To simplify access to financial aid and access to information on college costs, to provide for more learning and less reporting, and for other purposes.

June 16, 2005

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

To simplify access to financial aid and access to information on college costs, to provide for more learning and less reporting, 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 `Higher Education Simplification and Deregulation Act of 2005'.

SEC. 2. TABLE OF CONTENTS.

The table of contents for this Act is as follows:

Sec. 1. Short title.

Sec. 2. Table of contents.

Sec. 3. References.

TITLE I--SIMPLIFICATION OF ACCESS TO FINANCIAL AID AND ACCESS TO INFORMATION ON COLLEGE COSTS

Subtitle A--Simplification of the Free Application for Federal Student Aid (FAFSA)

Sec. 111. Simplifying forms and regulations.

Sec. 112. System of early financial aid information.

Sec. 113. Simplification for students with special circumstances.

Sec. 114. Simplifying the verification process.

Subtitle B--Year-Round Federal Pell Grants and Flexible Loans for Year Round Study

Sec. 121. Year-round Federal Pell Grants.

Sec. 122. Flexible loan limits for year-round study.

Subtitle C--College Best Buys

Sec. 131. College best buys.

Subtitle D--Graduate Education Programs

Sec. 141. Graduate education programs.

Subtitle E--Voter Registration Dissemination Clarification

Sec. 151. Voter registration dissemination clarification.

TITLE II--MORE LEARNING, LESS REPORTING

Sec. 201. Findings.

Subtitle A--Expert Panel To Review Regulations

Sec. 211. Review of regulations.

Subtitle B--One Size Does Not Fit All for Industry and Academic Regulations

Sec. 221. Different standards for industry and academic regulations.

Subtitle C--Accelerating Negotiated Rulemaking

Sec. 231. Negotiated rulemaking.

Subtitle D--Compliance and Master Calendars

Sec. 241. Compliance and master calendars.

Subtitle E--Ownership of Nonprofit Institutions

Sec. 251. Ownership of nonprofit institutions.

Subtitle F--Disbursement of Student Loans

Sec. 261. Renewal of expired provisions.

TITLE III--ELIMINATION OF CERTAIN REPORTING REQUIREMENTS

Sec. 301. Disclosures of foreign gifts.

SEC. 3. 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.).

TITLE I--SIMPLIFICATION OF ACCESS TO FINANCIAL AID AND ACCESS TO INFORMATION ON COLLEGE COSTS

Subtitle A--Simplification of the Free Application for Federal Student Aid (FAFSA)

SEC. 111. SIMPLIFYING FORMS AND REGULATIONS.

(a) Common Financial Aid Form Development and Processing- Section 483 (20 U.S.C. 1090) is amended--

(1) in subsection (a)--

(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 (except as otherwise provided in this subsection) as the `Free Application for Federal Student Aid'.

`(2) EARLY ESTIMATES- The Secretary shall permit an applicant to complete a form described in this subsection in the years prior to enrollment in order to obtain from the Secretary an estimate of the family contribution, as defined in section 473. Such applicant shall be permitted to update information submitted on a form described in this subsection using the process required under paragraph (5).

`(3) PAPER FORMAT-

`(A) IN GENERAL- Subject to subparagraph (C), 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).

`(B) EZ FAFSA-

`(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 under 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 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) PHASING OUT THE PAPER FORM FOR STUDENTS WHO DO NOT MEET THE REQUIREMENTS OF THE EZ FAFSA-

`(i) IN GENERAL- The Secretary shall make all efforts to encourage all applicants to utilize the electronic forms described in paragraph (4).

`(ii) PHASEOUT OF FULL FAFSA- Not later than 5 years after the date of enactment of the Higher Education Simplification and Deregulation Act of 2005, to the extent practicable, the Secretary shall phase out the long paper form created under subparagraph (A) and used by applicants who do not meet the requirements under section 479(c).

`(iii) 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 shall 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). The Secretary shall enable students to submit a form described in this paragraph 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.

`(iv) REPORTING REQUIREMENT- The Secretary shall report annually to Congress on the impact of the digital divide on students completing applications for aid under this title using the forms described under this paragraph and paragraph (4). The Secretary shall also report on the steps taken to eliminate the digital divide and phase out the long paper form described in subparagraph (A). The Secretary's report shall specifically address the impact of the digital divide on independent students, adults, and dependent students, and students meeting the requirements of subsection (b) or (c) of section 479.

`(4) ELECTRONIC FORMAT-

`(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 (B). The Secretary shall include on the common electronic forms space for information that needs to be submitted from the applicant to be eligible for State financial assistance, as provided under paragraph (6), except the Secretary shall not require applicants to complete data required by any State other than the applicant's State of residence.

`(B) SIMPLIFIED ELECTRONIC APPLICATIONS-

`(i) IN GENERAL- The Secretary shall develop and use a simplified electronic application form to be used by applicants meeting the requirements under section 479(c) and an additional, separate simplified electronic application form to be used by applicants meeting the requirements under section 479(b).

