Part F—Need Analysis
Editorial Notes
Codification
Part F of title IV of the Higher Education Act of 1965,
Prior Provisions
A prior part F, consisting of part G of title IV of
§1087kk. Amount of need
Except as otherwise provided therein, the amount of need of any student for financial assistance under this subchapter (except subparts 1 1 or 2 of part A of this subchapter) is equal to—
(1) the cost of attendance of such student, minus
(2) the expected family contribution for such student, minus
(3) estimated financial assistance not received under this subchapter (as defined in
(
Amendment of Section
§1087kk. Amount of need
Except as otherwise provided therein, for award year 2024–2025 and each subsequent award year, the amount of need of any student for financial assistance under this subchapter (except subpart 1 or 2 of part A) is equal to—
(1) the cost of attendance of such student, minus
(2) the student aid index (as defined in
(3) other financial assistance not received under this subchapter (as defined in
See 2020 and 2022 Amendment notes below.
Editorial Notes
Amendments
2022—
2020—
"(1) the cost of attendance of such student, minus
"(2) the expected family contribution for such student, minus
"(3) estimated financial assistance not received under this subchapter (as defined in
1998—
1992—
Statutory Notes and Related Subsidiaries
Effective Date of 2020 Amendment
Amendment by
Effective Date of 1998 Amendment
"(a)
"(b)
Effective Date of 1992 Amendment
Effective Date
"(1) Except as provided in paragraphs (2) through (4)—
"(A) part F of title IV of the Act [this part] shall apply with respect to determinations of need under such title for academic years beginning with academic year 1988–1989 and succeeding academic years; and
"(B) for any preceding academic year, determinations of need shall be made in accordance with regulations prescribed by the Secretary of Education in accordance with the Student Financial Assistance Technical Amendments Act of 1982 [
"(2) With respect to an application filed after the date of enactment of this Act [Oct. 17, 1986] for a loan under part B of such title [part B of this subchapter] for any academic year preceding academic year 1988–1989, any determination of expected family contribution shall be made using the system of financial need analysis approved by the Secretary of Education for use under subpart 2 of part A and parts C and E of such title [subpart 2 of part A of this subchapter and parts C and E of this subchapter].
"(3) For purposes of sections 413D(d)(2)(B) [now 413D(c)(2)(B)], 442(d)(2)(B) and 462(d)(2)(B) [
"(4) Section 479B of the Act [
[References to subpart 2 of part A of title IV of
Special Study of Simplification of Need Analysis and Application for Title IV Aid
"(a)
"(b)
"(1) whether the methodology used to calculate the expected family contribution can be simplified without significant adverse effects on program intent, costs, integrity, delivery, and distribution of awards;
"(2) whether the number of data elements, and, accordingly, the number and complexity of questions asked of students and families, used to calculate the expected family contribution can be reduced without such adverse effects;
"(3) whether the procedures for determining such data elements, including determining and updating offsets and allowances, is the most efficient, effective, and fair means to determine a family's available income and assets;
"(4) whether the methodology used to calculate the expected family contribution, specifically the consideration of income earned by a dependent student and its effect on Pell grant eligibility, is an effective and fair means to determine a family's available income and a student's need;
"(5) whether the nature and timing of the application required in section 483 (a)(1) of the Higher Education Act of 1965 (
"(6) whether it is feasible to allow students to complete only those limited sections of the financial aid application that apply to their specific circumstances and the State in which they reside;
"(7) whether a widely disseminated printed form, or the use of an Internet or other electronic means, can be developed to notify individuals of an estimation of their approximate eligibility for grant, work-study, and loan assistance upon completion and verification of the simplified application form;
"(8) whether information provided on other Federal forms (such as the form applying for supplemental security income under title XVI of the Social Security Act [
"(9) whether any proposed changes to data elements collected, in addition to those used to calculate expected family contribution, or any proposed changes to the form's design or the process of applying for aid, may have adverse effects on program costs, integrity, delivery, or distribution of awards, as well as, application development or application processing.
"(c)
"(d)
"(1)
"(2)
"(3)
"(4)
"(e)
"(1)
"(2)
"(f)
"(g)
1 So in original. Probably should be "subpart".
§1087ll. Cost of attendance
For the purpose of this subchapter, the term "cost of attendance" means—
(1) tuition and fees normally assessed a student carrying the same academic workload as determined by the institution, and including costs for rental or purchase of any equipment, materials, or supplies required of all students in the same course of study;
(2) an allowance for books, supplies, transportation, and miscellaneous personal expenses, including a reasonable allowance for the documented rental or purchase of a personal computer, for a student attending the institution on at least a half-time basis, as determined by the institution;
(3) an allowance (as determined by the institution) for room and board costs incurred by the student which—
(A) shall be an allowance determined by the institution for a student without dependents residing at home with parents;
(B) for students without dependents residing in institutionally owned or operated housing, shall be a standard allowance determined by the institution based on the amount normally assessed most of its residents for room and board;
(C) for students who live in housing located on a military base or for which a basic allowance is provided under
(D) for all other students shall be an allowance based on the expenses reasonably incurred by such students for room and board;
(4) for less than half-time students (as determined by the institution), tuition and fees and an allowance for only—
(A) books, supplies, and transportation (as determined by the institution);
(B) dependent care expenses (determined in accordance with paragraph (8)); and
(C) room and board costs (determined in accordance with paragraph (3)), except that a student may receive an allowance for such costs under this subparagraph for not more than 3 semesters or the equivalent, of which not more than 2 semesters or the equivalent may be consecutive;
(5) for a student engaged in a program of study by correspondence, only tuition and fees and, if required, books and supplies, travel, and room and board costs incurred specifically in fulfilling a required period of residential training;
(6) for incarcerated students only tuition and fees and, if required, books and supplies;
(7) for a student enrolled in an academic program in a program of study abroad approved for credit by the student's home institution, reasonable costs associated with such study (as determined by the institution at which such student is enrolled);
(8) for a student with one or more dependents, an allowance based on the estimated actual expenses incurred for such dependent care, based on the number and age of such dependents, except that—
(A) such allowance shall not exceed the reasonable cost in the community in which such student resides for the kind of care provided; and
(B) the period for which dependent care is required includes, but is not limited to, class-time, study-time, field work, internships, and commuting time;
(9) for a student with a disability, an allowance (as determined by the institution) for those expenses related to the student's disability, including special services, personal assistance, transportation, equipment, and supplies that are reasonably incurred and not provided for by other assisting agencies;
(10) for a student receiving all or part of the student's instruction by means of telecommunications technology, no distinction shall be made with respect to the mode of instruction in determining costs;
(11) for a student engaged in a work experience under a cooperative education program, an allowance for reasonable costs associated with such employment (as determined by the institution);
(12) for a student who receives a loan under this or any other Federal law, or, at the option of the institution, a conventional student loan incurred by the student to cover a student's cost of attendance at the institution, an allowance for the actual cost of any loan fee, origination fee, or insurance premium charged to such student or such parent on such loan, or the average cost of any such fee or premium charged by the Secretary, lender, or guaranty agency making or insuring such loan, as the case may be; and
(13) at the option of the institution, for a student in a program requiring professional licensure or certification, the one-time cost of obtaining the first professional credentials (as determined by the institution).
(
Amendment of Section
§1087ll. Cost of attendance
(a) In general
For the purpose of this subchapter, the term "cost of attendance" means—
(1) tuition and fees normally assessed a student carrying the same academic workload as determined by the institution;
(2) an allowance for books, course materials, supplies, and equipment, which shall include all such costs required of all such students in the same course of study, including a reasonable allowance for the documented rental or upfront purchase of a personal computer, as determined by the institution;
(3) an allowance for transportation, which may include transportation between campus, residences, and place of work, as determined by the institution;
(4) an allowance for miscellaneous personal expenses, for a student attending the institution on at least a half-time basis, as determined by the institution;
(5) an allowance for living expenses, including food and housing costs, to be incurred by the student attending the institution on at least a half-time basis, as determined by the institution, which shall include—
(A) for a student electing institutionally owned or operated food services, such as board or meal plans, a standard allowance for such services that provides the equivalent of three meals each day;
(B) for a student not electing institutionally owned or operated food services, such as board or meal plans, a standard allowance for purchasing food off campus that provides the equivalent of three meals each day;
(C) for a student without dependents residing in institutionally owned or operated housing, a standard allowance determined by the institution based on the average or median amount assessed to such residents for housing charges, whichever is greater;
(D) for a student with dependents residing in institutionally owned or operated housing, a standard allowance determined by the institution based on the average or median amount assessed to such residents for housing charges, whichever is greater;
(E) for a student living off campus, and not in institutionally owned or operated housing, a standard allowance for rent or other housing costs;
(F) for a dependent student residing at home with parents, a standard allowance that shall not be zero determined by the institution;
(G) for a student living in housing located on a military base or for which a basic allowance is provided under
(H) for all other students, an allowance based on the expenses reasonably incurred by such students for housing and food;
(6) for a student engaged in a program of study by correspondence, only tuition and fees and, if required, books and supplies, travel, and housing and food costs incurred specifically in fulfilling a required period of residential training;
(7) for a confined or incarcerated student, only tuition, fees, books, course materials, supplies, equipment, and the cost of obtaining a license, certification, or a first professional credential in accordance with paragraph (14);
(8) for a student enrolled in an academic program in a program of study abroad approved for credit by the student's home institution, reasonable costs associated with such study (as determined by the institution at which such student is enrolled);
(9) for a student with one or more dependents, an allowance based on the estimated actual expenses incurred for such dependent care, based on the number and age of such dependents, except that—
(A) such allowance shall not exceed the reasonable cost in the community in which such student resides for the kind of care provided; and
(B) the period for which dependent care is required includes, but is not limited to, class-time, study-time, field work, internships, and commuting time;
(10) for a student with a disability, an allowance (as determined by the institution) for those expenses related to the student's disability, including special services, personal assistance, transportation, equipment, and supplies that are reasonably incurred and not provided for by other assisting agencies;
(11) for a student receiving all or part of the student's instruction by means of telecommunications technology, no distinction shall be made with respect to the mode of instruction in determining costs;
(12) for a student engaged in a work experience under a cooperative education program, an allowance for reasonable costs associated with such employment (as determined by the institution);
(13) for a student who receives a Federal student loan made under this subchapter or any other Federal law, to cover a student's cost of attendance at the institution, an allowance for the actual cost of any loan fee, origination fee, or insurance premium charged to such student or the parent of such student on such loan, or the average cost of any such fee or premium, as applicable; and
(14) for a student in a program requiring professional licensure, certification, or a first professional credential, the cost of obtaining the license, certification, or a first professional credential.
(b) Special rule for living expenses for less-than-half-time students
For students attending an institution of higher education less than half-time, an institution of higher education may include an allowance for living expenses, including food and housing costs in accordance with subsection (a)(4) for up to three semesters, or the equivalent, with no more than two semesters being consecutive.
(c) Disclosure of cost of attendance elements
Each institution shall make publicly available on the institution's website a list of all the elements of cost of attendance described in paragraphs (1) through (14) of subsection (a), and shall disclose such elements on any portion of the website describing tuition and fees of the institution.
See 2020 and 2022 Amendment notes below.
Editorial Notes
Amendments
2022—Subsec. (a)(13).
2020—
2008—Par. (3)(C), (D).
2006—Par. (4).
Par. (13).
1998—Par. (2).
Par. (3)(A).
Par. (3)(C).
Par. (10).
Par. (11).
1993—Par. (12).
1992—
Statutory Notes and Related Subsidiaries
Effective Date of 2022 Amendment
Amendment by
Effective Date of 2020 Amendment
Amendment by
Effective Date of 2008 Amendment
Effective Date of 2006 Amendment
Amendment by
Effective Date of 1998 Amendment
Amendment by
Effective Date of 1993 Amendment
Amendment by
Effective Date of 1992 Amendment
Amendment by
§1087mm. Family contribution
(a) In general
For the purpose of this subchapter, other than subpart 2 of part A, and except as provided in subsection (b), the term "family contribution" with respect to any student means the amount which the student and the student's family may be reasonably expected to contribute toward the student's postsecondary education for the academic year for which the determination is made, as determined in accordance with this part.
(b) Special rule
(1) In general
Notwithstanding any other provision of this subchapter, the family contribution of each student described in paragraph (2) shall be deemed to be zero for the academic year for which the determination is made.
(2) Applicability
Paragraph (1) shall apply to any dependent or independent student with respect to determinations of need for academic year 2009–2010 (in the case of a student who meets the requirement of subparagraph (B)(i)), or academic year 2018–2019 (in the case of a student who meets the requirement of subparagraph (B)(ii)), and succeeding academic years—
(A) who is eligible to receive a Federal Pell Grant for the academic year for which the determination is made;
(B) whose parent or guardian was—
(i) a member of the Armed Forces of the United States and died as a result of performing military service in Iraq or Afghanistan after September 11, 2001; or
(ii) actively serving as a public safety officer and died in the line of duty while performing as a public safety officer; and
(C) who, at the time of the parent or guardian's death, was—
(i) less than 24 years of age; or
(ii) enrolled at an institution of higher education on a part-time or full-time basis.
(3) Information
(A) Armed Forces
Notwithstanding any other provision of law, the Secretary of Veterans Affairs and the Secretary of Defense, as appropriate, shall provide the Secretary of Education with information necessary to determine which students meet the requirements of subparagraphs (A), (B)(i), and (C) of paragraph (2).
(B) Public safety officers
Notwithstanding any other provision of law, unless the Secretary establishes an alternate method to adjust the expected family contribution, for each student who meets the requirements of subparagraphs (A), (B)(ii), and (C) of paragraph (2), a financial aid administrator shall—
(i) verify with the student that the student is eligible for the adjustment;
(ii) adjust the expected family contribution in accordance with this subsection; and
(iii) notify the Secretary of the adjustment and the student's eligibility for the adjustment.
(4) Treatment of Pell amount
Notwithstanding section 1212 of the Omnibus Crime Control and Safe Streets Act of 1968 (
(5) Definition of public safety officer
For purposes of this subsection, the term "public safety officer" means—
(A) a public safety officer, as defined in section 1204 of title I of the Omnibus Crime Control and Safe Streets Act of 1968 (
(B) a fire police officer, defined as an individual who—
(i) is serving in accordance with State or local law as an officially recognized or designated member of a legally organized public safety agency;
(ii) is not a law enforcement officer, a firefighter, a chaplain, or a member of a rescue squad or ambulance crew; and
(iii) provides scene security or directs traffic—
(I) in response to any fire drill, fire call, or other fire, rescue, or police emergency; or
(II) at a planned special event.
(
Amendment of Section
§1087mm. Special rules for student aid index
(a) In general
For the purpose of this chapter, the term "student aid index" means, with respect to a student, an index that reflects an evaluation of a student's approximate financial resources to contribute toward the student's postsecondary education for the academic year, as determined in accordance with this part.
(b) Special rule for students eligible for the total maximum Pell Grant
The Secretary shall consider an applicant to automatically have a student aid index equal to zero if the applicant is eligible for the total maximum Federal Pell Grant under
(c) Special rule for nonfilers
Notwithstanding subsection (b), for an applicant (or, as applicable, an applicant and spouse, or an applicant's parents) who is not required to file a Federal tax return for the second preceding tax year, the Secretary shall for the purposes of this subchapter consider the student aid index as equal to − $1,500 for the applicant.
See 2020 Amendment note below.
Editorial Notes
References in Text
The Omnibus Crime Control and Safe Streets Act of 1968 and such Act, referred to in subsec. (b)(4), (5)(A), is
Amendments
2020—
2018—Subsec. (b)(2).
Subsec. (b)(2)(B).
Subsec. (b)(3).
Subsec. (b)(4), (5).
