Division FF — Other Matter

“(g) Notwithstanding any other provision of this section, the Commissioner of Social Security shall enter into an agreement with the Secretary of the Treasury under which—

“(1) if the Secretary provides the Commissioner with the information described in section 6103(k)(15) of the Internal Revenue Code of 1986 with respect to any individual, the Commissioner shall indicate to the Secretary as to whether such individual receives disability insurance benefits under section 223 or supplemental security income benefits under title XVI (including State supplementary payments of the type referred to in section 1616(a) or payments of the type described in section 212(a) of Public Law 93-66);

“(2) appropriate safeguards are included to assure that the indication described in paragraph (1) will be used solely for the purpose of determining if tax receivables involving such individual are not eligible for collection pursuant to a qualified tax collection contract by reason of section 6306(d)(3)(E) of the Internal Revenue Code of 1986; and

“(3) the Secretary shall pay the Commissioner of Social Security the full costs (including systems and administrative costs) of providing the indication described in paragraph (1).”

“SEC. 472. COST OF ATTENDANCE.

“(a) In General.—For the purpose of this title, the term ‘cost of attendance’ means—

“(1) tuition and fees normally assessed a student carrying the same academic workload as determined by the institution;

“(2) an allowance for books, course materials, supplies, and equipment, which shall include all such costs required of all such students in the same course of study, including a reasonable allowance for the documented rental or upfront purchase of a personal computer, as determined by the institution;

“(3) an allowance for transportation, which may include transportation between campus, residences, and place of work, as determined by the institution;

“(4) an allowance for miscellaneous personal expenses, for a student attending the institution on at least a half-time basis, as determined by the institution;

“(5) an allowance for living expenses, including food and housing costs, to be incurred by the student attending the institution on at least a half-time basis, as determined by the institution, which shall include—

“(A) for a student electing institutionally owned or operated food services, such as board or meal plans, a standard allowance for such services that provides the equivalent of three meals each day;

“(B) for a student not electing institutionally owned or operated food services, such as board or meal plans, a standard allowance for purchasing food off campus that provides the equivalent of three meals each day;

“(C) for a student without dependents residing in institutionally owned or operated housing, a standard allowance determined by the institution based on the average or median amount assessed to such residents for housing charges, whichever is greater;

“(D) for a student with dependents residing in institutionally owned or operated housing, a standard allowance determined by the institution based on the average or median amount assessed to such residents for housing charges, whichever is greater;

“(E) for a student living off campus, and not in institutionally owned or operated housing, a standard allowance for rent or other housing costs;

“(F) for a dependent student residing at home with parents, a standard allowance that shall not be zero determined by the institution;

“(G) for a student living in housing located on a military base or for which a basic allowance is provided under section 403(b) of title 37, United States Code, a standard allowance for food based upon such student’s choice of purchasing food on-campus or off-campus (determined respectively in accordance with subparagraph (A) or (B)), but not for housing costs; and

“(H) for all other students, an allowance based on the expenses reasonably incurred by such students for housing and food;

“(6) for a student engaged in a program of study by correspondence, only tuition and fees and, if required, books and supplies, travel, and housing and food costs incurred specifically in fulfilling a required period of residential training;

“(7) for a confined or incarcerated student, only tuition, fees, books, course materials, supplies, equipment, and the cost of obtaining a license, certification, or a first professional credential in accordance with paragraph (14);

“(8) for a student enrolled in an academic program in a program of study abroad approved for credit by the student’s home institution, reasonable costs associated with such study (as determined by the institution at which such student is enrolled);

“(9) for a student with one or more dependents, an allowance based on the estimated actual expenses incurred for such dependent care, based on the number and age of such dependents, except that—

“(A) such allowance shall not exceed the reasonable cost in the community in which such student resides for the kind of care provided; and

“(B) the period for which dependent care is required includes, but is not limited to, class-time, study-time, field work, internships, and commuting time;

“(10) for a student with a disability, an allowance (as determined by the institution) for those expenses related to the student’s disability, including special services, personal assistance, transportation, equipment, and supplies that are reasonably incurred and not provided for by other assisting agencies;

“(11) for a student receiving all or part of the student’s instruction by means of telecommunications technology, no distinction shall be made with respect to the mode of instruction in determining costs;

“(12) for a student engaged in a work experience under a cooperative education program, an allowance for reasonable costs associated with such employment (as determined by the institution);

“(13) for a student who receives a Federal student loan made under this title or any other Federal law, to cover a student’s cost of attendance at the institution, an allowance for the actual cost of any loan fee, origination fee, or insurance premium charged to such student or the parent of such student on such loan; and

“(14) for a student in a program requiring professional licensure, certification, or a first professional credential, the cost of obtaining the license, certification, or a first professional credential.

“(b) Special Rule for Living Expenses for Less-than-half-time Students.—For students attending an institution of higher education less than half-time, an institution of higher education may include an allowance for living expenses, including food and housing costs in accordance with subsection (a)(4) for up to three semesters, or the equivalent, with no more than two semesters being consecutive.

“(c) Disclosure of Cost of Attendance Elements.—Each institution shall make publicly available on the institution’s website a list of all the elements of cost of attendance described in paragraphs (1) through (14) of subsection (a), and shall disclose such elements on any portion of the website describing tuition and fees of the institution.

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

“(a) In General.—For the purpose of this Act, the term ‘student aid index’ means, with respect to a student, an index that reflects an evaluation of a student’s approximate financial resources to contribute toward the student’s postsecondary education for the academic year, as determined in accordance with this part.

“(b) Special Rule for Students Eligible for the Total Maximum Pell Grant.—The Secretary shall consider an applicant to automatically have a student aid index equal to zero if the applicant is eligible for the total maximum Federal Pell Grant under section 401(b)(1)(A), except that, if the applicant has a calculated student aid index of less than zero the Secretary shall consider the negative number as the student aid index for the applicant.

“(c) Special Rule for Nonfilers.—Notwithstanding subsection (b), for an applicant (or, as applicable, an applicant and spouse, or an applicant’s parents) who is not required to file a Federal tax return for the second preceding tax year, the Secretary shall for the purposes of this title consider the student aid index as equal to – $1,500 for the applicant.”