`(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 the Secretary shall not require applicants to complete data required by any State other than the applicant's State of residence and shall not include a State's data if such State does not permit its applicants for State assistance to use the simplified electronic application form described in this subparagraph.

`(iv) FREE AVAILABILITY AND PROCESSING- The provisions of paragraph (7) shall apply to the simplified electronic application forms, and 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.

`(C) 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 of such entities, or such other entity as the Secretary may designate.

`(D) 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, 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.

`(E) 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 (F).

`(F) PERSONAL IDENTIFICATION NUMBERS AUTHORIZED- The Secretary is authorized to 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; and

`(ii) for any purpose determined by the Secretary to enable the Secretary to carry out this title.

`(5) STREAMLINED REAPPLICATION PROCESS-

`(A) 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 academic year in which such applicant first applied for financial assistance under this title.

`(B) MECHANISMS FOR REAPPLICATION- The Secretary shall develop appropriate mechanisms to support reapplication.

`(C) IDENTIFICATION OF UPDATED DATA- The Secretary shall determine, in cooperation with States, institutions of higher education, and agencies and organizations involved in student financial assistance, the data elements that can be updated from the previous academic year's application.

`(D) 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.

`(E) 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.

`(6) STATE REQUIREMENTS-

`(A) IN GENERAL- Except as provided in paragraphs (3)(B)(iii), (4)(A), and (4)(B)(iii), the Secretary shall include on the forms developed under this subsection, such State-specific data items as the Secretary determines are necessary to meet State requirements for need-based State aid. Such items shall be selected in consultation with State agencies 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), (4)(A), and (4)(B)(iii). The number of such data items shall not be less than the number included on the form on October 7, 1998, unless States notify the Secretary that they no longer require 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 data items the States require to award need-based State aid and other application requirements that the States may impose.

`(C) ENCOURAGE USE OF 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)(B), for applicants who 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 a State agency to inform the Secretary--

`(i) if the agency is unable to permit applicants to utilize the simplified application forms described in paragraph (3)(B) or (4)(B); and

`(ii) of the State-specific 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 shall notify the Secretary--

`(I) whether the State permits an applicant to file a form described in paragraph (3)(B) or (4)(B) for purposes of determining eligibility for State need-based financial aid; and

`(II) of the State-specific 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)(B) for purposes of determining eligibility for State need-based financial aid--

`(I) the State shall notify the Secretary if it 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)(B).

`(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)(B); and

`(II) not require any resident of such State to complete any data previously required by that State under this section.

`(7) CHARGES TO STUDENTS AND PARENTS FOR USE OF FORMS PROHIBITED- The common financial reporting forms prescribed by the Secretary under this subsection 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 financial aid through the use of such forms. The need and eligibility of a student for financial assistance under parts A through E (other than under subpart 4 of part A) may only be determined by using a form developed by the Secretary pursuant to this subsection. No student may receive assistance under parts A through E (other than under subpart 4 of part A), except by use of a form developed by the Secretary pursuant to this subsection. No data collected on a paper or electronic form, worksheet, or other document for which a fee is charged shall be used to complete the form prescribed under this subsection. No person, commercial entity, or other entity shall request, obtain, or utilize an applicant's Personal Identification Number for purposes of submitting an application on an applicant's behalf except--

`(A) State agencies that have entered into an agreement with the Secretary to streamline applications;

`(B) eligible institutions; or

`(C) programs under this title as permitted by the Secretary.

`(8) APPLICATION PROCESSING CYCLE- The Secretary shall--

`(A) enable students to submit forms 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

`(B) enable students to submit forms created under this subsection and initiate the processing of such forms under this subsection, as early as practicable prior to January 1 of the student's planned year of enrollment.';

(D) in paragraph (10)(C)(ii), as redesignated by subparagraph (B), by striking `subsection (b)' and inserting `paragraph (5)'; and

(E) by adding at the end the following:

`(13) EARLY APPLICATION AND AWARD DEMONSTRATION PROGRAM-

`(A) IN GENERAL- Not later than 2 years after the date of enactment of this paragraph, the Secretary shall implement an early application demonstration program enabling dependent students to--

`(i) complete applications under this subsection in such students' junior year of secondary school, or in the academic year that is 2 years prior to such students' intended year of enrollment; and

`(ii) be eligible to receive aid under this title and such aid as may be available from participants under this paragraph, including State financial assistance and other aid provided by participating institutions.

`(B) PURPOSE- The purpose of the demonstration program is 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:

`(i) Measure the feasibility of enabling dependent students to apply for Federal, State, and institutional financial aid in such students' junior year of secondary school, using information from the year prior to the year prior to enrollment, by completing any of the application forms under this subsection.

`(ii) Determine the feasibility, benefits, and adverse effects of implementing a data match with the Internal Revenue Service, as described in subparagraph (E).