2009—
1998—
1992—
Statutory Notes and Related Subsidiaries
Effective Date of 2020 Amendment
Amendment by
Effective Date of 2009 Amendment
"(1) paragraph (1) of subsection (a) [amending this section] shall take effect on July 1, 2009; and
"(2) paragraph (4) of such subsection [amending
Effective Date of 1998 Amendment
Amendment by
Effective Date of 1992 Amendment
Amendment by
1 See References in Text note below.
§1087nn. Determination of expected family contribution; data elements
(a) General rule for determination of expected family contribution
The expected family contribution—
(1) for a dependent student shall be determined in accordance with
(2) for a single independent student or a married independent student without dependents (other than a spouse) shall be determined in accordance with
(3) for an independent student with dependents other than a spouse shall be determined in accordance with
(b) Data elements
The following data elements are considered in determining the expected family contribution:
(1) the available income of (A) the student and the student's spouse, or (B) the student and the student's parents, in the case of a dependent student;
(2) the number of dependents in the family of the student;
(3) the number of dependents in the family of the student, excluding the student's parents, who are enrolled or accepted for enrollment, on at least a half-time basis, in a degree, certificate, or other program leading to a recognized educational credential at an institution of higher education that is an eligible institution in accordance with the provisions of
(4) the net assets of (A) the student and the student's spouse, and (B) the student and the student's parents, in the case of a dependent student;
(5) the marital status of the student;
(6) the age of the older parent, in the case of a dependent student, and the student; and
(7) the additional expenses incurred (A) in the case of a dependent student, when both parents of the student are employed or when the family is headed by a single parent who is employed, or (B) in the case of an independent student, when the student is married and the student's spouse is employed, or when the employed student qualifies as a surviving spouse or as a head of a household under
(
Amendment of Section
§1087nn. Determination of student aid index
The student aid index—
(1) for a dependent student shall be determined in accordance with
(2) for a single independent student or a married independent student without dependents (other than a spouse) shall be determined in accordance with
(3) for an independent student with dependents other than a spouse shall be determined in accordance with
See 2020 Amendment note below.
Editorial Notes
Amendments
2020—
1998—Subsec. (b)(3).
1992—
1988—Par. (8).
Statutory Notes and Related Subsidiaries
Effective Date of 2020 Amendment
Amendment by
Effective Date of 1998 Amendment
Amendment by
Effective Date of 1992 Amendment
Amendment by
§1087oo. Family contribution for dependent students
(a) Computation of expected family contribution
For each dependent student, the expected family contribution is equal to the sum of—
(1) the parents' contribution from adjusted available income (determined in accordance with subsection (b));
(2) the student contribution from available income (determined in accordance with subsection (g)); and
(3) the student contribution from assets (determined in accordance with subsection (h)).
(b) Parents' contribution from adjusted available income
The parents' contribution from adjusted available income is equal to the amount determined by—
(1) computing adjusted available income by adding—
(A) the parents' available income (determined in accordance with subsection (c)); and
(B) the parents' contribution from assets (determined in accordance with subsection (d));
(2) assessing such adjusted available income in accordance with the assessment schedule set forth in subsection (e); and
(3) dividing the assessment resulting under paragraph (2) by the number of the family members, excluding the student's parents, who are enrolled or accepted for enrollment, on at least a half-time basis, in a degree, certificate, or other program leading to a recognized educational credential at an institution of higher education that is an eligible institution in accordance with the provisions of
except that the amount determined under this subsection shall not be less than zero.
(c) Parents' available income
(1) In general
The parents' available income is determined by deducting from total income (as defined in
(A) Federal income taxes;
(B) an allowance for State and other taxes, determined in accordance with paragraph (2);
(C) an allowance for social security taxes, determined in accordance with paragraph (3);
(D) an income protection allowance, determined in accordance with paragraph (4);
(E) an employment expense allowance, determined in accordance with paragraph (5); and
(F) the amount of any tax credit taken by the parents under
(2) Allowance for State and other taxes
The allowance for State and other taxes is equal to an amount determined by multiplying total income (as defined in
| If parents' State or territory of residence is— | And parents' total income is— | |
|---|---|---|
| less than $15,000 or | $15,000 or more | |
| (1)then the percentage is— | ||
| Alaska, Puerto Rico, Wyoming | 3 | 2 |
| American Samoa, Guam, Louisiana, Nevada, Texas, Trust Territory, Virgin Islands | 4 | 3 |
| Florida, South Dakota, Tennessee, New Mexico | 5 | 4 |
| North Dakota, Washington | 6 | 5 |
| Alabama, Arizona, Arkansas, Indiana, Mississippi, Missouri, Montana, New Hampshire, Oklahoma, West Virginia | 7 | 6 |
| Colorado, Connecticut, Georgia, Illinois, Kansas, Kentucky | 8 | 7 |
| California, Delaware, Idaho, Iowa, Nebraska, North Carolina, Ohio, Pennsylvania, South Carolina, Utah, Vermont, Virginia, Canada, Mexico | 9 | 8 |
| Maine, New Jersey | 10 | 9 |
| District of Columbia, Hawaii, Maryland, Massachusetts, Oregon, Rhode Island | 11 | 10 |
| Michigan, Minnesota | 12 | 11 |
| Wisconsin | 13 | 12 |
| New York | 14 | 13 |
| Other | 9 | 8 |
(3) Allowance for social security taxes
The allowance for social security taxes is equal to the amount earned by each parent multiplied by the social security withholding rate appropriate to the tax year of the earnings, up to the maximum statutory social security tax withholding amount for that same tax year.
(4) Income protection allowance
The income protection allowance is determined by the following table (or a successor table prescribed by the Secretary under
| Family Size | Number in College | |||||
|---|---|---|---|---|---|---|
| (including student) | 1 | 2 | 3 | 4 | 5 | For each additional subtract: |
| 2 | $10,520 | $8,720 | $1,790 | |||
| 3 | 13,100 | 11,310 | $9,510 | |||
| 4 | 16,180 | 14,380 | 12,590 | $10,790 | ||
| 5 | 19,090 | 17,290 | 15,500 | 13,700 | $11,910 | |
| 6 | 22,330 | 20,530 | 18,740 | 16,940 | 15,150 | |
| For each additional add: | 2,520 | 2,520 | 2,520 | 2,520 | 2,520 | |
(5) Employment expense allowance
The employment expense allowance is determined as follows (or using a successor provision prescribed by the Secretary under
(A) If both parents were employed in the year for which their income is reported and both have their incomes reported in determining the expected family contribution, such allowance is equal to the lesser of $2,500 or 35 percent of the earned income of the parent with the lesser earned income.
(B) If a parent qualifies as a surviving spouse or as a head of household as defined in
(d) Parents' contribution from assets
(1) In general
The parents' contribution from assets is equal to—
(A) the parental net worth (determined in accordance with paragraph (2)); minus
(B) the education savings and asset protection allowance (determined in accordance with paragraph (3)); multiplied by
(C) the asset conversion rate (determined in accordance with paragraph (4)), except that the result shall not be less than zero.
(2) Parental net worth
The parental net worth is calculated by adding—
(A) the current balance of checking and savings accounts and cash on hand;
(B) the net value of investments and real estate, excluding the net value of the principal place of residence; and
(C) the adjusted net worth of a business or farm, computed on the basis of the net worth of such business or farm (hereafter in this subsection referred to as "NW"), determined in accordance with the following table (or a successor table prescribed by the Secretary under
| If the net worth of a business or farm is— | Then the adjusted net worth is: |
|---|---|
| Less than $1 | $0 |
| $1–$75,000 | 40 percent of NW |
| $75,001–$225,000 | $30,000 plus 50 percent of NW over $75,000 |
| $225,001–$375,000 | $105,000 plus 60 percent of NW over $225,000 |
| $375,001 or more | $195,000 plus 100 percent of NW over $375,000 |
(3) Education savings and asset protection allowance
The education savings and asset protection allowance is calculated according to the following table (or a successor table prescribed by the Secretary under
| If the age of the oldest parent is— | And there are | |
|---|---|---|
| two parents | one parent | |
| (1)then the allowance is— | ||
| 25 or less | $ 0 | $0 |
| 26 | 2,200 | 1,600 |
| 27 | 4,300 | 3,200 |
| 28 | 6,500 | 4,700 |
| 29 | 8,600 | 6,300 |
| 30 | 10,800 | 7,900 |
| 31 | 13,000 | 9,500 |
| 32 | 15,100 | 11,100 |
| 33 | 17,300 | 12,600 |
| 34 | 19,400 | 14,200 |
| 35 | 21,600 | 15,800 |
| 36 | 23,800 | 17,400 |
| 37 | 25,900 | 19,000 |
| 38 | 28,100 | 20,500 |
| 39 | 30,200 | 22,100 |
| 40 | 32,400 | 23,700 |
| 41 | 33,300 | 24,100 |
| 42 | 34,100 | 24,700 |
| 43 | 35,000 | 25,200 |
| 44 | 35,700 | 25,800 |
| 45 | 36,600 | 26,300 |
| 46 | 37,600 | 26,900 |
| 47 | 38,800 | 27,600 |
| 48 | 39,800 | 28,200 |
| 49 | 40,800 | 28,800 |
| 50 | 41,800 | 29,500 |
| 51 | 43,200 | 30,200 |
| 52 | 44,300 | 31,100 |
| 53 | 45,700 | 31,800 |
| 54 | 47,100 | 32,600 |
| 55 | 48,300 | 33,400 |
| 56 | 49,800 | 34,400 |
| 57 | 51,300 | 35,200 |
| 58 | 52,900 | 36,200 |
| 59 | 54,800 | 37,200 |
| 60 | 56,500 | 38,100 |
| 61 | 58,500 | 39,200 |
| 62 | 60,300 | 40,300 |
| 63 | 62,400 | 41,500 |
| 64 | 64,600 | 42,800 |
| 65 or more | 66,800 | 44,000 |
(4) Asset conversion rate
The asset conversion rate is 12 percent.
(e) Assessment schedule
The adjusted available income (as determined under subsection (b)(1) and hereafter in this subsection referred to as "AAI") is assessed according to the following table (or a successor table prescribed by the Secretary under
| If AAI is— | Then the assessment is— |
|---|---|
| Less than −$3,409 | −$750 |
| −$3,409 to $9,400 | 22% of AAI |
| $9,401 to $11,800 | $2,068 + 25% of AAI over $9,400 |
| $11,801 to $14,200 | $2,668 + 29% of AAI over $11,800 |
| $14,201 to $16,600 | $3,364 + 34% of AAI over $14,200 |
| $16,601 to $19,000 | $4,180 + 40% of AAI over $16,600 |
| $19,001 or more | $5,140 + 47% of AAI over $19,000 |
(f) Computations in case of separation, divorce, remarriage, or death
(1) Divorced or separated parents
Parental income and assets for a student whose parents are divorced or separated is determined under the following procedures:
(A) Include only the income and assets of the parent with whom the student resided for the greater portion of the 12-month period preceding the date of the application.
(B) If the preceding criterion does not apply, include only the income and assets of the parent who provided the greater portion of the student's support for the 12-month period preceding the date of application.
(C) If neither of the preceding criteria apply, include only the income and assets of the parent who provided the greater support during the most recent calendar year for which parental support was provided.
(2) Death of a parent
Parental income and assets in the case of the death of any parent is determined as follows:
(A) If either of the parents has died, the student shall include only the income and assets of the surviving parent.
(B) If both parents have died, the student shall not report any parental income or assets.
(3) Remarried parents
If a parent whose income and assets are taken into account under paragraph (1) of this subsection, or if a parent who is a widow or widower and whose income is taken into account under paragraph (2) of this subsection, has remarried, the income of that parent's spouse shall be included in determining the parent's adjusted available income only if—
(A) the student's parent and the stepparent are married as of the date of application for the award year concerned; and
(B) the student is not an independent student.
(g) Student contribution from available income
(1) In general
The student contribution from available income is equal to—
(A) the student's total income (determined in accordance with
(B) the adjustment to student income (determined in accordance with paragraph (2)); multiplied by
(C) the assessment rate as determined in paragraph (5);
except that the amount determined under this subsection shall not be less than zero.
(2) Adjustment to student income
The adjustment to student income is equal to the sum of—
(A) Federal income taxes of the student;
(B) an allowance for State and other income taxes (determined in accordance with paragraph (3));
(C) an allowance for social security taxes determined in accordance with paragraph (4);
(D) an income protection allowance of the following amount (or a successor amount prescribed by the Secretary under
(i) for academic year 2009–2010, $3,750;
(ii) for academic year 2010–2011, $4,500;
(iii) for academic year 2011–2012, $5,250; and
(iv) for academic year 2012–2013, $6,000;
(E) the amount of any tax credit taken by the student under
(F) an allowance for parents' negative available income, determined in accordance with paragraph (6).
(3) Allowance for State and other income taxes
The allowance for State and other income taxes is equal to an amount determined by multiplying total income (as defined in
| If the students' State or territory of residence is— | The percentage is— |
|---|---|
| Alaska, American Samoa, Florida, Guam, Nevada, South Dakota, Tennessee, Texas, Trust Territory, Virgin Islands, Washington, Wyoming | 0 |
| Connecticut, Louisiana, Puerto Rico | 1 |
| Arizona, New Hampshire, New Mexico, North Dakota | 2 |
| Alabama, Colorado, Illinois, Indiana, Kansas, Mississippi, Missouri, Montana, Nebraska, New Jersey, Oklahoma | 3 |
| Arkansas, Georgia, Iowa, Kentucky, Maine, Pennsylvania, Utah, Vermont, Virginia, West Virginia, Canada, Mexico | 4 |
| California, Idaho, Massachusetts, North Carolina, Ohio, Rhode Island, South Carolina | 5 |
| Hawaii, Maryland, Michigan, Wisconsin | 6 |
| Delaware, District of Columbia, Minnesota, Oregon | 7 |
| New York | 8 |
| Other | 4 |
(4) Allowance for social security taxes
The allowance for social security taxes is equal to the amount earned by the student multiplied by the social security withholding rate appropriate to the tax year of the earnings, up to the maximum statutory social security tax withholding amount for that same tax year.
(5) Assessment of available income
The student's available income (determined in accordance with paragraph (1) of this subsection) is assessed at 50 percent.
(6) Allowance for parents' negative available income
The allowance for parents' negative available income is the amount, if any, by which the sum of the amounts deducted under subparagraphs (A) through (F) of subsection (c)(1) exceeds the sum of the parents' total income (as defined in
(h) Student contribution from assets
The student contribution from assets is determined by calculating the net assets of the student and multiplying such amount by 20 percent, except that the result shall not be less than zero.
(i) Adjustments to parents' contribution for enrollment periods other than 9 months for purposes other than subpart 2 of part A of this subchapter
For periods of enrollment other than 9 months, the parents' contribution from adjusted available income (as determined under subsection (b)) is determined as follows for purposes other than subpart 2 of part A of this subchapter:
(1) For periods of enrollment less than 9 months, the parents' contribution from adjusted available income is divided by 9 and the result multiplied by the number of months enrolled.
(2) For periods of enrollment greater than 9 months—
(A) the parents' adjusted available income (determined in accordance with subsection (b)(1)) is increased by the difference between the income protection allowance (determined in accordance with subsection (c)(4)) for a family of four and a family of five, each with one child in college;
(B) the resulting revised parents' adjusted available income is assessed according to subsection (e) and adjusted according to subsection (b)(3) to determine a revised parents' contribution from adjusted available income;
(C) the original parents' contribution from adjusted available income is subtracted from the revised parents' contribution from adjusted available income, and the result is divided by 12 to determine the monthly adjustment amount; and
(D) the original parents' contribution from adjusted available income is increased by the product of the monthly adjustment amount multiplied by the number of months greater than 9 for which the student will be enrolled.
(j) Adjustments to student's contribution for enrollment periods of less than nine months
For periods of enrollment of less than 9 months, the student's contribution from adjusted available income (as determined under subsection (g)) is determined, for purposes other than subpart 2 of part A, by dividing the amount determined under such subsection by 9, and multiplying the result by the number of months in the period of enrollment.
(
Amendment of Section
§1087oo. Student aid index for dependent students
(a) Computation of student aid index
(1) In general
Except as provided in paragraph (2), for each dependent student, the student aid index is equal to the sum of—
(A) the assessment of the parents' adjusted available income (determined in accordance with subsection (b));
(B) the assessment of the student's available income (determined in accordance with subsection (g)); and
(C) the student's available assets (determined in accordance with subsection (h)).
(2) Exception
If the sum determined under paragraph (1) with respect to a dependent student is less than − $1,500, the student aid index for the dependent student shall be − $1,500.
(b) Assessment of parents' adjusted available income
The assessment of parents' adjusted available income is equal to the amount determined by—
(1) computing adjusted available income by adding—
(A) the parents' available income (determined in accordance with subsection (c)); and
(B) the parents' available assets (determined in accordance with subsection (d));
(2) assessing such adjusted available income in accordance with the assessment schedule set forth in subsection (e); and
(3) considering such assessment resulting under paragraph (2) as the amount determined under this subsection.
