§ 1090. Forms and regulations
(a)
Common financial aid form development and processing
(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 D of this subchapter and part
C of subchapter
I of chapter
34 of title
42 (other than under subpart 4 of part A of this subchapter). The forms shall be made available to applicants in both paper and electronic formats and shall be referred to as the “Free Application for Federal Student Aid” or the “FAFSA”. The Secretary shall work to make the FAFSA consumer-friendly and to make questions on the FAFSA easy for students and families to read and understand, and shall ensure that the FAFSA is available in formats accessible to individuals with disabilities.
(2)
Paper format
(B)
EZ FAFSA
(i)
In general
The Secretary shall develop and use, after appropriate field testing, a simplified paper form, to be known as the EZ FAFSA, to be used for applicants meeting the requirements of subsection (b) or (c) of section
1087ss of this title.
(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 subsection (b) or (c) of section
1087ss of this title.
(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 (5), except that the Secretary shall not include a State’s data if that State does not permit the State’s resident applicants to use the EZ FAFSA for State assistance.
(C)
Promoting the use of electronic FAFSA
(i)
In general
The Secretary shall make all efforts to encourage all applicants to utilize the electronic version of the forms described in paragraph (3).
(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, accessible, and downloadable to students on the same website used to provide students with the electronic version of the forms described in paragraph (3).
(iii)
Requests for printed copy
The Secretary shall provide a printed copy of the full paper version of FAFSA upon request.
(iv)
Reporting requirement
The Secretary shall maintain data, and periodically report to Congress, on the impact of the digital divide on students completing applications for aid under this subchapter and part
C of subchapter
I of chapter
34 of title
42. The Secretary shall report on the steps taken to eliminate the digital divide and reduce production of the paper form described in subparagraph (A). The Secretary’s report shall specifically address the impact of the digital divide on the following student populations:
(3)
Electronic format
(A)
In general
The Secretary shall produce, distribute, and process forms in electronic format to meet the requirements of paragraph (1). The Secretary shall develop an electronic version of the forms for applicants who do not meet the requirements of subsection (b) or (c) of section
1087ss of this title.
(B)
Simplified applications: FAFSA on the web
(i)
In general
The Secretary shall develop and use a simplified electronic version of the form to be used by applicants meeting the requirements under subsection (b) or (c) of section
1087ss of this title.
(ii)
Reduced data requirements
The simplified electronic version of the 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
1087ss of this title.
(iii)
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.
(C)
State data
The Secretary shall include on the electronic version of the forms such items as may be necessary to determine eligibility for State financial assistance, as provided under paragraph (5), except that the Secretary shall not require an applicant to enter data pursuant to this subparagraph that are required by any State other than the applicant’s State of residence.
(D)
Availability and processing
The data collected by means of the simplified electronic version of the forms shall be available to institutions of higher education, guaranty agencies, and States in accordance with paragraph (10).
(E)
Privacy
The Secretary shall ensure that data collection under this paragraph complies with section
552a of title
5 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 subchapter and part
C of subchapter
I of chapter
34 of title
42, State aid, or aid awarded by eligible institutions or such entities as the Secretary may designate. No data collected by such electronic version of the forms shall be used for making final aid awards under this subchapter and part
C of subchapter
I of chapter
34 of title
42 until such data have been processed by the Secretary or a contractor or designee of the Secretary, except as may be permitted under this subchapter and part
C of subchapter
I of chapter
34 of title
42.
(F)
Signature
Notwithstanding any other provision of this chapter, the Secretary may continue to permit an electronic version of the 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).
(G)
Personal identification numbers authorized
The Secretary may continue to assign to an applicant a personal identification number—
(H)
Personal identification number improvement
The Secretary shall continue to work with the Commissioner of Social Security to minimize the time required for an applicant to obtain a personal identification number when applying for aid under this subchapter and part
C of subchapter
I of chapter
34 of title
42 through an electronic version of a form developed under this paragraph.
(4)
Streamlining
(A)
Streamlined reapplication process
(i)
In general
The Secretary shall continue to streamline reapplication forms and processes for an applicant who applies for financial assistance under this subchapter and part
C of subchapter
I of chapter
34 of title
42 in the next succeeding academic year subsequent to an academic year for which such applicant applied for financial assistance under this subchapter and part
C of subchapter
I of chapter
34 of title
42.
(ii)
Updating of data elements
The Secretary shall determine, in cooperation with States, institutions of higher education, agencies, and organizations involved in student financial assistance, the data elements that may be transferred from the previous academic year’s application and those data elements that shall be updated.