“SEC. 474. DETERMINATION OF STUDENT AID INDEX.

“The student aid index—

“(1) for a dependent student shall be determined in accordance with section 475;

“(2) for a single independent student or a married independent student without dependents (other than a spouse) shall be determined in accordance with section 476; and

“(3) for an independent student with dependents other than a spouse shall be determined in accordance with section 477.”

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

“(a) Computation of Student Aid Index.—

“(1) In general.—Except as provided in paragraph (2), for each dependent student, the student aid index is equal to the sum of—

“(A) the assessment of the parents’ adjusted available income (determined in accordance with subsection (b));

“(B) the assessment of the student’s available income (determined in accordance with subsection (g)); and

“(C) the student’s available assets (determined in accordance with subsection (h)).

“(2) Exception.—If the sum determined under paragraph (1) with respect to a dependent student is less than – $1,500, the student aid index for the dependent student shall be – $1,500.

“(b) Assessment of Parents’ Adjusted Available Income.—The assessment of parents’ adjusted available income is equal to the amount determined by—

“(1) computing adjusted available income by adding—

“(A) the parents’ available income (determined in accordance with subsection (c)); and

“(B) the parents’ available assets (determined in accordance with subsection (d));

“(2) assessing such adjusted available income in accordance with the assessment schedule set forth in subsection (e); and

“(3) considering such assessment resulting under paragraph (2) as the amount determined under this subsection.

“(c) Parents’ Available Income.—

“(1) In general.—The parents’ available income is determined by subtracting from total income (as defined in section 480)—

“(A) Federal income taxes;

“(B) an allowance for payroll taxes, determined in accordance with paragraph (2);

“(C) an income protection allowance, determined in accordance with paragraph (3); and

“(D) an employment expense allowance, determined in accordance with paragraph (4).

“(2) Allowance for payroll taxes.—The allowance for payroll taxes is equal to the sum of—

“(A) the total amount earned by the parents, multiplied by the rate of tax under section 3101(b) of the Internal Revenue Code of 1986; and

“(B) the amount earned by the parents that does not exceed such contribution and benefit base (twice such contribution and benefit base, in the case of a joint return) for the year of the earnings, multiplied by the rate of tax applicable to such earnings under section 3101(a) of the Internal Revenue Code of 1986.

“(3) Income protection allowance.—The income protection allowance shall equal the amount determined in the following table, as adjusted by the Secretary pursuant to section 478(b):

“(4) Employment expense allowance.—The employment expense allowance is equal to the lesser of $4,000 or 35 percent of the single parent’s earned income or married parents’ combined earned income (as adjusted by the Secretary pursuant to section 478(g)).

“(d) Parents’ Available Assets.—

“(1) In general.—

“(A) Determination.—Except as provided in subparagraph (B), the parents’ available assets are equal to—

“(i) the difference between the parents’ assets and the asset protection allowance (determined in accordance with paragraph (2)); multiplied by

“(ii) 12 percent.

“(B) Not less than zero.—The parents’ available assets under this subsection shall not be less than zero.

“(2) Asset protection allowance.—The asset protection allowance is calculated based on the following table (as revised by the Secretary pursuant to section 478(d)):

“(e) Assessment Schedule.—The assessment of the parents’ adjusted available income (as determined under subsection (b)(1) and hereafter in this subsection referred to as ‘AAI’) is calculated based on the following table (as revised by the Secretary pursuant to section 478(e)):

“(f) Consideration of Parental Income.—

“(1) Parents who live together.—Parental income and assets in the case of student whose parents are married and not separated, or who are unmarried but live together, shall include the income and assets of both parents.

“(2) Divorced or separated parents.—Parental income and assets for a student whose parents are divorced or separated, but not remarried, is determined by including only the income and assets of the parent who provides the greater portion of the student’s financial support.

“(3) Death of a parent.—Parental income and assets in the case of the death of any parent is determined as follows:

“(A) If either of the parents has died, the surviving parent shall be considered a single parent, until that parent has remarried.

“(B) If both parents have died, the student shall not report any parental income or assets.

“(4) Remarried parents.—If a parent whose income and assets are taken into account under paragraph (2), or if a parent who is a widow or widower and whose income is taken into account under paragraph (3), has remarried, the income of that parent’s spouse shall be included in determining the parent’s assessment of adjusted available income if the student’s parent and the stepparent are married as of the date of application for the award year concerned.

“(5) Single parent who is not divorced or separated.—Parental income and assets in the case of a student whose parent is not described in paragraph (1) and is a single parent who is not divorced, separated, or remarried, shall include the income and assets of such single parent.

“(g) Student’s Available Income.—

“(1) In general.—The student’s available income is equal to—

“(A) the difference between the student’s total income (determined in accordance with section 480) and the adjustment to student income (determined in accordance with paragraph (2)); multiplied by

“(B) 50 percent.

“(2) Adjustment to student income.—The adjustment to student income is equal to the sum of—

“(A) Federal income taxes;

“(B) an allowance for payroll taxes determined in accordance with paragraph (3);

“(C) an income protection allowance that is equal to $9,410, as adjusted pursuant to section 478(b); and

“(D) an allowance for parents’ negative available income, determined in accordance with paragraph (4).

“(3) Allowance for payroll taxes.—The allowance for payroll taxes is equal to the sum of—

“(A) the total amount earned by the student, multiplied by the rate of tax under section 3101(b) of the Internal Revenue Code of 1986; and

“(B) the amount earned by the student that does not exceed such contribution and benefit base for the year of the earnings, multiplied by the rate of tax applicable to such earnings under section 3101(a) of the Internal Revenue Code of 1986.

“(4) Allowance for parents’ negative available income.—The allowance for parents’ negative available income is the amount, if any, by which the sum of the amounts deducted under subsection (c)(1) exceeds the sum of the parents’ total income (as defined in section 480) and the parents’ available assets (as determined in accordance with subsection (d)).

