110th CONGRESS
1st Session
H. R. 1608
To expand college opportunities by significantly simplifying the
Federal student aid application process.
IN THE HOUSE OF REPRESENTATIVES
March 20, 2007
Mr. GEORGE MILLER of California (for himself, Mr. EMANUEL, Mr. HINOJOSA,
Mr. TIERNEY, Mr. BISHOP of New York, Mr. SESTAK, Mr. YARMUTH, Mr. RYAN of
Ohio, Mr. ARCURI, Mrs. BOYDA of Kansas, Mr. DELAHUNT, Mr. HALL of New York,
Mr. PERLMUTTER, Ms. SUTTON, and Ms. WATSON) introduced the following bill;
which was referred to the Committee on Education and Labor
A BILL
To expand college opportunities by significantly simplifying the
Federal student aid application process.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE; REFERENCE.
(a) Short Title- This Act may be cited as the `College Aid Made EZ Act'.
(b) References- Except as otherwise expressly provided, whenever in this
Act an amendment or repeal is expressed in terms of an amendment to, or
repeal of, a section or other provision, the reference shall be considered
to be made to a section or other provision of the Higher Education Act of
1965 (20 U.S.C. 1001 et seq.).
SEC. 2. IMPROVEMENTS TO PAPER AND ELECTRONIC FORMS AND PROCESSES.
(a) Common Financial Aid Form Development and Processing- Section 483 (20
U.S.C. 1090) is amended--
(A) by striking paragraphs (1), (2), and (5);
(B) by redesignating paragraphs (3), (4), (6), and (7), as paragraphs
(9), (10), (11), and (12), respectively;
(C) by inserting before paragraph (9), as redesignated by subparagraph
(B), the following:
`(1) IN GENERAL- The Secretary, in cooperation with representatives of
agencies and organizations involved in student financial assistance, shall
produce, distribute, and process free of charge common financial reporting
forms as described in this subsection to be used for application and reapplication
to determine the need and eligibility of a student for financial assistance
under parts A through E (other than subpart 4 of part A). These forms
shall be made available to applicants in both paper and electronic formats
and shall be referred to as the `Free Application for Federal Student
Aid' or the `FAFSA' . The Secretary shall work to make the FAFSA consumer-friendly
and to make questions on the FAFSA easy for students and parents to read
and understand.
`(2) EARLY ESTIMATES- The Secretary shall--
`(A) permit applicants to enter data in such forms as described in this
subsection in the years prior to enrollment in order to estimate the
applicant's family contribution (as defined in section 473);
`(B) permit applicants to update information submitted on forms described
in this subsection, without needing to re-enter previously submitted
information; and
`(C) develop a means to inform applicants, in the years prior to enrollment,
of student aid options for individuals in similar financial situations.
`(A) IN GENERAL- The Secretary shall produce, distribute, and process
common forms in paper format to meet the requirements of paragraph (1).
The Secretary shall develop a common paper form for applicants who do
not meet the requirements of subparagraph (B).
`(i) IN GENERAL- The Secretary shall develop and use a simplified
paper application form, to be known as the `EZ FAFSA', to be used
for applicants meeting the requirements of section 479(c).
`(ii) REDUCED DATA REQUIREMENTS- The EZ FAFSA shall permit an applicant
to submit for financial assistance purposes, only the data elements
required to make a determination of whether the applicant meets the
requirements under section 479(c).
`(iii) STATE DATA- The Secretary shall include on the EZ FAFSA such
data items as may be necessary to award State financial assistance,
as provided under paragraph (6), except that the Secretary shall not
include a State's data if that State does not permit its applicants
for State assistance to use the EZ FAFSA.
`(iv) FREE AVAILABILITY AND PROCESSING- The provisions of paragraph
(7) shall apply to the EZ FAFSA, and the data collected by means of
the EZ FAFSA shall be available to institutions of higher education,
guaranty agencies, and States in accordance with paragraph (9).
`(v) TESTING- The Secretary shall conduct appropriate field testing
on the EZ FAFSA.
`(C) PROMOTING THE USE OF ELECTRONIC FAFSA-
`(i) IN GENERAL- The Secretary shall make all efforts to encourage
all applicants to utilize the electronic forms described in paragraph
(4).
`(ii) MAINTENANCE OF THE FAFSA IN A PRINTABLE ELECTRONIC FILE- The
Secretary shall maintain a version of the paper forms described in
subparagraphs (A) and (B) in a printable electronic file that is easily
portable. The printable electronic file will be made easily accessible
and downloadable to students on the same website used to provide students
with the electronic application forms described in paragraph (4) of
this subsection. The Secretary shall enable students to submit a form
created under this subparagraph that is downloaded and printed from
an electronic file format in order to meet the filing requirements
of this section and in order to receive aid from programs under this
title.
