent Students.--Section 475 of the 
Higher Education Act of 1965 (20 U.S.C. 1087oo) is amended to read as 
follows:

``SEC. 475. STUDENT AID INDEX FOR DEPENDENT STUDENTS.

    ``(a) Computation of Student Aid Index.--
            ``(1) In general.--For each dependent student, the student 
        aid index is equal to (except as provided in paragraph (2)) the 
        sum of--
                    ``(A) the assessment of the parents' adjusted 
                available income (determined in accordance with 
                subsection (b));
                    ``(B) the assessment of the student's available 
                income (determined in accordance with subsection (g)); 
                and
                    ``(C) the student's available assets (determined in 
                accordance with subsection (h)).
            ``(2) Exception.--If the sum determined under paragraphs 
        (1), with respect to a dependent student, is less than -$1,500, 
        the student aid index for the dependent student shall be 
        -$1,500.
    ``(b) Assessment of Parents' Adjusted Available Income.--The 
assessment of parents' adjusted available income is equal to the amount 
determined by--
            ``(1) computing adjusted available income by adding--
                    ``(A) the parents' available income (determined in 
                accordance with subsection (c)); and
                    ``(B) the parents' available assets (determined in 
                accordance with subsection (d));
            ``(2) assessing such adjusted available income in 
        accordance with the assessment schedule set forth in subsection 
        (e); and
            ``(3) considering such assessment resulting under paragraph 
        (2) as the amount determined under this subsection.
    ``(c) Parents' Available Income.--
            ``(1) In general.--The parents' available income is 
        determined by subtracting from total income (as defined in 
        section 480)--
                    ``(A) Federal income taxes;
                    ``(B) an allowance for payroll taxes, determined in 
                accordance with paragraph (2);
                    ``(C) an income protection allowance, determined in 
                accordance with paragraph (3); and
                    ``(D) an employment expense allowance, determined 
                in accordance with paragraph (4).
            ``(2) Allowance for payroll taxes.--The allowance for 
        payroll taxes is equal to the sum of--
                    ``(A) the total amount earned by the parents, 
                multiplied by the rate of tax under section 3101(b) of 
                the Internal Revenue Code of 1986; and
                    ``(B) the amount earned by the parents that does 
                not exceed such contribution and benefit base (twice 
                such contribution and benefit base, in the case of a 
                joint return) for the year of the earnings, multiplied 
                by the rate of tax applicable to such earnings under 
                section 3101(a) of the Internal Revenue Code of 1986.
            ``(3) Income protection allowance.--The income protection 
        allowance for award year 2021-2022 and each succeeding award 
        year shall equal the amount determined in the following table, 
        as adjusted by the Secretary pursuant to section 478(b):

  ``Income Protection Allowance 2021-2022 (to be adjusted for 2022-2023
                          and succeeding years)
------------------------------------------------------------------------
              Family Size (including student)                   Amount
------------------------------------------------------------------------
2..........................................................      $19,080
3..........................................................      $23,760
4..........................................................      $29,340
5..........................................................      $34,620
6..........................................................      $40,490
For each additional add....................................      $4,750.
------------------------------------------------------------------------

            ``(4) Employment expense allowance.--The employment expense 
        allowance is equal to the lesser of $4,000 or 35 percent of the 
        single parent's earned income or married parents' combined 
        earned income (or is equal to a successor amount as adjusted by 
        the Secretary pursuant to section 478(g)).
    ``(d) Parents' Available Assets.--
            ``(1) In general.--
                    ``(A) Determination.--Except as provided in 
                subparagraph (B), the parents' available assets are 
                equal to--
                            ``(i) the difference between the parents' 
                        net assets and the education savings and asset 
                        protection allowance (determined in accordance 
                        with paragraph (2)); multiplied by
                            ``(ii) 12 percent.
                    ``(B) Not less than zero.--Parents' available 
                assets under this subsection shall not be less than 
                zero.
            ``(2) Education savings and asset protection allowance.--
        The education savings and asset protection allowance is 
        calculated according to the following table (or a successor 
        table prescribed by the Secretary under section 478(d)):

              ``Education Savings and Asset Protection Allowances for Parents of Dependent Students
----------------------------------------------------------------------------------------------------------------
                                                                                  And there are
                                                               -------------------------------------------------
                                                                      two parents               one parent
             If the age of the oldest parent is--              -------------------------------------------------
                                                                then the allowance is--
 
----------------------------------------------------------------------------------------------------------------
25 or less....................................................                       $0                       $0
26............................................................                     $300                     $100
27............................................................                     $700                     $200
28............................................................                   $1,000                     $300
29............................................................                   $1,300                     $500
30............................................................                   $1,600                     $600
31............................................................                   $2,000                     $700
32............................................................                   $2,300                     $800
33............................................................                   $2,600                     $900
34............................................................                   $2,900                   $1,000
35............................................................                   $3,300                   $1,100
36............................................................                   $3,600                   $1,200
37............................................................                   $3,900                   $1,300
38............................................................                   $4,200                   $1,500
39............................................................                   $4,600                   $1,600
40............................................................                   $4,900                   $1,700
41............................................................                   $5,100                   $1,700
42............................................................                   $5,200                   $1,700
43............................................................                   $5,300                   $1,800
44............................................................                   $5,400                   $1,800
45............................................................                   $5,500                   $1,900
46............................................................                   $5,700                   $1,900
47............................................................                   $5,800                   $1,900
48............................................................                   $6,000                   $2,000
49............................................................                   $6,100                   $2,000
50............................................................                   $6,300                   $2,100
51............................................................                   $6,400                   $2,100
52............................................................                   $6,600                   $2,200
53............................................................                   $6,800                   $2,200
54............................................................                   $6,900                   $2,300
55............................................................                   $7,100                   $2,300
56............................................................                   $7,300                   $2,400
57............................................................                   $7,500                   $2,500
58............................................................                   $7,700                   $2,500
59............................................................                   $7,900                   $2,600
60............................................................                   $8,200                   $2,700
61............................................................                   $8,400                   $2,700
62............................................................                   $8,600                   $2,800
63............................................................                   $8,900                   $2,900
64............................................................                   $9,200                   $2,900
65 or more....................................................                   $9,400                  $3,000.
----------------------------------------------------------------------------------------------------------------

    ``(e) Assessment Schedule.--The assessment of the parents' adjusted 
available income (as determined under subsection (b)(1) and hereafter 
in this subsection referred to as `AAI') is calculated according to the 
following table (or a successor table prescribed by the Secretary under 
section 478(e)):

                    ``Parents' Contribution From AAI
------------------------------------------------------------------------
                                          Then the parents' contribution
        If the parents' AAI is--                  from AAI is--
------------------------------------------------------------------------
Less than -$6,820......................  -$1,500
-$6,820 to $17,000.....................  22% of AAI
$17,001 to $21,400.....................  $3,740 + 25% of AAI over
                                          $17,000
$21,401 to $25,700.....................  $4,840 + 29% of AAI over
                                          $21,400
$25,701 to $30,100.....................  $6,087 + 34% of AAI over
                                          $25,700
$30,101 to $34,500.....................  $7,583 + 40% of AAI over
                                          $30,100
$34,501 or more........................  $9,343 + 47% of AAI over
                                          $34,500.
------------------------------------------------------------------------

    ``(f) Consideration of Parental Income.--
            ``(1) Parents who live together.--Parental income and 
        assets in the case of student whose parents are married and not 
        separated, or who are unmarried but live together, shall 
        include the income and assets of both parents.
            ``(2) Divorced or separated parents.--Parental income and 
        assets for a student whose parents are divorced or separated, 
        but not remarried, is determined by including only the income 
        and assets of the parent who provides the greater portion of 
        the student's financial support.
            ``(3) Death of a parent.--Parental income and assets in the 
        case of the death of any parent is determined as follows:
                    ``(A) If either of the parents has died, the 
                surviving parent shall be considered a single parent, 
                until that parent has remarried.
                    ``(B) If both parents have died, the student shall 
                not report any parental income or assets.
            ``(4) Remarried parents.--If a parent whose income and 
        assets are taken into account under paragraph (2), or if a 
        parent who is a widow or widower and whose income is taken into 
        account under paragraph (3), has remarried, the income of that 
        parent's spouse shall be included in determining the parent's 
        assessment of adjusted available income if the student's parent 
        and the stepparent are married as of the date of application 
        for the award year concerned.
            ``(5) Single parent who is not divorced or separated.--
        Parental income and assets in the case of a student whose 
        parent is a single parent but who is not divorced, separated, 
        or remarried, shall include the income and assets of such 
        single parent.
    ``(g) Student's Available Income.--
            ``(1) In general.--The student's available income is equal 
        to--
                    ``(A) the difference between the student's total 
                income (determined in accordance with section 480) and 
                the adjustment to student income (determined in 
                accordance with paragraph (2)); multiplied by
                    ``(B) 50 percent.
            ``(2) Adjustment to student income.--The adjustment to 
        student income is equal to the sum of--
                    ``(A) Federal income taxes;
                    ``(B) an allowance for payroll taxes determined in 
                accordance with paragraph (3);
                    ``(C) an income protection allowance that is equal 
                to--
                            ``(i) $9,110 for award year 2021-2022; and
                            ``(ii) for each succeeding award year, the 
                        amount adjusted pursuant to section 478(b); and
                    ``(D) an allowance for parents' negative available 
                income, determined in accordance with paragraph (4).
            ``(3) Allowance for payroll taxes.--The allowance for 
        payroll taxes is equal to the sum of--
                    ``(A) the total amount earned by the student, 
                multiplied by the rate of tax under section 3101(b) of 
                the Internal Revenue Code of 1986; and
                    ``(B) the amount earned by the student that does 
                not exceed such contribution and benefit base for the 
                year of the earnings, multiplied by the rate of tax 
                applicable to such earnings under section 3101(a) of 
                the Internal Revenue Code of 1986.
            ``(4) Allowance for parents' negative available income.--
        The allowance for parents' negative available income is the 
        amount, if any, by which the sum of the amounts deducted under 
        subsection (c)(1) exceeds the sum of the parents' total income 
        (as defined in section 480) and the parents' available assets 
        (as determined in accordance with subsection (d)).
    ``(h) Student's Assets.--The student's assets are determined by 
calculating the net assets of the student and multiplying such amount 
by 20 percent, except that the result shall not be less than zero.''.
    (e) Student Aid Index for Independent Students Without Dependents 
Other Than a Spouse.--Section 476 of the Higher Education Act of 1965 
(20 U.S.C. 1087pp) is amended to read as follows:

``SEC. 476. STUDENT AID INDEX FOR INDEPENDENT STUDENTS WITHOUT 
              DEPENDENTS OTHER THAN A SPOUSE.

    ``(a) Computation of Student Aid Index.--
            ``(1) In general.--For each independent student without 
        dependents other than a spouse, the student aid index is equal 
        to (except as provided in paragraph (2)) the sum of--
                    ``(A) the family's available income (determined in 
                accordance with subsection (b)); and
                    ``(B) the family's available assets (determined in 
                accordance with subsection (c)).
            ``(2) Exception.--If the sum of paragraphs (1) with respect 
        to a independent student without dependents other than a spouse 
        is less than -$1,500, the student aid index for the independent 
        student shall be -$1,500.
    ``(b) Family's Available Income.--
            ``(1) In general.--The family's available income is 
        determined by--
                    ``(A) deducting from total income (as defined in 
                section 480)--
                            ``(i) Federal income taxes;
                            ``(ii) an allowance for payroll taxes, 
                        determined in accordance with paragraph (2);
                            ``(iii) an income protection allowance that 
                        is equal to--
                                    ``(I) in the case of a single 
                                independent student without 
                                dependents--
                                            ``(aa) $14,190 for award 
                                        year 2021-2022; and
                                            ``(bb) for each succeeding 
                                        award year, the amount adjusted 
                                        pursuant to section 478(b); and
                                    ``(II) in the case of a married 
                                independent student without 
                                dependents--
                                            ``(aa) $22,750 for award 
                                        year 2021-2022; and
                                            ``(bb) for each succeeding 
                                        award year, the amount adjusted 
                                        pursuant to section 478(b); and
                            ``(iv) in the case of a married independent 
                        student, an employment expense allowance, as 
                        determined in accordance with paragraph (3); 
                        and
                    ``(B) multiplying the amount determined under 
                subparagraph (A) by 50 percent.
            ``(2) Allowance for payroll taxes.--The allowance for 
        payroll taxes is equal to the sum of--
                    ``(A) the total amount earned by the student (and 
                spouse, if appropriate), multiplied by the rate of tax 
                under section 3101(b) of the Internal Revenue Code of 
                1986; and
                    ``(B) the amount earned by the student (and spouse, 
                if appropriate) that does not exceed such contribution 
                and benefit base (twice such contribution and benefit 
                base, in the case of a joint return) for the year of 
                the earnings, multiplied by the rate of tax applicable 
                to such earnings under section 3101(a) of the Internal 
                Revenue Code of 1986.
            ``(3) Employment expenses allowance.--The employment 
        expense allowance is equal to the following:
                    ``(A) If the student is married, such allowance is 
                equal to the lesser of $4,000 or 35 percent of the 
                couple's combined earned income (or is equal to a 
                successor amount as adjusted by the Secretary pursuant 
                to section 478(g)).
                    ``(B) If the student is not married, the employment 
                expense allowance is zero.
    ``(c) Family's Available Assets.--
            ``(1) In general.--
                    ``(A) Determination.--Except as provided in 
                subparagraph (B), the family's available assets are 
                equal to--
                            ``(i) the difference between the family's 
                        assets (as defined in section 480(f)) and the 
                        asset protection allowance (determined in 
                        accordance with paragraph (2)); multiplied by
                            ``(ii) 20 percent.
                    ``(B) Not less than zero.--The family's available 
                assets under this subsection shall not be less than 
                zero.
            ``(2) Asset protection allowance.--The asset protection 
        allowance is calculated according to the following table (or a 
        successor table prescribed by the Secretary under section 
        478(d)):