“(h) Student’s Assets.—The student’s assets are determined by calculating the assets of the student and multiplying such amount by 20 percent, except that the result shall not be less than zero.”

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

“(a) Computation of Student Aid Index.—

“(1) In general.—For each independent student without dependents other than a spouse, the student aid index is equal to (except as provided in paragraph (2)) the sum of—

“(A) the family’s available income (determined in accordance with subsection (b)); and

“(B) the family’s available assets (determined in accordance with subsection (c)).

“(2) Exception.—If the sum determined under paragraph (1) with respect to an independent student without dependents other than a spouse is less than – $1,500, the student aid index for the independent student shall be – $1,500.

“(b) Family’s Available Income.—

“(1) In general.—The family’s available income is determined by—

“(A) deducting from total income (as defined in section 480)—

“(i) Federal income taxes;

“(ii) an allowance for payroll taxes, determined in accordance with paragraph (2);

“(iii) an income protection allowance that is equal to—

“(I) in the case of a single independent student without dependents, $14,630, as adjusted pursuant to section 478(b); and

“(II) in the case of a married independent student without dependents, $23,460, as adjusted pursuant to section 478(b); and

“(iv) in the case of a married independent student, an employment expense allowance, as determined in accordance with paragraph (3); and

“(B) multiplying the amount determined under subparagraph (A) by 50 percent.

“(2) Allowance for payroll taxes.—The allowance for payroll taxes is equal to the sum of—

“(A) the total amount earned by the student (and spouse, if appropriate), multiplied by the rate of tax under section 3101(b) of the Internal Revenue Code of 1986; and

“(B) the amount earned by the student (and spouse, if appropriate) that does not exceed such contribution and benefit base (twice such contribution and benefit base, in the case of a joint return) for the year of the earnings, multiplied by the rate of tax applicable to such earnings under section 3101(a) of the Internal Revenue Code of 1986.

“(3) Employment expense allowance.—The employment expense allowance is equal to the following:

“(A) If the student is married, such allowance is equal to the lesser of $4,000 or 35 percent of the couple’s combined earned income (as adjusted by the Secretary pursuant to section 478(g)).

“(B) If the student is not married, the employment expense allowance is zero.

“(c) Family’s Available Assets.—

“(1) In general.—

“(A) Determination.—Except as provided in subparagraph (B), the family’s available assets are equal to—

“(i) the difference between the family’s assets (as defined in section 480(f)) and the asset protection allowance (determined in accordance with paragraph (2)); multiplied by

“(ii) 20 percent.

“(B) Not less than zero.—The family’s available assets under this subsection shall not be less than zero.

“(2) Asset protection allowance.—The asset protection allowance is calculated based on the following table (as revised by the Secretary pursuant to section 478(d)):

“(d) Computations in Case of Separation, Divorce, or Death.—In the case of a student who is divorced or separated, or whose spouse has died, the spouse’s income and assets shall not be considered in determining the family’s available income or assets.”

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

“(a) Computation of Student Aid Index.—

“(1) In general.—For each independent student with dependents other than a spouse, the student aid index is equal to the amount determined by—

“(A) computing adjusted available income by adding—

“(i) the family’s available income (determined in accordance with subsection (b)); and

“(ii) the family’s available assets (determined in accordance with subsection (c));

“(B) assessing such adjusted available income in accordance with an assessment schedule set forth in subsection (d); and

“(C) considering such assessment resulting under subparagraph (B) as the amount determined under this subsection.

“(2) Exception.—If the sum determined under paragraph (1) with respect to an independent student with dependents other than a spouse is less than – $1,500, the student aid index for the independent student shall be – $1,500.

“(b) Family’s Available Income.—

“(1) In general.—The family’s available income is determined by deducting from total income (as defined in section 480)—

“(A) Federal income taxes;

“(B) an allowance for payroll taxes, determined in accordance with paragraph (2);

“(C) an income protection allowance, determined in accordance with paragraph (3); and

“(D) an employment expense allowance, determined in accordance with paragraph (4).

“(2) Allowance for payroll taxes.—The allowance for payroll taxes is equal to the sum of—

“(A) the total amount earned by the student (and spouse, if appropriate), multiplied by the rate of tax under section 3101(b) of the Internal Revenue Code of 1986; and

“(B) the amount earned by the student (and spouse, if appropriate) that does not exceed such contribution and benefit base (twice such contribution and benefit base, in the case of a joint return) for the year of the earnings, multiplied by the rate of tax applicable to such earnings under section 3101(a) of the Internal Revenue Code of 1986.

“(3) Income protection allowance.—The income protection allowance shall equal the amount determined in the following table, as adjusted by the Secretary pursuant to section 478(b):

“(A) In the case of a married independent student with dependents:

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

“(4) Employment expense allowance.—The employment expense allowance is equal to the lesser of $4,000 or 35 percent of the student’s earned income or the combined earned income of the student and the student’s spouse, if applicable (as adjusted by the Secretary pursuant to section 478(g)).

“(c) Family’s Available Assets.—

“(1) In general.—

“(A) Determination.—Except as provided in subparagraph (B), the family’s available assets are equal to—

“(i) the difference between the family’s assets (as defined in 480(f)) and the asset protection allowance (determined in accordance with paragraph (2)); multiplied by

“(ii) 7 percent.

“(B) Not less than zero.—The family’s available assets under this subsection shall not be less than zero.

“(2) Asset protection allowance.—The asset protection allowance is calculated based on the following table (as revised by the Secretary pursuant to section 478(d)):

“(d) Assessment Schedule.—The assessment of adjusted available income (as determined under subsection (a)(1) and hereafter in this subsection referred to as ‘AAI’) is calculated based on the following table (as revised by the Secretary pursuant to section 478(e)):

“(e) Computations in Case of Separation, Divorce, or Death.—In the case of a student who is divorced or separated, or whose spouse has died, the spouse’s income and assets shall not be considered in determining the family’s available income or assets.”

“SEC. 478. REGULATIONS; UPDATED TABLES.