`(iii) REPORTING REQUIREMENT- The Secretary shall report annually
to Congress on the impact of the digital divide on students completing
applications for title IV aid described under this paragraph and paragraph
(4). The Secretary will also report on the steps taken to eliminate
the digital divide and phase out the paper form described in subparagraph
(A) of this paragraph. The Secretary's report will specifically address
the impact of the digital divide on the following student populations:
independent students, adults, and dependent students.
`(A) IN GENERAL- The Secretary shall produce, distribute, and process
common forms in electronic format to meet the requirements of paragraph
(1). The Secretary shall develop common electronic forms for applicants
who do not meet the requirements of subparagraph (C) of this paragraph.
`(B) STATE DATA- The Secretary shall include on the common electronic
forms space for information that needs to be entered for the applicant
to be eligible for State financial assistance, as provided under paragraph
(6), except the Secretary shall not require applicants to enter data
required by any State other than the applicant's State of residence.
`(C) SIMPLIFIED APPLICATIONS: FAFSA ON THE WEB-
`(i) IN GENERAL- The Secretary shall develop and use a simplified
electronic application form to be used by applicants meeting the requirements
under subsection (c) of section 479 and an additional, separate simplified
electronic application form to be used by applicants meeting the requirements
under subsection (b) of section 479.
`(ii) REDUCED DATA REQUIREMENTS- The simplified electronic application
forms shall permit an applicant to submit for financial assistance
purposes, only the data elements required to make a determination
of whether the applicant meets the requirements under subsection (b)
or (c) of section 479.
`(iii) STATE DATA- The Secretary shall include on the simplified electronic
application forms such data items as may be necessary to award state
financial assistance, as provided under paragraph (6), except that
the Secretary shall not require applicants to enter data required
by any State other than the applicant's state of residence.
`(iv) AVAILABILITY AND PROCESSING- The data collected by means of
the simplified electronic application forms shall be available to
institutions of higher education, guaranty agencies, and States in
accordance with paragraph (9).
`(v) TESTING- The Secretary shall conduct appropriate field testing
on the forms developed under this subparagraph.
`(D) USE OF FORMS- Nothing in this subsection shall be construed to
prohibit the use of the forms developed by the Secretary pursuant to
this paragraph by an eligible institution, eligible lender, guaranty
agency, State grant agency, private computer software provider, a consortium
thereof, or such other entities as the Secretary may designate.
`(E) PRIVACY- The Secretary shall ensure that data collection under
this paragraph complies with section 552a of title 5, United States
Code, and that any entity using the electronic version of the forms
developed by the Secretary pursuant to this paragraph shall maintain
reasonable and appropriate administrative, technical, and physical safeguards
to ensure the integrity and confidentiality of the information, and
to protect against security threats, or unauthorized uses or disclosures
of the information provided on the electronic version of the forms.
Data collected by such electronic version of the forms shall be used
only for the application, award, and administration of aid awarded under
this title, State aid awarded under section 415C, or aid awarded by
eligible institutions or such entities as the Secretary may designate.
No data collected by such electronic version of the forms shall be used
for making final aid awards under this title until such data have been
processed by the Secretary or a contractor or designee of the Secretary,
except as may be permitted under this title.
`(F) SIGNATURE- Notwithstanding any other provision of this Act, the
Secretary may permit an electronic form under this paragraph to be submitted
without a signature, if a signature is subsequently submitted by the
applicant or if the applicant uses a personal identification number
provided by the Secretary under subparagraph (G) of this paragraph.
`(G) PERSONAL IDENTIFICATION NUMBERS AUTHORIZED- The Secretary may assign
to applicants personal identification numbers--
`(i) to enable the applicants to use such numbers in lieu of a signature
for purposes of completing a form under this paragraph;
`(ii) to enable the applicants to use such numbers in lieu of a signature
for purposes of completing forms required by States under section
415C; and
`(iii) for any purpose determined by the Secretary to enable the Secretary
to carry out this title.
`(A) STREAMLINED REAPPLICATION PROCESS-
`(i) IN GENERAL- The Secretary shall develop streamlined reapplication
forms and processes, including both paper and electronic reapplication
processes, consistent with the requirements of this subsection, for
an applicant who applies for financial assistance under this title
in the next succeeding academic year subsequent to the year in which
such applicant first applied for financial assistance under this title.
`(ii) MECHANISMS FOR REAPPLICATION- The Secretary shall develop appropriate
mechanisms to support reapplication.