                             ``Asset Protection Allowances for Families and Students
----------------------------------------------------------------------------------------------------------------
                                                                               And the student is
                                                               -------------------------------------------------
                                                                        married                   single
                 If the age of the student is--                -------------------------------------------------
                                                                then the allowance is--
 
----------------------------------------------------------------------------------------------------------------
25 or less....................................................                       $0                       $0
26............................................................                     $300                     $100
27............................................................                     $700                     $200
28............................................................                   $1,000                     $300
29............................................................                   $1,300                     $500
30............................................................                   $1,600                     $600
31............................................................                   $2,000                     $700
32............................................................                   $2,300                     $800
33............................................................                   $2,600                     $900
34............................................................                   $2,900                   $1,000
35............................................................                   $3,300                   $1,100
36............................................................                   $3,600                   $1,200
37............................................................                   $3,900                   $1,400
38............................................................                   $4,200                   $1,500
39............................................................                   $4,600                   $1,600
40............................................................                   $4,900                   $1,700
41............................................................                   $5,100                   $1,700
42............................................................                   $5,200                   $1,700
43............................................................                   $5,300                   $1,800
44............................................................                   $5,400                   $1,800
45............................................................                   $5,500                   $1,900
46............................................................                   $5,700                   $1,900
47............................................................                   $5,800                   $1,900
48............................................................                   $6,000                   $2,000
49............................................................                   $6,100                   $2,000
50............................................................                   $6,300                   $2,100
51............................................................                   $6,400                   $2,100
52............................................................                   $6,600                   $2,200
53............................................................                   $6,800                   $2,200
54............................................................                   $6,900                   $2,300
55............................................................                   $7,100                   $2,300
56............................................................                   $7,300                   $2,400
57............................................................                   $7,500                   $2,500
58............................................................                   $7,700                   $2,500
59............................................................                   $7,900                   $2,600
60............................................................                   $8,200                   $2,700
61............................................................                   $8,400                   $2,700
62............................................................                   $8,600                   $2,800
63............................................................                   $8,900                   $2,900
64............................................................                   $9,200                   $2,900
65 or more....................................................                   $9,400                  $3,000.
----------------------------------------------------------------------------------------------------------------

    ``(d) Computations in Case of Separation, Divorce, or Death.--In 
the case of a student who is divorced or separated, or whose spouse has 
died, the spouse's income and assets shall not be considered in 
determining the family's available income or assets.''.
    (f) Student Aid Index for Independent Students With Dependents 
Other Than a Spouse.--Section 477 of the Higher Education Act of 1965 
(20 U.S.C. 1087qq) is amended to read as follows:

``SEC. 477. STUDENT AID INDEX FOR INDEPENDENT STUDENTS WITH DEPENDENTS 
              OTHER THAN A SPOUSE.

    ``(a) Computation of Student Aid Index.--For each independent 
student with dependents other than a spouse, the student aid index is 
equal to the amount determined by--
            ``(1) computing adjusted available income by adding--
                    ``(A) the family's available income (determined in 
                accordance with subsection (b)); and
                    ``(B) the family's available assets (determined in 
                accordance with subsection (c));
            ``(2) assessing such adjusted available income in 
        accordance with an assessment schedule set forth in subsection 
        (d); and
            ``(3) considering such assessment resulting under paragraph 
        (2) as the amount determined under this subsection.
    ``(b) Family's Available Income.--
            ``(1) In general.--The family's available income is 
        determined by deducting from total income (as defined in 
        section 480)--
                    ``(A) Federal income taxes;
                    ``(B) an allowance for payroll taxes, determined in 
                accordance with paragraph (2);
                    ``(C) an income protection allowance, determined in 
                accordance with paragraph (3); and
                    ``(D) an employment expense allowance, determined 
                in accordance with paragraph (4).
            ``(2) Allowance for payroll taxes.--The allowance for 
        payroll taxes is equal to the sum of--
                    ``(A) the total amount earned by the student (and 
                spouse, if appropriate), multiplied by the rate of tax 
                under section 3101(b) of the Internal Revenue Code of 
                1986; and
                    ``(B) the amount earned by the student (and spouse, 
                if appropriate) that does not exceed such contribution 
                and benefit base (twice such contribution and benefit 
                base, in the case of a joint return) for the year of 
                the earnings, multiplied by the rate of tax applicable 
                to such earnings under section 3101(a) of the Internal 
                Revenue Code of 1986.
            ``(3) Income protection allowance.--The income protection 
        allowance for award year 2021-2022 and each succeeding award 
        year shall equal the amount determined in the following table, 
        as adjusted by the Secretary pursuant to section 478(b):
                    ``(A) In the case of a married independent student 
                with dependents:

  ``Income Protection Allowance 2021-2022 (to be adjusted for 2022-2023
                          and succeeding years)
------------------------------------------------------------------------
              Family Size (including student)                   Amount
------------------------------------------------------------------------
3..........................................................      $44,470
4..........................................................      $55,260
5..........................................................      $65,190
6..........................................................      $76,230
For each additional add....................................      $8,610.
------------------------------------------------------------------------

                    ``(B) In the case of a single independent student 
                with dependents:

  ``Income Protection Allowance 2021-2022 (to be adjusted for 2022-2023
                          and succeeding years)
------------------------------------------------------------------------
              Family Size (including student)                   Amount
------------------------------------------------------------------------
2..........................................................      $43,128
3..........................................................      $54,364
4..........................................................      $66,312
5..........................................................      $78,228
6..........................................................      $91,476
For each additional add....................................     $10,332.
------------------------------------------------------------------------

            ``(4) Employment expense allowance.--The employment expense 
        allowance is equal to the lesser of $4,000 or 35 percent of the 
        student's earned income or the combined earned income of the 
        student and the student's spouse (or is equal to a successor 
        amount as adjusted by the Secretary under section 478(g)).
    ``(c) Family's Available Assets.--
            ``(1) In general.--
                    ``(A) Determination.--Except as provided in 
                subparagraph (B), the family's available assets are 
                equal to--
                            ``(i) the difference between the family's 
                        assets (as defined in 480(f)) and the asset 
                        protection allowance (determined in accordance 
                        with paragraph (2)); multiplied by
                            ``(ii) 7 percent.
                    ``(B) Not less than zero.--Family's available 
                assets under this subsection shall not be less than 
                zero.
            ``(2) Asset protection allowance.--The asset protection 
        allowance is calculated according to the following table (or a 
        successor table prescribed by the Secretary under section 
        478(d)):

                             ``Asset Protection Allowances for Families and Students
----------------------------------------------------------------------------------------------------------------
                                                                               And the student is
                                                               -------------------------------------------------
                                                                        married                   single
                 If the age of the student is--                -------------------------------------------------
                                                                then the allowance is--
 
----------------------------------------------------------------------------------------------------------------
25 or less....................................................                       $0                       $0
26............................................................                     $300                     $100
27............................................................                     $700                     $200
28............................................................                   $1,000                     $300
29............................................................                   $1,300                     $500
30............................................................                   $1,600                     $600
31............................................................                   $2,000                     $700
32............................................................                   $2,300                     $800
33............................................................                   $2,600                     $900
34............................................................                   $2,900                   $1,000
35............................................................                   $3,300                   $1,100
36............................................................                   $3,600                   $1,200
37............................................................                   $3,900                   $1,400
38............................................................                   $4,200                   $1,500
39............................................................                   $4,600                   $1,600
40............................................................                   $4,900                   $1,700
41............................................................                   $5,100                   $1,700
42............................................................                   $5,200                   $1,700
43............................................................                   $5,300                   $1,800
44............................................................                   $5,400                   $1,800
45............................................................                   $5,500                   $1,900
46............................................................                   $5,700                   $1,900
47............................................................                   $5,800                   $1,900
48............................................................                   $6,000                   $2,000
49............................................................                   $6,100                   $2,000
50............................................................                   $6,300                   $2,100
51............................................................                   $6,400                   $2,100
52............................................................                   $6,600                   $2,200
53............................................................                   $6,800                   $2,200
54............................................................                   $6,900                   $2,300
55............................................................                   $7,100                   $2,300
56............................................................                   $7,300                   $2,400
57............................................................                   $7,500                   $2,500
58............................................................                   $7,700                   $2,500
59............................................................                   $7,900                   $2,600
60............................................................                   $8,200                   $2,700
61............................................................                   $8,400                   $2,700
62............................................................                   $8,600                   $2,800
63............................................................                   $8,900                   $2,900
64............................................................                   $9,200                   $2,900
65 or more....................................................                   $9,400                  $3,000.
----------------------------------------------------------------------------------------------------------------

    ``(d) Assessment Schedule.--The assessment of adjusted available 
income (as determined under subsection (a)(1) and hereafter in this 
subsection referred to as `AAI') is calculated according to the 
following table (or a successor table prescribed by the Secretary 
pursuant to section 478(e)):

               ``Assessment From Adjusted Available Income
------------------------------------------------------------------------
              If AAI is--                    Then the assessment is--
------------------------------------------------------------------------
Less than -$6,820......................  -$1,500
-$6,820 to $17,000.....................  22% of AAI
$17,001 to $21,400.....................  $3,740 + 25% of AAI over
                                          $17,000
$21,401 to $25,700.....................  $4,840 + 29% of AAI over
                                          $21,400
$25,701 to $30,100.....................  $6,087 + 34% of AAI over
                                          $25,700
$30,101 to $34,500.....................  $7,583 + 40% of AAI over
                                          $30,100
$34,501 or more........................  $9,343 + 47% of AAI over
                                          $34,500.
------------------------------------------------------------------------

    ``(e) Computations in Case of Separation, Divorce, or Death.--In 
the case of a student who is divorced or separated, or whose spouse has 
died, the spouse's income and assets shall not be considered in 
determining the family's available income or assets.''.
    (g) Regulations; Updated Tables.--Section 478 of the Higher 
Education Act of 1965 (20 U.S.C. 1087rr) is amended to read as follows:

``SEC. 478. REGULATIONS; UPDATED TABLES.

    ``(a) Authority To Prescribe Regulations Restricted.--
Notwithstanding any other provision of law, the Secretary shall not 
have the authority to prescribe regulations to carry out this part 
except--
            ``(1) to prescribe updated tables in accordance with 
        subsections (b) through (g); or
            ``(2) with respect to the definition of cost of attendance 
        under section 472, excluding section 472(a)(1).
    ``(b) Income Protection Allowance Adjustments.--For award year 
2022-2023 and each succeeding award year, the Secretary shall publish 
in the Federal Register revised income protection allowances for the 
purposes of subsections (c)(3) and (g)(2)(C) of section 475, subclauses 
(I) and (II) of section 476(b)(1)(A)(iii), and section 477(b)(3), by 
increasing the income protection allowances in each of such provisions, 
by a percentage equal to the percentage increase in the Consumer Price 
Index, as defined in subsection (f), between April 2019 and the April 
prior to the beginning of the award year and rounding the result to the 
nearest $10.
    ``(c) Adjusted Net Worth of a Farm or Business.--
            ``(1) Table.--The table of the net worth of a business or 
        farm for purposes of making determinations of assets as defined 
        under section 480(f) for award year 2021-2022 is the following:

                  ``Business/Farm Net Worth Adjustment
------------------------------------------------------------------------
 If the net worth of a business or farm  Then the adjusted net worth is--
                  is--
------------------------------------------------------------------------
Less than $1...........................  $0
$1 to $135,000.........................  40% of net worth of business/
                                          farm
$135,001 to $410,000...................  $54,000 + 50% of net worth over
                                          $135,000
$410,001 to $680,000...................  $191,500 + 60% of net worth
                                          over $410,000
$680,001 or more.......................  $353,500 + 100% of net worth
                                          over $680,000.
------------------------------------------------------------------------

