2015 US Code
Title 20 - Education (Sections 1 - 10013)
Chapter 28 - Higher Education Resources and Student Assistance (Sections 1001 - 1161aa-1)
Subchapter IV - Student Assistance (Sections 1070 - 1099e)
Part E - Need Analysis (Sections 1087kk - 1087vv)
Sec. 1087qq - Family contribution for independent students with dependents other than a spouse
Publication Title | United States Code, 2012 Edition, Supplement 3, Title 20 - EDUCATION |
Category | Bills and Statutes |
Collection | United States Code |
SuDoc Class Number | Y 1.2/5: |
Contained Within | Title 20 - EDUCATION CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE SUBCHAPTER IV - STUDENT ASSISTANCE Part E - Need Analysis Sec. 1087qq - Family contribution for independent students with dependents other than a spouse |
Contains | section 1087qq |
Date | 2015 |
Laws In Effect As Of Date | January 3, 2016 |
Positive Law | No |
Disposition | standard |
Source Credit | 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. |
Statutes at Large References | 100 Stat. 1465 101 Stat. 349-351 106 Stat. 597 107 Stat. 2472 111 Stat. 1524 112 Stat. 1730 120 Stat. 173 121 Stat. 802 123 Stat. 1948 |
Public and Private Laws | Public Law 89-329, Public Law 99-498, Public Law 100-50, Public Law 102-325, Public Law 103-208, Public Law 105-78, Public Law 105-244, Public Law 109-171, Public Law 110-84, Public Law 110-315, Public Law 111-39 |
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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) of this section); and
(B) the family's contribution from assets (determined in accordance with subsection (c) of this section);
(2) assessing such adjusted available income in accordance with an assessment schedule set forth in subsection (d) of this section;
(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 and part C of subchapter I of chapter 34 of title 42 is requested; and
(4) for periods of enrollment of less than 9 months, for purposes other than subpart 2 of part A of this subchapter—
(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 generalThe 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 taxesThe 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):
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 |
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 allowanceThe 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 2009–2010For 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 |
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 |
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 |
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 |
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 generalThe 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 worthThe 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:
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 |
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):
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 |
The asset conversion rate is 7 percent.
(d) Assessment scheduleThe adjusted available income (as determined under subsection (a)(1) of this section 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):
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 |
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.)
AMENDMENTS2009—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:
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 2009 AMENDMENTAmendment 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 AMENDMENTAmendment 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 AMENDMENTAmendment 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 AMENDMENTAmendment 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 AMENDMENTAmendment 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 AMENDMENTAmendment 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 AMENDMENTAmendment 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.
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