College Aid Made EZ Act - Amends the Higher Education Act of 1965 (HEA) to revise and simplify the Federal student aid application process, including the Free Application for Federal Student Aid (FAFSA).
Provides for: (1) a FAFSA-EZ form with fewer pages and questions; (2) a pre-FAFSA process, allowing application for HEA student assistance one year earlier, in junior year of high school; (3) greater Internet access to FAFSA forms; (4) more students qualifying for using a simplified form; and (5) automatic qualification for a simplified form for those students eligible for specified Federal programs, including school lunches.
Reduces the types of income and benefits which are considered untaxed for purposes of student assistance need analysis. Removes specified requirements relating to suspension of student aid eligibility due to drug-related offenses. Revises requirements relating to income protection allowances and student contributions from available income.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1277 Introduced in House (IH)]
109th CONGRESS
1st Session
H. R. 1277
To expand college opportunities by significantly simplifying the
Federal student aid application process.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 14, 2005
Mr. Emanuel (for himself, Mr. George Miller of California, Mr. Ryan of
Ohio, Mr. Bishop of New York, Mr. Tierney, Mr. Lynch, Mr. Holt, Mr.
Cummings, Mr. Delahunt, Mr. Brown of Ohio, Ms. Solis, Mr. Grijalva, Mr.
McDermott, Mr. Hinchey, Ms. Watson, Mr. Filner, Mr. Owens, Mr.
Costello, Mr. McGovern, Mr. McNulty, Mr. Skelton, Mr. Jefferson, Mr.
Scott of Georgia, Mr. Hinojosa, Mr. Payne, Mr. DeFazio, Mr. Etheridge,
Mr. Israel, Mr. Pallone, Ms. Slaughter, Mr. Neal of Massachusetts, Mr.
Sanders, Ms. Linda T. Sanchez of California, and Mr. Ford) introduced
the following bill; which was referred to the Committee on Education
and the Workforce
_______________________________________________________________________
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. EXPANDING THE AUTO-ZERO AND FURTHER SIMPLIFYING THE SIMPLIFIED
NEEDS TEST.
(a) Simplified Needs Test.--Section 479 (20 U.S.C. 1087ss) is
amended--
(1) in subsection (b)--
(A) in paragraph (1)--
(i) by striking clause (i) of subparagraph
(A) and inserting the following:
``(i) the student's parents--
``(I) file, or are eligible to
file, a form described in paragraph
(3); or
``(II) certify that they are not
required to file an income tax return;
or
``(III) or the student received
benefits at some time during the
previous 12-month period under a means-
tested Federal benefit program as
defined under subsection (d); and'';
and
(ii) by striking clause (i) of subparagraph
(B) and inserting the following:
``(i) the student (and the student's
spouse, if any)--
``(I) files, or is eligible to
file, a form described in paragraph
(3); or
``(II) certifies that the student
(and the student's spouse, if any) is
not required to file an income tax
return; or
``(III) received benefits at some
time during the previous 12-month
period under a means-tested Federal
benefit program as defined under
subsection (d); and''; and
(B) in paragraph (3), by striking ``A student or
family files a form described in this subsection, or
subsection (c), as the case may be, if the student or
family, respectively, files'' and inserting ``In the
case of an independent student, the student, or in the
case of a dependent student, the parent, files a form
described in this subsection, or subsection (c), as the
case may be, if the student or parent, as appropriate,
files'';
(2) in subsection (c)--
(A) in paragraph (1), by striking subparagraphs (A)
and (B) and inserting the following:
``(A) the student's parents--
``(i) file, or are eligible to file, a form
described in subsection (b)(3); or
``(ii) certify that they are not required
to file an income tax return; or
``(iii) or the student received benefits at
some time during the previous 12-month period
under a means-tested Federal benefit program as
defined under subsection (d); and
``(B) the sum of the adjusted gross income of the
parents is less than or equal to $25,000; or''; and
(B) in paragraph (2), by striking subparagraphs (A)
and (B) and inserting the following:
``(A) the student (and the student's spouse, if
any)--
``(i) files, or is eligible to file, a form
described in subsection (b)(3); or
``(ii) certifies that the student (and the
student's spouse, if any) is not required to
file an income tax return; or
``(iii) received benefits at some time
during the previous 12-month period under a
means-tested Federal benefit program as defined
under subsection (d); and
``(B) the sum of the adjusted gross income of the
student and spouse (if appropriate) is less than or
equal to $25,000.''; and
(C) by inserting after the last sentence of such
subsection the following: ``The Secretary shall
annually adjust the income level necessary to qualify
an applicant for the zero expected family contribution
under this subsection. The income level shall be
adjusted according to increases in the Consumer Price
Index, as specified in section 478(f).''; and
(3) by adding at the end the following new subsections:
``(d) Means-Tested Federal Benefit Program.--For the purposes of
this section, the term `means-tested Federal benefit program' means a
mandatory spending program of the Federal Government in which
eligibility for the program's benefits, or the amount of such benefits,
or both, are determined on the basis of income or resources of the
individual or family seeking the benefit, and includes the supplemental
security income program under title XVI of the Social Security Act, the
food stamp program under the Food Stamp Act of 1977, the free and
reduced price school lunch program established under the Richard B.
