Student Financial Aid Simplification Act - Amends title IV (Student Assistance) of the Higher Education Act of 1965 (HEA) to determine students' need and eligibility for title IV assistance, unless they qualify for the simplified needs test or expect no family contribution, by using tax return information regarding those students or their parents that this Act authorizes the Secretary of Education to obtain from the Internal Revenue Service (IRS). Requires those students to submit to the Secretary certain supplementary information not available from the IRS.
Requires the Secretary to provide institutions of higher education and states with that tax return information, without charge, for the purposes of processing loan applications and determining need and eligibility for institutional and state financial aid.
Amends the Internal Revenue Code to authorize the Secretary of the Treasury to disclose tax return information to the Department of Education regarding taxpayers or their dependents whose need and eligibility for assistance under title IV of the HEA is based in whole or part on their income or their parents' income.