(B)
Reduction of data elements
(i)
Reduction encouraged
Of the number of data elements on the FAFSA used for the 2009–2010 award year, the Secretary, in cooperation with representatives of agencies and organizations involved in student financial assistance and consistent with efforts under subsection (c), shall continue to reduce the number of such data elements required to be entered by all applicants, with the goal of reducing such number by 50 percent.
(5)
State requirements
(A)
In general
Except as provided in paragraphs (2)(B)(iii), (3)(B), and (4)(A)(ii), the Secretary shall include on the forms developed under this subsection, such State-specific data items as the Secretary determines are necessary to meet State requirements for need-based State aid. Such items shall be selected in consultation with State agencies in order to assist in the awarding of State financial assistance in accordance with the terms of this subsection. The number of such data items shall not be less than the number included on the form for the 2008–2009 award year unless a State notifies the Secretary that the State no longer requires those data items for the distribution of State need-based aid.
(C)
Federal register notice
Beginning with the forms developed under paragraphs (2)(B) and (3)(B) for the award year 2010–2011, the Secretary shall publish on an annual basis a notice in the Federal Register requiring State agencies to inform the Secretary—
(D)
Use of simplified forms encouraged
The Secretary shall encourage States to take such steps as are necessary to encourage the use of simplified forms under this subsection, including those forms described in paragraphs (2)(B) and (3)(B), for applicants who meet the requirements of subsection (b) or (c) of section
1087ss of this title.
(E)
Consequences if State does not accept simplified forms
If a State does not permit an applicant to file a form described in paragraph (2)(B) or (3)(B) for purposes of determining eligibility for State need-based financial aid, the Secretary may determine that State-specific questions for such State will not be included on a form described in paragraph (2)(B) or (3)(B). If the Secretary makes such determination, the Secretary shall advise the State of the Secretary’s determination.
(6)
Charges to students and parents for use of forms prohibited
The need and eligibility of a student for financial assistance under parts A through D of this subchapter and part
C of subchapter
I of chapter
34 of title
42 (other than under subpart 4 of part A of this subchapter) may be determined only by using a form developed by the Secretary under this subsection. Such forms shall be produced, distributed, and processed by the Secretary, and no parent or student shall be charged a fee by the Secretary, a contractor, a third-party servicer or private software provider, or any other public or private entity for the collection, processing, or delivery of financial aid through the use of such forms. No data collected on a form for which a fee is charged shall be used to complete the form prescribed under this section, except that a Federal or State income tax form prepared by a paid income tax preparer or preparer service for the primary purpose of filing a Federal or State income tax return may be used to complete the form prescribed under this section.
(7)
Restrictions on use of PIN
No person, commercial entity, or other entity may request, obtain, or utilize an applicant’s personal identification number assigned under paragraph (3)(G) for purposes of submitting a form developed under this subsection on an applicant’s behalf.
(8)
Application processing cycle
The Secretary shall enable students to submit forms developed under this subsection and initiate the processing of such forms under this subsection, as early as practicable prior to January 1 of the student’s planned year of enrollment.
(9)
Early estimates
The Secretary shall continue to—
(A)
permit applicants to enter data in such forms as described in this subsection in the years prior to enrollment in order to obtain a non-binding estimate of the applicant’s family contribution (as defined in section
1087mm of this title);
(B)
permit applicants to update information submitted on forms described in this subsection, without needing to re-enter previously submitted information;
(C)
develop a means to inform applicants, in the years prior to enrollment, of student aid options for individuals in similar financial situations;
(D)
develop a means to provide a clear and conspicuous notice that the applicant’s expected family contribution is subject to change and may not reflect the final expected family contribution used to determine Federal student financial aid award amounts under this subchapter and part
C of subchapter
I of chapter
34 of title
42; and
(10)
Distribution of data
Institutions of higher education, guaranty agencies, and States shall receive, without charge, the data collected by the Secretary using a form developed under this subsection for the purposes of processing loan applications and determining need and eligibility for institutional and State financial aid awards. Entities designated by institutions of higher education, guaranty agencies, or States to receive such data shall be subject to all the requirements of this section, unless such requirements are waived by the Secretary.