(c) Parents' available income
(1) In general
The parents' available income is determined by subtracting from total income (as defined in
(A) Federal income taxes;
(B) an allowance for payroll taxes, determined in accordance with paragraph (2);
(C) an income protection allowance, determined in accordance with paragraph (3); and
(D) an employment expense allowance, determined in accordance with paragraph (4).
(2) Allowance for payroll taxes
The allowance for payroll taxes is equal to the sum of—
(A) the total amount earned by the parents, multiplied by the rate of tax under
(B) the amount earned by the parents that does not exceed such contribution and benefit base (twice such contribution and benefit base, in the case of a joint return) for the year of the earnings, multiplied by the rate of tax applicable to such earnings under
(3) Income protection allowance
The income protection allowance shall equal the amount determined in the following table, as adjusted by the Secretary pursuant to
| Family Size (including student) | Amount |
|---|---|
| 2 | $23,330 |
| 3 | $29,040 |
| 4 | $35,870 |
| 5 | $42,320 |
| 6 | $49,500 |
| For each additional add | $5,590. |
(4) Employment expense allowance
The employment expense allowance is equal to the lesser of $4,000 or 35 percent of the single parent's earned income or married parents' combined earned income (as adjusted by the Secretary pursuant to
(d) Parents' available assets
(1) In general
(A) Determination
Except as provided in subparagraph (B), the parents' available assets are equal to—
(i) the difference between the parents' assets and the asset protection allowance (determined in accordance with paragraph (2)); multiplied by
(ii) 12 percent.
(B) Not less than zero
The parents' available assets under this subsection shall not be less than zero.
(2) Asset protection allowance
The asset protection allowance is calculated based on the following table (as revised by the Secretary pursuant to
| If the age of the oldest parent is— | And there are | |
|---|---|---|
| two parents | one parent | |
| (1)then the allowance is— | ||
| 25 or less | $ 0 | $0 |
| 26 | $400 | $100 |
| 27 | $700 | $300 |
| 28 | $1,100 | $400 |
| 29 | $1,500 | $600 |
| 30 | $1,800 | $700 |
| 31 | $2,200 | $800 |
| 32 | $2,600 | $1,000 |
| 33 | $2,900 | $1,100 |
| 34 | $3,300 | $1,300 |
| 35 | $3,700 | $1,400 |
| 36 | $4,000 | $1,500 |
| 37 | $4,400 | $1,700 |
| 38 | $4,800 | $1,800 |
| 39 | $5,100 | $2,000 |
| 40 | $5,500 | $2,100 |
| 41 | $5,600 | $2,200 |
| 42 | $5,700 | $2,200 |
| 43 | $5,900 | $2,300 |
| 44 | $6,000 | $2,300 |
| 45 | $6,200 | $2,400 |
| 46 | $6,300 | $2,400 |
| 47 | $6,500 | $2,500 |
| 48 | $6,600 | $2,500 |
| 49 | $6,800 | $2,600 |
| 50 | $7,000 | $2,700 |
| 51 | $7,100 | $2,700 |
| 52 | $7,300 | $2,800 |
| 53 | $7,500 | $2,900 |
| 54 | $7,700 | $2,900 |
| 55 | $7,900 | $3,000 |
| 56 | $8,100 | $3,100 |
| 57 | $8,400 | $3,100 |
| 58 | $8,600 | $3,200 |
| 59 | $8,800 | $3,300 |
| 60 | $9,100 | $3,400 |
| 61 | $9,300 | $3,500 |
| 62 | $9,600 | $3,600 |
| 63 | $9,900 | $3,700 |
| 64 | $10,200 | $3,800 |
| 65 or more | $10,500 | $3,900. |
(e) Assessment schedule
The assessment of the parents' adjusted available income (as determined under subsection (b)(1) and hereafter in this subsection referred to as "AAI") is calculated based on the following table (as revised by the Secretary pursuant to
| If the parents' AAI is— | Then the parents' contribution from AAI is— |
|---|---|
| Less than − $6,820 | − $1,500 |
| − $6,820 to $17,400 | 22% of AAI |
| $17,401 to $21,800 | $3,828 + 25% of AAI over $17,400 |
| $21,801 to $26,200 | $4,928 + 29% of AAI over $21,800 |
| $26,201 to $30,700 | $6,204 + 34% of AAI over $26,200 |
| $30,701 to $35,100 | $7,734 + 40% of AAI over $30,700 |
| $35,101 or more | $9,494 + 47% of AAI over $35,100. |
(f) Consideration of parental income
(1) Parents who live together
Parental income and assets in the case of student whose parents are married and not separated, or who are unmarried but live together, shall include the income and assets of both parents.
(2) Divorced or separated parents
Parental income and assets for a student whose parents are divorced or separated, but not remarried, is determined by including only the income and assets of the parent who provides the greater portion of the student's financial support.
(3) Death of a parent
Parental income and assets in the case of the death of any parent is determined as follows:
(A) If either of the parents has died, the surviving parent shall be considered a single parent, until that parent has remarried.
(B) If both parents have died, the student shall not report any parental income or assets.
(4) Remarried parents
If a parent whose income and assets are taken into account under paragraph (2), or if a parent who is a widow or widower and whose income is taken into account under paragraph (3), has remarried, the income of that parent's spouse shall be included in determining the parent's assessment of adjusted available income if the student's parent and the stepparent are married as of the date of application for the award year concerned.
(5) Single parent who is not divorced or separated
Parental income and assets in the case of a student whose parent is not described in paragraph (1) and is a single parent who is not divorced, separated, or remarried, shall include the income and assets of such single parent.
(g) Student's available income
(1) In general
The student's available income is equal to—
(A) the difference between the student's total income (determined in accordance with
(B) 50 percent.
(2) Adjustment to student income
The adjustment to student income is equal to the sum of—
(A) Federal income taxes;
(B) an allowance for payroll taxes determined in accordance with paragraph (3);
(C) an income protection allowance that is equal to $9,410, as adjusted pursuant to
(D) an allowance for parents' negative available income, determined in accordance with paragraph (4).
(3) Allowance for payroll taxes
The allowance for payroll taxes is equal to the sum of—
(A) the total amount earned by the student, multiplied by the rate of tax under
(B) the amount earned by the student that does not exceed such contribution and benefit base for the year of the earnings, multiplied by the rate of tax applicable to such earnings under
(4) Allowance for parents' negative available income
The allowance for parents' negative available income is the amount, if any, by which the sum of the amounts deducted under subsection (c)(1) exceeds the sum of the parents' total income (as defined in
(h) Student's assets
The student's assets are determined by calculating the assets of the student and multiplying such amount by 20 percent, except that the result shall not be less than zero.
See 2020 Amendment note below.
Editorial Notes
Amendments
2020—
2009—Subsec. (c)(5)(B).
2007—Subsec. (g)(2)(D).
2006—Subsec. (g)(2)(D).
Subsec. (h).
1998—Subsec. (b)(3).
Subsec. (g)(2)(D).
Subsec. (g)(2)(F).
Subsec. (g)(6).
Subsec. (j).
1997—Subsec. (c)(1)(F).
Subsec. (g)(2)(E).
1993—Subsec. (c)(4).
Subsec. (f)(3).
Subsec. (g)(1)(B).
Subsec. (g)(3).
1992—
1987—Subsec. (c)(2), (4).
Subsec. (c)(7).
Subsec. (d)(2)(B).
Subsec. (d)(2)(C).
| If the net worth of a business or farm is— | Then the adjusted net worth is: |
|---|---|
| Less than $1 | $0 |
| $1–$65,000 | 40 percent of NW |
| $65,001–$195,000 | $26,000 plus 50 percent of NW over $65,000 |
| $195,001–$325,000 | $91,000 plus 60 percent of NW over $195,000 |
| $325,001 or more | $169,000 plus 100 percent of NW over $325,000". |
Subsec. (d)(4)(B).
Subsec. (d)(4)(C).
Subsec. (d)(4)(D).
Subsec. (e).
Subsec. (g)(1)(C).
Subsec. (g)(3).
Subsec. (h).
"(1) the current balance of checking and savings accounts and cash on hand; and
"(2) the net value of investments and real estate, including the net value in the principal place of residence except in the case of a dislocated worker (certified in accordance with title III of the Job Training Partnership Act) or a dislocated homemaker (as defined in
Subsec. (i).
Statutory Notes and Related Subsidiaries
Effective Date of 2020 Amendment
Amendment by
Effective Date of 2009 Amendment
Amendment by
Effective Date of 2007 Amendment
Effective Date of 2006 Amendment
Amendment by
Effective Date of 1998 Amendment
Amendment by
Effective Date of 1993 Amendment
Amendment by
Effective Date of 1992 Amendment
Amendment by
Effective Date of 1987 Amendment
Amendment by
§1087pp. Family contribution for independent students without dependents other than a spouse
(a) Computation of expected family contribution
For each independent student without dependents other than a spouse, the expected family contribution is determined by—
(1) adding—
(A) the family's contribution from available income (determined in accordance with subsection (b)); and
(B) the family's contribution from assets (determined in accordance with subsection (c));
(2) dividing the sum resulting under paragraph (1) by the number of students who are enrolled or accepted for enrollment, on at least a half-time basis, in a degree, certificate, or other program leading to a recognized educational credential at an institution of higher education that is an eligible institution in accordance with the provisions of
(3) for periods of enrollment of less than 9 months, for purposes other than subpart 2 of part A—
(A) dividing the quotient resulting under paragraph (2) by 9; and
(B) multiplying the result by the number of months in the period of enrollment;
except that the amount determined under this subsection shall not be less than zero.
(b) Family's contribution from available income
(1) In general
The family's contribution from income is determined by—
(A) deducting from total income (as defined in
(i) Federal income taxes;
(ii) an allowance for State and other taxes, determined in accordance with paragraph (2);
(iii) an allowance for social security taxes, determined in accordance with paragraph (3);
(iv) an income protection allowance of the following amount (or a successor amount prescribed by the Secretary under
(I) for single or separated students, or married students where both are enrolled pursuant to subsection (a)(2)—
(aa) for academic year 2009–2010, $7,000;
(bb) for academic year 2010–2011, $7,780;
(cc) for academic year 2011–2012, $8,550; and
(dd) for academic year 2012–2013, $9,330; and
(II) for married students where 1 is enrolled pursuant to subsection (a)(2)—
(aa) for academic year 2009–2010, $11,220;
(bb) for academic year 2010–2011, $12,460;
(cc) for academic year 2011–2012, $13,710; and
(dd) for academic year 2012–2013, $14,960;
(v) in the case where a spouse is present, an employment expense allowance, as determined in accordance with paragraph (4); and
(vi) the amount of any tax credit taken under
(B) assessing such available income in accordance with paragraph (5).
(2) Allowance for State and other taxes
The allowance for State and other taxes is equal to an amount determined by multiplying total income (as defined in
| If the students' State or territory of residence is— | The percentage is— |
|---|---|
| Alaska, American Samoa, Florida, Guam, Nevada, South Dakota, Tennessee, Texas, Trust Territory, Virgin Islands, Washington, Wyoming | 0 |
| Connecticut, Louisiana, Puerto Rico | 1 |
| Arizona, New Hampshire, New Mexico, North Dakota | 2 |
| Alabama, Colorado, Illinois, Indiana, Kansas, Mississippi, Missouri, Montana, Nebraska, New Jersey, Oklahoma | 3 |
| Arkansas, Georgia, Iowa, Kentucky, Maine, Pennsylvania, Utah, Vermont, Virginia, West Virginia, Canada, Mexico | 4 |
| California, Idaho, Massachusetts, North Carolina, Ohio, Rhode Island, South Carolina | 5 |
| Hawaii, Maryland, Michigan, Wisconsin | 6 |
| Delaware, District of Columbia, Minnesota, Oregon | 7 |
| New York | 8 |
| Other | 4 |
(3) Allowance for social security taxes
The allowance for social security taxes is equal to the amount earned by the student (and spouse, if appropriate), multiplied by the social security withholding rate appropriate to the tax year preceding the award year, up to the maximum statutory social security tax withholding amount for that same tax year.
(4) Employment expenses allowance
The employment expense allowance is determined as follows (or using a successor provision prescribed by the Secretary under
(A) If the student is married and the student's spouse is employed in the year for which income is reported, such allowance is equal to the lesser of $2,500 or 35 percent of the earned income of the student or spouse with the lesser earned income.
(B) If a student is not married, the employment expense allowance is zero.
(5) Assessment of available income
The family's available income (determined in accordance with paragraph (1)(A) of this subsection) is assessed at 50 percent.
(c) Family contribution from assets
(1) In general
The family's contribution from assets is equal to—
(A) the family's net worth (determined in accordance with paragraph (2)); minus
(B) the asset protection allowance (determined in accordance with paragraph (3)); multiplied by
(C) the asset conversion rate (determined in accordance with paragraph (4));
except that the family's contribution from assets shall not be less than zero.
(2) Family's net worth
The family's net worth is calculated by adding—
(A) the current balance of checking and savings accounts and cash on hand;
(B) the net value of investments and real estate, excluding the net value in the principal place of residence; and
(C) the adjusted net worth of a business or farm, computed on the basis of the net worth of such business or farm (hereafter referred to as "NW"), determined in accordance with the following table (or a successor table prescribed by the Secretary under
| If the net worth of a business or farm is— | Then the adjusted net worth is— |
|---|---|
| Less than $1 | $0 |
| $1–$75,000 | 40 percent of NW |
| $75,001–$225,000 | $30,000 plus 50 percent of NW over $75,000 |
| $225,001–$375,000 | $105,000 plus 60 percent of NW over $225,000 |
| $375,001 or more | $195,000 plus 100 percent of NW over $375,000 |
(3) Asset protection allowance
The asset protection allowance is calculated according to the following table (or a successor table prescribed by the Secretary under
| If the age of the student is— | And the student is | |
|---|---|---|
| married | single | |
| (1)then the allowance is— | ||
| 25 or less | $ 0 | $0 |
| 26 | 2,200 | 1,600 |
| 27 | 4,300 | 3,200 |
| 28 | 6,500 | 4,700 |
| 29 | 8,600 | 6,300 |
| 30 | 10,800 | 7,900 |
| 31 | 13,000 | 9,500 |
| 32 | 15,100 | 11,100 |
| 33 | 17,300 | 12,600 |
| 34 | 19,400 | 14,200 |
| 35 | 21,600 | 15,800 |
| 36 | 23,800 | 17,400 |
| 37 | 25,900 | 19,000 |
| 38 | 28,100 | 20,500 |
| 39 | 30,200 | 22,100 |
| 40 | 32,400 | 23,700 |
| 41 | 33,300 | 24,100 |
| 42 | 34,100 | 24,700 |
| 43 | 35,000 | 25,200 |
| 44 | 35,700 | 25,800 |
| 45 | 36,600 | 26,300 |
| 46 | 37,600 | 26,900 |
| 47 | 38,800 | 27,600 |
| 48 | 39,800 | 28,200 |
| 49 | 40,800 | 28,800 |
| 50 | 41,800 | 29,500 |
| 51 | 43,200 | 30,200 |
| 52 | 44,300 | 31,100 |
| 53 | 45,700 | 31,800 |
| 54 | 47,100 | 32,600 |
| 55 | 48,300 | 33,400 |
| 56 | 49,800 | 34,400 |
| 57 | 51,300 | 35,200 |
| 58 | 52,900 | 36,200 |
| 59 | 54,800 | 37,200 |
| 60 | 56,500 | 38,100 |
| 61 | 58,500 | 39,200 |
| 62 | 60,300 | 40,300 |
| 63 | 62,400 | 41,500 |
| 64 | 64,600 | 42,800 |
| 65 or more | 66,800 | 44,000 |
(4) Asset conversion rate
The asset conversion rate is 20 percent.
(d) Computations in case of separation, divorce, or death
In the case of a student who is divorced or separated, or whose spouse has died, the spouse's income and assets shall not be considered in determining the family's contribution from income or assets.
(
Amendment of Section
§1087pp. Student aid index for independent students without dependents other than a spouse
(a) Computation of student aid index
(1) In general
For each independent student without dependents other than a spouse, the student aid index is equal to (except as provided in paragraph (2)) the sum of—
(A) the family's available income (determined in accordance with subsection (b)); and
(B) the family's available assets (determined in accordance with subsection (c)).
