 
      CHAPTER 28--HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
 
                    SUBCHAPTER IV--STUDENT ASSISTANCE
 
   Part F--General Provisions Relating to Student Assistance Programs
 
Sec. 1090. Forms and regulations


(a) Common financial aid form development and processing

                      (1) Single form required

        The Secretary, in cooperation with representatives of agencies 
    and organizations involved in student financial assistance, shall 
    produce, distribute, and process free of charge a common financial 
    reporting form to be used 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 
    Secretary shall include on the form developed under this subsection 
    such data items as the Secretary determines are appropriate for 
    inclusion. Such items shall be selected in consultation with States 
    to assist in the awarding of State financial assistance. In no case 
    shall the number of such data items be less than the number included 
    on the form on October 7, 1998. Such form shall satisfy the 
    requirements of section 1070a(d) of this title.

        (2) Charges to students and parents for use of form 
                                 prohibited

        The common financial reporting form prescribed by the Secretary 
    under paragraph (1) 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 such form. 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 only be determined by 
    using the form developed by the Secretary pursuant to paragraph (1) 
    of this subsection. No student may receive 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), except by use of the form developed by the Secretary 
    pursuant to this section. No data collected on a form for which a 
    fee is charged shall be used to complete the form prescribed under 
    paragraph (1).

                      (3) Distribution of data

        Institutions of higher education, guaranty agencies, and States 
    shall receive, without charge, the data collected by the Secretary 
    using the form developed pursuant to this section 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.

             (4) Contracts for collection and processing

        (A) The Secretary shall, to the extent practicable, enter into 
    not less than 5 contracts with States, institutions of higher 
    education, or private organizations for the purposes of the timely 
    collection and processing of the form developed pursuant to 
    paragraph (1) and the timely delivery of the data submitted on such 
    form. The Secretary shall use such contracts to assist States and 
    institutions of higher education with the collection of additional 
    data required to award State or institutional financial assistance, 
    except that the Secretary shall not include these additional data 
    items on the common financial reporting form developed pursuant to 
    this section. The Secretary shall include in each such contract a 
    requirement that--
            (i) any charges by the contractor to the student or parent 
        for additional data items required by a State or institution for 
        any purpose (regardless of the method of collection) shall be 
        reasonable and shall not exceed the marginal cost of collecting, 
        processing, and delivering such additional data, taking into 
        account any payment received by the contractor to produce, 
        distribute, and process the common financial reporting form 
        prescribed by the Secretary pursuant to paragraph (1); and
            (ii) the contractor will require any person or entity to 
        whom the contractor provides such additional data to agree not 
        to collect from any student or parent any charge that would not 
        be permitted under this subparagraph for any such additional 
        data.

        (B) To the extent practicable, the Secretary shall ensure that 
    at least one contractor, or a portion of one contract, under this 
    paragraph will serve graduate and professional students.
        (C) As part of the procurement process for the 1993-1994 award 
    year, and for all procurements thereafter pertaining to the 
    contracts under this paragraph, the Secretary shall require all 
    entities competing for such contracts to comply with all 
    requirements of this subsection and to--
            (i) use the common financial reporting form as prescribed in 
        paragraph (1), which shall be clearly identified as the ``Free 
        Application for Federal Student Aid''; and
            (ii) use a common, simplified reapplication form as the 
        Secretary shall prescribe pursuant to subsection (b) of this 
        section, in each award year.

        (D) The Secretary shall reimburse all approved contractors at a 
    reasonable predetermined rate for processing such applications, for 
    issuing eligibility reports, and for carrying out other services or 
    requirements that may be prescribed by the Secretary.
        (E) All approved contractors shall be required to adhere to all 
    editing, processing, and reporting requirements established by the 
    Secretary to ensure consistency.
        (F) No approved contractor shall enter into exclusive 
    arrangements with guarantors, lenders, secondary markets, or 
    institutions of higher education for the purpose of reselling or 
    sharing of data collected for the multiple data entry process. All 
    data collected under a contract issued by the Secretary pursuant to 
    this paragraph for the multiple data entry process is the exclusive 
    property of the Secretary and may not be transferred to a third 
    party by an approved contractor without the Secretary's express 
    written approval.