(11)
Third party servicers and private software providers
To the extent practicable and in a timely manner, the Secretary shall provide, to private organizations and consortia that develop software used by institutions of higher education for the administration of funds under this subchapter and part
C of subchapter
I of chapter
34 of title
42, all the necessary specifications that the organizations and consortia must meet for the software the organizations and consortia develop, produce, and distribute (including any diskette, modem, or network communications) to be so used. The specifications shall contain record layouts for required data. The Secretary shall develop in advance of each processing cycle an annual schedule for providing such specifications. The Secretary, to the extent practicable, shall use multiple means of providing such specifications, including conferences and other meetings, outreach, and technical support mechanisms (such as training and printed reference materials). The Secretary shall, from time to time, solicit from such organizations and consortia means of improving the support provided by the Secretary.
(c)
Toll-free information
The Secretary shall contract for, or establish, and publicize a toll-free telephone service to provide timely and accurate information to the general public. The information provided shall include specific instructions on completing the application form for assistance under this subchapter and part
C of subchapter
I of chapter
34 of title
42. Such service shall also include a service accessible by telecommunications devices for the deaf (TDD’s) and shall, in addition to the services provided for in the previous sentence, refer such students to the national clearinghouse on postsecondary education or other appropriate provider of technical assistance and information on postsecondary educational services for individuals with disabilities, including the National Technical Assistance Center under section
1140q of this title. The Secretary shall continue to implement, to the extent practicable, a toll-free telephone based system to permit applicants who meet the requirements of subsection (b) or (c) of section
1087ss of this title to submit an application over such system.
(d)
Assistance in preparation of financial aid application
(1)
Preparation authorized
Notwithstanding any provision of this chapter, an applicant may use a preparer for consultative or preparation services for the completion of a form developed under subsection (a) if the preparer satisfies the requirements of this subsection.
(2)
Preparer identification required
If an applicant uses a preparer for consultative or preparation services for the completion of a form developed under subsection (a), and for which a fee is charged, the preparer shall—
(3)
Additional requirements
A preparer that provides consultative or preparation services pursuant to this subsection shall—
(A)
clearly inform each individual upon initial contact, including contact through the Internet or by telephone, that the FAFSA and EZ FAFSA are free forms that may be completed without professional assistance via paper or electronic version of the forms that are provided by the Secretary;
(B)
include in any advertising clear and conspicuous information that the FAFSA and EZ FAFSA are free forms that may be completed without professional assistance via paper or electronic version of the forms that are provided by the Secretary;
(4)
Special rule
Nothing in this chapter shall be construed to limit preparers of the forms required under this subchapter and part
C of subchapter
I of chapter
34 of title
42 that meet the requirements of this subsection from collecting source information from a student or parent, including Internal Revenue Service tax forms, in providing consultative and preparation services in completing the forms.
(e)
Early application and estimated award demonstration program
(1)
Purpose and objectives
The purpose of the demonstration program under this subsection is to measure the benefits, in terms of student aspirations and plans to attend an institution of higher education, and any adverse effects, in terms of program costs, integrity, distribution, and delivery of aid under this subchapter and part
C of subchapter
I of chapter
34 of title
42, of implementing an early application system for all dependent students that allows dependent students to apply for financial aid using information from two years prior to the year of enrollment. Additional objectives associated with implementation of the demonstration program are the following:
(A)
To measure the feasibility of enabling dependent students to apply for Federal, State, and institutional financial aid in their junior year of secondary school, using information from two years prior to the year of enrollment, by completing any of the forms under this subsection.
(B)
To identify whether receiving final financial aid award estimates not later than the fall of the senior year of secondary school 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.
(2)
Program authorized
Not later than two years after August 14, 2008, the Secretary shall implement an early application demonstration program enabling dependent students who wish to participate in the program—
(A)
to complete an application under this subsection during the academic year that is two years prior to the year such students plan to enroll in an institution of higher education; and
(B)
based on the application described in subparagraph (A), to obtain, not later than one year prior to the year of the students’ planned enrollment, information on eligibility for Federal Pell Grants, Federal student loans under this subchapter and part
C of subchapter
I of chapter
34 of title
42, and State and institutional financial aid for the student’s first year of enrollment in the institution of higher education.
