This bill amends the Higher Education Act of 1965, prohibiting institutions of higher education that participate in Federal student assistance programs from giving preferential treatment in their admissions process. Specifically, it targets applicants whose relationships are with either donors to the institution or alumni of the institution, aiming to eliminate practices like "legacy admissions." The legislation seeks to foster a more equitable and merit-based college admissions system by ensuring that an applicant's connection to a donor or alumnus does not provide an unfair advantage. This amendment is slated to become effective on the first day of the second award year after the bill's enactment.