; or (II) would have been eligible for such a grant of deferred action if the applicable memorandum described in subclause (I) had been fully in effect since the date on which it was issued. (2) Hardship exception The Secretary shall issue regulations that direct when the Department shall waive the age requirement of paragraph (1)(B)(i) for an individual to qualify as a Dreamer student under such paragraph, if the individual demonstrates compelling circumstances, such as economic hardship (as defined in section 435(o)). . 104. Restoring the total semesters of Federal Pell Grant eligibility Section 401(d)(5)(A) of the Higher Education Act of 1965, as added by section 703 of the FAFSA Simplification Act ( Public Law 116–260 ), is amended by striking 12 each place the term appears and inserting 18 . 105. Reducing financial aid penalties from satisfactory academic progress determinations Section 484(c) of the Higher Education Act of 1965 ( 20 U.S.C. 1091(c) ) is amended to read as follows: (c) Satisfactory progress (1) Definitions In this subsection: (A) Appeal The term appeal means a process by which a student who is not meeting the institution’s satisfactory academic progress standards petitions the institution for reconsideration of the student’s eligibility for assistance under this title. (B) Financial aid probation The term financial aid probation means a status assigned by an institution to a student who fails to make satisfactory academic progress and who has appealed and has had eligibility for aid reinstated. (C) Financial aid warning The term financial aid warning means a status assigned to a student who fails to make satisfactory academic progress at the end of the semester or equivalent period in which the student first fails to make such progress. (D) Payment period The term payment period means the applicable payment period described in section 668.4 of title 34, Code of Federal Regulations, or any successor regulation. (2) Satisfactory academic progress policy An institution shall establish a