`(iii) Identify whether receiving final financial aid awards not 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.

`(iv) Measure the impact of using income information from the year prior to the year prior to enrollment on--

`(I) eligibility for financial aid under this title and for other State and institutional aid; and

`(II) the cost of financial aid programs under this title.

`(v) 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 these States to participate in the demonstration program that are participating in the programs under this title and that are willing to make final financial aid awards to students based on such students' 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 located in the participating States and dependent students who reside in the participating States.

`(D) APPLICATION PROCESS- The Secretary shall ensure that the following provisions are included in the demonstration program:

`(i) Participating States and institutions shall--

`(I) allow participating students to apply for financial aid during such students' junior year of secondary school using information from the year prior to the year prior to enrollment and all provisions available under this title; and

`(II) award final financial aid awards to participating students based on the applications provided under the demonstration program.

`(ii) Participating States and institutions shall not require students participating in the demonstration program to complete an additional application in the year prior to enrollment in order to receive State aid and any other institutional aid.

`(iii) Financial aid administrators at participating institutions shall be allowed to use such administrators' discretion in awarding financial aid to participating students as outlined under sections 479A and 480(d).

`(E) DATA MATCH WITH THE INTERNAL REVENUE SERVICE- The Secretary shall include in the demonstration project a data match with the Internal Revenue Service in order to verify data provided by participating students and gauge the feasibility of implementing such a data match for all students applying for aid under this title.

`(F) EVALUATION- The Secretary shall conduct a rigorous evaluation of the demonstration program in order to measure the program's benefits and adverse effects as indicated under subparagraph (B).

`(G) OUTREACH- The Secretary shall make appropriate efforts in order to notify States of the demonstration program. Upon determination of which States will participate in the demonstration program, the Secretary shall continue to make efforts to notify institutions and dependent students within such States of the opportunity to participate in the demonstration program and of the participation requirements.

`(H) CONSULTATION- The Secretary shall consult with the Advisory Committee on Student Financial Assistance, as established under section 491, on the design and implementation of the demonstration program and on the evaluation described in subparagraph (F).';

(2) by striking subsection (b);

(3) by redesignating subsections (c), (d), and (e) as subsections (b), (c), and (d), respectively; and

(4) 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) and by phasing out the full paper form pursuant to subsection (a)(3)(C) to improve access to the electronic forms described in subsection (a)(4) for applicants meeting the requirements of section 479(c).'.

(b) Master Calendar- Section 482(a)(1)(B) (20 U.S.C. 1089(a)(1)(B)) is amended to read as follows:

`(B) by March 1: proposed modifications, updates, and notices pursuant to sections 478 and 483(a)(6) published in the Federal Register;'.

SEC. 112. SYSTEM OF EARLY FINANCIAL AID INFORMATION.

Section 485 (20 U.S.C. 1092) is amended by adding at the end the following:

`(h) EARLY AWARENESS OF FINANCIAL AID ELIGIBILITY-

`(1) IN GENERAL- The Secretary shall implement, in cooperation with States, institutions of higher education, elementary schools, secondary schools, early intervention and outreach programs under this title, and other agencies and organizations involved in student financial assistance and college access, a comprehensive system of early financial aid information to provide students and families with early and adequate information about financial aid and early estimates of such students' financial aid eligibility from multiple sources. Such system shall include the activities described in paragraphs (2) and (3).

`(2) AVAILABILITY OF MEANS TO COMMUNICATE AID ELIGIBILITY-

`(A) STUDENTS WHO RECEIVE BENEFITS- The Secretary shall--

`(i) make special efforts to notify students who receive or are eligible to receive benefits under Federal means-tested benefit programs (including the school lunch program established under the Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et seq.), the food stamp program under the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.), and other such programs as determined by the Secretary) of such students' potential eligibility for a maximum Federal Pell Grant under subpart 1 of part A; and

`(ii) disseminate informational materials as determined necessary.

`(B) MIDDLE SCHOOL STUDENTS- The Secretary shall make, in cooperation with States, institutions of higher education, middle schools, and programs under this title that serve middle school students, special efforts to notify middle school students and their parents of the availability of financial aid under this title and, in accordance with paragraph (3)(D), of the approximate amounts of grant, work-study, and loan aid that an individual would be eligible for under this title upon completion and verification of an application form under section 483(a). The Secretary shall ensure that such information is accurate and that it is provided in an age-appropriate format using dissemination mechanisms suitable for students in middle school.

`(C) SECONDARY SCHOOL STUDENTS- The Secretary shall make, in cooperation with States, institutions of higher education, secondary schools, and programs under this title that serve secondary school students, special efforts to notify students in secondary school and their parents, as early as possible but not later than such students' junior year of secondary school, of the availability of financial aid under this title and, in accordance with paragraph (3)(D), of the approximate amounts of grant, work-study, and loan aid that an individual would be eligible for under this title upon completion and verification of an application form under section 483(a). The Secretary shall ensure that such information is accurate and that it is provided in an age-appropriate format using dissemination mechanisms suitable for students in secondary school.