“(a) Authority To Prescribe Regulations Restricted.—Notwithstanding any other provision of law, the Secretary shall not have the authority to prescribe regulations to carry out this part except—

“(1) to prescribe updated tables in accordance with subsections (b) through (g); and

“(2) with respect to the definition of cost of attendance under section 472, excluding section 472(a)(1).

“(b) Income Protection Allowance Adjustments.—For award year 2023–2024 and each subsequent award year, the Secretary shall publish in the Federal Register revised income protection allowances for the purposes of subsections (c)(3) and (g)(2)(C) of section 475, subclauses (I) and (II) of section 476(b)(1)(A)(iii), and section 477(b)(3), by increasing the income protection allowances in each of such provisions, by a percentage equal to the percentage increase in the Consumer Price Index, as defined in subsection (f), between April 2020 and the April in the year prior to the beginning of the award year and rounding the result to the nearest $10.

“(c) Adjusted Net Worth of a Farm or Business.—

“(1) Table.—The table of the net worth of a farm or business for purposes of making determinations of assets as defined under section 480(f) is the following:

“(2) Revised tables.—For award year 2023–2024 and each subsequent award year, the Secretary shall publish in the Federal Register a revised table of the adjusted net worth of a farm or business for purposes of section 480(f). Such revised table shall be developed—

“(A) by increasing each dollar amount that refers to net worth of a farm or business by a percentage equal to the percentage increase in the Consumer Price Index between April 2020 and the April in the year prior to the beginning of such award year, and rounding the result to the nearest $5,000; and

“(B) by adjusting the dollar amounts in the column referring to the adjusted net worth to reflect the changes made pursuant to subparagraph (A).

“(d) Asset Protection Allowance.—For award year 2023–2024 and each subsequent award year, the Secretary shall publish in the Federal Register a revised table of allowances for the purpose of sections 475(d)(2), 476(c)(2), and 477(c)(2). Such revised table shall be developed by determining the present value cost, rounded to the nearest $100, of an annuity that would provide, for each age cohort of 40 and above, a supplemental income at age 65 (adjusted for inflation) equal to the difference between the moderate family income (as most recently determined by the Bureau of Labor Statistics), and the current average social security retirement benefits. For each age cohort below 40, the allowance shall be computed by decreasing the allowance for age 40, as updated, by one-fifteenth for each year of age below age 40 and rounding the result to the nearest $100. In making such determinations—

“(1) the tables of allowances specified in sections 475(d)(2), 476(c)(2), and 477(c)(2) shall be considered to be for award year 2021–2022 for the purposes of calculating inflation;

“(2) inflation shall be presumed to be 6 percent per year;

“(3) the rate of return of an annuity shall be presumed to be 8 percent; and

“(4) the sales commission on an annuity shall be presumed to be 6 percent.

“(e) Assessment Schedules and Rates.—For award year 2023–2024 and each subsequent award year, the Secretary shall publish in the Federal Register a revised table of assessments from adjusted available income for the purpose of sections 475(e) and 477(d). Such revised table shall be developed—

“(1) by increasing each dollar amount that refers to adjusted available income by a percentage equal to the percentage increase in the Consumer Price Index between April 2020 and the April in the year prior to the beginning of such academic year, rounded to the nearest $100; and

“(2) by adjusting the other dollar amounts to reflect the changes made pursuant to paragraph (1).

“(f) Consumer Price Index Defined.—In this section, the term ‘Consumer Price Index’ means the Consumer Price Index for All Urban Consumers published by the Department of Labor. Each annual update of tables to reflect changes in the Consumer Price Index shall be corrected for misestimation of actual changes in such Index in previous years.

“(g) Employment Expense Allowance.—For award year 2023–2024 and each succeeding award year, the Secretary shall publish in the Federal Register a revised table of employment expense allowances for the purpose of sections 475(c)(4), 476(b)(3), and 477(b)(4). Such revised table shall be developed by increasing the dollar amount specified in sections 475(c)(4), 476(b)(3), and 477(b)(4) by a percentage equal to the percentage increase in the Consumer Price Index, as defined in subsection (f), between April 2020 and the April in the year prior to the beginning of the award year and rounding the result to the nearest $10.

“(h) Clarification for Award Year 2023–2024.—For award year 2023–2024, the Secretary shall determine adjusted amounts and prescribe revised tables with respect to the income protection, employment expense, and asset protection allowances and the assessment schedules under sections 475, 476, and 477, pursuant to this section. The amounts and tables specified in sections 475, 476, and 477 with respect to such allowances and schedules shall only be used by the Secretary as a baseline for adjustments and table revisions prescribed in accordance with this section.”

“SEC. 479. ELIGIBLE APPLICANTS EXEMPT FROM ASSET REPORTING.

“(a) In General.—Notwithstanding any other provision of law, this section shall be effective for each individual seeking to apply for Federal financial aid under this title, as part of the simplified application for Federal student financial aid under section 483, on or after July 1, 2023.

“(b) Applicants Exempt From Asset Reporting.—

“(1) In general.—Except as provided in paragraph (3), in carrying out section 483, the Secretary shall not use asset information from an eligible applicant or, as applicable, the parent or spouse of an eligible applicant.

“(2) Eligible applicants.—In this subsection, the term ‘eligible applicant’ means an applicant who meets at least one of the following criteria:

“(A) Is an applicant who qualifies for an automatic zero student aid index or negative student aid index under subsection (b) or (c) of section 473.

“(B) Is an applicant who is a dependent student and the student’s parents have a total adjusted gross income (excluding any income of the dependent student) that is less than $60,000 and do not file a Schedule A, B, D, E, F, or H (or equivalent successor schedules) with the Federal income tax return for the second preceding tax year, and—

“(i) do not file a Schedule C (or the equivalent successor schedule) with the Federal income tax return for the second preceding tax year; or

“(ii) file a Schedule C (or the equivalent successor schedule) with net business income of not more than a $10,000 loss or gain with the Federal income tax return for the second preceding tax year.