`(iii) IDENTIFICATION OF UPDATED DATA- The Secretary shall determine,
in cooperation with States, institutions of higher education, agencies,
and organizations involved in student financial assistance, the data
elements that can be updated from the previous academic year's application.
`(iv) REDUCED DATA AUTHORIZED- Nothing in this title shall be construed
as limiting the authority of the Secretary to reduce the number of
data elements required of reapplicants.
`(v) ZERO FAMILY CONTRIBUTION- Applicants determined to have a zero
family contribution pursuant to section 479(c) shall not be required
to provide any financial data in a reapplication form, except that
which is necessary to determine eligibility under such section.
`(B) REDUCTION OF DATA ELEMENTS-
`(i) REDUCTION REQUIRED- Of the number of data elements on the FAFSA
on the date of enactment of the College Aid Made EZ Act (including
questions on the FAFSA for the purposes described in paragraph (6)),
the Secretary, in cooperation with representatives of agencies and
organizations involved in student financial assistance, shall reduce
the number of such data elements required to be entered by the applicant
by 50 percent within 5 years after such date of enactment. Reductions
of data elements under paragraph (3)(B), (4)(C), or (5)(A)(iv) shall
not be counted towards such 50 percent reduction unless those data
elements are reduced for all applicants.
`(ii) REPORT- The Secretary shall submit a report on the process of
this reduction to each House of Congress within 2 years after such
date of enactment.
`(A) IN GENERAL- The Secretary shall include on the forms developed
under this subsection, such State-specific nonfinancial data items as
the Secretary determines are necessary to meet State requirements for
need-based State aid under section 415C, except as provided in paragraphs
(3)(B)(iii) and (4)(C)(iii) of this subsection. Such items shall be
selected in consultation with State agencies that submit applications
under section 415C in order to assist in the awarding of State financial
assistance in accordance with the terms of this subsection, except as
provided in paragraphs (3)(B)(iii) and (4)(C)(iii) of this subsection.
The number of such data items shall not be less than the number included
on the form on October 7, 1998, unless a State notifies the Secretary
that the State no longer requires those data items for the distribution
of State need-based aid.
`(B) ANNUAL REVIEW- The Secretary shall conduct an annual review process
to determine which forms and nonfinancial data items the States require
to award need-based State aid and other application requirements that
the States may impose.
`(C) STATE USE OF SIMPLIFIED FORMS- The Secretary shall encourage States
to take such steps as necessary to encourage the use of simplified application
forms, including those described in paragraphs (3)(B) and (4)(C), to
meet the requirements under subsection (b) or (c) of section 479.
`(D) FEDERAL REGISTER NOTICE- The Secretary shall publish on an annual
basis a notice in the Federal Register requiring State agencies to inform
the Secretary--
`(i) if the State agency is unable to permit applicants to utilize
the simplified application forms described in paragraphs (3)(B) and
(4)(C); and
`(ii) of the State-specific nonfinancial data that the State agency
requires for delivery of State need-based financial aid.
`(E) STATE NOTIFICATION TO THE SECRETARY-
`(i) IN GENERAL- Each State agency that submits an application under
section 415C shall notify the Secretary--
`(I) whether the State permits an applicant to file a form described
in paragraph (3)(B) or (4)(A) of this subsection for purposes of
determining eligibility for State need-based grant aid; and
`(II) the State-specific nonfinancial data that the State agency
requires for delivery of State need-based financial aid.
`(ii) ACCEPTANCE OF FORMS- In the event that a State does not permit
an applicant to file a form described in paragraph (3)(B) or (4)(A)
of this subsection for purposes of determining eligibility for State
need-based grant aid--
`(I) the State shall notify the Secretary if the State is not permitted
to do so because of either State law or because of agency policy;
and
`(II) the notification under subclause (I) shall include an estimate
of the program cost to permit applicants to complete simplified
application forms under paragraphs (3)(B) and (4)(A) of this subsection.
`(iii) LACK OF NOTIFICATION BY THE STATE- If a State does not notify
the Secretary pursuant to clause (i), the Secretary shall--
`(I) permit residents of that State to complete simplified application
forms under paragraphs (3)(B) and (4)(A) of this subsection; and
`(II) not require any resident of that State to complete any nonfinancial
data previously required by that State under this section.
`(7) CHARGES TO STUDENTS AND PARENTS FOR USE OF FORMS PROHIBITED-
`(A) FEES PROHIBITED- The FAFSA, in whatever form (including the EZ-FAFSA,
paper, electronic, simplified, or reapplication), shall be produced,
distributed, and processed by the Secretary and no parent or student
shall be charged a fee for the collection, processing, or delivery of
financial aid through the use of the FAFSA. The need and eligibility
of a student for financial assistance under parts A through E of this
title (other than under subpart 4 of part A) may only be determined
by using the FAFSA developed by the Secretary pursuant to this subsection.