                        (5) Electronic forms

        (A) The Secretary, in cooperation with representatives of 
    agencies and organizations involved in student financial assistance, 
    including private computer software providers, shall develop an 
    electronic version of the form described in paragraph (1). As 
    permitted by the Secretary, such an electronic version shall not 
    require a signature to be collected at the time such version is 
    submitted, if a signature is subsequently submitted by the 
    applicant. The Secretary shall prescribe such version not later than 
    120 days after October 7, 1998.
        (B) Nothing in this section shall be construed to prohibit the 
    use of the form developed by the Secretary pursuant to subparagraph 
    (A) by an eligible institution, eligible lender, guaranty agency, 
    State grant agency, private computer software providers, a 
    consortium thereof, or such other entities as the Secretary may 
    designate.
        (C) No fee shall be charged to students in connection with the 
    use of the electronic version of the form, or of any other 
    electronic forms used in conjunction with such form in applying for 
    Federal or State student financial assistance.
        (D) The Secretary shall ensure that data collection complies 
    with section 552a of title 5 and that any entity using the 
    electronic version of the form developed by the Secretary pursuant 
    to subparagraph (A) 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 form. Data 
    collected by such version of the form 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 version of 
    the form 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.

      (6) 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 eligible institutions 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) which are 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 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.

         (7) Parent's social security number and birth date

        The Secretary is authorized to include on the form developed 
    under this subsection space for the social security number and birth 
    date of parents of dependent students seeking financial assistance 
    under this subchapter and part C of subchapter I of chapter 34 of 
    title 42.

(b) Streamlined reapplication process

    (1) The Secretary shall develop a streamlined reapplication form and 
process, including electronic reapplication process, consistent with the 
requirements of subsection (a) of this section, for those recipients who 
apply for financial aid funds under this subchapter and part C of 
subchapter I of chapter 34 of title 42 in the next succeeding academic 
year subsequent to the initial year in which such recipients apply.
    (2) The Secretary shall develop appropriate mechanisms to support 
reapplication.
    (3) 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.
    (4) Nothing in this subchapter and part C of subchapter I of chapter 
34 of title 42 shall be interpreted as limiting the authority of the 
Secretary to reduce the number of data elements required of 
reapplicants.
    (5) Individuals determined to have a zero family contribution 
pursuant to section 1087ss of this title shall not be required to 
provide any financial data, except that which is necessary to determine 
eligibility under that section.

(c) Information to committees of Congress

    Copies of all rules, regulations, guidelines, instructions, and 
application forms published or promulgated pursuant to this subchapter 
and part C of subchapter I of chapter 34 of title 42 shall be provided 
to the Committee on Labor and Human Resources of the Senate and the 
Committee on Education and the Workforce of the House of Representatives 
at least 45 days prior to their effective date.

(d) 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 that 
is authorized under section 1485(d)(2)(C) of this title.

(e) Preparer

    Any financial aid application required to be made under this 
subchapter and part C of subchapter I of chapter 34 of title 42 shall 
include the name, signature, address or employer's address, social 
security number or employer identification number, and organizational 
affiliation of the preparer of such financial aid application.

(Pub. L. 89-329, title IV, Sec. 483, as added Pub. L. 99-498, title IV, 
Sec. 407(a), Oct. 17, 1986, 100 Stat. 1478; amended Pub. L. 100-50, 
Sec. 15(3)-(6), June 3, 1987, 101 Stat. 356; Pub. L. 102-325, title IV, 
Sec. 483, July 23, 1992, 106 Stat. 612; Pub. L. 103-208, Sec. 2(h)(8)-
(12), Dec. 20, 1993, 107 Stat. 2476; Pub. L. 105-244, title IV, 
Sec. 482, Oct. 7, 1998, 112 Stat. 1733.)