“(C) Is an applicant who is an independent student and the student (including the student’s spouse, if any) has a total adjusted gross income that is less than $60,000 and does not file a Schedule A, B, D, E, F, or H (or equivalent successor schedules), with the Federal income tax return for the second preceding tax year, and—

“(i) does not file a Schedule C (or the equivalent successor schedule) with the Federal income tax return for the second preceding tax year; or

“(ii) files a Schedule C (or the equivalent successor schedule) with net business income of not more than a $10,000 loss or gain with the Federal income tax return for the second preceding tax year.

“(D) Is an applicant who, at any time during the previous 24-month period, received a benefit under a means-tested Federal benefit program (or whose parent or spouse received such a benefit, as applicable).

“(3) Special rule.—An eligible applicant shall not be exempt from asset reporting under this section if the applicant is a dependent student and the students’ parents do not—

“(A) reside in the United States or a United States territory; or

“(B) file taxes in the United States or a United States territory, except if such nonfiling is due to not being required to file a Federal tax return for the applicable tax year due to a low income.

“(4) Definitions.—In this section:

“(A) Schedule a.—The term ‘Schedule A’ means a form or information by a taxpayer to report itemized deductions.

“(B) Schedule b.—The term ‘Schedule B’ means a form or information filed by a taxpayer to report interest and ordinary dividend income.

“(C) Schedule c.—The term ‘Schedule C’ means a form or information filed by a taxpayer to report income or loss from a business operated or a profession practiced as a sole proprietor.

“(D) Schedule d .—The term ‘Schedule D’ means a form or information filed by a taxpayer to report sales, exchanges or some involuntary conversions of capital assets, certain capital gain distributions, and nonbusiness bad debts.

“(E) Schedule e .—The term ‘Schedule E’ means a form or information filed by a taxpayer to report income from rental properties, royalties, partnerships, S corporations, estates, trusts, and residual interests in real estate mortgage investment conduits.

“(F) Schedule f.—The term ‘Schedule F’ means a form or information filed by a taxpayer to report farm income and expenses.

“(G) Schedule h.—The term ‘Schedule H’ means a form or information filed by a taxpayer to report household employment taxes.

“(H) Means-tested federal benefit program.—The term ‘means-tested Federal benefit program’ means any of the following:

“(i) The supplemental security income program under title XVI of the Social Security Act (42 U.S.C. 1381 et seq.).

“(ii) The supplemental nutrition assistance program under the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.), a nutrition assistance program carried out under section 19 of such Act (7 U.S.C. 2028), and a supplemental nutrition assistance program carried out under section 3(c) of the Act entitled ‘An Act to authorize appropriations for certain insular areas of the United States, and for other purposes’ (Public Law 95–348).

“(iii) The program of block grants for States for temporary assistance for needy families established under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.).

“(iv) The special supplemental nutrition program for women, infants, and children established by section 17 of the Child Nutrition Act of 1966 (42 U.S.C. 1786).

“(v) The Medicaid program under title XIX of the Social Security Act (42 U.S.C. 1396 et seq.).

“(vi) Federal housing assistance programs, including tenant-based assistance under section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)), and public housing, as defined in section 3(b)(1) of such Act (42 U.S.C. 1437a(b)(1)).

“(vii) Other means-tested programs determined by the Secretary to be approximately consistent with the income eligibility requirements of the means-tested programs under clauses (i) through (vi).”

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

“(a) In General.—

“(1) Authority of financial aid administrators.—A financial aid administrator shall have the authority to, on the basis of adequate documentation, make adjustments to any or all of the following on a case-by-case basis:

“(A) For an applicant with special circumstances under subsection (b) to—

“(i) the cost of attendance;

“(ii) the values of the data used to calculate the student aid index; or

“(iii) the values of the data used to calculate the Federal Pell Grant award.

“(B) For an applicant with unusual circumstances under subsection (c), to the dependency status of such applicant.

“(2) Limitations on authority.—

“(A) Use of authority.—No institution of higher education or financial aid administrator shall maintain a policy of denying all requests for adjustments under this section.

“(B) No additional fee.—No student or parent shall be charged a fee for a documented interview of the student by the financial aid administrator or for the review of a student or parent’s request for adjustments under this section including the review of any supplementary information or documentation of a student or parent’s special circumstances or a student’s unusual circumstances.

“(C) Rule of construction.—The authority to make adjustments under paragraph (1)(A) shall not be construed to permit financial aid administrators to deviate from the cost of attendance, the values of data used to calculate the student aid index or the values of data used to calculate the Federal Pell Grant award (or both) for awarding aid under this title in the absence of special circumstances.

“(3) Adequate documentation.—Adequate documentation for adjustments under this section must substantiate the special circumstances or unusual circumstances of an individual student, and may include, to the extent relevant and appropriate—

“(A) a documented interview between the student and the financial aid administrator;

“(B) for the purposes of determining that a student qualifies for an adjustment under paragraph (1)(B)—

“(i) submission of a court order or official Federal or State documentation that the student or the student’s parents or legal guardians are incarcerated in any Federal or State penal institution;

“(ii) a documented phone call or a written statement, which confirms the specific unusual circumstances with—

“(I) a child welfare agency authorized by a State or county;

“(II) a Tribal welfare authority or agency;

“(III) an independent living case worker, such as a case worker who supports current and former foster youth with the transition to adulthood; or

“(IV) a public or private agency, facility, or program servicing the victims of abuse, neglect, assault, or violence, which may include domestic violence;

“(iii) a documented phone call or a written statement from an attorney, a guardian ad litem, or a court-appointed special advocate, or a person serving in a similar capacity which confirms the specific unusual circumstances and documents the person’s relationship to the student;

“(iv) a documented phone call or written statement from a representative under chapter 1 or 2 of subpart 2 of part A, which confirms the specific unusual circumstances and documents the representative’s relationship to the student;

“(v) documents, such as utility bills or health insurance documentation, that demonstrate a separation from parents or legal guardians; and

“(vi) in the absence of documentation described in this subparagraph, other documentation the financial aid administrator determines is adequate to confirm the unusual circumstances, pursuant to section 480(d)(9); and

“(C) supplementary information, as necessary, about the financial status or personal circumstances of eligible applicants as it relates to the special circumstances or unusual circumstances based on which the applicant is requesting an adjustment.