            ``(2) Revised tables.--For award year 2022-2023 and each 
        succeeding award year, the Secretary shall publish in the 
        Federal Register a revised table of adjusted net worth of a 
        farm or business for purposes of section 480(f). Such revised 
        table shall be developed--
                    ``(A) by increasing each dollar amount that refers 
                to net worth of a farm or business by a percentage 
                equal to the percentage increase in the Consumer Price 
                Index between April 2019 and the April prior to the 
                beginning of such award year, and rounding the result 
                to the nearest $5,000; and
                    ``(B) by adjusting the dollar amounts in the column 
                referring the adjusted net worth to reflect the changes 
                made pursuant to subparagraph (A).
    ``(d) Education Savings and Asset Protection Allowance.--For award 
year 2022-2023 and each succeeding award year, the Secretary shall 
publish in the Federal Register a revised table of allowances for the 
purpose of sections 475(d)(2), 476(c)(2), and 477(c)(2). Such revised 
table shall be developed by determining the present value cost, rounded 
to the nearest $100, of an annuity that would provide, for each age 
cohort of 40 and above, a supplemental income at age 65 (adjusted for 
inflation) equal to the difference between the moderate family income 
(as most recently determined by the Bureau of Labor Statistics), and 
the current average social security retirement benefits. For each age 
cohort below 40, the allowance shall be computed by decreasing the 
allowance for age 40, as updated, by one-fifteenth for each year of age 
below age 40 and rounding the result to the nearest $100. In making 
such determinations--
            ``(1) inflation shall be presumed to be 6 percent per year;
            ``(2) the rate of return of an annuity shall be presumed to 
        be 8 percent; and
            ``(3) the sales commission on an annuity shall be presumed 
        to be 6 percent.
    ``(e) Assessment Schedules and Rates.--For award year 2022-2023 and 
each succeeding award year, the Secretary shall publish in the Federal 
Register a revised table of assessments from adjusted available income 
for the purpose of sections 475(e) and 477(d). Such revised table shall 
be developed--
            ``(1) by increasing each dollar amount that refers to 
        adjusted available income by a percentage equal to the 
        percentage increase in the Consumer Price Index between April 
        2019 and the April prior to the beginning of such academic 
        year, rounded to the nearest $100; and
            ``(2) by adjusting the other dollar amounts to reflect the 
        changes made pursuant to paragraph (1).
    ``(f) Consumer Price Index Defined.--In this section, the term 
`Consumer Price Index' means the Consumer Price Index for All Urban 
Consumers published by the Department of Labor. Each annual update of 
tables to reflect changes in the Consumer Price Index shall be 
corrected for misestimation of actual changes in such Index in previous 
years.
    ``(g) Employment Expense Allowance.--For award year 2022-2023 and 
each succeeding award year, the Secretary shall publish in the Federal 
Register a revised table of employment expense allowances for the 
purpose of sections 475(c)(4), 476(b)(3), and 477(b)(4). Such revised 
table shall be developed by increasing the dollar amount specified in 
sections 475(c)(4), 476(b)(3), and 477(b)(4) to reflect the 
inflationary adjustment that is used for the income protection 
allowances in subsection (b).''.
    (h) Applicants Exempt From Asset Reporting.--Section 479 of the 
Higher Education Act of 1965 (20 U.S.C. 1087ss) is amended to read as 
follows:

``SEC. 479. APPLICANTS EXEMPT FROM ASSET REPORTING.

    ``(a) In General.--Notwithstanding any other provision of law, this 
section shall be effective for each individual seeking to apply for 
Federal financial aid under this title, as part of the simplified 
application for Federal student financial aid under section 483.
    ``(b) Applicants Exempt From Asset Reporting.--
            ``(1) In general.--Except as provided in paragraph (3), in 
        carrying out section 483, the Secretary shall not use asset 
        information from an eligible applicant or, as applicable, the 
        parent or spouse of an eligible applicant.
            ``(2) Eligible applicants.--In this subsection, the term 
        `eligible applicant' means an applicant who meets at least one 
        of the following criteria:
                    ``(A) Is an applicant who qualifies for an 
                automatic zero student aid index or automatic negative 
                student aid index under subsection (b), (c), or (d) of 
                section 473.
                    ``(B) Is an applicant who is a dependent student 
                and the student's parents have a total adjusted gross 
                income (excluding any income of the dependent student) 
                that is less than $75,000 and do not file a Schedule A, 
                B, D, E, F, or H (or equivalent successor schedules), 
                with the Federal income tax return for the second 
                preceding tax year, and--
                            ``(i) do not file a Schedule C (or the 
                        equivalent successor schedule) with the Federal 
                        income tax return for the second preceding tax 
                        year; or
                            ``(ii) file a Schedule C (or the equivalent 
                        successor schedule) with net business income of 
                        not more than a $10,000 loss or gain with the 
                        Federal income tax return for the second 
                        preceding tax year.
                    ``(C) Is an applicant who is an independent student 
                and the student (and including the student's spouse, if 
                any) has a total adjusted gross income that is less 
                than $75,000 and does not file a Schedule A, B, C, D, 
                E, F, or H (or equivalent successor schedules), with 
                the Federal income tax return for the second preceding 
                tax year, and--
                            ``(i) does not file a Schedule C (or the 
                        equivalent successor schedule) with the Federal 
                        income tax return for the second preceding tax 
                        year; or
                            ``(ii) files a Schedule C (or the 
                        equivalent successor schedule) with net 
                        business income of not more than a $10,000 loss 
                        or gain with the Federal income tax return for 
                        the second preceding tax year.
            ``(3) Special rule.--An eligible applicant shall not be 
        exempt from asset reporting under this section if the applicant 
        is a dependent student and the students' parents do not--
                    ``(A) reside in the United States or a United 
                States territory; or
                    ``(B) file taxes in the United States or a United 
                States territory, except if such nonfiling is due to 
                not being required to file a Federal tax return for the 
                applicable tax year due to a low income.
            ``(4) Definitions.--In this section:
                    ``(A) Schedule a.--The term Schedule A means a form 
                or information by a taxpayer to report itemized 
                deductions.
                    ``(B) Schedule b.--The term Schedule B means a form 
                or information filed by a taxpayer to report interest 
                and ordinary dividend income.
                    ``(C) Schedule c.--The term Schedule C means a form 
                or information filed by a taxpayer to report income or 
                loss from a business operated or a profession practiced 
                as a sole proprietor.
                    ``(D) Schedule d.--The term Schedule D means a form 
                or information filed by a taxpayer to report sales, 
                exchanges or some involuntary conversions of capital 
                assets, certain capital gain distributions, and 
                nonbusiness bad debts.
                    ``(E) Schedule e.--The term Schedule E means a form 
                or information filed by a taxpayer to report income 
                from rental properties, royalties, partnerships, S 
                corporations, estates, trusts, and residual interests 
                in real estate mortgage investment conduits.
                    ``(F) Schedule f.--The term Schedule F means a form 
                or information filed by a taxpayer to report farm 
                income and expenses.
                    ``(G) Schedule h.--The term Schedule H means a form 
                or information filed by a taxpayer to report household 
                employment taxes.''.
    (i) Discretion of Student Financial Aid Administrators.--Section 
479A of the Higher Education Act of 1965 (20 U.S.C. 1087tt) is amended 
to read as follows:

``SEC. 479A. DISCRETION OF STUDENT FINANCIAL AID ADMINISTRATORS.

    ``(a) In General.--
            ``(1) Authority of financial aid administrators.--A 
        financial aid administrator shall have the authority to, on the 
        basis of adequate documentation, make adjustments to any or all 
        of the following on a case-by-case basis--
                    ``(A) for an individual eligible applicant with 
                special circumstances under subsection (b) to--
                            ``(i) the cost of attendance;
                            ``(ii) the values of the data used to 
                        calculate the student aid index; or
                            ``(iii) the values of the data used to 
                        calculate the Federal Pell Grant award; or
                    ``(B) for an individual eligible applicant with 
                unusual circumstances, as defined in section 480(d)(9), 
                under subsection (c) to the dependency status.
            ``(2) Limitations on authority.--
                    ``(A) Use of authority.--No institution of higher 
                education or financial aid administrator shall maintain 
                a policy of denying all requests for adjustments under 
                this section.
                    ``(B) No additional fee.--No student or parent 
                shall be charged a fee for a documented interview of 
                the student by the financial aid administrator or for 
                the review of a student or parent's request for 
                adjustments under this section including the review of 
                any supplementary information or documentation of a 
                student or parent's special circumstances or a 
                student's unusual circumstances.
                    ``(C) Rule of construction.--The authority to make 
                adjustments under paragraph (1)(A) shall not be 
                construed to permit financial aid administrators to 
                deviate from the cost of attendance, the values of data 
                used to calculate the student aid index or the values 
                of data used to calculate the Federal Pell Grant award 
                (or both) for awarding aid under this title in the 
                absence of special circumstances.
            ``(3) Adequate documentation.--Adequate documentation for 
        adjustments under this section shall substantiate the special 
        circumstances or unusual circumstances of individual students, 
        and may include, to the extent relevant and appropriate--
                    ``(A) a documented interview between the student 
                and the financial aid administrator;
                    ``(B) for the purposes of determining that a 
                student qualifies for an adjustment under paragraph 
                (1)(B)--
                            ``(i) submission of a court order or 
                        official Federal or State documentation that 
                        the parents or legal guardians are incarcerated 
                        in any Federal or State penal institution;
                            ``(ii) a documented phone call or a written 
                        statement, which confirms the specific unusual 
                        circumstances with--
                                    ``(I) a child welfare agency 
                                authorized by a State or county;
                                    ``(II) a Tribal welfare authority;
                                    ``(III) an independent living case 
                                worker; or
                                    ``(IV) a public or private agency, 
                                facility, or program servicing the 
                                victims of abuse, neglect, assault, or 
                                violence;
                            ``(iii) a documented phone call or a 
                        written statement from an attorney, a guardian 
                        ad litem, or a court-appointed special 
                        advocate, which confirms the specific unusual 
                        circumstances and documents the person's 
                        relationship to the student;
                            ``(iv) a documented phone call or written 
                        statement from a representative under chapter 1 
                        or 2 of subpart 2 of part A, which confirms the 
                        specific unusual circumstances and documents 
                        the person's relationship to the student; or
                            ``(v) documents, such as utility bills or 
                        health insurance documentation, that 
                        demonstrate a separation from parents or legal 
                        guardians; and
                            ``(vi) in the absence of documentation 
                        described in this subparagraph, other 
                        documentation the financial aid administrator 
                        determines is adequate to confirm the unusual 
                        circumstances, as defined in section 480(d)(9); 
                        and
                    ``(C) supplementary information, as necessary, 
                about the financial status or personal circumstances of 
                eligible applicants as it relates to the special 
                circumstances or unusual circumstances based on which 
                the applicant is requesting an adjustment.
            ``(4) Special rule.--In making adjustments under paragraph 
        (1), a financial aid administrator may offer a dependent 
        student financial assistance under a Federal Direct 
        Unsubsidized Stafford Loan without requiring the parents of 
        such student to provide their parent information on the Free 
        Application for Federal Student Aid if the student does not 
        qualify for, or does not choose to uses, the unusual 
        circumstance option specified in accordance with section 
        480(d)(9), and the financial aid administrator determines that 
        the parents of such student ended financial support of such 
        student and refuse to file such form.
            ``(5) Public disclosure.--Each institution of higher 
        education shall make publicly available information that 
        students applying for aid under this title have the opportunity 
        to pursue adjustments under this section.
    ``(b) Adjustments for Students With Special Circumstances.--
            ``(1) Special circumstances for adjustments related to pell 
        grants.--Special circumstances for adjustments to calculate a 
        Federal Pell Grant award--
                    ``(A) shall be conditions that differentiate an 
                individual student from a group of students rather than 
                conditions that exist across a group of students; and
                    ``(B) may include--
                            ``(i) recent unemployment of a family 
                        member or an independent student;
                            ``(ii) a student or family member who is a 
                        dislocated worker (as defined in section 3 of 
                        the Workforce Innovation and Opportunity Act);
                            ``(iii) a change in housing status that 
                        results in an individual being a homeless child 
                        or youth (as defined in section 725 of the 
                        McKinney-Vento Homeless Assistance Act);
                            ``(iv) an unusual amount of claimed losses 
                        against income on the Federal tax return that 
                        substantially lower adjusted gross income, such 
                        as business, investment, or real estate losses;
                            ``(v) receipt of substantial foreign income 
                        of permanent residents or United States 
                        citizens exempt from Federal taxation, or the 
                        foreign income for which a permanent resident 
                        or citizen received a foreign tax credit; or
                            ``(vi) other changes or adjustments in the 
                        income, assets, or size of a family, or a 
                        student's dependency status.
            ``(2) Special circumstances for adjustments related to cost 
        of attendance and student aid index.--Special circumstances for 
        adjustments to the cost of attendance or the values of the data 
        used to calculate the student aid index--
                    ``(A) shall be conditions that differentiate an 
                individual student from a group of students rather than 
                conditions that exist across a group of students; and
                    ``(B) may include--
                            ``(i) tuition expenses at an elementary 
                        school or secondary school;
                            ``(ii) medical, dental, or nursing home 
                        expenses not covered by insurance;
                            ``(iii) unusually high child care or 
                        dependent care costs not covered by the 
                        dependent care cost allowance calculated in 
                        accordance with section 472;
                            ``(iv) recent unemployment of a family 
                        member or an independent student;
                            ``(v) a student or family member who is a 
                        dislocated worker (as defined in section 3 of 
                        the Workforce Innovation and Opportunity Act);
                            ``(vi) the number of family members 
                        enrolled in a degree, certificate, or other 
                        program leading to a recognized educational 
                        credential at an institution with a program 
                        participation agreement under section 487;
                            ``(vii) a change in housing status that 
                        results in an individual being a homeless child 
                        or youth (as defined in section 725 of the 
                        McKinney-Vento Homeless Assistance Act);
                            ``(viii) in the case of a dependent 
                        student, a recent condition of severe 
                        disability of the student, the dependent 
                        student's parent or guardian, or an independent 
                        student's dependent or spouse;
                            ``(ix) unusual amount of claimed losses 
                        against income on the Federal tax return that 
                        substantially lower adjusted gross income, such 
                        as business, investment, or real estate losses; 
                        and
                            ``(x) receipt of substantial foreign income 
                        of permanent residents or United States 
                        citizens exempt from Federal taxation, or the 
                        foreign income for which a permanent resident 
                        or citizen receives a foreign tax credit; or
                    ``(C) other changes or adjustments in the income, 
                assets, or size of a family, or a student's dependency 
                status.
            ``(3) Special rule.--The Secretary shall not consider 
        conditions that are widespread to a group of students due to a 
        major disaster or an emergency declared by the President under 
        section 401 or 501, respectively, of the Robert T. Stafford 
        Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170 
        and 5191) as special circumstances for adjustment for purposes 
        of paragraphs (1)(A) and (2)(A) for a time period determined by 
        such Secretary.
    ``(c) Unusual Circumstances Adjustments.--
            ``(1) In general.--Unusual circumstances for adjustments to 
        the dependency status of an individual eligible applicant shall 
        be--
                    ``(A) conditions that differentiate an individual 
                student from a group of students; and
                    ``(B) based on unusual circumstances, as defined by 
                section 480(d)(9).
            ``(2) Provisional independent students.--
                    ``(A) Requirements for the secretary.--The 
                Secretary shall--
                            ``(i) enable each student who, based on an 
                        unusual circumstance specified in section 
                        480(d)(9), may qualify for an adjustment under 
                        subsection (a)(1)(B) that will result in a 
                        determination of independence under this 
                        section and section 479D to complete the Free 
                        Application for Federal Student Aid as an 
                        independent student for the purpose of a 
                        provisional determination of the student's 
                        Federal financial aid award, but subject to the 
                        authority under subsection (a)(3), for the 
                        purpose of the final determination of the 
                        award;
                            ``(ii) upon completion of the Free 
                        Application for Federal Student Aid provide an 
                        estimate of the student's Federal Pell Grant 
                        award, and other information as specified in 
                        section 483(a)(3)(A), based on the assumption 
                        that the student is determined to be an 
                        independent student; and
                            ``(iii) specify, on the Free Application 
                        for Federal Student Aid, the consequences under 
                        section 490(a) of knowingly and willfully 
                        completing the Free Application for Federal 
                        Student Aid as an independent student under 
                        clause (i) without meeting the unusual 
                        circumstances to qualify for such a 
                        determination.
                    ``(B) Requirements for financial aid 
                administrators.--With respect to a student accepted for 
                admission who completes the Free Application for 
                Federal Student Aid as an independent student under 
                subparagraph (A), a financial aid administrator shall--
                            ``(i) notify the student of the 
                        institutional process, requirements, and 
                        timeline for an adjustment under this section 
                        and section 480(d)(9) that will result in a 
                        review of the student's request for an 
                        adjustment and a determination of the student's 
                        dependency status under such sections within a 
                        reasonable time after the student completes the 
                        Free Application for Federal Student Aid;
                            ``(ii) provide the student a final 
                        determination of the student's dependency 
                        status and Federal financial aid award as soon 
                        as practicable after all requested 
                        documentation is provided;
                            ``(iii) retain all documents related to the 
                        adjustment under this section and section 
                        480(d)(9), including documented interviews, for 
                        at least the duration of the student's 
                        enrollment, and shall abide by all other 
                        recordkeeping requirements of this Act; and
                            ``(iv) presume that any student who has 
                        obtained an adjustment under this section and 
                        section 480(d)(9) 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.
    ``(d) Adjustments to Assets or Income Taken Into Account.--A 
financial aid administrator shall be considered to be making a 
necessary adjustment in accordance with this section if--
            ``(1) the administrator makes adjustments excluding from 
        family income or assets any proceeds or losses from a sale of 
        farm or business assets of a family if such sale results from a 
        voluntary or involuntary foreclosure, forfeiture, or bankruptcy 
        or a voluntary or involuntary liquidation; or
            ``(2) the administrator makes adjustments for a student 
        with a disability so as to take into consideration the 
        additional costs such student incurs as a result of such 
        student's disability.
    ``(e) Refusal or Adjustment of Loan Certifications.--On a case-by-
case basis, an eligible institution may refuse to use the authority 
provided under this section, certify a statement that permits a student 
to receive a loan under part D, certify a loan amount, or make a loan 
that is less than the student's determination of need (as determined 
under this part), if the reason for the action is documented and 
provided in written form to the student. No eligible institution shall 
discriminate against any borrower or applicant in obtaining a loan on 
the basis of race, national origin, religion, sex, marital status, age, 
or disability status.''.
    (j) Disregard of Student Aid in Other Programs.--Section 479B of 
the Higher Education Act of 1965 (20 U.S.C. 1087uu) is amended to read 
as follows:

``SEC. 479B. DISREGARD OF STUDENT AID IN OTHER PROGRAMS.

    ``Notwithstanding any other provision of law, student financial 
assistance received under this title, Bureau of Indian Affairs student 
assistance programs, and employment and training programs under section 
134 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3174 et 
seq.) shall not be taken into account in determining the need or 
eligibility of any person for benefits or assistance, or the amount of 
such benefits or assistance, under any Federal, State, or local program 
financed in whole or in part with Federal funds.''.
    (k) Native American Students.--Section 479C of the Higher Education 
Act of 1965 (20 U.S.C. 1087uu-1) is amended to read as follows:

``SEC. 479C. NATIVE AMERICAN STUDENTS.

    ``In determining the student aid index for Native American 
students, computations performed pursuant to this part shall exclude--
            ``(1) any income and assets of $2,000 or less per 
        individual payment received by the student (and spouse) and 
        student's parents under Public Law 98-64 (25 U.S.C. 117a et 
        seq.; 97 Stat. 365) (commonly known as the `Per Capita Act') or 
        the Indian Tribal Judgment Funds Use or Distribution Act (25 
        U.S.C. 1401 et seq.); and
            ``(2) any income received by the student (and spouse) and 
        student's parents under the Alaska Native Claims Settlement Act 
        (43 U.S.C. 1601 et seq.) or the Maine Indian Claims Settlement 
        Act of 1980 (25 U.S.C. 1721 et seq.).''.
    (l) Definitions.--The Higher Education Act of 1965 (20 U.S.C. 1001 
et seq.) is amended--
            (1) by inserting after section 479C the following:

``SEC. 479D. SPECIAL RULES FOR INDEPENDENT STUDENTS.

    ``(a) Determination Process for Unaccompanied Youth.--In making a 
determination of independence under section 480(d)(8), a financial aid 
administrator shall--
            ``(1) consider documentation of the student's circumstance 
        provided by an individual described by this subparagraph to be 
        acceptable in the absence of documented conflicting 
        information, such individuals include--
                    ``(A) a local education agency homeless liaison, 
                designated pursuant to section 722(g)(1)(J)(ii) of the 
                McKinney-Vento Homeless Assistance Act or a designee of 
                the liaison;
                    ``(B) the director or a recognized emergency 
                shelter, transitional living, street outreach program, 
                or other program serving individuals who are homeless 
                or a designee of the director;
                    ``(C) the director 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 or 
                a designee of the director; or
                    ``(D) by a financial aid administrator at another 
                institution who documented the student's circumstance 
                in a prior award year;
            ``(2) if a student is unable to provide documentation from 
        any individual under paragraph (1), make a case-by-case 
        determination, which shall be--
                    ``(A) based on a written statement from or a 
                documented interview with the student which confirms 
                that the student is homeless (as such term is defined 
                in section 725 of the McKinney-Vento Homeless 
                Assistance Act), or unaccompanied, at risk of 
                homelessness, and self-supporting; and
                    ``(B) made independent from the reasons that the 
                student is homeless (as such term is defined in section 
                725 of the McKinney-Vento Homeless Assistance Act), or 
                unaccompanied, at risk of homelessness, and self-
                supporting; and
            ``(3) consider a determination made under this paragraph as 
        distinct from a determination of independence under section 
        480(d)(9).
    ``(b) Documentation Process for Foster Care Youth.--If an 
institution requires that a student provide documentation that they 
were in foster care when the student was age 13 or older, a financial 
aid administrator shall consider any of the following as adequate 
documentation, in the absence of documented conflicting information:
            ``(1) Submission of a court order or official State 
        documentation that the student received Federal or State 
        support in foster care.
            ``(2) A documented phone call, written statement, or 
        verifiable electronic data match, which confirms the student 
        was in foster care at an applicable age, from--
                    ``(A) a State or tribal agency administering a 
                program under part B or E of title IV of the Social 
                Security Act (42 U.S.C. 621 et seq. and 670 et seq.);
                    ``(B) a State Medicaid agency; or
                    ``(C) a public or private foster care placing 
                agency or foster care facility or placement.
            ``(3) A documented phone call or a written statement from 
        an attorney, a guardian ad litem, or a Court Appointed Special 
        Advocate that confirms that the student was in foster care at 
        an applicable age, and documents the person's relationship to 
        the student.
            ``(4) Verification of the student's eligibility for an 
        education and training voucher under the John H. Chafee Foster 
        Care Program under section 477 of the Social Security Act (42 
        U.S.C. 677).
    ``(c) Timing.--A determination of independence under paragraphs 
(2), (8) or (9) of section 480(d) for a student--
            ``(1) shall be made as quickly as practicable;
            ``(2) may be made as early as the year before the award 
        year for which the student initially submits an application; 
        and
            ``(3) shall be made not later than during the award year 
        for which the student initially submits an application.
    ``(d) Use of Earlier Determinations.--
            ``(1) Earlier determination by the institution.--Any 
        student who is determined to be independent under paragraph 
        (2), (8) or (9) of section 480(d) for a preceding award year at 
        an institution shall be presumed to be independent for each 
        subsequent award year at the same institution unless--
                    ``(A) the student informs the institution that 
                circumstances have changed; or
                    ``(B) the institution has specific conflicting 
                information about the student's independence, and has 
                informed the student of this information.
            ``(2) Earlier determination by another institution.--
                    ``(A) Simplifying the dependency override 
                process.--A financial aid administrator may make a 
                determination of independence under section 480(d)(9), 
                based upon a documented determination of independence 
                that was previously made by another financial aid 
                administrator under such paragraph in the same award 
                year.
    ``(e) Retention of Documents.--A financial aid administrator shall 
retain all documents related to the determination of independence under 
paragraphs (2) or (8) of section 480(d), including documented 
interviews.''; and
            (2) by striking section 480 and inserting the following:

``SEC. 480. DEFINITIONS.