(2) Exception
If the sum determined under paragraph (1) with respect to an independent student without dependents other than a spouse is less than − $1,500, the student aid index for the independent student shall be − $1,500.
(b) Family's available income
(1) In general
The family's available income is determined by—
(A) deducting from total income (as defined in
(i) Federal income taxes;
(ii) an allowance for payroll taxes, determined in accordance with paragraph (2);
(iii) an income protection allowance that is equal to—
(I) in the case of a single independent student without dependents, $14,630, as adjusted pursuant to
(II) in the case of a married independent student without dependents, $23,460, as adjusted pursuant to
(iv) in the case of a married independent student, an employment expense allowance, as determined in accordance with paragraph (3); and
(B) multiplying the amount determined under subparagraph (A) by 50 percent.
(2) Allowance for payroll taxes
The allowance for payroll taxes is equal to the sum of—
(A) the total amount earned by the student (and spouse, if appropriate), multiplied by the rate of tax under
(B) the amount earned by the student (and spouse, if appropriate) that does not exceed such contribution and benefit base (twice such contribution and benefit base, in the case of a joint return) for the year of the earnings, multiplied by the rate of tax applicable to such earnings under
(3) Employment expense allowance
The employment expense allowance is equal to the following:
(A) If the student is married, such allowance is equal to the lesser of $4,000 or 35 percent of the couple's combined earned income (as adjusted by the Secretary pursuant to
(B) If the student is not married, the employment expense allowance is zero.
(c) Family's available assets
(1) In general
(A) Determination
Except as provided in subparagraph (B), the family's available assets are equal to—
(i) the difference between the family's assets (as defined in
(ii) 20 percent.
(B) Not less than zero
The family's available assets under this subsection shall not be less than zero.
(2) Asset protection allowance
The asset protection allowance is calculated based on the following table (as revised by the Secretary pursuant to
| If the age of the student is— | And the student is | |
|---|---|---|
| married | single | |
| (1)then the allowance is— | ||
| 25 or less | $ 0 | $0 |
| 26 | $400 | $100 |
| 27 | $700 | $300 |
| 28 | $1,100 | $400 |
| 29 | $1,500 | $600 |
| 30 | $1,800 | $700 |
| 31 | $2,200 | $800 |
| 32 | $2,600 | $1,000 |
| 33 | $2,900 | $1,100 |
| 34 | $3,300 | $1,300 |
| 35 | $3,700 | $1,400 |
| 36 | $4,000 | $1,500 |
| 37 | $4,400 | $1,700 |
| 38 | $4,800 | $1,800 |
| 39 | $5,100 | $2,000 |
| 40 | $5,500 | $2,100 |
| 41 | $5,600 | $2,200 |
| 42 | $5,700 | $2,200 |
| 43 | $5,900 | $2,300 |
| 44 | $6,000 | $2,300 |
| 45 | $6,200 | $2,400 |
| 46 | $6,300 | $2,400 |
| 47 | $6,500 | $2,500 |
| 48 | $6,600 | $2,500 |
| 49 | $6,800 | $2,600 |
| 50 | $7,000 | $2,700 |
| 51 | $7,100 | $2,700 |
| 52 | $7,300 | $2,800 |
| 53 | $7,500 | $2,900 |
| 54 | $7,700 | $2,900 |
| 55 | $7,900 | $3,000 |
| 56 | $8,100 | $3,100 |
| 57 | $8,400 | $3,100 |
| 58 | $8,600 | $3,200 |
| 59 | $8,800 | $3,300 |
| 60 | $9,100 | $3,400 |
| 61 | $9,300 | $3,500 |
| 62 | $9,600 | $3,600 |
| 63 | $9,900 | $3,700 |
| 64 | $10,200 | $3,800 |
| 65 or more | $10,500 | $3,900. |
(d) Computations in case of separation, divorce, or death
In the case of a student who is divorced or separated, or whose spouse has died, the spouse's income and assets shall not be considered in determining the family's available income or assets.
See 2020 Amendment note below.
Editorial Notes
Amendments
2020—
2007—Subsec. (b)(1)(A)(iv).
"(I) $6,050 for single students;
"(II) $6,050 for married students where both are enrolled pursuant to subsection (a)(2) of this section; and
"(III) $9,700 for married students where one is enrolled pursuant to subsection (a)(2) of this section;".
2006—Subsec. (b)(1)(A)(iv).
Subsec. (c)(4).
1998—Subsec. (a)(3).
Subsec. (b)(1)(A)(iv).
Subsec. (b)(1)(A)(iv)(I), (II).
Subsec. (b)(1)(A)(iv)(III).
1997—Subsec. (b)(1)(A)(vi).
1993—Subsec. (d).
1992—
1987—Subsec. (b)(1)(A), (B).
Subsec. (b)(1)(C).
Subsec. (b)(1)(D).
Subsec. (b)(2).
Subsec. (b)(4)(A).
Subsec. (b)(4)(B).
Subsec. (c)(1).
Subsec. (c)(2)(B).
Subsec. (c)(2)(C).
| If the net worth of a business or farm is— | Then the adjusted net worth is— |
|---|---|
| Less than $1 | $0 |
| $1–$65,000 | 40 percent of NW |
| $65,001–$195,000 | $26,000 plus 50 percent of NW over $65,000 |
| $195,001–$325,000 | $91,000 plus 60 percent of NW over $195,000 |
| $325,001 or more | $169,000 plus 100 percent of NW over $325,000". |
Statutory Notes and Related Subsidiaries
Effective Date of 2020 Amendment
Amendment by
Effective Date of 2007 Amendment
Amendment by
Effective Date of 2006 Amendment
Amendment by
Effective Date of 1998 Amendment
Amendment by
Effective Date of 1993 Amendment
Amendment by
Effective Date of 1992 Amendment
Amendment by
Effective Date of 1987 Amendment
Amendment by
§1087qq. Family contribution for independent students with dependents other than a spouse
(a) Computation of expected family contribution
For each independent student with dependents other than a spouse, the expected family contribution is equal to the amount determined by—
(1) computing adjusted available income by adding—
(A) the family's available income (determined in accordance with subsection (b)); and
(B) the family's contribution from assets (determined in accordance with subsection (c));
(2) assessing such adjusted available income in accordance with an assessment schedule set forth in subsection (d);
(3) dividing the assessment resulting under paragraph (2) by the number of family members who are enrolled or accepted for enrollment, on at least a half-time basis, in a degree, certificate, or other program leading to a recognized educational credential at an institution of higher education that is an eligible institution in accordance with the provisions of
(4) for periods of enrollment of less than 9 months, for purposes other than subpart 2 of part A—
(A) dividing the quotient resulting under paragraph (3) by 9; and
(B) multiplying the result by the number of months in the period of enrollment;
except that the amount determined under this subsection shall not be less than zero.
(b) Family's available income
(1) In general
The family's available income is determined by deducting from total income (as defined in
(A) Federal income taxes;
(B) an allowance for State and other taxes, determined in accordance with paragraph (2);
(C) an allowance for social security taxes, determined in accordance with paragraph (3);
(D) an income protection allowance, determined in accordance with paragraph (4);
(E) an employment expense allowance, determined in accordance with paragraph (5); and
(F) the amount of any tax credit taken under
(2) Allowance for State and other taxes
The allowance for State and other taxes is equal to an amount determined by multiplying total income (as defined in
| If student's State or territory of residence is— | And family's total income is— | |
|---|---|---|
| less than $15,000 | $15,000 or more | |
| (1)then the percentage is— | ||
| Alaska, Puerto Rico, Wyoming | 3 | 2 |
| American Samoa, Guam, Louisiana, Nevada, Texas, Trust Territory, Virgin Islands | 4 | 3 |
| Florida, South Dakota, Tennessee, New Mexico | 5 | 4 |
| North Dakota, Washington | 6 | 5 |
| Alabama, Arizona, Arkansas, Indiana, Mississippi, Missouri, Montana, New Hampshire, Oklahoma, West Virginia | 7 | 6 |
| Colorado, Connecticut, Georgia, Illinois, Kansas, Kentucky | 8 | 7 |
| California, Delaware, Idaho, Iowa, Nebraska, North Carolina, Ohio, Pennsylvania, South Carolina, Utah, Vermont, Virginia, Canada, Mexico | 9 | 8 |
| Maine, New Jersey | 10 | 9 |
| District of Columbia, Hawaii, Maryland, Massachusetts, Oregon, Rhode Island | 11 | 10 |
| Michigan, Minnesota | 12 | 11 |
| Wisconsin | 13 | 12 |
| New York | 14 | 13 |
| Other | 9 | 8 |
(3) Allowance for social security taxes
The allowance for social security taxes is equal to the amount estimated to be earned by the student (and spouse, if appropriate) multiplied by the social security withholding rate appropriate to the tax year preceding the award year, up to the maximum statutory social security tax withholding amount for that same tax year.
(4) Income protection allowance
The income protection allowance is determined by the tables described in subparagraphs (A) through (D) (or a successor table prescribed by the Secretary under
(A) Academic year 2009–2010
For academic year 2009–2010, the income protection allowance is determined by the following table:
| Family Size | Number in College | |||||
|---|---|---|---|---|---|---|
| (including student) | 1 | 2 | 3 | 4 | 5 | For each additional subtract: |
| 2 | $17,720 | $14,690 | ||||
| 3 | 22,060 | 19,050 | $16,020 | |||
| 4 | 27,250 | 24,220 | 21,210 | $18,170 | ||
| 5 | 32,150 | 29,120 | 26,100 | 23,070 | $20,060 | |
| 6 | 37,600 | 34,570 | 31,570 | 28,520 | 25,520 | $3,020 |
| For each additional add: | 4,240 | 4,240 | 4,240 | 4,240 | 4,240 | |
(B) Academic year 2010–2011
For academic year 2010–2011, the income protection allowance is determined by the following table:
| Family Size | Number in College | |||||
|---|---|---|---|---|---|---|
| (including student) | 1 | 2 | 3 | 4 | 5 | For each additional subtract: |
| 2 | $19,690 | $16,330 | ||||
| 3 | 24,510 | 21,160 | $17,800 | |||
| 4 | 30,280 | 26,910 | 23,560 | $20,190 | ||
| 5 | 35,730 | 32,350 | 29,000 | 25,640 | $22,290 | |
| 6 | 41,780 | 38,410 | 35,080 | 31,690 | 28,350 | $3,350 |
| For each additional add: | 4,710 | 4,710 | 4,710 | 4,710 | 4,710 | |
(C) Academic year 2011–2012
For academic year 2011–2012, the income protection allowance is determined by the following table:
| Family Size | Number in College | |||||
|---|---|---|---|---|---|---|
| (including student) | 1 | 2 | 3 | 4 | 5 | For each additional subtract: |
| 2 | $21,660 | $17,960 | ||||
| 3 | 26,960 | 23,280 | $19,580 | |||
| 4 | 33,300 | 29,600 | 25,920 | $22,210 | ||
| 5 | 39,300 | 35,590 | 31,900 | 28,200 | $24,520 | |
| 6 | 45,950 | 42,250 | 38,580 | 34,860 | 31,190 | $3,690 |
| For each additional add: | 5,180 | 5,180 | 5,180 | 5,180 | 5,180 | |
(D) Academic year 2012–2013
For academic year 2012–2013, the income protection allowance is determined by the following table:
| Family Size | Number in College | |||||
|---|---|---|---|---|---|---|
| (including student) | 1 | 2 | 3 | 4 | 5 | For each additional subtract: |
| 2 | $23,630 | $19,590 | ||||
| 3 | 29,420 | 25,400 | $21,360 | |||
| 4 | 36,330 | 32,300 | 28,280 | $24,230 | ||
| 5 | 42,870 | 38,820 | 34,800 | 30,770 | $26,750 | |
| 6 | 50,130 | 46,100 | 42,090 | 38,030 | 34,020 | $4,020 |
| For each additional add: | 5,660 | 5,660 | 5,660 | 5,660 | 5,660 | |
(5) Employment expense allowance
The employment expense allowance is determined as follows (or a successor table prescribed by the Secretary under
(A) If the student is married and the student's spouse is employed in the year for which their income is reported, such allowance is equal to the lesser of $2,500 or 35 percent of the earned income of the student or spouse with the lesser earned income.
(B) If a student qualifies as a surviving spouse or as a head of household as defined in
(c) Family's contribution from assets
(1) In general
The family's contribution from assets is equal to—
(A) the family net worth (determined in accordance with paragraph (2)); minus
(B) the asset protection allowance (determined in accordance with paragraph (3)); multiplied by
(C) the asset conversion rate (determined in accordance with paragraph (4)), except that the result shall not be less than zero.
(2) Family net worth
The family net worth is calculated by adding—
(A) the current balance of checking and savings accounts and cash on hand;
(B) the net value of investments and real estate, excluding the net value in the principal place of residence; and
(C) the adjusted net worth of a business or farm, computed on the basis of the net worth of such business or farm (hereafter referred to as "NW"), determined in accordance with the following table (or a successor table prescribed by the Secretary under
| If the net worth of a business or farm is— | Then the adjusted net worth is— |
|---|---|
| Less than $1 | $0 |
| $1–$75,000 | 40 percent of NW |
| $75,001–$225,000 | $30,000 plus 50 percent of NW over $75,000 |
| $225,001–$375,000 | $105,000 plus 60 percent of NW over $225,000 |
| $375,001 or more | $195,000 plus 100 percent of NW over $375,000 |
(3) Asset protection allowance
The asset protection allowance is calculated according to the following table (or a successor table prescribed by the Secretary under
| If the age of the student is— | And the student is | |
|---|---|---|
| married | single | |
| (1)then the allowance is— | ||
| 25 or less | $ 0 | $0 |
| 26 | 2,200 | 1,600 |
| 27 | 4,300 | 3,200 |
| 28 | 6,500 | 4,700 |
| 29 | 8,600 | 6,300 |
| 30 | 10,800 | 7,900 |
| 31 | 13,000 | 9,500 |
| 32 | 15,100 | 11,100 |
| 33 | 17,300 | 12,600 |
| 34 | 19,400 | 14,200 |
| 35 | 21,600 | 15,800 |
| 36 | 23,800 | 17,400 |
| 37 | 25,900 | 19,000 |
| 38 | 28,100 | 20,500 |
| 39 | 30,200 | 22,100 |
| 40 | 32,400 | 23,700 |
| 41 | 33,300 | 24,100 |
| 42 | 34,100 | 24,700 |
| 43 | 35,000 | 25,200 |
| 44 | 35,700 | 25,800 |
| 45 | 36,600 | 26,300 |
| 46 | 37,600 | 26,900 |
| 47 | 38,800 | 27,600 |
| 48 | 39,800 | 28,200 |
| 49 | 40,800 | 28,800 |
| 50 | 41,800 | 29,500 |
| 51 | 43,200 | 30,200 |
| 52 | 44,300 | 31,100 |
| 53 | 45,700 | 31,800 |
| 54 | 47,100 | 32,600 |
| 55 | 48,300 | 33,400 |
| 56 | 49,800 | 34,400 |
| 57 | 51,300 | 35,200 |
| 58 | 52,900 | 36,200 |
| 59 | 54,800 | 37,200 |
| 60 | 56,500 | 38,100 |
| 61 | 58,500 | 39,200 |
| 62 | 60,300 | 40,300 |
| 63 | 62,400 | 41,500 |
| 64 | 64,600 | 42,800 |
| 65 or more | 66,800 | 44,000 |
(4) Asset conversion rate
The asset conversion rate is 7 percent.
(d) Assessment schedule
The adjusted available income (as determined under subsection (a)(1) and hereafter referred to as "AAI") is assessed according to the following table (or a successor table prescribed by the Secretary under
| If AAI is— | Then the assessment is— |
|---|---|
| Less than −$3,409 | −$750 |
| −$3,409 to $9,400 | 22% of AAI |
| $9,401 to $11,800 | $2,068 + 25% of AAI over $9,400 |
| $11,801 to $14,200 | $2,668 + 29% of AAI over $11,800 |
| $14,201 to $16,600 | $3,364 + 34% of AAI over $14,200 |
| $16,601 to $19,000 | $4,180 + 40% of AAI over $16,600 |
| $19,001 or more | $5,140 + 47% of AAI over $19,000 |
(e) Computations in case of separation, divorce, or death
In the case of a student who is divorced or separated, or whose spouse has died, the spouse's income and assets shall not be considered in determining the family's available income or assets.