“(4) Special rule.—In making adjustments under paragraph (1), a financial aid administrator may offer a dependent student financial assistance under a Federal Direct Unsubsidized Stafford Loan without requiring the parents of such student to provide their parent information on the Free Application for Federal Student Aid if the student does not qualify for, or does not choose to use, the unusual circumstance option described in section 480(d)(9), and the financial aid administrator determines that the parents of such student ended financial support of such student or refuse to file such form.

“(5) Public disclosure.—Each institution of higher education shall make publicly available information that students applying for aid under this title have the opportunity to pursue adjustments under this section.

“(b) Adjustments for Students With Special Circumstances.—

“(1) Special circumstances for adjustments related to pell grants.—Special circumstances for adjustments to calculate a Federal Pell Grant award—

“(A) shall be conditions that differentiate an individual student from a group of students rather than conditions that exist across a group of students; and

“(B) may include—

“(i) recent unemployment of a family member or student;

“(ii) a student or family member who is a dislocated worker (as defined in section 3 of the Workforce Innovation and Opportunity Act);

“(iii) a change in housing status that results in an individual being a homeless youth;

“(iv) an unusual amount of claimed losses against income on the Federal tax return that substantially lower adjusted gross income, such as business, investment, or real estate losses;

“(v) receipt of foreign income of permanent residents or United States citizens exempt from Federal taxation, or the foreign income for which a permanent resident or citizen received a foreign tax credit;

“(vi) in the case of an applicant who does not qualify for the exemption from asset reporting under section 479, assets as defined in section 480(f); or

“(vii) other changes or adjustments in the income, assets, or size of a family, or a student’s dependency status.

“(2) Special circumstances for adjustments related to cost of attendance and student aid index.—Special circumstances for adjustments to the cost of attendance or the values of the data used to calculate the student aid index—

“(A) shall be conditions that differentiate an individual student from a group of students rather than conditions that exist across a group of students, except as provided in sections 479B and 479C; and

“(B) may include—

“(i) tuition expenses at an elementary school or secondary school;

“(ii) medical, dental, or nursing home expenses not covered by insurance;

“(iii) child care or dependent care costs not covered by the dependent care cost allowance calculated in accordance with section 472;

“(iv) recent unemployment of a family member or student;

“(v) a student or family member who is a dislocated worker (as defined in section 3 of the Workforce Innovation and Opportunity Act);

“(vi) the existence of additional family members enrolled in a degree, certificate, or other program leading to a recognized educational credential at an institution with a program participation agreement under section 487;

“(vii) a change in housing status that results in an individual being a homeless youth;

“(viii) a condition of severe disability of the student, or in the case of a dependent student, the dependent student’s parent or guardian, or in the case of an independent student, the independent student’s dependent or spouse;

“(ix) unusual amount of claimed losses against income on the Federal tax return that substantially lower adjusted gross income, such as business, investment, or real estate losses; or

“(x) other changes or adjustments in the income, assets, or size of a family, or a student’s dependency status.

“(c) Unusual Circumstances Adjustments.—

“(1) In general.—Unusual circumstances for adjustments to the dependency status of an applicant shall be—

“(A) conditions that differentiate an individual student from a group of students; and

“(B) based on unusual circumstances, pursuant to section 480(d)(9).

“(2) Provisional independent students.—

“(A) Requirements for the secretary.—The Secretary shall—

“(i) enable each student who, based on an unusual circumstance described in section 480(d)(9), may qualify for an adjustment under subsection (a)(1)(B) that will result in a determination of independence under this section or section 479D to complete the Free Application for Federal Student Aid as an independent student for the purpose of a provisional determination of the student’s Federal financial aid award, with the final determination of the award subject to the documentation requirements of subsection (a)(3);

“(ii) upon completion of the Free Application for Federal Student Aid provide an estimate of the student’s Federal Pell Grant award, and other information as specified in section 483(a)(3)(A), based on the assumption that the student is determined to be an independent student; and

“(iii) specify, on the Free Application for Federal Student Aid, the consequences under section 490(a) of knowingly and willfully completing the Free Application for Federal Student Aid as an independent student under clause (i) without meeting the unusual circumstances to qualify for such a determination.

“(B) Requirements for financial aid administrators.—With respect to a student accepted for admission who completes the Free Application for Federal Student Aid as an independent student under subparagraph (A), a financial aid administrator shall—

“(i) notify the student of the institutional process, requirements, and timeline for an adjustment under this section and section 480(d)(9) that will result in a review of the student’s request for an adjustment and a determination of the student’s dependency status under such sections within a reasonable time after the student completes the Free Application for Federal Student Aid;

“(ii) provide the student a final determination of the student’s dependency status and Federal financial aid award as soon as practicable after all requested documentation is provided;

“(iii) retain all documents related to the adjustment under this section and section 480(d)(9), including documented interviews, for at least the duration of the student’s enrollment, and shall abide by all other record keeping requirements of this Act; and

“(iv) presume that any student who has obtained an adjustment under this section and section 480(d)(9) and a final determination of independence for any preceding award year at an institution of higher education to be independent for each subsequent award year at the same institution unless—

“(I) the student informs the institution that circumstances have changed; or

“(II) the institution has specific conflicting information about the student’s independence.

“(C) Eligibility.—If a student pursues provisional independent student status and is not determined to be an independent student by a financial aid administrator, such student shall only be eligible for a Federal Direct Unsubsidized Stafford Loan for that award year unless such student subsequently completes the Free Application for Federal Student Aid as a dependent student.

“(d) Adjustments to Assets or Income Taken Into Account.—A financial aid administrator shall be considered to be making a necessary adjustment in accordance with this section if—

“(1) the administrator makes adjustments excluding from family income or assets any proceeds or losses from a sale of farm or business assets of a family if such sale results from a voluntary or involuntary foreclosure, forfeiture, or bankruptcy or a voluntary or involuntary liquidation; or

“(2) the administrator makes adjustments for a condition of disability of a student, or in the case of a dependent student, the dependent student’s parent or guardian, or in the case of an independent student, the independent student’s dependent or spouse, so as to take into consideration the additional costs incurred as a result of such disability.

