Thursday afternoon, Chairman of the Senate Health, Education, Labor, and Pensions Committee Sen. Lamar Alexander (R-TN) made good on one of his landmark legislative initiatives when he took to the Senate floor to propose a narrow reauthorization of the Higher Education Act (HEA) that focuses largely on simplifying the FAFSA.
The Student Aid Improvement Act takes up several suggestions offered by NASFAA, including auto-qualifying applicants up-front for maximum Pell Grants if they meet specific criteria like qualifying for certain means-tested benefits or make too little money to need to file tax returns. Incorporating another NASFAA recommendation, applicants would not be required to list assets on the FAFSA if their tax returns did not indicate any significant assets as reported on tax schedules. The bill would also pave the way for more cooperation between federal agencies to auto-qualify applicants.
Alexander’s bill would restructure the need analysis formula by creating a “Student Aid Index” that would be used to qualify students for Pell eligibility largely based on their family size and adjusted gross income relative to the poverty line, with several income and asset protection allowances.