`(D) ADULT LEARNERS- The Secretary shall make, in cooperation with States, institutions of higher education, and other organizations involved in student financial aid, special efforts to provide individuals who would qualify as independent students, as defined in section 480(d), with information regarding the availability of financial aid under this title and, in accordance with paragraph (3)(D), of the approximate amounts of grant, work-study, and loan aid that an individual would be eligible for under this title upon completion and verification of an application form under section 483(a). The Secretary shall ensure that such information--

`(i) is accurate;

`(ii) includes specific information regarding the availability of financial aid for students defined as independent students under section 480(d); and

`(iii) uses dissemination mechanisms suitable for adult learners.

`(E) PUBLIC AWARENESS CAMPAIGN- Not later than 3 years after the date of enactment of the Higher Education Simplification and Deregulation Act of 2005, the Secretary shall implement, in consultation with States, institutions of higher education, early intervention and outreach programs under this title, and other agencies and organizations involved in student financial aid, a public awareness campaign in order to increase national awareness regarding the availability of financial aid under this title. The public awareness campaign shall disseminate accurate information regarding the availability of financial aid under this title and shall be implemented, to the extent practicable, using a variety of media, including print, television, and radio. The Secretary shall design and implement the public awareness campaign based upon relevant independent research and the information and dissemination strategies that have been found to be the most effective in implementing subparagraphs (A) through (D).

`(3) AVAILABILITY OF MEANS TO DETERMINE APPROXIMATE FINANCIAL AID ELIGIBILITY-

`(A) IN GENERAL- The Secretary shall provide, in cooperation with States, institutions of higher education, and other agencies and organizations involved in student financial aid, and in accordance with subparagraph (D), both via a widely disseminated printed form and the Internet or other electronic means, the capability for individuals to determine easily, by entering relevant data, the approximate amounts of grant, work-study, and loan aid an individual would be eligible for under this title upon completion and verification of an application form under section 483(a).

`(B) DATA ELEMENTS- The Secretary shall determine, in cooperation with States, institutions of higher education, and other agencies and organizations involved in student financial aid, the data elements that are necessary to create a simplified form that individuals can use to determine easily the approximate amounts of grant, work-study, and loan aid an individual would be eligible for under this title.

`(C) QUALIFICATION TO USE SIMPLIFIED APPLICATION- The capability provided under this paragraph shall include the capability to determine whether or not the individual is eligible to submit a simplified application form under paragraph (3)(B) or (4)(B) of section 483(a).

`(D) DEMONSTRATION PROGRAM TO IMPROVE EARLY FINANCIAL AID INFORMATION-

`(i) IN GENERAL- The Secretary shall develop, in cooperation with States, institutions of higher education, and early intervention and outreach programs under this title, a comprehensive demonstration program to determine--

`(I) the feasibility of providing individuals with accurate estimates of the approximate amount of State and institutional aid, including from programs under this title that require matching contributions from States or institutions of higher education, that an individual would be eligible for upon completion and verification of an application form under section 483(a) and any additional forms required by a State or institution;

`(II) the feasibility of developing a mechanism to allow an individual to easily determine, by entering relevant data, the estimates of State and institutional aid described in subclause (I); and

`(III) whether the information students receive upon completion of an application form under section 483(a) can be improved in order to positively influence student enrollment in higher education without adverse effects on States or institutions of higher education.

`(ii) CONSULTATION- In designing and implementing the demonstration program under clause (i), the Secretary shall consult with the Advisory Committee on Student Financial Assistance, established under section 491.

`(iii) REPORT- Not later than 3 years after the date of enactment of the Higher Education Simplification and Deregulation Act of 2005, the Secretary shall submit a report to the Committee on Health, Education, Labor, and Pensions of the Senate and the Committee on Education and the Workforce of the House of Representatives, describing--

`(I) the results of the demonstration program under this subparagraph; and

`(II) any proposed statutory or regulatory changes resulting from carrying out the demonstration program.'.

SEC. 113. SIMPLIFICATION FOR STUDENTS WITH SPECIAL CIRCUMSTANCES.

(a) Simplifying for Students With Special Circumstances- Section 480(d) (20 U.S.C. 1087vv(d)) is amended to read as follows:

`(d) Independent Student-

`(1) DEFINITION- The term `independent', when used with respect to a student, means any individual who--

`(A) is 24 years of age or older by December 31 of the award year;

`(B) is an orphan, in foster care, or a ward of the court, or was in foster care or a ward of the court until the individual reached the age of 18;

`(C) is a veteran of the Armed Forces of the United States (as defined in subsection (c)(1));

`(D) is a graduate or professional student;

`(E) is a married individual;

`(F) has legal dependents other than a spouse;

`(G) is a student for whom a financial aid administrator makes a documented determination of independence by reason of unusual circumstances; or

`(H) is a member of the Armed Forces on active duty (as that term is defined in the first sentence of section 101(d)(1) of title 10, United States Code) or is a member of the National Guard performing full-time State active duty service.