Russell National School Lunch Act, the temporary assistance to needy
families program established under part A of title IV of the Social
Security Act, and the women, infants and children program established
under Section 17 of the Child Nutrition Act of 1966.
``(e) Reporting Requirements.--The Secretary shall regularly
evaluate the impact of the eligibility guidelines in subsections
(b)(1)(A)(i), (b)(1)(B)(i), (c)(1)(A) and (c)(2)(A) of this section. In
particular, the Secretary shall evaluate whether the means-tested
Federal benefit programs (as defined by subsection (d)) ensure that the
Simplified Needs Test continues to be targeted to the maximum number of
low- and moderate-income students.''.
SEC. 3. IMPROVEMENTS TO PAPER AND ELECTRONIC FORMS.
(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 as the `Free Application for Federal Student Aid'
or the `FAFSA' .
``(2) Early estimates.--The Secretary shall permit
applicants to complete such forms as described in this
subsection in the years prior to enrollment in order to obtain
an estimate of the family contribution, as defined by section
473. Such applicants shall be permitted to update information
submitted on forms described in this subsection using the
process required under paragraph (5)(A).
``(3) Paper format.--
``(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).
``(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 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.
``(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 (C) of this paragraph.
``(B) State data.--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.
``(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
complete 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.
``(5) Streamlining.--
``(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 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.
``(6) State requirements.--
``(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 January 1 of 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) Determine the feasibility, benefits,
and adverse effects of implementing a data
match with the Internal Revenue Service (IRS).
``(iii) 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.
``(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
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) Data match with the internal revenue
service.--The Secretary shall include in this
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 this demonstration program in
order to measure its benefits and adverse effects as
indicated under subparagraph (A).
``(G) 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);
(4) by redesignating subsections (c), (d), and (e) as
subsections (b), (c), and (d), respectively.
(b) Master Calendar.--Section 482(a)(1)(B) (20 U.S.C. 1089) is
amended to read as follows:
``(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;''.
SEC. 4. 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. 5. SIMPLIFY THE TREATMENT OF INCOME: REDUCING UNTAXED INCOME AND
BENEFITS.
Subsection (b) of section 480 (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.''.
SEC. 6. REDUCING THE NUMBER OF QUESTIONS.
Section 484 (20 U.S.C. 1091) is amended by striking subsection (r).
SEC. 7. ALLOWANCE FOR STATE AND OTHER TAXES.
(a) Allowance for State and Local Taxes.--Section 478 (20 U.S.C.
1087rr) is amended--
(1) by striking subsection (g);
(2) by redesignating subsection (h) as subsection (g).
(b) Holding Students Harmless.--Section 475(c) (20 U.S.C.
1087oo(c)) is amended--
(1) in paragraph (1):
(A) by striking subparagraph (B);
(B) by redesignating subparagraphs (C), (D), (E),
and (F) as subparagraphs (B), (C), (D), and (E),
respectively;
(2) by striking paragraph (2);
(3) by striking paragraph (4) and inserting the following:
``(4) Income protection allowance.--The income protection
allowance is determined by the following table (or a successor
table prescribed by the Secretary under section 478):
``Income Protection Allowance
------------------------------------------------------------------------
Family Size Number in
------------------------------------------------- College --------------
--------- For each
(including student) 1 2 3 5 additional
4 subtract:
------------------------------------------------------------------------
2 $ $ ...... ....... . $3,641
1 1
5 2
, ,
2 5
0 9
7 9
3 1 1 $13,74 ....... .
8 6 2
, ,
9 3
3 5
7 0
4 2 2 18,193 $15,596 .
3 0
, ,
3 7
8 7
8 9
5 2 2 22,400 19,802 $
7 4 1
, , 7
5 9 ,
9 8 2
5 6 1
6
6 3 2 27,084 24,487 2
2 9 1
, , ,
2 6 9
6 7 0
8 0 0
For each additional add: 2 2 2,586 2,586 2 ''
, , ,
5 5 5
8 8 8
6 6 6
------------------------------------------------------------------------
(4) by redesignating paragraphs (3), (4) and (5) as
paragraphs (2), (3) and (4), respectively.