                            Prior Provisions

    A prior section 1090, Pub. L. 89-329, title IV, Sec. 483, as added 
Pub. L. 96-374, title IV, Sec. 451(a), Oct. 3, 1980, 94 Stat. 1448, 
related to forms and regulations for student assistance programs, prior 
to the general revision of this part by Pub. L. 99-498.


                               Amendments

    1998--Subsec. (a). Pub. L. 105-244, Sec. 482(a)(1), substituted 
``form development'' for ``form'' in heading.
    Subsec. (a)(1). Pub. L. 105-244, Sec. 482(a)(2)(D), struck out at 
end ``For the purpose of collecting eligibility and other data for the 
purpose of part B of this subchapter, the Secretary shall develop a 
separate, identifiable loan application document (pursuant to section 
1082(m) of this title) that applicants or institutions in which the 
students are enrolled or accepted for enrollment shall submit directly 
to eligible lenders and on which the applicant shall clearly indicate a 
choice of a lender.''
    Pub. L. 105-244, Sec. 482(a)(2)(C), substituted ``The Secretary 
shall include on the form developed under this subsection such data 
items as the Secretary determines are appropriate for inclusion. Such 
items shall be selected in consultation with States to assist in the 
awarding of State financial assistance. In no case shall the number of 
such data items be less than the number included on the form on October 
7, 1998.'' for ``The Secretary may include on the form developed 
pursuant to this paragraph not more than eight nonfinancial data items 
selected in consultation with the States to assist the States in 
awarding State student financial assistance.''
    Pub. L. 105-244, Sec. 482(a)(2)(A), (B), substituted ``A through D'' 
for ``A, C, and D'' and struck out ``and to determine the need of a 
student for the purpose of part B of this subchapter'' after ``part A of 
this subchapter)''.
    Subsec. (a)(2). Pub. L. 105-244, Sec. 482(a)(3), substituted ``A 
through D'' for ``A, C, and D'' in two places and struck out ``and the 
need of a student for the purpose of part B of this subchapter,'' before 
``may only be determined'' and ``or have the student's need established 
for the purpose of part B of this subchapter'' before ``, except by use 
of''.
    Subsec. (a)(3). Pub. L. 105-244, Sec. 482(a)(4), amended heading and 
text of par. (3) generally. Prior to amendment, text read as follows: 
``Institutions of higher education and States shall receive, without 
charge, the data collected by the Secretary using the form developed 
pursuant to this section for the purposes of determining need and 
eligibility for institutional and State financial aid awards. Entities 
designated by institutions of higher education or States to receive such 
data shall be subject to all requirements of this section, unless such 
requirements are waived by the Secretary.''
    Subsec. (a)(5) to (7). Pub. L. 105-244, Sec. 482(a)(5), added pars. 
(5) to (7).
    Subsec. (b)(1). Pub. L. 105-244, Sec. 482(b), struck out ``, within 
240 days after July 23, 1992,'' after ``The Secretary shall''.
    Subsec. (c). Pub. L. 105-244, Sec. 482(c), substituted ``and the 
Workforce'' for ``and Labor''.
    Subsec. (d). Pub. L. 105-244, Sec. 482(d), substituted ``section 
1485(d)(2)(C)'' for ``section 1433(c)''.
    Subsec. (f). Pub. L. 105-244, Sec. 482(e), struck out heading and 
text of subsec. (f). Text read as follows: ``Nothing in section 1544 of 
the Higher Education Amendments of 1992 shall relieve processors or 
institutions of higher education of any or all obligations under this 
section.''
    1993--Subsec. (a)(1). Pub. L. 103-208, Sec. 2(h)(8), made technical 
amendment to reference to section 1070a(d) of this title to correct 
reference to corresponding section of original act.
    Subsec. (a)(2). Pub. L. 103-208, Sec. 2(h)(9), inserted at end ``No 
data collected on a form for which a fee is charged shall be used to 
complete the form prescribed under paragraph (1).''
    Subsec. (a)(3). Pub. L. 103-208, Sec. 2(h)(10), inserted at end 
``Entities designated by institutions of higher education or States to 
receive such data shall be subject to all requirements of this section, 
unless such requirements are waived by the Secretary.''
    Subsecs. (d), (e). Pub. L. 103-208, Sec. 2(h)(12), redesignated 
subsecs. (e) and (f) as (d) and (e), respectively.
    Subsec. (f). Pub. L. 103-208, Sec. 2(h)(12), redesignated subsec. 
(g) as (f). Former subsec. (f) redesignated (e).
    Pub. L. 103-208, Sec. 2(h)(11), substituted ``address or employer's 
address, social security number or employer identification number,'' for 
``address, social security number,''.
    Subsec. (g). Pub. L. 103-208, Sec. 2(h)(12), redesignated subsec. 
(g) as (f).
    1992--Subsec. (a). Pub. L. 102-325, Sec. 483(a), added subsec. (a) 
and struck out former subsec. (a) which contained pars. (1) to (5) 
relating to a common financial aid form and processing of financial aid 
applications.
    Subsec. (b). Pub. L. 102-325, Sec. 483(a), added subsec. (b) and 
struck out former subsec. (b) which related to certifications of 
capability of systems for determining expected family contributions.
    Subsec. (d). Pub. L. 102-325, Sec. 483(b)(1), struck out subsec. (d) 
which related to provision of early notice to students of their 
potential eligibility for financial aid.
    Subsec. (e). Pub. L. 102-325, Sec. 483(b)(2), amended subsec. (e) 
generally. Prior to amendment, subsec. (e) read as follows: ``The 
Secretary shall contract for, or establish, and publicize a toll-free 
telephone number to provide timely and accurate information to the 
general public. The information provided shall include specific 
instructions on completing application forms for assistance under this 
subchapter and part C of subchapter I of chapter 34 of title 42.''
    Subsecs. (f), (g). Pub. L. 102-325, Sec. 483(b)(1), (3), added 
subsecs. (f) and (g) and struck out former subsec. (f) which related to 
notice of student aid receipt.
    1987--Subsec. (a)(1). Pub. L. 100-50, Sec. 15(3), (4), inserted in 
second sentence ``or institutions in which the students are enrolled or 
accepted for enrollment'' after ``that applicants'' and ``and on which 
the applicant shall clearly indicate a choice of lender'' before period 
at end.
    Subsec. (a)(2). Pub. L. 100-50, Sec. 15(5), substituted ``not less 
than 5'' for ``not less than 3'' and inserted sentence at end providing 
that the Secretary not select new multiple data entry processors until 
certain examinations and recommendations are made by the Advisory 
Commission on Student Financial Assistance.
    Subsecs. (b) to (f). Pub. L. 100-50, Sec. 15(6), added subsec. (b) 
and redesignated former subsecs. (b) to (e) as (c) to (f), respectively.


