College Aid Made EZ Act - Amends the Higher Education Act of 1965 (HEA) to require the Secretary of Education (Secretary) to make the Free Application for Federal Student Aid (FAFSA): (1) consumer-friendly, with 50% fewer data elements within five years of this Act's enactment; (2) available in both paper and (downloadable) electronic formats; (3) flexible enough to permit applicants to enter data years before enrolling and selectively update information; and (4) include data elements relevant to state student aid determinations.
Directs the Secretary to develop a simplified paper EZ FAFSA for applicants having no expected family contributions and simplified electronic FAFSAs for applicants to whom a simplified needs test applies.
Directs the Secretary to conduct a demonstration program assessing the feasibility and benefits of allowing dependent students to apply for aid in their junior year of high school.
Reduces the types of income and benefits which are considered untaxed and thereby included in student need analyses.
Excludes untaxed distributions from qualified education benefits as income or assets in computing expected family contributions in student aid calculations. Treats a qualified education benefit as: (1) the parent's asset when considering the family contribution for a dependent student; and (2) the student's asset when considering such contribution for independent students. Excludes from need analyses any untaxed distributions from state prepaid tuition plans or Coverdell education savings accounts.
Urges the Secretary and the Secretary of the Treasury to develop a process allowing the Department of Education, with the applicant's permission, to complete the FAFSA by drawing income information directly from the Internal Revenue Service (IRS). Allows the Secretary to use the previous tax year's income information to facilitate this end.