For each independent student with dependents other than a spouse, the expected family contribution is equal to the amount determined by-
except that the amount determined under this subsection shall not be less than zero.
The family's available income is determined by deducting from total income (as defined in section 1087vv of this title)-
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 |
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.
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).
For academic year 2009-2010, the income protection allowance is determined by the following table:
Income Protection Allowance | ||||||
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:
Income Protection Allowance | ||||||
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:
Income Protection Allowance | ||||||
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:
Income Protection Allowance | ||||||
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):
The family's contribution from assets is equal to-
The family net worth is calculated by adding-
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 |
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 | |
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.
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 |
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.
20 U.S.C. § 1087qq
Amendment of Section Pub. L. 116-260 div. FF, title VII, §§701(b), 702(f), Dec. 27, 2020, 134 Stat. 3137, 3147; Pub. L. 117-103, div. R, §102(a), Mar. 15, 2022, 136 Stat. 819, provided that, 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, 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 generalFor 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) ExceptionIf 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 taxesThe 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 allowanceThe 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. |
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 allowanceThe 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) DeterminationExcept 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 zeroThe family's available assets under this subsection shall not be less than zero.
(2) Asset protection allowanceThe 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 | |
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 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 deathIn 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
AMENDMENTS2020- 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". |
STATUTORY NOTES AND RELATED SUBSIDIARIES
EFFECTIVE DATE OF 2020 AMENDMENT Amendment by Pub. L. 116-260 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 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.