    ``In this part:
    ``(a) Total Income.--The term `total income' means the amount equal 
to adjusted gross income for the second preceding tax year plus untaxed 
income and benefits for the second preceding tax year minus excludable 
income for the second preceding tax year. The factors used to determine 
total income shall be derived from the Federal income tax return, if 
available, except for the applicant's ability to indicate a qualified 
rollover in the second preceding tax year as outlined in section 483.
    ``(b) Untaxed Income and Benefits.--The term `untaxed income and 
benefits' means--
            ``(1) deductions and payments to self-employed SEP, SIMPLE, 
        Keogh, and other qualified individual retirement accounts 
        excluded from income for Federal tax purposes, except such term 
        shall not include payments made to tax-deferred pension and 
        retirement plans, paid directly or withheld from earnings, that 
        are not delineated on the Federal tax return;
            ``(2) tax-exempt interest income;
            ``(3) untaxed portion of individual retirement account 
        distributions; and
            ``(4) untaxed portion of pensions.
    ``(c) Veteran.--The term `veteran' has the meaning given the term 
in section 101(2) of title 38, United States Code.
    ``(d) Independent Students and Determinations.-- The term 
`independent', when used with respect to a student, means any 
individual who--
            ``(1) is 24 years of age or older by December 31 of the 
        award year;
            ``(2) is, or was at any time when the individual was 13 
        years of age or older;
                    ``(A) an orphan;
                    ``(B) ward of the court; or
                    ``(C) in foster care;
            ``(3) is, or was immediately prior to attaining the age of 
        majority, an emancipated minor or in legal guardianship as 
        determined by a court of competent jurisdiction in the 
        individual's State of legal residence;
            ``(4) is a veteran of the Armed Forces of the United States 
        (as defined in subsection (c)) or is currently serving on 
        active duty in the Armed Forces for other than training 
        purposes;
            ``(5) is a graduate or professional student;
            ``(6) is married and not separated;
            ``(7) has legal dependents other than a spouse;
            ``(8) an unaccompanied youth 23 years of age or younger who 
        is homeless (as such term is defined in section 725 of the 
        McKinney-Vento Homeless Assistance Act), or unaccompanied, at 
        risk of homelessness, and self-supporting, or--
            ``(9) is a student for whom a financial aid administrator 
        makes a documented determination of independence by reason of 
        other unusual circumstances as described under section 479A(c) 
        in which the student is unable to contact a parent or where 
        contact with parents poses a risk to such student, which 
        includes circumstances of--
                    ``(A) human trafficking, as described in the 
                Trafficking Victims Protection Act of 2000 (22 U.S.C. 
                7101 et seq.);
                    ``(B) legally granted refugee or asylum status;
                    ``(C) parental abandonment or estrangement; or
                    ``(D) parental incarceration.
    ``(e) Excludable Income.--The term `excludable income' means an 
amount equal to the education credits described in paragraphs (1) and 
(2) of section 25A(a) of the Internal Revenue Code of 1986.
    ``(f) Assets.--
            ``(1) In general.--The term `assets' means cash on hand, 
        including the amount in checking and savings accounts, time 
        deposits, money market funds, trusts, stocks, bonds, 
        derivatives, other securities, mutual funds, tax shelters, 
        qualified education benefits (except as provided in paragraph 
        (3)), the annual amount of child support received and the net 
        value of real estate, income producing property, and business 
        and farm assets, determined in accordance with section 478(c).
            ``(2) Exclusions.--With respect to determinations of need 
        under this title, the term `assets' shall not include the net 
        value of the family's principal place of residence.
            ``(3) Qualified education benefit.--A qualified education 
        benefit shall be considered an asset of--
                    ``(A) the student if the student is an independent 
                student; or
                    ``(B) the parent if the student is a dependent 
                student and the account is designated for the student, 
                regardless of whether the owner of the account is the 
                student or the parent.
    ``(g) Net Assets.--The term `net assets' means the market value at 
the time of application of the assets (as defined in subsection (f)), 
minus the outstanding liabilities or indebtedness against the assets.
    ``(h) Treatment of Income Taxes Paid to Other Jurisdictions.--
            ``(1) The tax on income paid to the Governments of the 
        Commonwealth of Puerto Rico, Guam, American Samoa, the Virgin 
        Islands, or the Commonwealth of the Northern Mariana Islands, 
        the Republic of the Marshall Islands, the Federated States of 
        Micronesia, or Palau under the laws applicable to those 
        jurisdictions, or the comparable tax paid to the central 
        government of a foreign country, shall be treated as Federal 
        income taxes.
            ``(2) References in this part to the Internal Revenue Code 
        of 1986, Federal income tax forms, and the Internal Revenue 
        Service shall, for purposes of the tax described in paragraph 
        (1), be treated as references to the corresponding laws, tax 
        forms, and tax collection agencies of those jurisdictions, 
        respectively, subject to such adjustments as the Secretary may 
        provide by regulation.
    ``(i) Other Financial Assistance.--
            ``(1) For purposes of determining a student's eligibility 
        for funds under this title, other financial assistance not 
        received under this title shall include all scholarships, 
        grants, loans, or other assistance known to the institution at 
        the time the determination of the student's need is made, 
        including national service educational awards or post-service 
        benefits under title I of the National and Community Service 
        Act of 1990 (42 U.S.C. 12511 et seq.).
            ``(2) Notwithstanding paragraph (1), a tax credit taken 
        under section 25A of the Internal Revenue Code of 1986, or a 
        distribution that is not includable in gross income under 
        section 529 of such Code, under another prepaid tuition plan 
        offered by a State, or under a Coverdell education savings 
        account under section 530 of such Code, shall not be treated as 
        other financial assistance for purposes of section 471(a)(3).
            ``(3) Notwithstanding paragraph (1) and section 472, 
        assistance not received under this title may be excluded from 
        both other financial assistance and cost of attendance, if that 
        assistance is provided by a State and is designated by such 
        State to offset a specific component of the cost of attendance. 
        If that assistance is excluded from either other financial 
        assistance or cost of attendance, it shall be excluded from 
        both.
            ``(4) Notwithstanding paragraph (1), payments made and 
        services provided under part E of title IV of the Social 
        Security Act 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, shall not be treated as other financial 
        assistance for purposes of section 471(a)(3).
            ``(5) Notwithstanding paragraph (1), emergency financial 
        assistance in an amount less than $1,500 provided to the 
        student for unexpected expenses that are a component of the 
        student's cost of attendance, and not otherwise considered when 
        the determination of the student's need is made, shall not be 
        treated as other financial assistance for purposes of section 
        471(a)(3).
    ``(j) Dependents.--
            ``(1) Except as otherwise provided, the term `dependent of 
        the parent' means the student who is deemed to be a dependent 
        students when applying for aid under this title, and any other 
        person who lives with and receives more than one-half of their 
        support from the parent (or parents) and will continue to 
        receive more than half of their support from the parent (or 
        parents) during the award year.
            ``(2) Except as otherwise provided, the term `dependent of 
        the student' means the student's dependent children and other 
        persons (except the student's spouse) who live with and receive 
        more than one-half of their support from the student and will 
        continue to receive more than half of their support from the 
        student during the award year.
    ``(k) Family Size.--
            ``(1) Dependent student.--Except as provided in paragraph 
        (3), in determining family size in the case of a dependent 
        student--
                    ``(A) if the parents are not divorced or separated, 
                family members include the student's parents, and any 
                dependent (within the meaning of section 152 of the 
                Internal Revenue Code of 1986 or an eligible individual 
                for purposes of the credit under section 32 of the 
                Internal Revenue Code of 1986) of the student's parents 
                for the taxable year used in determining the amount of 
                need of the student for financial assistance under this 
                title;
                    ``(B) if the parents are divorced or separated, 
                family members include the parent whose income is 
                included in computing available income and any 
                dependent (within the meaning of section 152 of the 
                Internal Revenue Code of 1986 or an eligible individual 
                for purposes of the credit under section 32 of the 
                Internal Revenue Code of 1986) of that parent for the 
                taxable year used in determining the amount of need of 
                the student for financial assistance under this title;
                    ``(C) if the parents are divorced and the parents 
                whose income is so included is remarried, or if the 
                parent was a widow or widower who has remarried, family 
                members also include, in addition to those individuals 
                referred to in paragraph (B), and any dependent (within 
                the meaning of section 152 of the Internal Revenue Code 
                of 1986 or an eligible individual for purposes of the 
                credit under section 32 of the Internal Revenue Code of 
                1986) of the new spouse for the taxable year used in 
                determining the amount of need of the student for 
                financial assistance under this title, if that spouse's 
                income is included in determining the parent's adjusted 
                available income; and
                    ``(D) if the student is not considered as a 
                dependent (within the meaning of section 152 of the 
                Internal Revenue Code of 1986 or an eligible individual 
                for purposes of the credit under section 32 of the 
                Internal Revenue Code of 1986) of any parent, the 
                parents' family size shall include the student and the 
                family members applicable to the parents' situation 
                under subparagraph (A), (B), or (C).
            ``(2) Independent student.--Except as provided in paragraph 
        (3), in determining family size in the case of an independent 
        student--
                    ``(A) family members include the student, the 
                student's spouse, and any dependent (within the meaning 
                of section 152 of the Internal Revenue Code of 1986 or 
                an eligible individual for purposes of the credit under 
                section 32 of the Internal Revenue Code of 1986) of 
                that student for the taxable year used in determining 
                the amount of need of the student for financial 
                assistance under this title; and
                    ``(B) if the student is divorced or separated, 
                family members do not include the spouse (or ex-
                spouse), but do include the student and any dependent 
                (within the meaning of section 152 of the Internal 
                Revenue Code of 1986 or an eligible individual for 
                purposes of the credit under section 32 of the Internal 
                Revenue Code of 1986) of that student for the taxable 
                year used in determining the amount of need of the 
                student for financial assistance under this title.
            ``(3) Procedures and modification.--The Secretary shall 
        provide procedures for determining family size in cases in 
        which information for the taxable year used in determining the 
        amount of need of the student for financial assistance under 
        this title has changed or does not accurately reflect the 
        applicant's current household size.
    ``(l) Business Assets.--The term `business assets' means property 
that is used in the operation of a trade or business, including real 
estate, inventories, buildings, machinery, and other equipment, 
patents, franchise rights, and copyrights.''.
    (m) FAFSA.--Section 483 of the Higher Education Act of 1965 (20 
U.S.C. 1090) is amended to read as follows:

``SEC. 483. FREE APPLICATION FOR FEDERAL STUDENT AID.

