20 USC 1087qq: Family contribution for independent students with dependents other than a spouse
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TEXT OF PART V OF SUBTITLE A (3001 ET SEQ.), EFFECTIVE JANUARY 1, 2022, CURRENTLY SET OUT AS A PREVIEW

20 USC 1087qq: Family contribution for independent students with dependents other than a spouse Text contains those laws in effect on September 22, 2021
From Title 20-EDUCATIONCHAPTER 28-HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCESUBCHAPTER IV-STUDENT ASSISTANCEPart F-Need Analysis

§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 section 1094 of this title during the award period for which assistance under this subchapter is requested; and

(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 section 1087vv of this title)-

(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 section 25A of title 26.

(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 section 1087vv of this title) by a percentage determined according to the following table (or a successor table prescribed by the Secretary under section 1087rr of this title):

Percentages for Computation of State and Other Tax Allowance
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 section 1087rr of this title).

(A) Academic year 2009–2010

For academic year 2009–2010, the income protection allowance is determined by the following table:

Income Protection Allowance
Family SizeNumber in College
(including student)12345For 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:

Income Protection Allowance
Family SizeNumber in College
(including student)12345For 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:

Income Protection Allowance
Family SizeNumber in College
(including student)12345For 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:

Income Protection Allowance
Family SizeNumber in College
(including student)12345For 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 section 1087rr of this title):

(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 section 2 of title 26, such allowance is equal to the lesser of $2,500 or 35 percent of the student's earned income.

(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 section 1087rr of this title), except as provided under section 1087vv(f) of this title:

Adjusted Net Worth of a Business or Farm
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 section 1087rr of this title):

Asset Protection Allowances for Families and Students
If the age of the student is-And the student is
marriedsingle
 
(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 section 1087rr of this title):

Assessment From Adjusted Available Income (AAI)
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.

(Pub. L. 89–329, title IV, §477, as added Pub. L. 99–498, title IV, §406(a), Oct. 17, 1986, 100 Stat. 1465 ; amended Pub. L. 100–50, §14(1)–(6), (8), (18), (19), June 3, 1987, 101 Stat. 349–351 ; Pub. L. 102–325, title IV, §471(a), July 23, 1992, 106 Stat. 597 ; Pub. L. 103–208, §2(g)(2), (7), Dec. 20, 1993, 107 Stat. 2472 ; Pub. L. 105–78, title VI, §609(i), Nov. 13, 1997, 111 Stat. 1524 ; Pub. L. 105–244, title IV, §475, Oct. 7, 1998, 112 Stat. 1730 ; Pub. L. 109–171, title VIII, §8017(c)(1), Feb. 8, 2006, 120 Stat. 173 ; Pub. L. 110–84, title VI, §601(c), Sept. 27, 2007, 121 Stat. 802 ; Pub. L. 111–39, title IV, §406(a)(3), July 1, 2009, 123 Stat. 1948 ; Pub. L. 116–260, div. FF, title VII, §702(f), Dec. 27, 2020, 134 Stat. 3147 .)

Amendment of Section

Pub. L. 116–260, div. FF, title VII, §§701(b), 702(f), Dec. 27, 2020, 134 Stat. 3137 , 3147, provided that, effective July 1, 2023, except as otherwise expressly provided, and applicable with respect to award year 2023–2024 and each subsequent award year, as determined under this chapter, this section is amended to read as follows:

§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 section 1087vv of this title)-

(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 section 3101(b) of title 26; and

(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 section 3101(a) of title 26.

(3) Income protection allowance

The income protection allowance shall equal the amount determined in the following table, as adjusted by the Secretary pursuant to section 1078rr(b) of this title:

(A) In the case of a married independent student with dependents:

Income Protection Allowance (to be adjusted for 2023–2024 and succeeding years)
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:

Income Protection Allowance (to be adjusted for 2023–2024 and succeeding years)
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 section 1087rr(g) of this title).

(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 section 1087rr(d) of this title):

Asset Protection Allowances for Families and Students
If the age of the student is-And the student is
marriedsingle
 
(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 section 1087rr(e) of this title):

Assessment From Adjusted Available Income
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.

Amendments

2020-Pub. L. 116–260 amended section generally. Prior to amendment, section related to family contribution for independent students with dependents other than a spouse.