`(2) SIMPLIFYING THE DEPENDENCY OVERRIDE PROCESS- Nothing in this section shall prohibit a financial aid administrator from making a determination of independence, as described in paragraph (1)(G), based upon a documented determination of independence, as described in paragraph (1)(G), previously made by another financial aid administrator in the same application year.'.

(b) Tailoring Electronic Applications for Students With Special Circumstances- Section 483(a) (20 U.S.C. 1090(a)), as amended by section 111, is further amended by adding at the end the following:

`(14) APPLICATIONS FOR STUDENTS SEEKING A DOCUMENTED DETERMINATION OF INDEPENDENCE- In the case of a dependent student seeking a documented determination of independence by a financial aid administrator, as described in section 480(d), nothing in this section shall prohibit the Secretary from--

`(A) allowing such student to--

`(i) indicate the student's unusual circumstance and the student's request for a documented determination of independence on an electronic form developed pursuant to this section; and

`(ii) submit such a form for preliminary processing with only the data required for an independent student, as defined in section 480(d);

`(B) collecting and processing on a preliminary basis data provided by such student using the electronic forms developed pursuant to this section; and

`(C) distributing such data to institutions of higher education, guaranty agencies, and States for the purposes of processing loan applications and determining need and eligibility for institutional and State financial aid awards on a preliminary basis, pending a documented determination of independence by a financial aid administrator.'.

SEC. 114. SIMPLIFYING THE VERIFICATION PROCESS.

Section 484 (20 U.S.C. 1091) is amended by adding at the end the following:

`(s) Verification of Student Eligibility-

`(1) REVIEW- The Secretary shall review all Departmental regulations related to verifying the information provided on a student's financial aid application in order to simplify the verification process for students and institutions.

`(2) REPORT- The Secretary shall, not later than 2 years after the date of enactment of the Higher Education Simplification and Deregulation Act of 2005, prepare and submit a final report to the Committee on Health, Education, Labor, and Pensions of the Senate and the Committee on Education and the Workforce of the House of Representatives on steps taken, to the extent practicable, to simplify the verification process. The report shall specifically address steps taken to--

`(A) reduce the burden of verification on students, particularly on students who may be selected for verification at multiple institutions;

`(B) reduce the number of data elements that are required to be verified for applicants meeting the requirements of subsection (b) or (c) of section 479 so that only those data elements required to determine eligibility for the formulas defined in subsection (b) or (c) of section 479 are subject to verification;

`(C) reduce the burden and costs associated with verification for institutions that are eligible to participate in Federal student aid programs under this title; and

`(D) increase the use of technology in the verification process.'.

Subtitle B--Year-Round Federal Pell Grants and Flexible Loans for Year Round Study

SEC. 121. YEAR-ROUND FEDERAL PELL GRANTS.

Section 401(b)(6) of the Higher Education Act of 1965 (20 U.S.C. 1070a(b)(6)) is amended to read as follows:

`(6) The Secretary shall, for students enrolled full-time in an associate or baccalaureate degree program of study at an eligible institution, award such students 2 Federal Pell Grants during a single award year to permit such students to accelerate progress toward their degree objectives by enrolling in academic programs for more than 9 months of an academic year.'.

SEC. 122. FLEXIBLE LOAN LIMITS FOR YEAR-ROUND STUDY.

(a) FEDERAL INSURANCE LIMITS-

(1) ANNUAL LIMITS- Section 425(a)(1) (20 U.S.C. 1075(a)(1)) is amended by adding at the end the following:

`(D) Notwithstanding subparagraph (A), the total of loans made to a student in any academic year or its equivalent (as determined by the Secretary) which may be covered by Federal loan insurance under this part may exceed the annual limits contained in clauses (i), (ii), (iii), and (iv) of subparagraph (A), if--

`(i) the student is enrolled in academic programs for more than 9 months of an academic year; and

`(ii) the aggregate insured unpaid principal amount for all such insured loans made to the student does not exceed the aggregate limits described in paragraph (2).'.

(2) AGGREGATE LIMITS- Section 425(a)(2) (20 U.S.C. 1075(a)(2)) is amended by adding at the end the following:

`(C)(i) Notwithstanding subparagraph (A)(ii), the aggregate insured unpaid principal amount described in subparagraph (A)(ii) for all such insured loans made to any graduate or professional student (as defined by the Secretary) shall not at any time exceed the sum of--

`(I) $65,500; and

`(II) the amount by which--

`(aa) the cumulative undergraduate maximum annual limit described in clauses (i), (ii), and (iii) of paragraph (1)(A) that is applicable to the student for preceding undergraduate years; exceeds

`(bb) the total amount of loans made to the student and covered by Federal loan insurance under this part.