“(e) Refusal or Adjustment of Loan Certifications.—On a case-by-case basis, an eligible institution may refuse to use the authority provided under this section, certify a statement that permits a student to receive a loan under part D, certify a loan amount, or make a loan that is less than the student’s determination of need (as determined under this part), if the reason for the action is documented and provided in writing to the student. No eligible institution shall discriminate against any borrower or applicant in obtaining a loan on the basis of race, ethnicity, national origin, religion, sex, marital status, age, or disability status.

“(f) Special Rule Regarding Professional Judgment During a Disaster, Emergency, or Economic Downturn.—

“(1) In general.—For the purposes of making a professional judgment under this section, financial aid administrators may, during a qualifying emergency—

“(A) determine that the income earned from work for an applicant is zero, if the applicant can provide paper or electronic documentation of receipt of unemployment benefits or confirmation that an application for unemployment benefits was submitted; and

“(B) make additional appropriate adjustments to the income earned from work for a student, parent, or spouse, as applicable, based on the totality of the family’s situation, including consideration of unemployment benefits.

“(2) Documentation.—For the purposes of documenting unemployment under paragraph (1), documentation shall be accepted if such documentation is submitted not more than 90 days from the date on which such documentation was issued, except if a financial aid administrator knows that the student, parent, or spouse, as applicable, has already obtained other employment.

“(3) Program reviews.—The Secretary shall make adjustments to the model used to select institutions of higher education participating under this title for program reviews in order to account for any rise in the use of professional judgment under this section during the award years applicable to the qualifying emergency, as determined by the Secretary.

“(4) Qualifying emergency.—In this subsection, the term ‘qualifying emergency’ means—

“(A) an event for which the President declared a major disaster or an emergency under section 401 or 501, respectively, of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170 and 5191);

“(B) a national emergency related to the coronavirus declared by the President under section 201 of the National Emergencies Act (50 U.S.C. 1601 et seq.); or

“(C) a period of recession or economic downturn as determined by the Secretary, in consultation with the Secretary of Labor.”

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

“Notwithstanding any other provision of law, student financial assistance received under this title, Bureau of Indian Education student assistance programs, and employment and training programs under section 134 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3174 et. seq.) shall not be taken into account in determining the need or eligibility of any person for benefits or assistance, or the amount of such benefits or assistance, under any Federal, State, or local program financed in whole or in part with Federal funds.”

“SEC. 479C. NATIVE AMERICAN STUDENTS.

“(a) In General.—In determining the student aid index for Native American students, computations performed pursuant to this part shall exclude—

“(1) any income and assets of $2,000 or less per individual payment received by the student (and spouse) and student’s parents under Public Law 98–64 (25 U.S.C. 117a et seq.; 97 Stat. 365) (commonly known as the ‘Per Capita Act’) or the Indian Tribal Judgment Funds Use or Distribution Act (25 U.S.C. 1401 et seq.); and

“(2) any income received by the student (and spouse) and student’s parents under the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.) or the Maine Indian Claims Settlement Act of 1980 (25 U.S.C. 1721 et seq.).

“(b) Guidance.—The Secretary shall develop guidance, in consultation with Tribal Colleges and Universities (as defined in section 316) and the State higher education agency in Alaska and Maine, to implement the determination under subsection (a) without adding additional questions to the FAFSA, including through the use of the authority under section 479A.”

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

“(a) In General.—The Secretary shall implement early outreach activities in order to provide prospective students and their families with information about financial aid and estimates of financial aid. Such early outreach activities shall include the activities described in subsections (b), (c), and (d).

“(b) Pell Grant Early Awareness Estimates.—

“(1) In general.—The Secretary shall produce a consumer-tested method of estimating student eligibility for Federal Pell Grants under section 401(b) utilizing the variables of family size and adjusted gross income, presented in electronic format. There shall be a method for students to indicate whether they are, or will be in—

“(A) a single-parent household;

“(B) a household with two parents; or

“(C) a household with no children or dependents.

“(2) Consumer testing.—

“(A) In general.—The method of estimating eligibility described in paragraph (1) shall be consumer tested with prospective first-generation students and families as well as low-income individuals and families.

“(B) Updates.—For award year 2023–2024 and each fourth succeeding award year thereafter, the design of the method of estimating eligibility shall be updated based on additional consumer testing with the populations described in subparagraph (A).

“(3) Distribution.—The method of estimating eligibility described in paragraph (1) shall be—

“(A) made publicly and prominently available on the Department’s website; and

“(B) actively shared by the Secretary with—

“(i) institutions of higher education participating in programs under this title;

“(ii) all middle and secondary schools eligible for funds under part A of title I of the Elementary and Secondary Education Act of 1965;

“(iii) local educational agencies and middle schools and high schools that serve students not less than 25 percent of whom meet a measure of poverty as described in section 1113(a)(5) of the Elementary and Secondary Education Act of 1965; and

“(iv) agencies responsible for administering means-tested Federal benefit programs, as defined in section 479(b)(4)(H).

“(4) Electronic estimator on fafsa.—In accordance with subsection (d)(5) of section 483, the Secretary shall maintain an electronic method for applicants to enter income and family size, and level of education sought information to calculate a non-binding estimate (which may include a range, ceiling, or minimum) of the applicant’s Federal financial aid available under this title and shall place such calculator on a prominent location on the FAFSA website and in a manner that encourages students to fill out the FAFSA.

“(c) Early Awareness Plans.—The Secretary shall establish and implement early awareness and outreach plans to provide early information about the availability of Federal financial aid and estimates of prospective students’ eligibility for Federal financial aid as well as to promote the attainment of postsecondary education specifically among prospective first-generation students and families as well as low-income individuals and families, as follows:

“(1) Outreach plans for low-income families.—

“(A) In general.—The Secretary shall develop plans for each population described in this subparagraph to disseminate information about the availability of Federal financial aid under this title, in addition to and in coordination with the distribution of the method of estimating eligibility under subsection (b), to—

“(i) all middle schools and secondary schools eligible for funds under part A of title I of the Elementary and Secondary Education Act of 1965;

“(ii) local educational agencies and middle schools and high schools that serve students not less than 25 percent of whom meet a measure of poverty as described in section 1113(a)(5) of the Elementary and Secondary Education Act;

“(iii) households receiving assistance under the supplemental nutrition assistance program established under the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.); and

“(iv) agencies responsible for administering means-tested Federal benefit programs, as defined in section 479(b)(4)(H).