No student may receive assistance under parts A through E of this title
(other than under subpart 4 of part A), except by use of the FAFSA developed
by the Secretary pursuant to this subsection. No data collected on a
form for which a fee is charged shall be used to complete the FAFSA.
`(B) NOTICE- Any entity that provides to students and parents, or charges
students or parents for, any value-added services with respect to or
in connection with the FAFSA, such as completion of the FAFSA, submission
of the FAFSA, or tracking of the FAFSA for a student, shall provide
to students and parents clear and conspicuous notice that--
`(i) the FAFSA is a free Federal student aid application;
`(ii) the FAFSA can be completed without professional assistance;
and
`(iii) includes the current Internet address for the FAFSA on the
Department's web site.
`(8) APPLICATION PROCESSING CYCLE- The Secretary shall enable students
to submit a form created under this subsection in order to meet the filing
requirements of this section and in order to receive aid from programs
under this title and shall initiate the processing of applications under
this subsection as early as practicable prior to October 15 of the year
prior to the student's planned year of enrollment.';
(2) by adding at the end of subsection (a) the following paragraph:
`(13) EARLY APPLICATION AND AWARD DEMONSTRATION PROGRAM-
`(A) PROGRAM REQUIRED- The Secretary shall, no later than two years
after the date of enactment of the College Aid Made EZ Act, implement
an early application demonstration program enabling dependent students
to complete applications under this subsection in their junior year
of high school, or in the academic year that is two years prior to their
intended year of enrollment, and to be eligible to receive aid under
this title and such aid as may be available from participants, including
State financial assistance as provided under section 415C and other
aid provided by participating institutions.
`(B) PURPOSE AND OBJECTIVES- The purpose of the demonstration program
under this paragraph shall be to measure the benefits, in terms of student
aspirations and plans to attend college, and the adverse effects, in
terms of program costs, integrity, distribution, and delivery of aid
under this title, of implementing an early application system for all
dependent students that allows dependent students to apply for financial
aid using information from the year prior to the year prior to enrollment.
Additional objectives associated with implementation of the demonstration
program are the following:
`(i) Measure the feasibility of enabling dependent students to apply
for Federal, State, and institutional financial aid in their junior
year of high school, using information from the year prior to the
year prior to enrollment, by completing any of the application forms
under this subsection.
`(ii) Identify whether receiving final financial aid awards no later
than the fall of the senior year provides students with additional
time to compete for the limited resources available for State and
institutional financial aid and positively impacts the college aspirations
and plans of these students.
`(iii) Measure the impact of using income information from the years
prior to enrollment on--
`(I) eligibility for financial aid under this title and for other
institutional aid; and
`(II) the cost of financial aid programs under this title.
`(iv) Effectively evaluate the benefits and adverse effects of the
demonstration program on program costs, integrity, distribution, and
delivery of aid.
`(C) PARTICIPANTS- The Secretary shall select States and institutions
within those States to participate in the demonstration program under
this paragraph that are participating in the programs under this title
and that are willing to make final financial aid awards to students
based on their application information from the year prior to the year
prior to enrollment. The Secretary shall also select as participants
in the demonstration program secondary schools and dependent students
that are located in the participating States.
`(D) APPLICATION PROCESS- The Secretary shall insure that the following
provisions are included in the demonstration program:
`(i) Participating States and institutions shall allow participating
students to apply for financial aid during their junior year of high
school using information from the year prior to the year prior to
enrollment and all provisions available under this title and shall
award final financial aid awards to participating students based on
the applications provided under this demonstration program.
`(ii) Participating States and institutions shall not require students
participating in this demonstration program to complete an additional
application in the year prior to enrollment in order to receive State
aid under section 415C and any other institutional aid.
`(iii) Financial aid administrators at participating institutions
shall be allowed to use their discretion in awarding financial aid
to participating students, as outlined under section 479A and section
480(d)(7).
`(E) EVALUATION- The Secretary shall conduct a rigorous evaluation of
this demonstration program in order to measure its benefits and adverse
effects as indicated under subparagraph (A).
`(F) OUTREACH- The Secretary shall make appropriate efforts in order
to notify States of the demonstration program under this paragraph.
Upon determination of participating States, the Secretary shall continue
to make efforts to notify institutions and dependent students within
participating States of the opportunity to participate in the demonstration
program and of the participation requirements.'