(c) Dependent Student Increase in Income Protection Allowance.--
Section 475(g) (20 U.S.C. 1087oo(g)) is amended--
(1) in paragraph (2)--
(A) by striking subparagraph (B);
(B) by striking subparagraph (D) and inserting the
following:
``(D) an income protection allowance of $2,589 (or
a successor amount prescribed by the Secretary under
section 478);''
(C) by redesignating subparagraphs (C), (D), (E),
and (F) as subparagraphs (B), (C), (D), and (E),
respectively;
(2) by striking paragraph (3); and
(3) by redesignating paragraphs (4), (5), and (6) as
paragraphs (3), (4), and (5), respectively.
(d) Independent Student (Without Dependents) Increase in Income
Protection Allowance.--Section 476(b) (20 U.S.C. 1087pp(b)) is
amended--
(1) in subparagraph (A) of paragraph (1)--
(A) by striking clause (ii);
(B) by striking subclauses (I), (II) and (III) of
clause (iv) and inserting the following:
``(I) $5,874 for single students;
``(II) $5,874 for married students
who are both enrolled pursuant to
subsection (a)(2); and
``(III) $9,395 for married students
where one is enrolled pursuant to
subsection (a)(2);'';
(C) by redesignating clauses (iii), (iv), (v),
(vi), as clauses (ii), (iii), (iv), and (v),
respectively;
(2) by striking paragraph (2);
(3) by redesignating paragraphs (3), (4), and (5) as
paragraphs (2), (3), and (4), respectively.
(e) Independent Student (With Dependents) Increase in Income
Protection Allowance.--Section 477(b) (20 U.S.C. 1087qq(b)) is
amended--
(1) in paragraph (1)--
(A) by striking subparagraph (B);
(B) by redesignating (C), (D), (E), and (F) as
subparagraphs (B), (C), (D), and (E), respectively;
(2) by striking paragraph (2);
(3) by striking paragraph (4) and inserting the following:
``(4) Income protection allowance.--The income protection
allowance is determined by the following table (or a successor
table prescribed by the Secretary under section 478):
``Income Protection Allowance
------------------------------------------------------------------------
Family Size Number in
------------------------------------------------- College --------------
--------- For each
(including student) 1 2 3 5 additional
4 subtract:
------------------------------------------------------------------------
2 $ $ ...... ....... . $3,641
1 1
6 2
, ,
9 5
3 9
5 9
3 1 1 $13,74 ....... .
8 6 2
, ,
9 3
3 5
7 0
4 2 2 18,193 $15,596 .
3 0
, ,
3 7
8 7
4 9
5 2 2 22,400 19,802 $
7 4 1
, , 7
5 9 ,
9 8 2
6 6 1
6
6 3 2 27,084 24,487 2
2 9 1
, , ,
2 6 9
6 7 0
8 0 0
For each additional add: 2 2 2,586 2,586 2 ''
, , ,
5 5 5
8 8 8
6 6 6
------------------------------------------------------------------------
(4) by redesignating paragraphs (3), (4), and (5) as
paragraphs (2), (3), and (4), respectively.
(f) Conforming Amendment: Updates.--Section 478(b) (20 U.S.C.
1087rr(b)) is amended--
(1) in paragraph (1)--
(A) by striking ``1993-1994'' and inserting ``2005-
2006'';
(B) by striking ``475(c)(4) and 477(b)(4)'' and
inserting ``475(c)(3) and 477(b)(3)''; and
(C) by striking ``December 1992'' and inserting
``December 2004''; and
(2) in paragraph (2)--
(A) by striking ``2000-2001'' and inserting ``2005-
2006'';
(B) by striking ``475(g)(2)(D) and
476(b)(1)(A)(iv)'' and inserting ``475(g)(2)(C) and
476(b)(1)(A)(iii)''; and
(C) by striking ``December 1999'' and inserting
``December 2004''.
SEC. 8. RELIEF FOR WORKING STUDENTS.
(a) Dependent Students.--Paragraph (4) of section 475(g) (20 U.S.C.
1087oo(g)(4)), as redesignated by section 7(c)(3) of this Act, is
amended to read as follows:
``(4) the student's available income (determined in
accordance with paragraph (1) of this subsection) is assessed
at 40 percent.''
(b) Independent Students Without Dependents Other Than a Spouse.--
Paragraph (4) of section 476(b) (20 U.S.C. 1087pp(b)), as redesignated
by section 7(d)(3) of this Act, is amended to read as follows:
``(4) Assessment of available income.--The family's
available income (determined in accordance with paragraph
(1)(A) of this subsection) is assessed at 40 percent.''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Education and the Workforce.
Referred to the Subcommittee on 21st Century Competitiveness.
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