`(ii) The additional amounts made available to a student under clause (i) shall be made available to the student in equal amounts over the course of the student's graduate or professional program of study.'.

(b) GUARANTEE LIMITS-

(1) ANNUAL LIMITS- The matter following subclause (II) of section 428(b)(1)(A)(vi) (20 U.S.C. 1078(b)(1)(A)(vi)) is amended--

(A) by striking the semicolon and inserting ', and'; and

(B) by adding at the end the following:

`except that notwithstanding any other provision of this subparagraph, the total of loans made to a student in any academic year or its equivalent (as determined by the Secretary) which may be covered by Federal loan insurance under this part may exceed the annual limits contained in clauses (i), (ii), (iii), (iv), (v), and (vi), if the student is enrolled in academic programs for more than 9 months of an academic year and the aggregate insured unpaid principal amount for all such insured loans made to the student does not exceed the aggregate limits described in subparagraph (B);'.

(2) AGGREGATE LIMITS- Section 428(b)(1)(B) (20 U.S.C. 1078(b)(1)(B)) is amended--

(A) in clause (i), by striking `and' after the semicolon;

(B) in clause (ii), by striking `428B,' and inserting `428B; and'; and

(C) by inserting before the matter following clause (ii) the following:

`(iii) in the case of a graduate or professional student (as defined by the Secretary) and notwithstanding clause (ii), the sum of (I) $65,500 and (II) the amount by which the cumulative undergraduate maximum annual limit described in clauses (i), (ii), (iii), (iv), (v), and (vi) of subparagraph (A) that is applicable to the student for preceding undergraduate years, exceeds the total amount of loans made to the student and covered by Federal loan insurance under this part, which amount described in subclause (II) of this clause shall be made available to the student in equal amounts over the course of the student's graduate or professional program of study,'.

Subtitle C--College Best Buys

SEC. 131. COLLEGE BEST BUYS.

Part C of title I (20 U.S.C. 1015) is amended by adding at the end the following:

`SEC. 132. COLLEGE BEST BUYS.

`(a) LIST PUBLISHED- The Secretary shall annually publish in the Federal Register a list of the top 200 institutions of higher education, for each sector described in subsection (c)(2), that are the best buy for the academic year in order to help students decipher institutional expense and financial aid data.

`(b) REQUIREMENTS- In publishing the list described in subsection (a), the Secretary--

`(1) shall only use the most recent data available to the Secretary from the National Center for Education Statistics; and

`(2) shall publish the data in a user friendly manner.

`(c) CONTENTS-

`(1) CONTENTS- The list described in subsection (a) shall identify, for each sector described in paragraph (2), the following:

`(A) The 200 institutions of higher education with the lowest tuition and required fees.

`(B) The 200 institutions of higher education with the lowest cost of attendance.

`(C) The 200 institutions of higher education with the largest percentage of incoming full-time students who receive financial aid.

`(D) The 200 institutions of higher education with the largest average amount of incoming full-time student financial aid on a per student basis.

`(E) The 200 institutions of higher education with the largest percentage of students who receive institutional grants and scholarships.

`(F) The 200 institutions of higher education with the slowest percentage increase in tuition and required fees during the preceding 5 years.

`(G) The 200 institutions of higher education with the slowest percentage increase in total cost of attendance during the preceding 5 years.

`(2) SECTORS- The sectors referred to in paragraph (1) are as follows:

`(A) 4-year public, degree-granting, institutions of higher education.

`(B) 2-year public, degree-granting, institutions of higher education.

`(C) 4-year, nonprofit, private, degree-granting, institutions of higher education.

`(D) 2-year, nonprofit, private, degree-granting, institutions of higher education.

`(E) 4-year, for-profit, private, degree-granting, institutions of higher education.

`(F) 2-year, for-profit, private, degree-granting, institutions of higher education.

`(G) Public, non-degree-granting, institutions of higher education.

`(H) Private, nonprofit, non-degree-granting, institutions of higher education.

`(I) Private, for-profit, non-degree-granting, institutions of higher education.

`(d) DATE- The list described in this section shall be published on June 1, 2006, and each June 1 thereafter.'.

Subtitle D--Graduate Education Programs

SEC. 141. GRADUATE EDUCATION PROGRAMS.

(a) JAVITS FELLOWSHIPS- Section 701(a) (20 U.S.C. 1134(a)) is amended by striking `financial need,'.

(b) JAVITS STIPENDS- Section 703(a) (20 U.S.C. 1134b(a)) is amended by striking `, except' and all that follows through `title IV'.

(c) GRADUATE ASSISTANCE APPLICATIONS- Section 713(b)(5) (20 U.S.C. 1135b(b)(5)) is amended--

(1) by striking subparagraph (A); and

(2) by redesignating subparagraphs (B) and (C) as subparagraphs (A) and (B), respectively.