2009-Subsec. (b)(5)(B). Pub. L. 111–39 made technical amendment to reference in original act which appears in text as reference to section 2 of title 26.

2007-Subsec. (b)(4). Pub. L. 110–84 amended par. (4) generally. Prior to amendment, par. (4) consisted of a single table to be used to determine income protection allowances.

2006-Subsec. (c)(4). Pub. L. 109–171 substituted "7" for "12".

1998-Subsec. (a)(4). Pub. L. 105–244 added par. (4).

1997-Subsec. (b)(1)(F). Pub. L. 105–78 added subpar. (F).

1993-Subsec. (b)(4). Pub. L. 103–208, §2(g)(2), substituted "$9,510" for "9,510" in table.

Subsec. (e). Pub. L. 103–208, §2(g)(7), added subsec. (e).

1992-Pub. L. 102–325 amended section generally, substituting provisions relating to family contribution for independent students with dependents other than a spouse for provisions relating to family contribution for independent students with dependents (including a spouse).

1987-Subsec. (a)(1)(C). Pub. L. 100–50, §14(18), added subpar. (C).

Subsec. (b)(2). Pub. L. 100–50, §14(1), substituted "section 1087rr of this title" for "section 1087ss of this title".

Subsec. (b)(5)(A). Pub. L. 100–50, §14(19), substituted "$2,100" for "$2,000".

Subsec. (b)(7). Pub. L. 100–50, §14(2), struck out "National" before "Center".

Subsec. (c)(2)(B). Pub. L. 100–50, §14(3), substituted "displaced homemaker" for "dislocated homemaker".

Subsec. (c)(2)(C). Pub. L. 100–50, §14(1), (4), substituted "section 1087rr of this title" for "section 1087ss of this title" in text, added table, and struck out former table which read as follows:

"Adjusted Net Worth of a Business or Farm
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). Pub. L. 100–50, §14(5), substituted "$15,999" for "$15,000".

Subsec. (c)(4)(C). Pub. L. 100–50, §14(6), substituted "$16,000" for "$15,000" in three places.

Subsec. (d). Pub. L. 100–50, §14(1), (8), substituted "section 1087rr of this title" for "section 1087ss of this title" in text and inserted a minus sign before "$3,409" in two places in table.

Effective Date of 2020 Amendment

Amendment by Pub. L. 116–260 effective July 1, 2023, except as otherwise expressly provided, and applicable with respect to award year 2023–2024 and each subsequent award year, as determined under this chapter, see section 701(b) of Pub. L. 116–260, set out as a note under section 1001 of this title.

Effective Date of 2009 Amendment

Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.

Effective Date of 2007 Amendment

Amendment by Pub. L. 110–84 effective July 1, 2009, see section 601(e) of Pub. L. 110–84, set out as a note under section 1087oo of this title.

Effective Date of 2006 Amendment

Amendment by Pub. L. 109–171 effective July 1, 2006, except as otherwise provided, see section 8001(c) of Pub. L. 109–171, set out as a note under section 1002 of this title.

Pub. L. 109–171, title VIII, §8017(c)(2), Feb. 8, 2006, 120 Stat. 173 , provided that: "The amendment made by paragraph (1) [amending this section] shall apply with respect to determinations of need for periods of enrollment beginning on or after July 1, 2007."

Effective Date of 1998 Amendment

Amendment by Pub. L. 105–244, effective Oct. 7, 1998, and applicable with respect to determinations of need under this part for academic years beginning on or after July 1, 2000, see section 480A of Pub. L. 105–244, set out as a note under section 1087kk of this title.

Effective Date of 1993 Amendment

Amendment by Pub. L. 103–208 effective as if included in the Higher Education Amendments of 1992, Pub. L. 102–325, except as otherwise provided, see section 5(a) of Pub. L. 103–208, set out as a note under section 1051 of this title.

Effective Date of 1992 Amendment

Amendment by Pub. L. 102–325 applicable with respect to determinations of need under this part for award years beginning on or after July 1, 1993, see section 471(b) of Pub. L. 102–325, set out as a note under section 1087kk of this title.

Effective Date of 1987 Amendment

Amendment by Pub. L. 100–50 effective as if enacted as part of the Higher Education Amendments of 1986, Pub. L. 99–498, see section 27 of Pub. L. 100–50, set out as a note under section 1001 of this title.