    ``(a) Simplified Application for Federal Student Financial Aid.--
            ``(1) In general.--Each individual seeking to apply for 
        Federal financial aid under this title for any award year shall 
        file a free application with the Secretary, known as the `Free 
        Application for Federal Student Aid', to determine eligibility 
        for such aid, as described in paragraph (2), and in accordance 
        with section 479.
            ``(2) Free application.--
                    ``(A) In general.--The Secretary shall make 
                available, for the purposes of paragraph (1), a free 
                application to determine the eligibility of a student 
                for Federal financial aid under this title.
                    ``(B) Information required by the applicant.--
                            ``(i) In general.--The applicant, and, if 
                        necessary, the parents or spouse of the 
                        applicant, shall provide the Secretary with the 
                        applicable information described in clause (ii) 
                        in order to be eligible for Federal financial 
                        aid under this title.
                            ``(ii) Information to be provided.--The 
                        information described in this clause is the 
                        following:
                                    ``(I) Name.
                                    ``(II) Contact information, 
                                including address, phone number, email 
                                address, or other electronic address.
                                    ``(III) Social security number.
                                    ``(IV) Date of birth.
                                    ``(V) Marital status.
                                    ``(VI) Citizenship status, 
                                including alien registration number, if 
                                applicable.
                                    ``(VII) Sex.
                                    ``(VIII) State of legal residence 
                                and date of residency.
                                    ``(IX) The following information on 
                                secondary school completion--
                                            ``(aa) Name and location of 
                                        the high school from which the 
                                        applicant received, or will 
                                        receive prior to the period of 
                                        enrollment for which aid is 
                                        sought, a regular high school 
                                        diploma;
                                            ``(bb) name and location of 
                                        the entity from which the 
                                        applicant received, or will 
                                        receive prior to the period of 
                                        enrollment for which aid is 
                                        sought, a recognized equivalent 
                                        of a regular high school 
                                        diploma; or
                                            ``(cc) if the applicant 
                                        completed or will complete 
                                        prior to the period of 
                                        enrollment for which aid is 
                                        sought, a secondary school 
                                        education in a home school 
                                        setting that is treated as a 
                                        home school or private school 
                                        under State law.
                                    ``(X) Name of each institution 
                                where the applicant intends to apply 
                                for enrollment or continue enrollment.
                                    ``(XI) Year in school for period of 
                                enrollment for which aid is sought, 
                                including whether applicant will have 
                                finished first bachelor's degree prior 
                                to the period of enrollment for which 
                                aid is sought.
                                    ``(XII) Whether one or both of the 
                                applicant's parents attended college.
                                    ``(XIII) Any required asset 
                                information, unless exempt under 
                                section 479, in which the applicant 
                                shall indicate--
                                            ``(aa) the annual amount of 
                                        child support received, if 
                                        applicable; and
                                            ``(bb) all required asset 
                                        information not described in 
                                        item (aa).
                                    ``(XIV) The number of members of 
                                the applicant's family who will also be 
                                enrolled in an eligible institution of 
                                higher education on at least a half-
                                time basis during the same enrollment 
                                period as the applicant.
                                    ``(XV) If the applicant meets any 
                                of the following designations:
                                            ``(aa) Homeless, at risk of 
                                        being homeless, or an 
                                        unaccompanied youth.
                                            ``(bb) Emancipated minor.
                                            ``(cc) In legal 
                                        guardianship.
                                            ``(dd) Dependent ward of 
                                        the court at any time since the 
                                        applicant turned 13.
                                            ``(ee) In foster care at 
                                        any time since the applicant 
                                        turned 13.
                                            ``(ff) If both parents have 
                                        died since the applicant turned 
                                        13.
                                            ``(gg) Is a veteran of the 
                                        Armed Forces of the United 
                                        States or is serving (on the 
                                        date of the application) on 
                                        active duty in the Armed Forces 
                                        for other than training 
                                        purposes.
                                            ``(hh) Has a dependent 
                                        child or relative and is under 
                                        the age of 24.
                                            ``(ii) Does not have access 
                                        to parental income due to an 
                                        unusual circumstance in 
                                        accordance with section 
                                        480(d)(9).
                                    ``(XVI) If the applicant receives 
                                or has received any of the following 
                                means-tested Federal benefits within 
                                the last two years:
                                            ``(aa) The supplemental 
                                        security income program under 
                                        title XVI of the Social 
                                        Security Act (42 U.S.C. 1381 et 
                                        seq.).
                                            ``(bb) The supplemental 
                                        nutrition assistance program 
                                        under the Food and Nutrition 
                                        Act of 2008 (7 U.S.C. 2011 et 
                                        seq.).
                                            ``(cc) 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.).
                                            ``(dd) 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.).
                                            ``(ee) 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).
                                            ``(ff) The Medicaid program 
                                        under title XIX of the Social 
                                        Security Act (42 U.S.C. 1396 et 
                                        seq.).
                                            ``(gg) Federal housing 
                                        assistance programs, including 
                                        tenant-based assistance under 
                                        section 8(o) of the United 
                                        States Housing Act of 1937 (42 
                                        U.S.C. 1437f(o)), and public 
                                        housing, as defined in section 
                                        3(b)(1) of such Act (42 U.S.C. 
                                        1437a(b)(1)).
                                            ``(hh) Any other means-
                                        tested program determined by 
                                        the Secretary to be 
                                        appropriate.
                                    ``(XVII) If the applicant, or, if 
                                necessary, the parents or spouse of the 
                                applicant, reported receiving tax 
                                exempt payments from an individual 
                                retirement plan (as defined in section 
                                7701 of the Internal Revenue Code of 
                                1986) distribution or from pensions or 
                                annuities on a Federal tax return, 
                                information as to how much of the 
                                individual retirement plan distribution 
                                or pension or annuity disbursement was 
                                a qualified rollover.
                            ``(iii) Prohibition against requesting 
                        information more than once.--Any information 
                        requested during the process of creating an 
                        account for completing the 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 free 
                        application except in the case of an unusual 
                        situation.
                            ``(iv) Change in family size.--The 
                        Secretary shall provide a process by which an 
                        applicant shall confirm the accuracy of family 
                        size or 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.
                            ``(v) Single question for homeless 
                        status.--The Secretary shall ensure that--
                                    ``(I) on the form developed under 
                                this section for which the information 
                                is applicable, there is a single, 
                                easily understood screening question to 
                                identify an applicant who is an 
                                unaccompanied homeless child or youth 
                                (as such term is defined in section 725 
                                of the McKinney-Vento Homeless 
                                Assistance Act) or an unaccompanied 
                                youth who is self-supporting and at 
                                risk of homelessness; and
                                    ``(II) such question is distinct 
                                from those relating to an individual 
                                who does not have access to parental 
                                income due to an unusual circumstance.
                            ``(vi) Adjustments.--The Secretary shall 
                        disclose on the FAFSA that the student may, on 
                        a case-by-case basis, qualify for an adjustment 
                        under section 479A to the cost of attendance or 
                        the values of the data items required to 
                        calculate the student aid index for the student 
                        or parent.
                    ``(C) 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 (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) of the authority of the Secretary to request 
                that the Internal Revenue Service disclose their tax 
                return information as described in section 494.
                    ``(D) Authorizations available to the applicant.--
                            ``(i) Authorization to release and transmit 
                        to institution.--An applicant and, if 
                        necessary, the parents or spouse of the 
                        applicant shall provide the Secretary with 
                        authorization to release and transmit to an 
                        institution, as specified by the applicant, in 
                        order for the applicant's eligibility for 
                        Federal financial aid programs to be 
                        determined, the following:
                                    ``(I) Information described under 
                                section 6103(l)(13) of the Internal 
                                Revenue Code of 1986.
                                    ``(II) All information provided by 
                                the applicant on the application 
                                described by this subsection to 
                                determine the applicant's eligibility 
                                for Federal financial aid under this 
                                title and for the application, award, 
                                and administration of such Federal 
                                financial aid.
                            ``(ii) Authorization to release and 
                        transmit to state and institution.--
                                    ``(I) In general.--An applicant 
                                and, if necessary, the parents or 
                                spouse of the applicant may provide the 
                                Secretary with authorization to release 
                                and transmit to the State of residence 
                                of the applicant and to any institution 
                                specified by the applicant, in order 
                                for the applicant's eligibility for 
                                State student financial aid programs or 
                                institution-based student financial aid 
                                programs to be determined, the 
                                following:
                                            ``(aa) Information 
                                        described under section 
                                        6103(l)(13) of the Internal 
                                        Revenue Code of 1986.
                                            ``(bb) All information 
                                        provided by the applicant on 
                                        the application described by 
                                        this subsection for the 
                                        application, award, and 
                                        administration of financial aid 
                                        by a State or an institution of 
                                        higher education.
                                    ``(II) Special rule.--An 
                                institution to which an applicant 
                                selects to release and transmit 
                                information under subclause (I) shall 
                                not be disclosed to any other 
                                institution.
                            ``(iii) Authorization to release and 
                        transmit to benefits programs.--An applicant 
                        and, if necessary, the parents or spouse of the 
                        applicant may provide the Secretary with 
                        authorization to release and transmit to means-
                        tested Federal benefit programs, as defined in 
                        section 473(e), the following:
                                    ``(I) Information described under 
                                section 6103(l)(13) of the Internal 
                                Revenue Code of 1986.
                                    ``(II) All information provided by 
                                the applicant on the application 
                                described by this subsection to 
                                determine the applicant's eligibility 
                                for the application, award, and 
                                administration of such means-tested 
                                Federal benefits programs.
                    ``(E) Action by the secretary.--Upon receiving--
                            ``(i) an application under this section, 
                        the Secretary shall, as soon as practicable, 
                        perform the necessary functions with the 
                        Commissioner of Internal Revenue to calculate 
                        the applicant's student aid index and scheduled 
                        award for a Federal Pell Grant, if applicable, 
                        assuming full-time enrollment for an academic 
                        year, and note to the applicant the assumptions 
                        relationship to the scheduled award; and
                            ``(ii) an authorization under subparagraph 
                        (D), the Secretary shall, as soon as 
                        practicable, release and transmit the 
                        information described under such subparagraph 
                        to the State of residence of the applicant or 
                        an institution, as specified by the applicant, 
                        in order for the applicant's eligibility for 
                        Federal, State, or institutional student 
                        financial aid programs to be estimated or 
                        determined.
            ``(3) Information to be supplied by the secretary of 
        education.--
                    ``(A) In general.--Upon receiving and timely 
                processing a free application that contains the 
                information described in paragraph (2), the Secretary 
                shall provide to the applicant (and the parents of a 
                dependent student applicant, or spouse of the 
                independent student applicant, if applicable) the 
                following information based on full-time attendance for 
                an academic year:
                            ``(i) The estimated dollar amount of a 
                        Federal Pell Grant scheduled award for which 
                        the applicant is eligible for such award year.
                            ``(ii) Information on other types of 
                        Federal financial aid for which the applicant 
                        may be eligible (including situations in which 
                        the applicant could qualify for 150 percent of 
                        a schedule Federal Pell Grant award and loans 
                        made under this title) and how the applicant 
                        can find additional information regarding such 
                        aid.
                            ``(iii) Information regarding each 
                        institution selected by the applicant in 
                        accordance with paragraph (2)(B)(ii)(X), 
                        including the following:
                                    ``(I) The following information, as 
                                collected through the Integrated 
                                Postsecondary Education Data System or 
                                a successor Federal data system as 
                                designated by the Secretary:
                                            ``(aa) Net price by income 
                                        quintile.
                                            ``(bb) Median debt of 
                                        students upon completion.
                                            ``(cc) Graduation rate.
                                            ``(dd) Retention rate.
                                            ``(ee) Transfer rate, if 
                                        available.
                                    ``(II) Institutional default rate, 
                                as calculated under section 435.
                            ``(iv) If the student is eligible for a 
                        student aid index of less than or equal to zero 
                        under section 473 but has not indicated that 
                        they receive Federal means-tested benefits, a 
                        notification of the Federal means-tested 
                        benefits for which they may be eligible.
                            ``(v) Information on education tax credits 
                        described in paragraphs (1) and (2) of section 
                        25A(a) of the Internal Revenue Code of 1986.
                            ``(vi) If the individual identified as a 
                        veteran, or as serving (on the date of the 
                        application) on active duty in the Armed Forces 
                        for other than training purposes, information 
                        on benefits administered by the Department of 
                        Veteran Affairs or Department of Defense, 
                        respectively.
                            ``(vii) If applicable, the applicant's 
                        current outstanding balance of loans under this 
                        title.
                    ``(B) Information provided to the state.--
                            ``(i) In general.--The Secretary shall 
                        provide, with authorization from the applicant 
                        in accordance with paragraph (2)(D)(ii), to a 
                        State agency administering State-based 
                        financial aid and serving the applicant's State 
                        of residence, the information described under 
                        section 6103(l)(13) of the Internal Revenue 
                        Code of 1986 and information described in 
                        paragraph (2)(B) for the application, award, 
                        and administration of grants and other aid 
                        provided directly from the State to be 
                        determined by such State. Such information 
                        shall include the list of institutions provided 
                        by the applicant on the application.
                            ``(ii) Use of information.--A State agency 
                        administering State-based financial aid--
                                    ``(I) shall use the information 
                                provided under clause (i) solely for 
                                the application, award, and 
                                administration of State-based financial 
                                aid for which the applicant is eligible 
                                and for State agency research that does 
                                not release any individually 
                                identifiable information on any 
                                applicant to promote college 
                                attendance, persistence, and 
                                completion;
                                    ``(II) may use identifying 
                                information for student applicants to 
                                determine whether or not a graduating 
                                secondary student has filed the 
                                application in coordination with local 
                                educational agencies or secondary 
                                schools to encourage students to 
                                complete the application; and
                                    ``(III) shall not share application 
                                information with any other entity 
                                without the explicit written consent of 
                                the applicant, except as provided in 
                                subclause (II).
                            ``(iii) Limitation on consent process.--A 
                        State may provide a consent process whereby an 
                        applicant may elect to share the information 
                        described in clause (i) through explicit 
                        written consent to Federal, State, or local 
                        government agencies or tribal organizations to 
                        assist such applicant in applying for and 
                        receiving Federal, State, or local government 
                        assistance, or tribal assistance for any 
                        component of the applicant's cost of attendance 
                        which may include financial assistance or non-
                        monetary assistance.
                            ``(iv) Prohibition.--Any entity that 
                        receives applicant information under clause 
                        (iii) shall not sell, share, or otherwise use 
                        applicant information other than for the 
                        purposes outlined in clause (iii).
                    ``(C) Information provided to the institution.--
                            ``(i) In general.--The Secretary shall 
                        provide, with authorization from the applicant 
                        in accordance with paragraph (2)(D)(ii), to 
                        each institution selected by the applicant on 