(
Amendment of Section
§1087qq. Student aid index for independent students with dependents other than a spouse
(a) Computation of student aid index
(1) In general
For each independent student with dependents other than a spouse, the student aid index is equal to the amount determined by—
(A) computing adjusted available income by adding—
(i) the family's available income (determined in accordance with subsection (b)); and
(ii) the family's available assets (determined in accordance with subsection (c));
(B) assessing such adjusted available income in accordance with an assessment schedule set forth in subsection (d); and
(C) considering such assessment resulting under subparagraph (B) as the amount determined under this subsection.
(2) Exception
If the sum determined under paragraph (1) with respect to an independent student with dependents other than a spouse is less than − $1,500, the student aid index for the independent student shall be − $1,500.
(b) Family's available income
(1) In general
The family's available income is determined by deducting from total income (as defined in
(A) Federal income taxes;
(B) an allowance for payroll taxes, determined in accordance with paragraph (2);
(C) an income protection allowance, determined in accordance with paragraph (3); and
(D) an employment expense allowance, determined in accordance with paragraph (4).
(2) Allowance for payroll taxes
The allowance for payroll taxes is equal to the sum of—
(A) the total amount earned by the student (and spouse, if appropriate), multiplied by the rate of tax under
(B) the amount earned by the student (and spouse, if appropriate) that does not exceed such contribution and benefit base (twice such contribution and benefit base, in the case of a joint return) for the year of the earnings, multiplied by the rate of tax applicable to such earnings under
(3) Income protection allowance
The income protection allowance shall equal the amount determined in the following table, as adjusted by the Secretary pursuant to
(A) In the case of a married independent student with dependents:
| Family Size (including student) | Amount |
|---|---|
| 3 | $46,140 |
| 4 | $56,970 |
| 5 | $67,230 |
| 6 | $78,620 |
| For each additional add | $8,880. |
(B) In the case of a single independent student with dependents:
| Family Size (including student) | Amount |
|---|---|
| 2 | $43,920 |
| 3 | $54,690 |
| 4 | $67,520 |
| 5 | $79,680 |
| 6 | $93,180 |
| For each additional add | $10,530. |
(4) Employment expense allowance
The employment expense allowance is equal to the lesser of $4,000 or 35 percent of the student's earned income or the combined earned income of the student and the student's spouse, if applicable (as adjusted by the Secretary pursuant to
(c) Family's available assets
(1) In general
(A) Determination
Except as provided in subparagraph (B), the family's available assets are equal to—
(i) the difference between the family's assets (as defined in 1087vv(f) of this title) and the asset protection allowance (determined in accordance with paragraph (2)); multiplied by
(ii) 7 percent.
(B) Not less than zero
The family's available assets under this subsection shall not be less than zero.
(2) Asset protection allowance
The asset protection allowance is calculated based on the following table (as revised by the Secretary pursuant to
| If the age of the student is— | And the student is | |
|---|---|---|
| married | single | |
| (1)then the allowance is— | ||
| 25 or less | $ 0 | $0 |
| 26 | $400 | $100 |
| 27 | $700 | $300 |
| 28 | $1,100 | $400 |
| 29 | $1,500 | $600 |
| 30 | $1,800 | $700 |
| 31 | $2,200 | $800 |
| 32 | $2,600 | $1,000 |
| 33 | $2,900 | $1,100 |
| 34 | $3,300 | $1,300 |
| 35 | $3,700 | $1,400 |
| 36 | $4,000 | $1,500 |
| 37 | $4,400 | $1,700 |
| 38 | $4,800 | $1,800 |
| 39 | $5,100 | $2,000 |
| 40 | $5,500 | $2,100 |
| 41 | $5,600 | $2,200 |
| 42 | $5,700 | $2,200 |
| 43 | $5,900 | $2,300 |
| 44 | $6,000 | $2,300 |
| 45 | $6,200 | $2,400 |
| 46 | $6,300 | $2,400 |
| 47 | $6,500 | $2,500 |
| 48 | $6,600 | $2,500 |
| 49 | $6,800 | $2,600 |
| 50 | $7,000 | $2,700 |
| 51 | $7,100 | $2,700 |
| 52 | $7,300 | $2,800 |
| 53 | $7,500 | $2,900 |
| 54 | $7,700 | $2,900 |
| 55 | $7,900 | $3,000 |
| 56 | $8,100 | $3,100 |
| 57 | $8,400 | $3,100 |
| 58 | $8,600 | $3,200 |
| 59 | $8,800 | $3,300 |
| 60 | $9,100 | $3,400 |
| 61 | $9,300 | $3,500 |
| 62 | $9,600 | $3,600 |
| 63 | $9,900 | $3,700 |
| 64 | $10,200 | $3,800 |
| 65 or more | $10,500 | $3,900. |
(d) Assessment schedule
The assessment of adjusted available income (as determined under subsection (a)(1) and hereafter in this subsection referred to as "AAI") is calculated based on the following table (as revised by the Secretary pursuant to
| If AAI is— | Then the assessment is— |
|---|---|
| Less than − $6,820 | − $1,500 |
| − $6,820 to $17,400 | 22% of AAI |
| $17,401 to $21,800 | $3,828 + 25% of AAI over $17,400 |
| $21,801 to $26,200 | $4,928 + 29% of AAI over $21,800 |
| $26,201 to $30,700 | $6,204 + 34% of AAI over $26,200 |
| $30,701 to $35,100 | $7,734 + 40% of AAI over $30,700 |
| $35,101 or more | $9,494 + 47% of AAI over $35,100. |
(e) Computations in case of separation, divorce, or death
In the case of a student who is divorced or separated, or whose spouse has died, the spouse's income and assets shall not be considered in determining the family's available income or assets.
See 2020 Amendment note below.
Editorial Notes
Amendments
2020—
2009—Subsec. (b)(5)(B).
2007—Subsec. (b)(4).
2006—Subsec. (c)(4).
1998—Subsec. (a)(4).
1997—Subsec. (b)(1)(F).
1993—Subsec. (b)(4).
Subsec. (e).
1992—
1987—Subsec. (a)(1)(C).
Subsec. (b)(2).
Subsec. (b)(5)(A).
Subsec. (b)(7).
Subsec. (c)(2)(B).
Subsec. (c)(2)(C).
| If the net worth of a business or farm is— | Then the adjusted net worth is: |
|---|---|
| Less than $1 | $0 |
| $1–$65,000 | 40 percent of NW |
| $65,001–$195,000 | $26,000 plus 50 percent of NW over $65,000 |
| $195,001–$325,000 | $91,000 plus 60 percent of NW over $195,000 |
| $325,001 or more | $169,000 plus 100 percent of NW over $325,000". |
Subsec. (c)(4)(B).
Subsec. (c)(4)(C).
Subsec. (d).
Statutory Notes and Related Subsidiaries
Effective Date of 2020 Amendment
Amendment by
Effective Date of 2009 Amendment
Amendment by
Effective Date of 2007 Amendment
Amendment by
Effective Date of 2006 Amendment
Amendment by
Effective Date of 1998 Amendment
Amendment by
Effective Date of 1993 Amendment
Amendment by
Effective Date of 1992 Amendment
Amendment by
Effective Date of 1987 Amendment
Amendment by
§1087rr. Regulations; updated tables
(a) Authority to prescribe regulations restricted
(1) Notwithstanding any other provision of law, the Secretary shall not have the authority to prescribe regulations to carry out this part except—
(A) to prescribe updated tables in accordance with subsections (b) through (h) of this section; or
(B) to propose modifications in the need analysis methodology required by this part.
(2) Any regulation proposed by the Secretary that (A) updates tables in a manner that does not comply with subsections (b) through (h) of this section, or (B) that proposes modifications under paragraph (1)(B) of this subsection, shall not be effective unless approved by joint resolution of the Congress by May 1 following the date such regulations are published in the Federal Register in accordance with
(b) Income protection allowance
(1) Revised tables
(A) In general
For each academic year after academic year 2008–2009, the Secretary shall publish in the Federal Register a revised table of income protection allowances for the purpose of
(B) Table for independent students
(i) Academic years 2009–2010 through 2012–2013
For each of the academic years 2009–2010 through 2012–2013, the Secretary shall not develop a revised table of income protection allowances under
(ii) Other academic years
For each academic year after academic year 2012–2013, the Secretary shall develop the revised table of income protection allowances by increasing each of the dollar amounts contained in the table of income protection allowances under
(C) Table for parents
For each academic year after academic year 2008–2009, the Secretary shall develop the revised table of income protection allowances under
(2) Revised amounts
For each academic year after academic year 2007–2008, the Secretary shall publish in the Federal Register revised income protection allowances for the purpose of
(c) Adjusted net worth of a farm or business
For each award year after award year 1993–1994, the Secretary shall publish in the Federal Register a revised table of adjusted net worth of a farm or business for purposes of
(1) by increasing each dollar amount that refers to net worth of a farm or business by a percentage equal to the estimated percentage increase in the Consumer Price Index (as determined by the Secretary) between December 1992 and the December next preceding the beginning of such award year, and rounding the result to the nearest $5,000; and
(2) by adjusting the dollar amounts "$30,000", "$105,000", and "$195,000" to reflect the changes made pursuant to paragraph (1).
(d) Education savings and asset protection allowance
For each award year after award year 1993–1994, the Secretary shall publish in the Federal Register a revised table of allowances for the purpose of
(1) inflation shall be presumed to be 6 percent per year;
(2) the rate of return of an annuity shall be presumed to be 8 percent; and
(3) the sales commission on an annuity shall be presumed to be 6 percent.
(e) Assessment schedules and rates
For each award year after award year 1993–1994, the Secretary shall publish in the Federal Register a revised table of assessments from adjusted available income for the purpose of
(1) by increasing each dollar amount that refers to adjusted available income by a percentage equal to the estimated percentage increase in the Consumer Price Index (as determined by the Secretary) between December 1992 and the December next preceding the beginning of such academic year, rounded to the nearest $100; and
(2) by adjusting the other dollar amounts to reflect the changes made pursuant to paragraph (1).
(f) "Consumer Price Index" defined
As used in this section, the term "Consumer Price Index" means the Consumer Price Index for All Urban Consumers published by the Department of Labor. Each annual update of tables to reflect changes in the Consumer Price Index shall be corrected for misestimation of actual changes in such Index in previous years.
(g) State and other tax allowance
For each award year after award year 1993–1994, the Secretary shall publish in the Federal Register a revised table of State and other tax allowances for the purpose of
(h) Employment expense allowance
For each award year after award year 1993–1994, the Secretary shall publish in the Federal Register a revised table of employment expense allowances for the purpose of
(
Amendment of Section
§1087rr. Regulations; updated tables
(a) Authority to prescribe regulations restricted
Notwithstanding any other provision of law, the Secretary shall not have the authority to prescribe regulations to carry out this part except—
(1) to prescribe updated tables in accordance with subsections (b) through (g); and
(2) with respect to the definition of cost of attendance under
(b) Income protection allowance adjustments
For award year 2023–2024 and each subsequent award year, the Secretary shall publish in the Federal Register revised income protection allowances for the purposes of subsections (c)(3) and (g)(2)(C) of
(c) Adjusted net worth of a farm or business
(1) Table
The table of the net worth of a farm or business for purposes of making determinations of assets as defined under
| If the net worth of a farm or business is— | Then the adjusted net worth is— |
|---|---|
| Less than $1 | $0 |
| $1 to $140,000 | 40% of net worth of farm/business |
| $140,001 to $415,000 | $56,000 + 50% of net worth over $140,000 |
| $415,001 to $695,000 | $193,500 + 60% of net worth over $415,000 |
| $695,001 or more | $361,500 + 100% of net worth over $695,000. |
(2) Revised tables
For award year 2023–2024 and each subsequent award year, the Secretary shall publish in the Federal Register a revised table of the adjusted net worth of a farm or business for purposes of
(A) by increasing each dollar amount that refers to net worth of a farm or business by a percentage equal to the percentage increase in the Consumer Price Index between April 2020 and the April in the year prior to the beginning of such award year, and rounding the result to the nearest $5,000; and
(B) by adjusting the dollar amounts in the column referring to the adjusted net worth to reflect the changes made pursuant to subparagraph (A).
(d) Asset protection allowance
For award year 2023–2024 and each subsequent award year, the Secretary shall publish in the Federal Register a revised table of allowances for the purpose of
(1) the tables of allowances specified in
(2) inflation shall be presumed to be 6 percent per year;
(3) the rate of return of an annuity shall be presumed to be 8 percent; and
(4) the sales commission on an annuity shall be presumed to be 6 percent.
(e) Assessment schedules and rates
For award year 2023–2024 and each subsequent award year, the Secretary shall publish in the Federal Register a revised table of assessments from adjusted available income for the purpose of
(1) by increasing each dollar amount that refers to adjusted available income by a percentage equal to the percentage increase in the Consumer Price Index between April 2020 and the April in the year prior to the beginning of such academic year, rounded to the nearest $100; and
(2) by adjusting the other dollar amounts to reflect the changes made pursuant to paragraph (1).
(f) Consumer price index defined
In this section, the term "Consumer Price Index" means the Consumer Price Index for All Urban Consumers published by the Department of Labor. Each annual update of tables to reflect changes in the Consumer Price Index shall be corrected for misestimation of actual changes in such Index in previous years.
(g) Employment expense allowance
For award year 2023–2024 and each succeeding award year, the Secretary shall publish in the Federal Register a revised table of employment expense allowances for the purpose of
(h) Clarification for award year 2023–2024
For award year 2023–2024, the Secretary shall determine adjusted amounts and prescribe revised tables with respect to the income protection, employment expense, and asset protection allowances and the assessment schedules under
See 2020 Amendment note below.
Editorial Notes
Amendments
2020—
2007—Subsec. (b)(1).
Subsec. (b)(2).
2006—Subsec. (b)(1).
Subsec. (b)(2).
Subsec. (h).
1998—Subsec. (b).
1993—Subsec. (b).
Subsec. (c).
Subsecs. (d), (e), (g).
Subsec. (h).
1992—
1987—Subsec. (c)(2).
Subsec. (d).
Subsec. (f).
Statutory Notes and Related Subsidiaries
Effective Date of 2020 Amendment
Amendment by
Effective Date of 2007 Amendment
Amendment by
Effective Date of 2006 Amendment
Amendment by
Effective Date of 1998 Amendment
Amendment by
Effective Date of 1993 Amendment
Amendment by
Effective Date of 1992 Amendment
Amendment by
Effective Date of 1987 Amendment
Amendment by
§1087ss. Simplified needs test
(a) Simplified application section
(1) In general
The Secretary shall develop and use an easily identifiable simplified application section as part of the common financial reporting form prescribed under
(2) Reduced data requirements
The simplified application form shall—
(A) in the case of a family meeting the requirements of subsection (b)(1), permit such family to submit only the data elements required under subsection (b)(2) for the purposes of establishing eligibility for student financial aid under this part; and
(B) in the case of a family meeting the requirements of subsection (c), permit such family to be treated as having an expected family contribution equal to zero for purposes of establishing such eligibility and to submit only the data elements required to make a determination under subsection (c).
(b) Simplified needs test
(1) Eligibility
An applicant is eligible to file a simplified form containing the elements required by paragraph (2) if—
(A) in the case of an applicant who is a dependent student—
(i) the student's parents—
(I) file, or are eligible to file, a form described in paragraph (3);
(II) certify that the parents are not required to file a Federal income tax return;
(III) include at least one parent who is a dislocated worker; or
(IV) received, or the student received, benefits at some time during the previous 24-month period under a means-tested Federal benefit program as defined under subsection (d); and
(ii) the total adjusted gross income of the parents (excluding any income of the dependent student) is less than $50,000; or
(B) in the case of an applicant who is an independent student—
(i) the student (and the student's spouse, if any)—
(I) files, or is eligible to file, a form described in paragraph (3);
(II) certifies that the student (and the student's spouse, if any) is not required to file a Federal income tax return;
(III) is a dislocated worker or has a spouse who is a dislocated worker; or
(IV) received benefits at some time during the previous 24-month period under a means-tested Federal benefit program as defined under subsection (d); and
(ii) the adjusted gross income of the student (and the student's spouse, if any) is less than $50,000.