(3) by striking subsection (b); and
(4) by redesignating subsections (c), (d), and (e) as subsections (b),
(c), and (d), respectively.
(b) Master Calendar- Section 482(a)(1) (20 U.S.C. 1089(a)(1)) is amended
by striking subparagraphs (B) and (C) and inserting the following:
`(B) by March 1: proposed modifications, updates, and notices pursuant
to sections 479(c)(2)(C), 478, and 483(a)(6) published in the Federal
Register;
`(C) by June 1: final modifications, updates, and notices pursuant to
sections 478, 479(c)(2)(C), and 483(a)(6) published in the Federal Register;'.
SEC. 3. INCREASING ACCESS TO TECHNOLOGY.
Section 483 (20 U.S.C. 1087ss) is further amended by adding at the end the
following:
`(e) Addressing the Digital Divide- The Secretary shall utilize savings
accrued by moving more applicants to the electronic forms described in subsection
(a)(4) to improve access to the electronic forms described in subsection
(a)(4) for applicants meeting the requirements of section 479(c).'
SEC. 4. DEFINITIONS.
(a) Total Income- Section 480(a) (20 U.S.C. 1087vv(a)) is amended--
(1) in paragraph (1), by inserting before the period at the end the following:
`, except that the Secretary may, by regulation, provide for the use of
the previous tax year when and to the extent necessary to carry out the
sense of Congress in section 5(a) of the College Aid Made EZ Act'; and
(A) by striking `and no portion' and inserting `no portion'; and
(B) by inserting `and no distribution from any qualified education benefit
described in subsection (f)(3) that is not subject to Federal income
tax,' after `1986,'.
(b) Untaxed Income and Benefits- Section 480(b) (20 U.S.C. 1087vv(b)) is
amended to read as follows:
`(b) Untaxed Income and Benefits-
`(1) The term `untaxed income and benefits' means--
`(A) child support received;
`(B) workman's compensation;
`(C) veteran's benefits such as death pension, dependency, and indemnity
compensation, but excluding veterans' education benefits as defined
in subsection (c);
`(D) interest on tax-free bonds;
`(E) housing, food, and other allowances (excluding rent subsidies for
low-income housing) for military, clergy, and others (including cash
payments and cash value of benefits);
`(F) cash support or any money paid on the student`s behalf, except,
for dependent students, funds provided by the student's parents;
`(G) untaxed portion of pensions;
`(H) payments to individual retirement accounts and Keogh accounts excluded
from income for Federal income tax purposes; and
`(I) any other untaxed income and benefits, such as Black Lung Benefits,
Refugee Assistance, railroad retirement benefits, or Job Training Partnership
Act noneducational benefits or benefits received through participation
in employment and training activities under title I of the Workforce
Investment Act of 1998.
`(2) The term `untaxed income and benefits' shall not include the amount
of additional child tax credit claimed for Federal income tax purposes.'.
(c) Assets- Section 480(f) (20 U.S.C. 1087vv(f)) is amended--
(1) in paragraph (3), by striking `shall not be considered an asset of
a student for purposes of section 475' and inserting `shall be considered
an asset of the parent for purposes of section 475';
(2) by redesignating paragraphs (4) and (5) as paragraphs (5) and (6),
respectively; and
(3) by inserting after paragraph (3) the following:
`(4) A qualified education benefit shall be considered an asset of the
student for purposes of section 476 and 477.'.
(d) Other Financial Assistance- Section 480(j)(2) (20 U.S.C. 1087vv(j)(2))
is amended by inserting `, 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,' after `1986'.
SEC. 5. SENSE OF THE CONGRESS; REPORT.
(a) Sense of Congress- It is the sense of the Congress that--
(1) in order to simplify the Free Application for Federal Student Aid
(FAFSA), which serves as an entry point for the scholarships, grants,
loans, and work-study assistance that make it possible for millions of
students to attend college, the Secretary of Education and of the Secretary
of the Treasury should work together to develop a process by which the
Department of Education will, with the aid applicant's permission, draw
income information directly from the Internal Revenue Service for the
purpose of completing the FAFSA; and
(A) ease the burden of reporting income-related information for applicants;
(B) increase the efficiency, accuracy, and security of the FAFSA filing
process;
(C) significantly reduce the need for further verification by the Department
of Education, institutions, and applicants; and
(D) protect the security, privacy, and safety of all data used in the
FAFSA filing process.
(b) Report- The Secretary of Education shall, within one year after the
date of enactment of this Act--
(1) provide the Congress with information on the progress in devising
the simplified process described in subsection (a); and
(2) inform the Congress of any necessary statutory changes for the purpose
of increasing the efficiency and effectiveness of the FAFSA application
process.
END