                        the application, the information described 
                        under section 6103(l)(13) of the Internal 
                        Revenue Code of 1986 and information described 
                        in paragraph (2)(B) for the application, award, 
                        and administration of grants and other aid 
                        provided directly from the institution to be 
                        determined by such institution and grants and 
                        other aid provided directly from the State or 
                        Federal Government.
                            ``(ii) Use of information.--An 
                        institution--
                                    ``(I) shall use the information 
                                provided to it under clause (i) solely 
                                for the application, award, and 
                                administration of financial aid to the 
                                applicant, and for institutional 
                                research that does not release any 
                                individually identifiable information 
                                on any applicant, to promote college 
                                attendance, persistence and completion; 
                                and
                                    ``(II) shall not share such 
                                information with any other entity 
                                without the explicit written consent of 
                                the applicant.
                            ``(iii) Limitation on consent process.--An 
                        institution may provide a consent process 
                        whereby an applicant can elect to share the 
                        information described in clause (i) with 
                        explicit written consent to a scholarship 
                        granting organization, including a tribal 
                        organization (defined in section 4 of the 
                        Indian Self-Determination and Education 
                        Assistance Act (25 U.S.C. 5304)), or to 
                        Federal, State, or local government agencies or 
                        tribal organizations to assist the applicant in 
                        applying for and receiving private assistance, 
                        or Federal, State, local government assistance, 
                        or tribal assistance for any component of the 
                        applicant's cost of attendance which may 
                        include financial assistance or non-monetary 
                        assistance.
                            ``(iv) Prohibition.--Any entity that 
                        receives applicant information under clause 
                        (iii) shall not sell, share, or otherwise use 
                        applicant information other than for the 
                        purposes outlined in clause (iii).
            ``(4) Development of form and information exchange.--Prior 
        to the design of the free application under this subsection, 
        the Secretary shall, to the maximum extent practicable, on an 
        annual basis--
                    ``(A) consult with stakeholders to gather 
                information about innovations and technology available 
                to--
                            ``(i) ensure an efficient and effective 
                        process;
                            ``(ii) mitigate unintended consequences; 
                        and
                            ``(iii) determine the best practices for 
                        outreach to students and families during the 
                        transition to the streamlined process for the 
                        determination of Federal financial aid and 
                        Federal Pell Grant eligibility while reducing 
                        the data burden on applicants and families; and
                    ``(B) solicit public comments for the format of the 
                free application that provides for adequate time to 
                incorporate feedback prior to development of the 
                application for the succeeding award year.
            ``(5) No additional information requests permitted.--In 
        carrying out this subsection, the Secretary may not require 
        additional information to be submitted by an applicant (or the 
        parents or spouse of an applicant) for Federal financial aid 
        through other requirements or reporting, except as required 
        under a process or procedure exercised in accordance with the 
        authority under section 479A.
            ``(6) State-run programs.--
                    ``(A) In general.--The Secretary shall conduct 
                outreach to States in order to research the benefits to 
                students of States relying solely on the financial data 
                made available, upon authorization by the applicant, as 
                a result of an application for aid under this 
                subsection for determining the eligibility of the 
                applicant for State provided financial aid.
                    ``(B) Secretarial review.--If a State determines 
                that there is a need for additional data elements 
                beyond those provided pursuant to this subsection for 
                determining the eligibility of an applicant for State 
                provided financial aid, the State shall forward a list 
                of those additional data elements determined necessary, 
                but not provided by virtue of the application under 
                this subsection, to the Secretary. The Secretary shall 
                make readily available to the public through the 
                Department's websites and other means--
                            ``(i) a list of States that do not require 
                        additional financial information separate from 
                        the Free Application for Federal Student Aid 
                        and do not require asset information from 
                        students who qualify for the exemption from 
                        asset reporting under section 479 for the 
                        purposes of awarding State scholarships and 
                        grant aid;
                            ``(ii) a list of States that require asset 
                        information from students who qualify for the 
                        exemption from asset reporting under section 
                        479 for the purposes of awarding State 
                        scholarships and grant aid;
                            ``(iii) a list of States that have 
                        indicated that they require additional 
                        financial information separate from the Free 
                        Application for Federal Student Aid for 
                        purposes of awarding State scholarships and 
                        grant aid; and
                            ``(iv) with the publication of the lists 
                        under this subparagraph, information about 
                        additional resources available to applicants, 
                        including links to such State websites.
            ``(7) Institution-run financial aid.--
                    ``(A) In general.--The Secretary shall conduct 
                outreach to institutions of higher education to 
                describe the benefits to students of relying solely on 
                the financial data made available, upon authorization 
                for release by the applicant, as a result of an 
                application for aid under this subsection for 
                determining the eligibility of the applicant for 
                institutional financial aid. The Secretary shall make 
                readily available to the public through its websites 
                and other means--
                            ``(i) a list of institutions that do not 
                        require additional financial information 
                        separate from the Free Application for Federal 
                        Student Aid and do not require asset 
                        information from students who qualify for the 
                        exemption from asset reporting under section 
                        479 for the purpose of awarding institution-run 
                        financial aid;
                            ``(ii) a list of institutions that require 
                        asset information from students who qualify for 
                        the exemption from asset reporting under 
                        section 479 for the purpose of awarding 
                        institution-run financial aid;
                            ``(iii) a list of institutions that require 
                        additional financial information separate from 
                        the Free Application for Federal Student Aid 
                        for the purpose of awarding institution-run 
                        financial aid; and
                            ``(iv) with the publication of the list in 
                        clause (iii), information about additional 
                        resources available to applicants.
            ``(8) Security of data.--The Secretary shall, in 
        consultation with the Secretary of the Treasury, take all steps 
        necessary to--
                    ``(A) safeguard the data required to be transmitted 
                for the purpose of this section between Federal 
                agencies and to States and institutions of higher 
                education;
                    ``(B) secure the transmittal of such data; and
                    ``(C) provide guidance to States and institutions 
                of higher education regarding their obligation to 
                ensure the security of the data provided under this 
                section.
            ``(9) Report to congress.--
                    ``(A) In general.--Not later than one year after 
                the date of enactment of the Student Loan Repayment and 
                FAFSA Simplification Act, the Secretary shall report to 
                the Committee on Health, Education, Labor, and Pensions 
                of the Senate and the Committee on Education and Labor 
                of the House of Representatives on the progress of the 
                Secretary in carrying out this subsection, including 
                planning and stakeholder consultation. Such report 
                shall include--
                            ``(i) benchmarks for implementation;
                            ``(ii) entities and organization that the 
                        Secretary consulted;
                            ``(iii) system requirements for such 
                        implementation and how they will be addressed;
                            ``(iv) any areas of concern and potential 
                        problem issues uncovered that may hamper such 
                        implementation; and
                            ``(v) solutions determined to address such 
                        issues.
                    ``(B) Quarterly updates.--The Secretary shall 
                provide updates to the Committees described in 
                subparagraph (A)--
                            ``(i) as to the progress and planning 
                        described in subparagraph (A) prior to 
                        implementation of the Free Application for 
                        Federal Student Aid under this subsection not 
                        less often than quarterly; and
                            ``(ii) at least 6 months and 1 year after 
                        implementation of the Free Application for 
                        Federal Student Aid.
    ``(b) Adjustments and Improvements.--
            ``(1) In general.--The Secretary shall disclose in a 
        consumer-tested format, upon completion of the Free Application 
        for Federal Student Aid under this section, that the student 
        may, on a case-by-case basis, qualify for an adjustment under 
        section 479A to the cost of attendance or the values of the 
        data items required to calculate the Federal Pell Grant or the 
        need analysis for the student or parent. Such disclosure shall 
        specify--
                    ``(A) examples of the special circumstances under 
                which a student or family member may qualify for such 
                adjustment or determination of independence; and
                    ``(B) additional information regarding the steps a 
                student or family member may take in order to seek an 
                adjustment under section 479A.
            ``(2) Consumer testing.--
                    ``(A) In general.--Not later than 9 months after 
                the date of enactment of the Student Loan Repayment and 
                FAFSA Simplification Act, the Secretary shall begin 
                consumer testing the design of the Free Application for 
                Federal Student Aid under this section with prospective 
                first-generation college students, representatives of 
                students (including low-income students, first 
                generation college students, adult students, veterans, 
                servicemembers, and prospective students), students' 
                families (including low-income families, families with 
                first generation college students, and families with 
                prospective students), institutions of higher 
                education, secondary school and postsecondary 
                counselors, and nonprofit consumer groups.
                    ``(B) Updates.--For award year 2021 and each fourth 
                succeeding award year thereafter, the Secretary shall 
                update the design of the Free Application for Federal 
                Student Aid based on additional consumer testing with 
                the populations described in subparagraph (A) in order 
                to improve the usability and accessibility of the 
                application.
            ``(3) Accessibility of the fafsa.--The Secretary shall--
                    ``(A) in conjunction with the Director of the 
                Census Bureau, shall determine the most common 
                languages spoken at home in the United States;
                    ``(B) develop versions of the Free Application for 
                Federal Student Aid form in each of the languages 
                determined in subparagraph (A); and
                    ``(C) ensure the Free Application for Federal 
                Student Aid is compliant with the most recent Web 
                Content Accessibility Guidelines, or successor 
                guidelines.
            ``(4) Reapplication in a succeeding academic year.--In 
        order to streamline applicant's experience applying for 
        financial aid, the Secretary shall allow an applicant who 
        electronically applies for financial assistance under this 
        title for an academic year subsequent to an academic year for 
        which such applicant applied for financial assistance under 
        this title to automatically electronically import all of the 
        applicant's (including parents, guardians, or spouses, as 
        applicable) identifying, demographic, and school data from the 
        previous application and to update such information to reflect 
        any circumstances that have changed.
            ``(5) Technology accessibility.--The Secretary shall make 
        the application under this section available through prevalent 
        technology. Such technology shall, at a minimum, enable 
        applicants to--
                    ``(A) save data; and
                    ``(B) submit the application under this title to 
                the Secretary through such technology.
            ``(6) Verification burden.--The Secretary shall--
                    ``(A) to the maximum extent practicable, streamline 
                and simplify the process of verification for applicants 
                for Federal financial aid;
                    ``(B) in establishing policies and procedures to 
                verify applicants' eligibility for Federal financial 
                aid, consider--
                            ``(i) the burden placed on low-income 
                        applicants;
                            ``(ii) the risk to low-income applicants of 
                        failing to enroll or complete from being 
                        selected for verification;
                            ``(iii) the effectiveness of the policies 
                        and procedures in safeguarding against a net 
                        cost to taxpayers; and
                            ``(iv) the reasons for the source of any 
                        improper payments; and
                    ``(C) issue a report not less often than annually 
                sharing the percentage of applicants subject to 
                verification, whether the applicants ultimately 
                received Federal financial aid disbursements, and 
                whether the student aid index changed enough to affect 
                the applicant's award of any Federal financial aid 
                under this title.
            ``(7) Studies.--The Secretary shall periodically conduct 
        studies on--
                    ``(A) the effect of States requiring additional 
                information specified in clauses (ii) and (iii) of 
                paragraph (6)(B) on the determination of State 
                financial aid awards and whether the additional 
                information required is a barrier to college enrollment 
                by examining--
                            ``(i) how much financial aid awards would 
                        change if the additional information were not 
                        required;
                            ``(ii) the number of students who started 
                        but did not finish the Free Application for 
                        Federal Student Aid, compared to the baseline 
                        year of 2021; and
                            ``(iii) the number of students who--
                                    ``(I) started a Free Application 
                                for Federal Student Aid but did not 
                                receive financial assistance under this 
                                title for the applicable academic year; 
                                and
                                    ``(II) if available, did not enroll 
                                in an institution of higher education 
                                in the applicable academic year;
                    ``(B) the most common barriers faced by 
                applications in completing the Free Applications for 
                Federal Student Aid; and
                    ``(C) the most common reasons that students and 
                families do not fill out the Free Applications for 
                Federal Student Aid.
    ``(c) Data and Information.--
            ``(1) In general.--The Secretary shall publish data in a 
        publicly accessible manner--
                    ``(A) annually on the total number of Free 
                Applications for Federal Student Aid submitted by 
                application cycle, disaggregated by demographic 
                characteristics, type of institution or institutions of 
                higher education to which the applicant applied, the 
                applicant's State of legal residence, and high school 
                and public school district;
                    ``(B) quarterly on the total number of Free 
                Applications for Federal Student Aid submitted by 
                application cycle, disaggregated by type of institution 
                or institutions of higher education to which the 
                applicant applied, the applicant's State of legal 
                residence, and high school and public school district;
                    ``(C) weekly on the total number of Free 
                Applications for Federal Student Aid submitted, 
                disaggregated by high school and public school 
                district; and
                    ``(D) annually on the number of individuals who 
                apply for Federal financial aid pursuant to this 
                section who indicated they are a homeless child or 
                youth (as defined in section 725 of the McKinney-Vento 
                Homeless Assistance Act), an unaccompanied youth, or a 
                foster care youth.
            ``(2) Contents.--The data described in paragraph (1) with 
        respect to homeless children and youth shall include, at a 
        minimum, for each application cycle--
                    ``(A) the total number of all applicants who were 
                determined to be individuals described in section 
                480(d)(8); and
                    ``(B) the number of applicants described in 
                subparagraph (A), disaggregated--
                            ``(i) by State; and
                            ``(ii) by the sources of determination as 
                        described in section 479D(b).
            ``(3) Data sharing.--The Secretary may enter into data 
        sharing agreements with the appropriate Federal or State 
        agencies to conduct outreach regarding, and connect applicants 
        directly with, the means-tested Federal benefit programs 
        described in subsection (a)(2)(B)(ii)(XVI) for which the 
        applicants may be eligible.
    ``(d) Ensuring Form Usability.--
            ``(1) Signature.--Notwithstanding any other provision of 
        this title, the Secretary may permit the Free Application for 
        Federal Student Aid to be submitted without a signature, if a 
        signature is subsequently submitted by the applicant, or if the 
        applicant uses an access device provided by the Secretary.
            ``(2) Free preparation authorized.--Notwithstanding any 
        other provision of this title, an applicant may use a preparer 
        for consultative or preparation services for the completion of 
        the Free Application for Federal Student Aid without charging a 
        fee to the applicant if the preparer--
                    ``(A) includes, at the time the application is 
                submitted to the Department, the name, address or 
                employer's address, social security number or employer 
                identification number, and organizational affiliation 
                of the preparer on the applicant's form;
                    ``(B) is subject to the same penalties as an 
                applicant for purposely giving false or misleading 
                information in the application;
                    ``(C) clearly informs each individual upon initial 
                contact, that the Free Application for Federal Student 
                Aid is a free form that may be completed without 
                professional assistance; and
                    ``(D) does not produce, use, or disseminate any 
                other form for the purpose of applying for Federal 
                financial aid other than the Free Application for 
                Federal Student Aid form developed by the Secretary 
                under this section.
            ``(3) Charges to students and parents for use of forms 
        prohibited.--The need and eligibility of a student for 
        financial assistance under this title may be determined only by 
        using the Free Application for Federal Student Aid developed by 
        the Secretary under this section. Such application shall be 
        produced, distributed, and processed by the Secretary, and no 
        parent or student shall be charged a fee by the Secretary, a 
        contractor, a third-party servicer or private software 
        provider, or any other public or private entity for the 
        collection, processing, or delivery of Federal financial aid 
        through the use of such application. No data collected on a 
        form for which a fee is charged shall be used to complete the 
        Free Application for Federal Student Aid prescribed under this 
        section, except that a Federal or State income tax form 
        prepared by a paid income tax preparer or preparer service for 
        the primary purpose of filing a Federal or State income tax 
        return may be used to complete the Free Application for Federal 
        Student Aid prescribed under this section.
            ``(4) Application processing cycle.--The Secretary shall 
        enable students to submit a Free Application for Federal 
        Student Aid developed under this section and initiate the 
        processing of such application, not later than January 1 of the 
        student's planned year of enrollment, to the maximum extent 
        practicable, on or around October 1 prior to the student's 
        planned year of enrollment.
            ``(5) Early estimates.--The Secretary shall maintain an 
        electronic method for applicants to enter income and family 
        size information to calculate a non-binding estimate of the 
        applicant's Federal financial aid available under this title 
        and shall place such calculator on a prominent location at the 
        beginning of the Free Application for Federal Student Aid.''.
    (n) Student Eligibility.--Section 484 of the Higher Education Act 
of 1965 (20 U.S.C. 1091) is amended--
            (1) by striking subsection (q) and inserting the following:
    ``(q) Use of Income Data With IRS.--The Secretary, in cooperation 
with the Secretary of the Treasury, shall fulfill the data transfer 
requirements under section 6103(l)(13) of the Internal Revenue Code of 
1986.'';
            (2) by striking subsection (r);
            (3) by redesignating subsections (s) and (t) as subsections 
        (r) and (s), respectively; and
            (4) by adding at the end the following:
    ``(t) Exception to Required Registration With the Selective Service 
System.--Notwithstanding section 12(f) of the Military Selective 
Service Act (50 U.S.C. 3811(f)), an individual shall not be ineligible 
for assistance or a benefit provided under this title if the individual 
is required under section 3 of such Act (50 U.S.C. 3802) to present 
himself for and submit to registration under such section and fails to 
do so in accordance with any proclamation issued under such section, or 
in accordance with any rule or regulation issued under such section.''.
    (o) Institutional and Financial Assistance Information for 
Students.--Section 485 of the Higher Education Act of 1965 (20 U.S.C. 
1092) is amended by striking subsection (k).
    (p) Early Awareness of Financial Aid Eligibility.--Section 485E of 
the Higher Education Act of 1965 (20 U.S.C. 1092f) is amended to read 
as follows:

``SEC. 485E. EARLY AWARENESS AND OUTREACH OF FINANCIAL AID ELIGIBILITY.

    ``(a) In General.--The Secretary shall implement early outreach 
activities in order to provide prospective students and their families 
with information about financial aid and estimates of financial aid. 
Such early outreach activities shall include the activities described 
in subsections (b), (c), and (d).
    ``(b) Pell Grant Early Awareness Estimates.--
            ``(1) In general.--The Secretary shall produce a consumer-
        tested method of estimating student eligibility for Federal 
        Pell Grants outlined in section 401(b) utilizing the variables 
        of family size and adjusted gross income, and presented in 
        electronic format. There shall be a method for students to 
        indicate whether they are, or will be in--
                    ``(A) a single-parent household;
                    ``(B) a household with two parents; or
                    ``(C) a household with no children or dependents.
            ``(2) Consumer testing.--
                    ``(A) In general.--The method of estimating 
                eligibility described in paragraph (1) shall be 
                consumer tested with prospective first-generation 
                students and families as well as low-income individuals 
                and families.
                    ``(B) Updates.--For award year 2023-2024 and each 
                fourth succeeding award year thereafter, the design of 
                the method of estimating eligibility shall be updated 
                based on additional consumer testing with the 
                populations described in subparagraph (A).
            ``(3) Distribution.--The method of estimating eligibility 
        described in paragraph (1) shall be--
                    ``(A) made publicly and prominently available on 
                the Department of Education website; and
                    ``(B) actively shared by the Secretary with--
                            ``(i) institutions of higher education 
                        participating in programs under this title;
                            ``(ii) all middle and secondary schools 
                        eligible for funds under part A of title I of 
                        the Elementary and Secondary Education Act of 
                        1965; and
                            ``(iii) local educational agencies and 
                        middle schools and secondary schools that serve 
                        students not less than 25 percent of whom meet 
                        a measure of poverty as described in section 
                        1113(a)(5) of the Elementary and Secondary 
                        Education Act of 1965.
            ``(4) Electronic estimator on fafsa.--In accordance with 
        subsection (d)(5) of section 483, the Secretary shall maintain 
        an electronic method for applicants to enter income and family 
        size, and level of education sought information to calculate a 
        non-binding estimate (which may include a range or ceiling) of 
        the applicant's Federal financial aid available under this 
        title and shall place such calculator on a prominent location 
        on the FAFSA website and in a manner that encourages students 
        to fill out the FAFSA.
    ``(c) Early Awareness Plans.--The Secretary shall establish and 
implement early awareness and outreach plans to provide early 
information about the availability of Federal financial aid and 
estimates of prospective students' eligibility for Federal financial 
aid as well as to promote the attainment of postsecondary education 
specifically among prospective first-generation students and families 
as well as low-income individuals and families, as follows:
            ``(1) Outreach plans for low-income families.--
                    ``(A) In general.--The Secretary shall develop 
                plans for each population described in this 
                subparagraph to disseminate information about the 
                availability of Federal financial aid under this title, 
                in addition to and in coordination with the 
                distribution of the method of estimating eligibility 
                under subsection (b), to--
                            ``(i) all middle schools and secondary 
                        schools eligible for funds under part A of 
                        title I of the Elementary and Secondary 
                        Education Act of 1965;
                            ``(ii) local educational agencies and 
                        middle schools and high schools that serve 
                        students not less than 25 percent of whom meet 
                        a measure of poverty as described in section 
                        1113(a)(5) of the Elementary and Secondary 
                        Education Act; and
                            ``(iii) households receiving assistance 
                        under the supplemental nutrition assistance 
                        program established under the Food and 
                        Nutrition Act of 2008 (7 U.S.C. 2011 et seq.).
                    ``(B) Content of plans.--The plans described in 
                paragraph (A) shall--
                            ``(i) provide students and their families 
                        with information on--
                                    ``(I) the availability of the 
                                College Scorecard described in section 
                                132;
                                    ``(II) the electronic estimates of 
                                financial aid available under 
                                subsection (b);
                                    ``(III) Federal financial aid 
                                available to students, including 
                                eligibility criteria for the Federal 
                                financial aid and an explanation of the 
                                Federal financial aid programs 
                                (including applicable Federal 
                                educational tax credits); and
                                    ``(IV) resources that can inform 
                                students of financial aid that may be 
                                available from State-based financial 
                                aid, State-based college savings 
                                programs, and scholarships and other 
                                non-governmental sources; and
                            ``(ii) describe how the dissemination of 
                        information will be conducted by the Secretary.
                    ``(C) Reporting and updates.--The Secretary shall 
                post the information about the plans under subparagraph 
                (A) and associated goals publicly on the Department of 
                Education website. On an annual basis, the Secretary 
                shall report qualitative and quantitative outcomes 
                regarding the implementation of the plans under 
                subparagraph (A). The Secretary shall review and update 
                such plans not less often than every 4 award years with 
                the goal of progressively increasing the impact of the 
                activities under this paragraph.
                    ``(D) Partnership.--The Secretary may partner with 
                States, State systems of higher education, institutions 
                of higher education, or college access organizations to 
                carry out this paragraph.
            ``(2) Interagency coordination plans.--
                    ``(A) In general.--The Secretary shall develop 
                interagency coordination plans in order to inform more 
                students and families, including low-income individuals 
                or families, about the availability of Federal 
                financial aid under this title through participation in 
                existing Federal programs or tax benefits that serve 
                low-income individuals or families, in coordination 
                with the following Secretaries:
                            ``(i) The Secretary of the Treasury.
                            ``(ii) The Secretary of Labor.
                            ``(iii) The Secretary of Health and Human 
                        Services.
                            ``(iv) The Secretary of Agriculture.
                            ``(v) The Secretary of Housing and Urban 
                        Development.
                            ``(vi) The Secretary of Commerce.
                            ``(vii) The Secretary of Veterans Affairs.
                    ``(B) Process, activities, and goals.--Each 
                interagency coordination plan under subparagraph (A) 
                shall--
                            ``(i) to identify opportunities in which 
                        low-income individuals and families could be 
                        informed of the availability of Federal 
                        financial aid under this title through access 
                        to other Federal programs that serve low-income 
                        individuals and families;
                            ``(ii) to identify methods to effectively 
                        inform low-income individuals and families of 
                        the availability of Federal financial aid for 
                        postsecondary education under this title;
                            ``(iii) develop early awareness activities 
                        that align with the opportunities and methods 
                        identified under clauses (ii) and (iii);
                            ``(iv) establish goals regarding the 
                        effects of the activities to be implemented 
                        under clause (iii); and
                            ``(v) provide information on how students 
                        and families can maintain access to Federal 
                        programs that serve low-income individuals and 
                        families operated by the agencies identified 
                        under subsection (A) while attending an 
                        institution of higher education.
                    ``(C) Plan with secretary of the treasury.--The 
                interagency coordination plan under subparagraph (A)(i) 
                between the Secretary and the Secretary of the Treasury 
                shall further include specific methods to increase the 
                application for Federal financial aid under this title 
                from individuals who file Federal tax returns, 
                including collaboration with tax preparation entities 
                or other third parties, as appropriate.
                    ``(D) Reporting and updates.--The Secretary shall 
                post the information about the interagency coordination 
                plans under paragraph (2) and associated goals publicly 
                on the Department of Education website. The plans shall 
                have the goal of progressively increasing the impact of 
                the activities under this paragraph by increasing the 
                number of low-income applicants for, and recipients of, 
                Federal financial aid. The plans shall be updated not 
                less than once every 4 years.
            ``(3) Nationwide participation in early awareness plans.--
                    ``(A) In general.--The Secretary shall solicit 
                voluntary public commitments from entities, such as 
                States, State systems of higher education, institutions 
                of higher education, and other interested 
                organizations, to carry out early awareness plans, 
                which shall include goals, to--
                            ``(i) notify prospective and existing 
                        students who are low-income individuals and 
                        families about their eligibility for Federal 
                        aid under this title, as well as State-based 
                        financial aid, if applicable, on an annual 
                        basis;
                            ``(ii) increase the number of prospective 
                        and current students who are low-income 
                        individuals and families filing the Free 
                        Application for Federal Student Aid; and
                            ``(iii) increase the number of prospective 
                        and current students who are low-income 
                        individuals and families enrolling in 
                        postsecondary education.
                    ``(B) Reporting and updates.--Each entity that 
                makes a voluntary public commitment to carry out an 
                early awareness plan may submit quantitative and 
                qualitative data based on the entity's progress toward 
                the goals of the plan annually prior to a date selected 
                by the Secretary.
                    ``(C) Early awareness champions.--Based on data 
                submitted by entities, the Secretary shall select and 
                designate entities submitting public commitments, 
                plans, and goals, as Early Awareness Champions on an 
                annual basis. Those entities designated as Early 
                Awareness Champions shall provide one or more case 
                studies regarding the activities the entity undertook 
                under this paragraph which shall be made public by the 
                Secretary on the Department of Education website to 
                promote best practices.
    ``(d) Public Awareness Campaign.--
            ``(1) In general.--The Secretary shall develop and 
        implement a public awareness campaign designed using current 
        and relevant independent research regarding strategies and 
        media platforms found to be most effective in communicating 
        with low-income populations in order to increase national 
        awareness regarding the availability of Federal Pell Grants and 
        financial aid under this title and, at the option of the 
        Secretary, potential availability of State need-based financial 
        aid.
            ``(2) Coordination.--The public awareness campaign 
        described in paragraph (1) shall leverage the activities in 
        subsections (b) and (c) to highlight eligibility among low-
        income populations. In developing and implementing the 
        campaign, the Secretary may work in coordination with States, 
        institutions of higher education, early intervention and 
        outreach programs under this title, other Federal agencies, 
        organizations involved in college access and student financial 
        aid, secondary schools, local educational agencies, public 
        libraries, community centers, businesses, employers, workforce 
        investment boards, and organizations that provide services to 
        individuals that are or were homeless, in foster care, or are 
        disconnected youth.
            ``(3) Reporting.--The Secretary shall report on the success 
        of the public awareness campaign described in paragraph (1) 
        annually regarding the extent to which the public and target 
        populations were reached using data commonly used to evaluate 
        advertising and outreach campaigns and data regarding whether 
        the campaign produced any increase in applicants for Federal 
        aid under this title publicly on the Department of Education 
        website.''.
                                 <all>