(2) Simplified test elements
The six elements to be used for the simplified needs analysis are—
(A) adjusted gross income,
(B) Federal taxes paid,
(C) untaxed income and benefits,
(D) the number of family members,
(E) the number of family members in postsecondary education, and
(F) an allowance (A) for State and other taxes, as defined in
(3) Qualifying forms
In the case of an independent student, the student, or in the case of a dependent student, the family, files a form described in this subsection, or subsection (c), as the case may be, if the student or family, as appropriate, files—
(A) a form 1040A or 1040EZ (including any prepared or electronic version of such form) required pursuant to title 26;
(B) a form 1040 (including any prepared or electronic version of such form) required pursuant to title 26, except that such form shall be considered a qualifying form only if the student or family files such form in order to take a tax credit under
(C) an income tax return (including any prepared or electronic version of such return) required pursuant to the tax code of the Commonwealth of Puerto Rico, Guam, American Samoa, the Virgin Islands, the Republic of the Marshall Islands, the Federated States of Micronesia, or Palau.
(c) Zero expected family contribution
The Secretary shall consider an applicant to have an expected family contribution equal to zero if—
(1) in the case of a dependent student—
(A) the student's parents—
(i) file, or are eligible to file, a form described in subsection (b)(3);
(ii) certify that the parents are not required to file a Federal income tax return;
(iii) include at least one parent who is a dislocated worker; or
(iv) received, or the student received, benefits at some time during the previous 24-month period under a means-tested Federal benefit program as defined under subsection (d); and
(B) the sum of the adjusted gross income of the parents is less than or equal to $23,000; or
(2) in the case of an independent student with dependents other than a spouse—
(A) the student (and the student's spouse, if any)—
(i) files, or is eligible to file, a form described in subsection (b)(3);
(ii) certifies that the student (and the student's spouse, if any) is not required to file a Federal income tax return;
(iii) is a dislocated worker or has a spouse who is a dislocated worker; or
(iv) received benefits at some time during the previous 24-month period under a means-tested Federal benefit program as defined under subsection (d); and
(B) the sum of the adjusted gross income of the student and spouse (if appropriate) is less than or equal to $23,000.
An individual is not required to qualify or file for the earned income credit in order to be eligible under this subsection. The Secretary shall annually adjust the income level necessary to qualify an applicant for the zero expected family contribution. The income level shall be adjusted according to increases in the Consumer Price Index, as defined in
(d) Definitions
In this section:
(1) Dislocated worker
The term "dislocated worker" has the meaning given the term in
(2) Means-tested Federal benefit program
The term "means-tested Federal benefit program" means a mandatory spending program of the Federal Government, other than a program under this subchapter, in which eligibility for the program's benefits, or the amount of such benefits, are determined on the basis of income or resources of the individual or family seeking the benefit, and may include such programs as—
(A) the supplemental security income program under title XVI of the Social Security Act (
(B) the supplemental nutrition assistance program under the Food and Nutrition Act of 2008 (
(C) the free and reduced price school lunch program established under the Richard B. Russell National School Lunch Act (
(D) the program of block grants for States for temporary assistance for needy families established under part A of title IV of the Social Security Act (
(E) the special supplemental nutrition program for women, infants, and children established by
(F) other programs identified by the Secretary.
(
Amendment of Section
§1087ss. Eligible applicants exempt from asset reporting
(a) In general
Notwithstanding any other provision of law, this section shall be effective for each individual seeking to apply for Federal financial aid under this subchapter, as part of the simplified application for Federal student financial aid under
(b) Applicants exempt from asset reporting
(1) In general
Except as provided in paragraph (3), in carrying out
(2) Eligible applicants
In this subsection, the term "eligible applicant" means an applicant who meets at least one of the following criteria:
(A) Is an applicant who qualifies for an automatic zero student aid index or negative student aid index under subsection (b) or (c) of
(B) Is an applicant who is a dependent student and the student's parents have a total adjusted gross income (excluding any income of the dependent student) that is less than $60,000 and do not file a Schedule A, B, D, E, F, or H (or equivalent successor schedules) with the Federal income tax return for the second preceding tax year, and—
(i) do not file a Schedule C (or the equivalent successor schedule) with the Federal income tax return for the second preceding tax year; or
(ii) file a Schedule C (or the equivalent successor schedule) with net business income of not more than a $10,000 loss or gain with the Federal income tax return for the second preceding tax year.
(C) Is an applicant who is an independent student and the student (including the student's spouse, if any) has a total adjusted gross income that is less than $60,000 and does not file a Schedule A, B, D, E, F, or H (or equivalent successor schedules), with the Federal income tax return for the second preceding tax year, and—
(i) does not file a Schedule C (or the equivalent successor schedule) with the Federal income tax return for the second preceding tax year; or
(ii) files a Schedule C (or the equivalent successor schedule) with net business income of not more than a $10,000 loss or gain with the Federal income tax return for the second preceding tax year.
(D) Is an applicant who, at any time during the previous 24-month period, received a benefit under a means-tested Federal benefit program (or whose parent or spouse received such a benefit, as applicable).
(3) Special rule
An eligible applicant shall not be exempt from asset reporting under this section if the applicant is a dependent student and the students' parents do not—
(A) reside in the United States or a United States territory; or
(B) file taxes in the United States or a United States territory, except if such nonfiling is due to not being required to file a Federal tax return for the applicable tax year due to a low income.
(4) Definitions
In this section:
(A) Schedule A
The term "Schedule A" means a form or information by a taxpayer to report itemized deductions.
(B) Schedule B
The term "Schedule B" means a form or information filed by a taxpayer to report interest and ordinary dividend income.
(C) Schedule C
The term "Schedule C" means a form or information filed by a taxpayer to report income or loss from a business operated or a profession practiced as a sole proprietor.
(D) Schedule D
The term "Schedule D" means a form or information filed by a taxpayer to report sales, exchanges or some involuntary conversions of capital assets, certain capital gain distributions, and nonbusiness bad debts.
(E) Schedule E
The term "Schedule E" means a form or information filed by a taxpayer to report income from rental properties, royalties, partnerships, S corporations, estates, trusts, and residual interests in real estate mortgage investment conduits.
(F) Schedule F
The term "Schedule F" means a form or information filed by a taxpayer to report farm income and expenses.
(G) Schedule H
The term "Schedule H" means a form or information filed by a taxpayer to report household employment taxes.
(H) Means-tested Federal benefit program
The term "means-tested Federal benefit program" means any of the following:
(i) The supplemental security income program under title XVI of the Social Security Act (
(ii) The supplemental nutrition assistance program under the Food and Nutrition Act of 2008 (
(iii) The program of block grants for States for temporary assistance for needy families established under part A of title IV of the Social Security Act (
(iv) The special supplemental nutrition program for women, infants, and children established by
(v) The Medicaid program under title XIX of the Social Security Act (
(vi) Federal housing assistance programs, including tenant-based assistance under
(vii) Other means-tested programs determined by the Secretary to be approximately consistent with the income eligibility requirements of the means-tested programs under clauses (i) through (vi).
See 2020 and 2022 Amendment notes below.
Editorial Notes
References in Text
The Social Security Act, referred to in subsec. (d)(2)(A), (D), is act Aug. 14, 1935, ch. 531,
The Food and Nutrition Act of 2008, referred to in subsec. (d)(2)(B), is
The Richard B. Russell National School Lunch Act, referred to in subsec. (d)(2)(C), is act June 4, 1946, ch. 281,
Codification
Amendments
2022—Subsec. (a).
2020—
2014—Subsec. (d)(1).
2011—Subsec. (c)(1)(B).
Subsec. (c)(2)(B).
2009—Subsec. (b)(1)(A)(i)(III).
Subsec. (b)(1)(B)(i)(III).
Subsec. (c)(1)(A)(iii).
Subsec. (c)(2)(A)(iii).
2008—Subsec. (d)(2).
2007—Subsec. (b)(1)(A)(i), (B)(i).
Subsec. (c).
Subsec. (c)(1)(A).
Subsec. (c)(1)(B).
Subsec. (c)(2)(A).
Subsec. (c)(2)(B).
Subsec. (d).
2006—Subsec. (b)(1)(A)(i).
Subsec. (b)(1)(B)(i).
Subsec. (b)(3).
Subsec. (c)(1)(A).
Subsec. (c)(1)(B).
Subsec. (c)(2)(A).
Subsec. (c)(2)(B).
Subsec. (d).
1998—Subsec. (b)(3).
Subsec. (b)(3)(A).
Subsec. (b)(3)(B), (C).
Subsec. (c)(1)(A).
Subsec. (c)(2)(A).
1993—Subsec. (a)(1).
Subsec. (b)(1)(B)(i).
Subsec. (b)(2).
Subsec. (b)(3)(A).
Subsec. (b)(3)(B).
Subsec. (c)(1)(A).
Subsec. (c)(1)(B).
Subsec. (c)(2)(A).
Subsec. (c)(2)(B).
1992—
1991—Subsec. (a).
1988—Subsec. (a).
1987—Subsec. (a).
Subsec. (b)(2).
Subsec. (b)(6).
Subsec. (c).
Statutory Notes and Related Subsidiaries
Effective Date of 2020 Amendment
Amendment by
Effective Date of 2014 Amendment
Amendment by
Effective Date of 2011 Amendment
Amendment by
Effective Date of 2009 Amendment
Amendment by
Effective Date of 2008 Amendment
Amendment of this section and repeal of
Amendment by section 4002(b)(1)(A), (B), (2)(N) of
Effective Date of 2007 Amendment
Effective Date of 2006 Amendment
Amendment by
Effective Date of 1998 Amendment
Amendment by
Effective Date of 1993 Amendment
Amendment by
Effective Date of 1992 Amendment
Amendment by
Effective Date of 1987 Amendment
Amendment by
Evaluation of Simplified Needs Test
"(1)
"(2)
§1087tt. Discretion of student financial aid administrators
(a) In general
Nothing in this part shall be interpreted as limiting the authority of the financial aid administrator, on the basis of adequate documentation, to make adjustments on a case-by-case basis to the cost of attendance or the values of the data items required to calculate the expected student or parent contribution (or both) to allow for treatment of an individual eligible applicant with special circumstances. However, this authority shall not be construed to permit aid administrators to deviate from the contributions expected in the absence of special circumstances. Special circumstances may include tuition expenses at an elementary or secondary school, medical, dental, or nursing home expenses not covered by insurance, unusually high child care or dependent care costs, recent unemployment of a family member or an independent student, a student or family member who is a dislocated worker (as defined in
(b) Adjustments to assets taken into account
A student financial aid administrator shall be considered to be making a necessary adjustment in accordance with subsection (a) if—
(1) the administrator makes adjustments excluding from family income any proceeds of a sale of farm or business assets of a family if such sale results from a voluntary or involuntary foreclosure, forfeiture, or bankruptcy or an involuntary liquidation; or
(2) the administrator makes adjustments in the award level of a student with a disability so as to take into consideration the additional costs such student incurs as a result of such student's disability.
(c) Refusal or adjustment of loan certifications
On a case-by-case basis, an eligible institution may refuse to certify a statement that permits a student to receive a loan under part B or D, or may certify a loan amount or make a loan that is less than the student's determination of need (as determined under this part), if the reason for the action is documented and provided in written form to the student. No eligible institution shall discriminate against any borrower or applicant in obtaining a loan on the basis of race, national origin, religion, sex, marital status, age, or disability status.
(
Amendment of Section
§1087tt. Discretion of student financial aid administrators
(a) In general
(1) Authority of financial aid administrators
A financial aid administrator shall have the authority to, on the basis of adequate documentation, make adjustments to any or all of the following on a case-by-case basis:
(A) For an applicant with special circumstances under subsection (b) to—
(i) the cost of attendance;
(ii) the values of the data used to calculate the student aid index; or
(iii) the values of the data used to calculate the Federal Pell Grant award.
(B) For an applicant with unusual circumstances under subsection (c), to the dependency status of such applicant.
(2) Limitations on authority
(A) Use of authority
No institution of higher education or financial aid administrator shall maintain a policy of denying all requests for adjustments under this section.
(B) No additional fee
No student or parent shall be charged a fee for a documented interview of the student by the financial aid administrator or for the review of a student or parent's request for adjustments under this section including the review of any supplementary information or documentation of a student or parent's special circumstances or a student's unusual circumstances.
(C) Rule of construction
The authority to make adjustments under paragraph (1)(A) shall not be construed to permit financial aid administrators to deviate from the cost of attendance, the values of data used to calculate the student aid index or the values of data used to calculate the Federal Pell Grant award (or both) for awarding aid under this subchapter in the absence of special circumstances.
(3) Adequate documentation
Adequate documentation for adjustments under this section must substantiate the special circumstances or unusual circumstances of an individual student, and may include, to the extent relevant and appropriate—
(A) a documented interview between the student and the financial aid administrator;
(B) for the purposes of determining that a student qualifies for an adjustment under paragraph (1)(B)—
(i) submission of a court order or official Federal or State documentation that the student or the student's parents or legal guardians are incarcerated in any Federal or State penal institution;
(ii) a documented phone call or a written statement, which confirms the specific unusual circumstances with—
(I) a child welfare agency authorized by a State or county;
(II) a Tribal welfare authority or agency;
(III) an independent living case worker, such as a case worker who supports current and former foster youth with the transition to adulthood; or
(IV) a public or private agency, facility, or program servicing the victims of abuse, neglect, assault, or violence, which may include domestic violence;
(iii) a documented phone call or a written statement from an attorney, a guardian ad litem, or a court-appointed special advocate, or a person serving in a similar capacity which confirms the specific unusual circumstances and documents the person's relationship to the student;
(iv) a documented phone call or written statement from a representative under division 1 or 2 of subpart 2 of part A, which confirms the specific unusual circumstances and documents the representative's relationship to the student;
(v) documents, such as utility bills or health insurance documentation, that demonstrate a separation from parents or legal guardians; and
(vi) in the absence of documentation described in this subparagraph, other documentation the financial aid administrator determines is adequate to confirm the unusual circumstances, pursuant to
(C) supplementary information, as necessary, about the financial status or personal circumstances of eligible applicants as it relates to the special circumstances or unusual circumstances based on which the applicant is requesting an adjustment.
(4) Special rule
In making adjustments under paragraph (1), a financial aid administrator may offer a dependent student financial assistance under a Federal Direct Unsubsidized Stafford Loan without requiring the parents of such student to provide their parent information on the Free Application for Federal Student Aid if the student does not qualify for, or does not choose to use, the unusual circumstance option described in
(5) Public disclosure
Each institution of higher education shall make publicly available information that students applying for aid under this subchapter have the opportunity to pursue adjustments under this section.
(b) Adjustments for students with special circumstances
(1) Special circumstances for adjustments related to Pell Grants
Special circumstances for adjustments to calculate a Federal Pell Grant award—
(A) shall be conditions that differentiate an individual student from a group of students rather than conditions that exist across a group of students; and
(B) may include—
(i) recent unemployment of a family member or student;
(ii) a student or family member who is a dislocated worker (as defined in
(iii) a change in housing status that results in an individual being a homeless youth;
(iv) an unusual amount of claimed losses against income on the Federal tax return that substantially lower adjusted gross income, such as business, investment, or real estate losses;
(v) receipt of foreign income of permanent residents or United States citizens exempt from Federal taxation, or the foreign income for which a permanent resident or citizen received a foreign tax credit;
(vi) in the case of an applicant who does not qualify for the exemption from asset reporting under
(vii) other changes or adjustments in the income, assets, or size of a family, or a student's dependency status.
(2) Special circumstances for adjustments related to cost of attendance and student aid index
Special circumstances for adjustments to the cost of attendance or the values of the data used to calculate the student aid index—
(A) shall be conditions that differentiate an individual student from a group of students rather than conditions that exist across a group of students, except as provided in
(B) may include—
(i) tuition expenses at an elementary school or secondary school;
(ii) medical, dental, or nursing home expenses not covered by insurance;
(iii) child care or dependent care costs not covered by the dependent care cost allowance calculated in accordance with
(iv) recent unemployment of a family member or student;
(v) a student or family member who is a dislocated worker (as defined in
(vi) the existence of additional family members enrolled in a degree, certificate, or other program leading to a recognized educational credential at an institution with a program participation agreement under
(vii) a change in housing status that results in an individual being a homeless youth;
(viii) a condition of severe disability of the student, or in the case of a dependent student, the dependent student's parent or guardian, or in the case of an independent student, the independent student's dependent or spouse;
(ix) unusual amount of claimed losses against income on the Federal tax return that substantially lower adjusted gross income, such as business, investment, or real estate losses; or
(x) other changes or adjustments in the income, assets, or size of a family, or a student's dependency status.