                    Effective Date of 1998 Amendment

    Amendment by Pub. L. 105-244 effective Oct. 1, 1998, except as 
otherwise provided in Pub. L. 105-244, see section 3 of Pub. L. 105-244, 
set out as a note under section 1001 of this title.


                    Effective Date of 1993 Amendment

    Amendment by Pub. L. 103-208 effective as if included in the Higher 
Education Amendments of 1992, Pub. L. 102-325, except as otherwise 
provided, see section 5(a) of Pub. L. 103-208, set out as a note under 
section 1051 of this title.


                    Effective Date of 1987 Amendment

    Amendment by Pub. L. 100-50 effective as if enacted as part of the 
Higher Education Amendments of 1986, Pub. L. 99-498, see section 27 of 
Pub. L. 100-50, set out as a note under section 1001 of this title.


                             Effective Date

    Section effective Oct. 17, 1986, except as otherwise provided, see 
section 2 of Pub. L. 99-498, set out as a note under section 1001 of 
this title.
    Subsec. (e) of this section applicable to student assistance awarded 
for periods of enrollment beginning on or after July 1, 1987, see 
section 407(b) of Pub. L. 99-498, set out as a note under section 1091 
of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 1018, 1018b, 1070a-33, 1082, 
1087e, 1087ss of this title.