(d) GRADUATE ASSISTANCE STIPENDS- Section 714(b) (20 U.S.C. 1135c(b)) is amended by striking `, except' and all that follows through `title IV'.

Subtitle E--Voter Registration Dissemination Clarification

SEC. 151. VOTER REGISTRATION DISSEMINATION CLARIFICATION.

Section 487(a)(23) (20 U.S.C. 1094(a)(23)) is amended by adding at the end the following:

`(D) An institution shall be considered in compliance with the requirements of subparagraph (A) for any student to whom the institution electronically transmits a message containing a voter registration form acceptable for use in the State in which the institution is located, or an Internet address where such a form can be downloaded, if such information is in an electronic message devoted solely to voter registration.'.

TITLE II--MORE LEARNING, LESS REPORTING

SEC. 201. FINDINGS.

Congress makes the following findings:

(1) Institutions of higher education are among the most heavily regulated entities in the United States.

(2) With the exception of the Consumer Product Safety Commission and the Federal Trade Commission, all Federal agencies are involved in regulating some aspect of higher education.

(3) There are more than 7,000 regulations associated with the student aid programs under title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.).

Subtitle A--Expert Panel To Review Regulations

SEC. 211. REVIEW OF REGULATIONS.

Section 498B (20 U.S.C. 1099c-2) is amended to read as follows:

`SEC. 498B. REVIEW OF REGULATIONS.

`(a) REVIEW REQUIRED- The Secretary shall review each regulation issued under this title that is in effect at the time of the review and applies to the operations or activities of any participant in the programs assisted under this title. The review shall include a determination of whether the regulation is duplicative, is no longer necessary, is inconsistent with other Federal requirements, is easily understood, is feasible, is cost effective, is narrowly tailored, and is based on an assessment of risk. The review may involve 1 or more of the following:

`(1) An assurance of the uniformity of interpretation and application of such regulations.

`(2) The establishment of a process for ensuring that eligibility and compliance issues, such as institutional audit, program review, and recertification, are considered simultaneously.

`(3) A determination of the extent to which unnecessary costs are imposed on institutions of higher education as a consequence of the applicability to the facilities and equipment of such institutions of regulations prescribed for purposes of regulating industrial and commercial enterprises.

`(b) REGULATORY AND STATUTORY RELIEF FOR SMALL VOLUME INSTITUTIONS- The Secretary shall review and evaluate ways in which regulations under and provisions of this Act affecting institutions of higher education (other than institutions described in section 102(a)(1)(C)), that have received in each of the 2 most recent award years prior to the date of enactment of the Higher Education Simplification and Deregulation Act of 2005 less than $200,000 in funds through this title, may be improved, streamlined, or eliminated.

`(c) CONSULTATION- In carrying out subsections (a) and (b), the Secretary shall consult with relevant representatives of institutions of higher education participating in the programs authorized by this title, as follows:

`(1) PANELS- The Secretary shall convene not less than 4 review panels of representatives of the groups involved in student financial assistance programs under this title to provide advice and recommendations on the regulations under this title related to the areas of--

`(A) the operations of the financial assistance programs;

`(B) the institutional eligibility requirements for the financial assistance programs;

`(C) regulations not directly related to the operations or the institutional eligibility requirements of the financial assistance programs; and

`(D) regulations for dissemination of information to students about the financial assistance programs.

`(2) NOMINATIONS- The Secretary shall seek nominations for individuals with expertise in each area described in subparagraphs (A) through (D) of paragraph (1) to serve on a panel for that area.

`(3) GOALS AND RECOMMENDATIONS- Each panel shall identify the goals to be achieved by the regulations applicable to the appropriate area and shall recommend appropriate alternatives identified as the most effective and efficient means to achieve the goals with minimal burden and cost.

`(d) REPORTS TO CONGRESS-

`(1) IN GENERAL- The Secretary shall submit, not later than 2 years after the date of enactment of the Higher Education Simplification and Deregulation Act of 2005, a report to the Committee on Health, Education, Labor, and Pensions of the Senate and the Committee on Education and the Workforce of the House of Representatives detailing the Secretary's findings and recommendations based on the reviews conducted under subsections (a) and (b), including a timetable for implementation of any recommended changes in regulations and a description of any recommendations for legislative changes.

`(2) ADDITIONAL REPORTS- Not later than January 1, 2009, the Secretary shall submit a report to the Committee on Health, Education, Labor, and Pensions of the Senate and the Committee on Education and the Workforce of the House of Representatives detailing the Secretary's findings and recommendations based on the review conducted under subsection (a), including a timetable for implementation of any recommended changes in regulations and a description of any recommendations for legislative changes.'.

Subtitle B--One Size Does Not Fit All for Industry and Academic Regulations

SEC. 221. DIFFERENT STANDARDS FOR INDUSTRY AND ACADEMIC REGULATIONS.