(c) Unusual circumstances adjustments
(1) In general
Unusual circumstances for adjustments to the dependency status of an applicant shall be—
(A) conditions that differentiate an individual student from a group of students; and
(B) based on unusual circumstances, pursuant to
(2) Provisional independent students
(A) Requirements for the Secretary
The Secretary shall—
(i) enable each student who, based on an unusual circumstance described in
(ii) upon completion of the Free Application for Federal Student Aid provide an estimate of the student's Federal Pell Grant award, and other information as specified in
(iii) specify, on the Free Application for Federal Student Aid, the consequences under
(B) Requirements for financial aid administrators
With respect to a student accepted for admission who completes the Free Application for Federal Student Aid as an independent student under subparagraph (A), a financial aid administrator shall—
(i) notify the student of the institutional process, requirements, and timeline for an adjustment under this section and
(ii) provide the student a final determination of the student's dependency status and Federal financial aid award as soon as practicable after all requested documentation is provided;
(iii) retain all documents related to the adjustment under this section and
(iv) presume that any student who has obtained an adjustment under this section and
(I) the student informs the institution that circumstances have changed; or
(II) the institution has specific conflicting information about the student's independence.
(C) Eligibility
If a student pursues provisional independent student status and is not determined to be an independent student by a financial aid administrator, such student shall only be eligible for a Federal Direct Unsubsidized Stafford Loan for that award year unless such student subsequently completes the Free Application for Federal Student Aid as a dependent student.
(d) Adjustments to assets or income taken into account
A financial aid administrator shall be considered to be making a necessary adjustment in accordance with this section if—
(1) the administrator makes adjustments excluding from family income or assets any proceeds or losses from a sale of farm or business assets of a family if such sale results from a voluntary or involuntary foreclosure, forfeiture, or bankruptcy or a voluntary or involuntary liquidation; or
(2) the administrator makes adjustments for a condition of disability of a student, or in the case of a dependent student, the dependent student's parent or guardian, or in the case of an independent student, the independent student's dependent or spouse, so as to take into consideration the additional costs incurred as a result of such disability.
(e) Refusal or adjustment of loan certifications
On a case-by-case basis, an eligible institution may refuse to use the authority provided under this section, certify a statement that permits a student to receive a loan under part D, certify a loan amount, or make a loan that is less than the student's determination of need (as determined under this part), if the reason for the action is documented and provided in writing to the student. No eligible institution shall discriminate against any borrower or applicant in obtaining a loan on the basis of race, ethnicity, national origin, religion, sex, marital status, age, or disability status.
(f) Special rule regarding professional judgment during a disaster, emergency, or economic downturn
(1) In general
For the purposes of making a professional judgment under this section, financial aid administrators may, during a qualifying emergency—
(A) determine that the income earned from work for an applicant is zero, if the applicant can provide paper or electronic documentation of receipt of unemployment benefits or confirmation that an application for unemployment benefits was submitted; and
(B) make additional appropriate adjustments to the income earned from work for a student, parent, or spouse, as applicable, based on the totality of the family's situation, including consideration of unemployment benefits.
(2) Documentation
For the purposes of documenting unemployment under paragraph (1), documentation shall be accepted if such documentation is submitted not more than 90 days from the date on which such documentation was issued, except if a financial aid administrator knows that the student, parent, or spouse, as applicable, has already obtained other employment.
(3) Program reviews
The Secretary shall make adjustments to the model used to select institutions of higher education participating under this subchapter for program reviews in order to account for any rise in the use of professional judgment under this section during the award years applicable to the qualifying emergency, as determined by the Secretary.
(4) Qualifying emergency
In this subsection, the term "qualifying emergency" means—
(A) an event for which the President declared a major disaster or an emergency under section 5170 or 5191, respectively, of title 42;
(B) a national emergency related to the coronavirus declared by the President under
(C) a period of recession or economic downturn as determined by the Secretary, in consultation with the Secretary of Labor.
See 2020 Amendment note below.
Editorial Notes
Prior Provisions
A prior section 1087tt,
Amendments
2020—
2014—Subsec. (a).
2008—Subsec. (a).
2007—Subsec. (a).
1998—Subsec. (a).
Subsec. (c).
1993—Subsec. (c).
1992—
1989—Subsec. (a).
Statutory Notes and Related Subsidiaries
Effective Date of 2020 Amendment
Amendment by
Effective Date of 2014 Amendment
Amendment by
Effective Date of 2007 Amendment
Effective Date of 1998 Amendment
Amendment by
Effective Date of 1993 Amendment
Amendment by
Effective Date of 1992 Amendment
Amendment by
Effective Date
Section effective as if enacted as part of the Higher Education Amendments of 1986,
§1087uu. Disregard of student aid in other Federal programs
Notwithstanding any other provision of law, student financial assistance received under this subchapter, or under Bureau of Indian Affairs student assistance programs, shall not be taken into account in determining the need or eligibility of any person for benefits or assistance, or the amount of such benefits or assistance, under any Federal, State, or local program financed in whole or in part with Federal funds.
(
Amendment of Section
§1087uu. Disregard of student aid in other programs
Notwithstanding any other provision of law, student financial assistance received under this subchapter, Bureau of Indian Education student assistance programs, and employment and training programs under
See 2020 Amendment note below.
Editorial Notes
Prior Provisions
A prior section 1087uu,
Amendments
2020—
1992—
Statutory Notes and Related Subsidiaries
Effective Date of 2020 Amendment
Amendment by
Effective Date of 1992 Amendment
Amendment by
Effective Date
Section effective as if enacted as part of the Higher Education Amendments of 1986,
Section applicable with respect to financial assistance provided for any academic year beginning after Oct. 17, 1986, see section 406(b)(4) of
§1087uu–1. Native American students
In determining family contributions for Native American students, computations performed pursuant to this part shall exclude—
(1) any income and assets of $2,000 or less per individual payment received by the student (and spouse) and student's parents under
(2) any income received by the student (and spouse) and student's parents under the Alaska Native Claims Settlement Act (
(
Amendment of Section
§1087uu–1. Native American students
(a) In general
In determining the student aid index for Native American students, computations performed pursuant to this part shall exclude—
(1) any income and assets of $2,000 or less per individual payment received by the student (and spouse) and student's parents under
(2) any income received by the student (and spouse) and student's parents under the Alaska Native Claims Settlement Act (
(b) Guidance
The Secretary shall develop guidance, in consultation with Tribal Colleges and Universities (as defined in
See 2020 Amendment note below.
Editorial Notes
References in Text
The Indian Tribal Judgment Funds Use or Distribution Act, referred to in par. (1), is
The Alaska Native Claims Settlement Act, referred to in par. (2), is
The Maine Indian Claims Settlement Act of 1980, referred to in par. (2), is
Amendments
2020—
"(1) any income and assets of $2,000 or less per individual payment received by the student (and spouse) and student's parents under
"(2) any income received by the student (and spouse) and student's parents under the Alaska Native Claims Settlement Act (
2009—Par. (1).
Par. (2).
1992—
Statutory Notes and Related Subsidiaries
Effective Date of 2020 Amendment
Amendment by
Effective Date of 2009 Amendment
Amendment by
Effective Date of 1992 Amendment
Amendment by
Effective Date
Section effective as if enacted as part of the Higher Education Amendments of 1986,
1 See References in Text note below.
§1087uu–2. Special rules for independent students
(a) Determination process for unaccompanied homeless youth
In making a determination of independence under
(1) Consider documentation of the student's circumstance to be adequate in the absence of documented conflicting information, if such documentation is provided through a documented phone call, written statement, or verifiable electronic data match by—
(A) a local educational agency homeless liaison, designated pursuant to
(B) the director of an emergency or transitional shelter, street outreach program, homeless youth drop-in center, or other program serving individuals who are experiencing homelessness, or a designee of the director;
(C) the director of a project supported by a Federal TRIO program or a Gaining Early Awareness and Readiness for Undergraduate program grant under division 1 or 2 of subpart 2 of part A, or a designee of the director; or
(D) a financial aid administrator at another institution who documented the student's circumstance in the same or a prior award year.
(2) If a student is unable to provide documentation from any individual described in paragraph (1), make a case-by-case determination, which shall be—
(A) based on a written statement from, or a documented interview with, the student that confirms that the student is an unaccompanied homeless youth, or unaccompanied, at risk of homelessness, and self-supporting; and
(B) made without regard to the reasons that the student is an unaccompanied homeless youth, or unaccompanied, at risk of homelessness, and self-supporting.
(3) Consider a determination made under this subsection as distinct from a determination of independence under
(b) Documentation process for foster care youth
If an institution requires that a student provide documentation that the student was in foster care when the student was age 13 or older, a financial aid administrator shall consider any of the following as adequate documentation, in the absence of documented conflicting information:
(1) Submission of a court order or official State documentation that the student received Federal or State support in foster care.
(2) A documented phone call, written statement, or verifiable electronic data match, which confirms the student was in foster care at an applicable age, from—
(A) a State, county, or tribal agency administering a program under part B or E of title IV of the Social Security Act (
(B) a State Medicaid agency; or
(C) a public or private foster care placing agency or foster care facility or placement.
(3) A documented phone call or a written statement from an attorney, a guardian ad litem, or a Court Appointed Special Advocate that confirms that the student was in foster care at an applicable age and documents the person's relationship to the student.
(4) Verification of the student's eligibility for an education and training voucher under the John H. Chafee Foster Care Program under section 477 of the Social Security Act (
(5) A documented phone call or written statement from a financial aid administrator who documented the student's circumstance in the same or a prior award year.
(c) Timing
A determination of independence under paragraph (2), (8), or (9) of
(1) shall be made as quickly as practicable;
(2) may be made as early as the year before the award year for which the student initially submits an application; and
(3) shall be made not later than 60 days after the date of the student's enrollment during the award year for which the student initially submits an application.
(d) Use of earlier determinations
(1) Earlier determination by the institution
Any student who is determined to be independent under paragraph (2), (8), or (9) of
(A) the student informs the institution that circumstances have changed; or
(B) the institution has specific conflicting information about the student's independence and has informed the student of this information.
(2) Earlier determination by another institution
A financial aid administrator may make a determination of independence pursuant to
(e) Retention of documents
A financial aid administrator shall retain all documents related to any determination of independence, including documented interviews, for at least the duration of the student's enrollment and an additional period prescribed by the Secretary to enable a student to utilize the documents for the purposes of subsection (a)(1)(D), (b)(5), or (d) of this section.
(
Delayed Effective Date of Section
Section effective July 1, 2024, except as otherwise expressly provided, and applicable with respect to award year 2024–2025 and each subsequent award year, as determined under this chapter, with additional provisions for implementation on or after July 1, 2023, see Effective Date note below.
Editorial Notes
References in Text
The Social Security Act, referred to in subsec. (b)(2)(A), is act Aug. 14, 1935, ch. 531,
Amendments
2022—Subsec. (a)(1)(D).
Subsec. (b)(5).
Subsec. (d)(2).
Statutory Notes and Related Subsidiaries
Effective Date of 2022 Amendment
Amendment by
Effective Date
Section effective July 1, 2024, except as otherwise expressly provided, and applicable with respect to award year 2024–2025 and each subsequent award year, as determined under this chapter, see section 701(b) of
§1087vv. Definitions
As used in this part:
(a) Total income
(1)(A) Except as provided in subparagraph (B) and paragraph (2), the term "total income" is equal to adjusted gross income plus untaxed income and benefits for the preceding tax year minus excludable income (as defined in subsection (e)).
(B) Notwithstanding
(2) No portion of any student financial assistance received from any program by an individual, no portion of veterans' education benefits received by an individual, no portion of a national service educational award or post-service benefit received by an individual under title I of the National and Community Service Act of 1990 (
(b) Untaxed income and benefits
(1) The term "untaxed income and benefits" means—
(A) child support received;
(B) workman's compensation;
(C) veteran's benefits such as death pension, dependency, and indemnity compensation, but excluding veterans' education benefits as defined in subsection (c);
(D) interest on tax-free bonds;
(E) housing, food, and other allowances (excluding rent subsidies for low-income housing) for military, clergy, and others (including cash payments and cash value of benefits), except that the value of on-base military housing or the value of basic allowance for housing determined under
(F) cash support or any money paid on the student's behalf, except, for dependent students, funds provided by the student's parents;
(G) untaxed portion of pensions;
(H) payments to individual retirement accounts and Keogh accounts excluded from income for Federal income tax purposes; and
(I) any other untaxed income and benefits, such as Black Lung Benefits, Refugee Assistance, or railroad retirement benefits, or benefits received through participation in employment and training activities under title I of the Workforce Innovation and Opportunity Act [
(2) The term "untaxed income and benefits" shall not include—
(A) the amount of additional child tax credit claimed for Federal income tax purposes;
(B) welfare benefits, including assistance under a State program funded under part A of title IV of the Social Security Act [
(C) the amount of earned income credit claimed for Federal income tax purposes;
(D) the amount of credit for Federal tax on special fuels claimed for Federal income tax purposes;
(E) the amount of foreign income excluded for purposes of Federal income taxes; or
(F) untaxed social security benefits.
(c) Veteran and veterans' education benefits
(1) The term "veteran" means any individual who—
(A) has engaged in the active duty in the United States Army, Navy, Air Force, Marines, or Coast Guard; and
(B) was released under a condition other than dishonorable.
(2) The term "veterans' education benefits" means veterans' benefits the student will receive during the award year, including but not limited to benefits under the following provisions of law:
(A)
(B)
(C)
(D)
(E)
(F)
(G)
(H)
(I)
(J) Section 903 of the Department of Defense Authorization Act, 1981 (
(K) Section 156(b) of the "Joint Resolution making further continuing appropriations and providing for productive employment for the fiscal year 1983, and for other purposes" (
(L) The provisions of
(d) Independent student
(1) Definition
The term "independent", when used with respect to a student, means any individual who—
(A) is 24 years of age or older by December 31 of the award year;
(B) is an orphan, in foster care, or a ward of the court, or was an orphan, in foster care, or a ward of the court at any time when the individual was 13 years of age or older;
(C) is, or was immediately prior to attaining the age of majority, an emancipated minor or in legal guardianship as determined by a court of competent jurisdiction in the individual's State of legal residence;
(D) is a veteran of the Armed Forces of the United States (as defined in subsection (c)(1)) or is currently serving on active duty in the Armed Forces for other than training purposes;
(E) is a graduate or professional student;
(F) is a married individual;
(G) has legal dependents other than a spouse;
(H) has been verified during the school year in which the application is submitted as either an unaccompanied youth who is a homeless child or youth (as such terms are defined in section 725 of the McKinney-Vento Homeless Assistance Act [
(i) a local educational agency homeless liaison, designated pursuant to section 722(g)(1)(J)(ii) of the McKinney-Vento Homeless Assistance Act [
(ii) the director of a program funded under the Runaway and Homeless Youth Act [
(iii) the director of a program funded under subtitle B of title IV of the McKinney-Vento Homeless Assistance Act [
(iv) a financial aid administrator; or
(I) is a student for whom a financial aid administrator makes a documented determination of independence by reason of other unusual circumstances.
(2) Simplifying the dependency override process
A financial aid administrator may make a determination of independence under paragraph (1)(I) based upon a documented determination of independence that was previously made by another financial aid administrator under such paragraph in the same award year.
(e) Excludable income
The term "excludable income" means—
(1) any student financial assistance awarded based on need as determined in accordance with the provisions of this part, including any income earned from work under part C of this subchapter;
(2) any income earned from work under a cooperative education program offered by an institution of higher education;
(3) any living allowance received by a participant in a program established under the National and Community Service Act of 1990 [
(4) child support payments made by the student or parent;
(5) payments made and services provided under part E of title IV of the Social Security Act [
(6) special combat pay.
(f) Assets
(1) The term "assets" means cash on hand, including the amount in checking and savings accounts, time deposits, money market funds, trusts, stocks, bonds, other securities, mutual funds, tax shelters, qualified education benefits (except as provided in paragraph (3)), and the net value of real estate, income producing property, and business and farm assets.