“(B) Content of plans.—The plans described in paragraph (A) shall—

“(i) provide students and their families with information on—

“(I) the availability of the College Scorecard or any similar successor website;

“(II) the electronic estimates of financial aid available under subsection (b);

“(III) Federal financial aid available to students, including eligibility criteria for the Federal financial aid and an explanation of the Federal financial aid programs (including applicable Federal educational tax credits); and

“(IV) resources that can inform students of financial aid that may be available from state-based financial aid, state-based college savings programs, and scholarships and other non-governmental sources;

“(ii) describe how the dissemination of information will be conducted by the Secretary.

“(C) Reporting and updates.—The Secretary shall post the information about the plans under subparagraph (A) and associated goals publicly on the Department’s website. On an annual basis, the Secretary shall report qualitative and quantitative outcomes regarding the implementation of the plans under subparagraph (A). The Secretary shall review and update such plans not less often than every 4 award years with the goal of progressively increasing the impact of the activities under this paragraph.

“(D) Partnership.—The Secretary may partner with States, State systems of higher education, institutions of higher education, or college access organizations to carry out this paragraph.

“(2) Interagency coordination plans.—

“(A) In general.—The Secretary shall develop interagency coordination plans in order to inform more students and families, including low-income individuals or families and recipients of means-tested Federal benefits, about the availability of Federal financial aid under this title through participation in existing Federal programs or tax benefits that serve low-income individuals or families, in coordination with the following Secretaries:

“(i) The Secretary of the Treasury.

“(ii) The Secretary of Labor.

“(iii) The Secretary of Health and Human Services.

“(iv) The Secretary of Agriculture.

“(v) The Secretary of Housing and Urban Development.

“(vi) The Secretary of Commerce.

“(vii) The Secretary of Veterans Affairs.

“(viii) The Secretary of the Interior.

“(B) Process, activities, and goals.—Each interagency coordination plan under subparagraph (A) shall—

“(i) identify opportunities in which low-income individuals and families could be informed of the availability of Federal financial aid under this title through access to other Federal programs that serve low-income individuals and families;

“(ii) identify methods to effectively inform low-income individuals and families of the availability of Federal financial aid for postsecondary education under this title and assist such individuals in completing the Free Application for Federal Student Aid;

“(iii) develop early awareness and FAFSA completion activities that align with the opportunities and methods identified under clauses (i) and (ii);

“(iv) establish goals regarding the effects of the activities to be implemented under clause (iii); and

“(v) provide information on how students and families can maintain access to Federal programs that serve low-income individuals and families operated by the agencies identified under subsection (A) while attending an institution of higher education.

“(C) Plan with secretary of the treasury.—The interagency coordination plan under subparagraph (A)(i) between the Secretary and the Secretary of the Treasury shall further include specific methods to increase the application for Federal financial aid under this title from individuals who file Federal tax returns, including collaboration with tax preparation entities or other third parties, as appropriate.

“(D) Reporting and updates.—The Secretary shall post the information about the interagency coordination plans under this paragraph and associated goals publicly on the Department’s website. The plans shall have the goal of progressively increasing the impact of the activities under this paragraph by increasing the number of low-income applicants for, and recipients of, Federal financial aid. The plans shall be updated not less than once every 4 years.

“(3) Nationwide participation in early awareness plans.—

“(A) In general.—The Secretary shall solicit voluntary public commitments from entities, such as States, State systems of higher education, institutions of higher education, and other interested organizations, to carry out early awareness plans, which shall include goals, to—

“(i) notify prospective and existing students who are low-income individuals and families about their eligibility for Federal aid under this title, as well as State-based financial aid, if applicable, on an annual basis;

“(ii) increase the number of prospective and current students who are low-income individuals and families filing the Free Application for Federal Student Aid; and

“(iii) increase the number of prospective and current students who are low-income individuals and families enrolling in postsecondary education.

“(B) Reporting and updates.—Each entity that makes a voluntary public commitment to carry out an early awareness plan may submit quantitative and qualitative data based on the entity’s progress toward the goals of the plan annually prior to a date selected by the Secretary.

“(C) Early awareness champions.—Based on data submitted by entities, the Secretary shall select and designate entities submitting public commitments, plans, and goals, as Early Awareness Champions on an annual basis. Those entities designated as Early Awareness Champions shall provide one or more case studies regarding the activities the entity undertook under this paragraph which shall be made public by the Secretary on the Department of Education website to promote best practices.

“(d) Public Awareness Campaign.—

“(1) In general.—The Secretary shall develop and implement a public awareness campaign designed using current and relevant independent research regarding strategies and media platforms found to be most effective in communicating with low-income populations in order to increase national awareness regarding the availability of Federal Pell Grants and financial aid under this title and, at the option of the Secretary, potential availability of state need-based financial aid.

“(2) Coordination.—The public awareness campaign described in paragraph (1) shall leverage the activities in subsections (b) and (c) to highlight eligibility among low-income populations. In developing and implementing the campaign, the Secretary may work in coordination with States, institutions of higher education, early intervention and outreach programs under this title, other Federal agencies, agencies responsible for administering means-tested Federal benefit programs (as defined in section 479(b)(4)(H)), organizations involved in college access and student financial aid, secondary schools, local educational agencies, public libraries, community centers, businesses, employers, workforce investment boards, and organizations that provide services to individuals who are or were homeless, in foster care, or are disconnected youth.

“(3) Reporting.—The Secretary shall report on the success of the public awareness campaign described in paragraph (1) annually regarding the extent to which the public and target populations were reached using data commonly used to evaluate advertising and outreach campaigns and data regarding whether the campaign produced any increase in applicants for Federal aid under this title publicly on the Department of Education website.”