(3)
Early application and estimated award
For all dependent students selected for participation in the demonstration program who submit a completed FAFSA, or, as appropriate, an EZ FAFSA, two years prior to the year such students plan to enroll in an institution of higher education, the Secretary shall, not later than one year prior to the year of such planned enrollment—
(4)
Participants
The Secretary shall include as participants in the demonstration program—
(B)
institutions of higher education within the selected States that are interested in participating in the demonstration program, and that can make estimates or commitments of institutional student financial aid, as appropriate, to students the year before the students’ planned enrollment date; and
(5)
Applications
Each State that is interested in participating in the demonstration program shall submit an application to the Secretary at such time, in such form, and containing such information as the Secretary shall require. The application shall include—
(A)
information on the amount of the State’s need-based student financial assistance available, and the eligibility criteria for receiving such assistance;
(B)
a commitment to make, not later than the year before the dependent students participating in the demonstration program plan to enroll in an institution of higher education, an estimate of the award of State financial aid to such dependent students;
(C)
a plan for recruiting institutions of higher education and secondary schools with different demographic characteristics to participate in the program;
(D)
a plan for selecting institutions of higher education and secondary schools to participate in the program that—
(i)
demonstrate a commitment to encouraging students to submit a FAFSA, or, as appropriate, an EZ FAFSA, two years before the students’ planned date of enrollment in an institution of higher education;
(iii)
in the case of institutions of higher education—
(II)
commit to making, not later than the year prior to the year that dependent students participating in the demonstration program plan to enroll in the institution—
(bb)
estimated grants or other financial aid available under this subchapter and part
C of subchapter
I of chapter
34 of title
42 (including supplemental grants under subpart 3 of part A of this subchapter), for all participating dependent students, along with information on State awards, as provided to the institution by the State;
(6)
Special provisions
(A)
Discretion of student financial aid administrators
A financial aid administrator at an institution of higher education participating in a demonstration program under this subsection may use the discretion provided under section
1087tt of this title as necessary for students participating in the demonstration program.
(B)
Waivers
The Secretary is authorized to waive, for an institution of higher education participating in the demonstration program, any requirements under this subchapter and part
C of subchapter
I of chapter
34 of title
42, or regulations prescribed under this subchapter and part
C of subchapter
I of chapter
34 of title
42, that will make the demonstration program unworkable, except that the Secretary shall not waive any provisions with respect to the maximum award amounts for grants and loans under this subchapter and part
C of subchapter
I of chapter
34 of title
42.
(7)
Outreach
The Secretary shall make appropriate efforts to notify States of the demonstration program under this subsection. Upon determination of participating States, the Secretary shall continue to make efforts to notify institutions of higher education and dependent students within participating States of the opportunity to participate in the demonstration program and of the participation requirements.
(8)
Evaluation
The Secretary shall conduct a rigorous evaluation of the demonstration program to measure the program’s benefits and adverse effects, as the benefits and effects relate to the purpose and objectives of the program described in paragraph (1). In conducting the evaluation, the Secretary shall—
(A)
determine whether receiving financial aid estimates one year prior to the year in which the student plans to enroll in an institution of higher education, has a positive impact on the higher education aspirations and plans of such student;
(B)
measure the extent to which using a student’s income information from the year that is two years prior to the student’s planned enrollment date had an impact on the ability of States and institutions of higher education to make financial aid awards and commitments;
(D)
identify any changes to Federal law that are necessary to implement the program on a permanent basis;
(9)
Consultation
The Secretary shall consult, as appropriate, with the Advisory Committee on Student Financial Assistance established under section
1098 of this title on the design, implementation, and evaluation of the demonstration program.
(f)
Reduction of income and asset information to determine eligibility for student financial aid
(1)
Continuation of current FAFSA simplification efforts
The Secretary shall continue to examine—
(A)
how the Internal Revenue Service can provide to the Secretary income and other data needed to compute an expected family contribution for taxpayers and dependents of taxpayers, and when in the application cycle the data can be made available;
(C)
whether the data elements collected on the FAFSA that are needed to determine eligibility for student aid, or to administer the Federal student financial aid programs under this subchapter and part
C of subchapter
I of chapter
34 of title
42, but are not needed to compute an expected family contribution, such as information regarding the student’s citizenship or permanent residency status, registration for selective service, or driver’s license number, can be reduced without adverse effects.
(2)
Report on FAFSA simplification efforts to date
Not later than 90 days after August 14, 2008, the Secretary shall provide a written report to the authorizing committees on the work the Department has done with the Secretary of the Treasury regarding—
(A)
how the expected family contribution of a student can be calculated using substantially less income and asset information than was used on March 31, 2008;
(B)
the extent to which the reduced income and asset information will result in a redistribution of Federal grants and subsidized loans under this subchapter and part
C of subchapter
I of chapter
34 of title
42, State aid, or institutional aid, or in a change in the composition of the group of recipients of such aid, and the amount of such redistribution;
(C)
how the alternative approaches for calculating the expected family contribution will—
(D)
how the Internal Revenue Service can provide to the Secretary of Education income and other data needed to compute an expected family contribution for taxpayers and dependents of taxpayers, and when in the application cycle the data can be made available;