20 USC 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):
| 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:
| 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 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:
| 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):
| 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
Terms Used In 20 USC 1087qq
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- 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. See 20 USC 1087vv
- independent: when used with respect to a student, means any individual who&mdash. See 20 USC 1087vv
- State: means a State, the District of Columbia, the Commonwealth of Puerto Rico, or any other territory or possession of the United States. See 1 USC 7
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):
| 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.