(a) DEVELOPMENT OF STANDARDS- The Secretary of Education shall award a grant to the National Research Council to enable the National Research Council to develop different standards, in environmental, health, and safety areas, for the regulation of--

(1) industrial facilities; and

(2) research and teaching laboratories and facilities at institutions of higher education.

(b) REPORT- The National Research Council shall report to Congress regarding the different standards developed under subsection (a). Such report shall contain recommendations for statutory or regulatory changes needed to implement the different standards described in subsection (a).

(c) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to carry out this section $500,000 for fiscal year 2006.

Subtitle C--Accelerating Negotiated Rulemaking

SEC. 231. NEGOTIATED RULEMAKING.

Section 492(b) (20 U.S.C. 1098a(b)) is amended by adding at the end the following:

`(3) NEW TIMEFRAME- Notwithstanding any other provision of this section, all negotiated rulemaking described in this section that commences after the date of enactment of the Higher Education Simplification and Deregulation Act of 2005 shall be completed not later than 1 year after the date of enactment of the provision of law for which the negotiated rulemaking is undertaken.'.

Subtitle D--Compliance and Master Calendars

SEC. 241. COMPLIANCE AND MASTER CALENDARS.

Section 482 (20 U.S.C. 1089) is amended by adding at the end the following:

`(e) COMPLIANCE CALENDAR- Prior to the beginning of each award year, the Secretary shall provide to eligible institutions a list of all the reports and disclosures required under this Act. The list shall include--

`(1) the date each report is required to be completed and to be submitted, made available, or disseminated;

`(2) the required recipients of each report;

`(3) any required method for transmittal or dissemination;

`(4) a description of the content of each report sufficient to allow the institution to identify the appropriate individuals to be assigned the responsibility for such report;

`(5) references to the statutory authority, applicable regulations, and current guidance issued by the Secretary regarding each report; and

`(6) any other information which is pertinent to the content or distribution of the report or disclosure.

`(f) INITIAL EFFECTIVE DATE OF NEW DISCLOSURE OR REPORTING-

`(1) IN GENERAL- For any new or revised requirement for institutional disclosure or reporting under this Act enacted after July 1, 2006, the period for which data shall be collected shall begin not earlier than 270 days after the publication of final regulations or guidance. The final regulations or guidance shall include any required data elements or method of collection.

`(2) TIMING- The Secretary shall take reasonable and appropriate steps to ensure that institutions have adequate time, before public disclosure or reporting to the Secretary, for the establishment of systems for the collection of the required data, for data collection and analysis, and for the preparation of the data report in the required format.'.

Subtitle E--Ownership of Nonprofit Institutions

SEC. 251. OWNERSHIP OF NONPROFIT INSTITUTIONS.

(a) DEFAULT MANAGEMENT PLAN- Section 487(a)(14)(B) (20 U.S.C. 1094(a)(14)(B)) is amended by adding at the end the following: `This subparagraph shall not apply to an institution that meets the definition of an institution of higher education under section 101.'.

(b) ELIGIBILITY AND CERTIFICATION PROCEDURES- Section 498 (20 U.S.C. 1099c) is amended--

(1) in subsection (e), by adding at the end the following:

`(7) This subsection shall not apply to an institution that meets the definition of an institution of higher education under section 101.';

(2) in subsection (h), by adding at the end the following:

`(4) This subsection shall not apply to an institution that meets the definition of an institution of higher education under section 101.'; and

(3) in subsection (i), by adding at the end the following:

`(5) This subsection shall not apply to an institution that meets the definition of an institution of higher education under section 101.'.

Subtitle F--Disbursement of Student Loans

SEC. 261. RENEWAL OF EXPIRED PROVISIONS.

(a) AMENDMENT- Section 422(d) of the Higher Education Amendments of 1998 (20 U.S.C. 1078-7 note) is amended by striking `period beginning' and all that follows through the period, and inserting the following: `periods--

`(1) beginning on October 1, 1998, and ending on September 30, 2002; and

`(2) beginning on the date of enactment of the Higher Education Simplification and Deregulation Act of 2005.'.

(b) CLARIFICATION- Sections 428G(a)(3) and 428G(b)(1) (as amended by section 422 of the Higher Education Amendments of 1998) shall be effective beginning on the date of enactment of the Higher Education Simplification and Deregulation Act of 2005.

TITLE III--ELIMINATION OF CERTAIN REPORTING REQUIREMENTS

SEC. 301. DISCLOSURES OF FOREIGN GIFTS.

Section 117 (20 U.S.C. 1011f) is amended--

(1) in subsection (a), by striking `file a disclosure report with the Secretary' and inserting `make available to the public a disclosure report';

(2) in the matter preceding paragraph (1) of subsection (b), by striking `to the Secretary'; and

(3) in subsection (d)--

(A) in paragraph (1), by striking `filed with the Secretary' and inserting `made available to the public'; and

(B) in paragraph (2), by striking `filed with the Secretary' and inserting `made available to the public'.

END