(2) With respect to determinations of need under this subchapter, other than for subpart 4 of part A of this subchapter, the term "assets" shall not include the net value of—
(A) the family's principal place of residence;
(B) a family farm on which the family resides; or
(C) a small business with not more than 100 full-time or full-time equivalent employees (or any part of such a small business) that is owned and controlled by the family.
(3) A qualified education benefit shall be considered an asset of—
(A) the student if the student is an independent student; or
(B) the parent if the student is a dependent student, regardless of whether the owner of the account is the student or the parent.
(4) In determining the value of assets in a determination of need under this subchapter (other than for subpart 4 of part A of this subchapter), the value of a qualified education benefit shall be—
(A) the refund value of any tuition credits or certificates purchased under a qualified education benefit; and
(B) in the case of a program in which contributions are made to an account that is established for the purpose of meeting the qualified higher education expenses of the designated beneficiary of the account, the current balance of such account.
(5) In this subsection:
(A) The term "qualified education benefit" means—
(i) a qualified tuition program (as defined in
(ii) a Coverdell education savings account (as defined in
(B) The term "qualified higher education expenses" has the meaning given the term in
(g) Net assets
The term "net assets" means the current market value at the time of application of the assets (as defined in subsection (f)), minus the outstanding liabilities or indebtedness against the assets.
(h) Treatment of income taxes paid to other jurisdictions
(1) The tax on income paid to the Governments of the Commonwealth of Puerto Rico, Guam, American Samoa, the Virgin Islands, or the Commonwealth of the Northern Mariana Islands, the Republic of the Marshall Islands, the Federated States of Micronesia, or Palau under the laws applicable to those jurisdictions, or the comparable tax paid to the central government of a foreign country, shall be treated as Federal income taxes.
(2) References in this part to title 26, Federal income tax forms, and the Internal Revenue Service shall, for purposes of the tax described in paragraph (1), be treated as references to the corresponding laws, tax forms, and tax collection agencies of those jurisdictions, respectively, subject to such adjustments as the Secretary may provide by regulation.
(i) Current balance
The term "current balance of checking and savings accounts" does not include any funds over which an individual is barred from exercising discretion and control because of the actions of any State in declaring a bank emergency due to the insolvency of a private deposit insurance fund.
(j) Other financial assistance
(1) For purposes of determining a student's eligibility for funds under this subchapter, estimated financial assistance not received under this subchapter shall include all scholarships, grants, loans, or other assistance known to the institution at the time the determination of the student's need is made, including national service educational awards or post-service benefits under title I of the National and Community Service Act of 1990 (
(2) Notwithstanding paragraph (1), a tax credit taken under
(3) Notwithstanding paragraph (1) and
(4) Notwithstanding paragraph (1), special combat pay shall not be treated as estimated financial assistance for purposes of
(k) Dependents
(1) Except as otherwise provided, the term "dependent of the parent" means the student, dependent children of the student's parents, including those children who are deemed to be dependent students when applying for aid under this subchapter, and other persons who live with and receive more than one-half of their support from the parent and will continue to receive more than half of their support from the parent during the award year.
(2) Except as otherwise provided, the term "dependent of the student" means the student's dependent children and other persons (except the student's spouse) who live with and receive more than one-half of their support from the student and will continue to receive more than half of their support from the student during the award year.
(l) Family size
(1) In determining family size in the case of a dependent student—
(A) if the parents are not divorced or separated, family members include the student's parents, and the dependents of the student's parents including the student;
(B) if the parents are divorced or separated, family members include the parent whose income is included in computing available income and that parent's dependents, including the student; and
(C) if the parents are divorced and the parent whose income is so included is remarried, or if the parent was a widow or widower who has remarried, family members also include, in addition to those individuals referred to in subparagraph (B), the new spouse and any dependents of the new spouse if that spouse's income is included in determining the parents' adjusted available income.
(2) In determining family size in the case of an independent student—
(A) family members include the student, the student's spouse, and the dependents of the student; and
(B) if the student is divorced or separated, family members do not include the spouse (or ex-spouse), but do include the student and the student's dependents.
(m) Business assets
The term "business assets" means property that is used in the operation of a trade or business, including real estate, inventories, buildings, machinery, and other equipment, patents, franchise rights, and copyrights.
(n) Special combat pay
The term "special combat pay" means pay received by a member of the Armed Forces because of exposure to a hazardous situation.
(
Amendment of Section
§1087vv. Definitions
In this part:
(a) Total income
The term "total income" means the amount equal to adjusted gross income for the second preceding tax year plus untaxed income and benefits for the second preceding tax year minus excludable income for the second preceding tax year. The factors used to determine total income shall be derived from the Federal income tax return, if available, except for the applicant's ability to indicate a qualified rollover in the second preceding tax year as outlined in
(b) Untaxed income and benefits
The term "untaxed income and benefits" means—
(1) deductions and payments to self-employed SEP, SIMPLE, Keogh, and other qualified individual retirement accounts excluded from income for Federal tax purposes, except such term shall not include payments made to tax-deferred pension and retirement plans, paid directly or withheld from earnings, that are not delineated on the Federal tax return;
(2) tax-exempt interest income;
(3) untaxed portion of individual retirement account distributions;
(4) untaxed portion of pensions; and
(5) foreign income of permanent residents of the United States or United States citizens exempt from Federal taxation, or the foreign income for which such a permanent resident or citizen receives a foreign tax credit.
(c) Veterans and veterans' education benefits
(1) The term "veteran" has the meaning given the term in
(2) The term "veterans' education benefits" means veterans' benefits under the following provisions of law:
(A)
(B)
(C)
(D)
(E)
(F)
(G)
(H)
(I)
(J) Section 903 of the Department of Defense Authorization Act, 1981 (
(K) Section 156(b) of the "Joint Resolution making further continuing appropriations and providing for productive employment for the fiscal year 1983, and for other purposes" (
(L) The provisions of
(d) Independent students and determinations
The term "independent", when used with respect to a student, means any individual who—
(1) is 24 years of age or older by December 31 of the award year;
(2) is, or was at any time when the individual was 13 years of age or older—
(A) an orphan;
(B) a ward of the court; or
(C) in foster care;
(3) is, or was immediately prior to attaining the age of majority, an emancipated minor or in legal guardianship as determined by a court of competent jurisdiction in the individual's State of legal residence;
(4) is a veteran of the Armed Forces of the United States (as defined in subsection (c)) or is currently serving on active duty in the Armed Forces for other than training purposes;
(5) is a graduate or professional student;
(6) is married and not separated;
(7) has legal dependents other than a spouse;
(8) is an unaccompanied homeless youth or is unaccompanied, at risk of homelessness, and self-supporting, without regard to such individual's age; and
(9) is a student for whom a financial aid administrator makes a documented determination of independence by reason of other unusual circumstances pursuant to
(A) human trafficking, as described in the Trafficking Victims Protection Act of 2000 (
(B) legally granted refugee or asylum status;
(C) parental abandonment or estrangement; or
(D) student or parental incarceration.
(e) Excludable income
The term "excludable income" means—
(1) an amount equal to the education credits described in paragraphs (1) and (2) of
(2) if an applicant elects to report it, college grant and scholarship aid included in gross income on a Federal tax return, including amounts attributable to grant and scholarship portions of fellowships and assistantships and any national service educational award or post-service benefit received by an individual under title I of the National and Community Service Act of 1990 (
(3) income earned from work under part C of this subchapter.
(f) Assets
(1) In general
The term "assets" means the amount in checking and savings accounts, time deposits, money market funds, investments, trusts, stocks, bonds, derivatives, securities, mutual funds, tax shelters, qualified education benefits (except as provided in paragraph (3)), the annual amount of child support received and the net value of real estate, vacation homes, income producing property, and business and farm assets, determined in accordance with
(2) Exclusions
With respect to determinations of need under this subchapter, the term "assets" shall not include the net value of the family's principal place of residence.
(3) Consideration of qualified education benefit
A qualified education benefit shall be considered an asset of—
(A) the student if the student is an independent student; or
(B) the parent if the student is a dependent student and the account is designated for the student, regardless of whether the owner of the account is the student or the parent.
(4) Definition of qualified education benefit
In this subsection, the term "qualified education benefit" means—
(A) a qualified tuition program (as defined in
(B) a Coverdell education savings account (as defined in
(g) Net value
The term "net value" means the market value at the time of application of the assets (as defined in subsection (f)), minus the outstanding liabilities or indebtedness against the assets.
(h) Treatment of income taxes paid to other jurisdictions
(1) The tax on income paid to the Governments of the Commonwealth of Puerto Rico, Guam, American Samoa, the Virgin Islands, or the Commonwealth of the Northern Mariana Islands, the Republic of the Marshall Islands, the Federated States of Micronesia, or Palau under the laws applicable to those jurisdictions, or the comparable tax paid to the central government of a foreign country, shall be treated as Federal income taxes.
(2) References in this part to title 26, Federal income tax forms, and the Internal Revenue Service shall, for purposes of the tax described in paragraph (1), be treated as references to the corresponding laws, tax forms, and tax collection agencies of those jurisdictions, respectively, subject to such adjustments as the Secretary may provide by regulation.
(i) Other financial assistance
(1) For purposes of determining a student's eligibility for funds under this subchapter, other financial assistance not received under this subchapter shall include all scholarships, grants, loans, or other assistance known to the institution at the time the determination of the student's need is made, including national service educational awards or post-service benefits under title I of the National and Community Service Act of 1990 (
(2) Notwithstanding paragraph (1), a tax credit taken under
(3) Notwithstanding paragraph (1) and
(4) Notwithstanding paragraph (1), payments made and services provided under part E of title IV of the Social Security Act to or on behalf of any child or youth over whom the State agency has responsibility for placement, care, or supervision, including the value of vouchers for education and training and amounts expended for room and board for youth who are not in foster care but are receiving services under section 477 of such Act, shall not be treated as other financial assistance for purposes of
(5) Notwithstanding paragraph (1), emergency financial assistance provided to the student for unexpected expenses that are a component of the student's cost of attendance, and not otherwise considered when the determination of the student's need is made, shall not be treated as other financial assistance for purposes of
(j) Dependents
(1) Except as otherwise provided, the term "dependent of the parent" means the student who is deemed to be a dependent student when applying for aid under this subchapter, and any other person who lives with and receives more than one-half of their support from the parent (or parents) and will continue to receive more than half of their support from the parent (or parents) during the award year.
(2) Except as otherwise provided, the term "dependent of the student" means the student's dependent children and other persons (except the student's spouse) who live with and receive more than one-half of their support from the student and will continue to receive more than half of their support from the student during the award year.
(k) Family size
(1) Dependent student
Except as provided in paragraph (3), in determining family size in the case of a dependent student—
(A) if the parents are not divorced or separated, family members include the student's parents, and any dependent (within the meaning of
(B) if the parents are divorced or separated, family members include the parent whose income is included in computing available income and any dependent (within the meaning of
(C) if the parents are divorced and the parents whose income is so included are remarried, or if the parent was a widow or widower who has remarried, family members also include, in addition to those individuals referred to in subparagraph (B), the new spouse and any dependent (within the meaning of
(D) if the student is not considered as a dependent (within the meaning of
(2) Independent student
Except as provided in paragraph (3), in determining family size in the case of an independent student—
(A) family members include the student, the student's spouse, and any dependent (within the meaning of
(B) if the student is divorced or separated, family members do not include the spouse (or ex-spouse), but do include the student and any dependent (within the meaning of
(3) Procedures and modification
The Secretary shall provide procedures for determining family size in cases in which information for the taxable year used in determining the amount of need of the student for financial assistance under this subchapter has changed or does not accurately reflect the applicant's current household size, including when a divorce settlement only allows a parent to file for the Earned Income Tax Credit available under
(l) Business assets
The term "business assets" means property that is used in the operation of a trade or business, including real estate, inventories, buildings, machinery, and other equipment, patents, franchise rights, and copyrights.
(m) Homeless youth
The term "homeless youth" has the meaning given the term "homeless children and youths" in
(n) Unaccompanied
The terms "unaccompanied", "unaccompanied youth", or "unaccompanied homeless youth" have the meaning given the term "unaccompanied youth" in
See 2020 Amendment note below.
Editorial Notes
References in Text
The National and Community Service Act of 1990, referred to in subsecs. (a)(2), (e)(3), and (j)(1), is
The Workforce Innovation and Opportunity Act, referred to in subsec. (b)(1)(I), is
The Social Security Act, referred to in subsecs. (b)(2)(B) and (e)(5), is act Aug. 14, 1935, ch. 531,
Section 903 of the Department of Defense Authorization Act, 1981, referred to in subsec. (c)(2)(J), is section 903 of
Section 156(b) of the "Joint Resolution making further continuing appropriations and providing for productive employment for the fiscal year 1983, and for other purposes", referred to in subsec. (c)(2)(K), is section 156(b) of
The Runaway and Homeless Youth Act, referred to in subsec. (d)(1)(H)(ii), is title III of
The McKinney-Vento Homeless Assistance Act, referred to in subsec. (d)(1)(H)(iii), is
Codification
Amendment by section 2(g)(19) of
Amendments
2020—
2014—Subsec. (b)(1)(I).
2009—Subsec. (a)(2).
Subsec. (c)(2).
Subsec. (j)(1).
2008—Subsec. (a)(1).
Subsec. (a)(2).
Subsec. (b)(1)(E).
Subsec. (d)(1)(B), (C).
"(B) is an orphan, in foster care, or a ward of the court, at any time when the individual is 13 years of age or older;
"(C) is an emancipated minor or is in legal guardianship as determined by a court of competent jurisdiction in the individual's State of legal residence;".
Subsec. (e)(2) to (6).
Subsec. (j)(1).
2007—Subsec. (a)(2).
Subsec. (b).
Subsec. (b)(2).
Subsec. (d).
Subsec. (d)(1)(B), (C).
Subsec. (d)(1)(H).
Subsec. (d)(2).
Subsec. (e)(5).
Subsec. (f)(3).
Subsec. (j)(2).
Subsec. (j)(4).
Subsec. (n).
2006—Subsec. (d)(3).
Subsec. (f)(1).
Subsec. (f)(2)(C).
Subsec. (f)(3) to (5).
Subsec. (j).
Subsec. (j)(2), (3).
"(2)(A) Except as provided in subparagraph (B), for purposes of determining a student's eligibility for funds under this subchapter, tuition prepayment plans shall reduce the cost of attendance (as determined under
"(B) If the institutional expense covered by the prepayment must be part of the student's cost of attendance for accounting purposes, the prepayment shall be considered estimated financial assistance."
1998—Subsec. (b)(14).
Subsec. (j)(1).
Subsec. (j)(3), (4).
1997—Subsec. (a)(2).
Subsec. (j)(4).
1996—Subsec. (b)(2).
1993—Subsec. (a)(2).
Subsec. (c)(2).
Subsec. (d)(2).
Subsec. (j)(3).
Subsecs. (k) to (m).
1992—
1990—Subsec. (d)(2)(F).
Subsec. (f)(3).
1988—Subsec. (i).
1987—Subsec. (a)(1).
Subsec. (a)(2).
Subsec. (a)(4).
Subsecs. (b), (c).
Subsec. (d)(2)(F).
Subsecs. (f) to (h).
Statutory Notes and Related Subsidiaries
Effective Date of 2020 Amendment
Amendment by
Effective Date of 2014 Amendment
Amendment by
Effective Date of 2009 Amendment
Amendment by
Effective Date of 2008 Amendment
Effective Date of 2007 Amendment
Effective Date of 2006 Amendment
Amendment by
Effective Date of 1998 Amendments
Amendment by
Amendment by section 101(f) [title VIII, §405(d)(15)(B)] of
Effective Date of 1996 Amendment
Amendment by
Effective Date of 1993 Amendments
Amendment by
Amendment by
Effective Date of 1992 Amendment
Amendment by
Effective Date of 1987 Amendment
Amendment by
Transfer of Functions
For transfer of authorities, functions, personnel, and assets of the Coast Guard, including the authorities and functions of the Secretary of Transportation relating thereto, to the Department of Homeland Security, and for treatment of related references, see
Definition of "Independent Student"; Application to Specified Periods of Enrollment
[References to subpart 2 of part A of title IV of