Federal Pell Grant, Federal Perkins Loan, Federal Work-Study, Federal Supplemental Educational Opportunity Grant, William D. Ford Federal Direct Loan, and TEACH Grant Programs, 29744-29749 [2010-12799]
Download as PDF
<![CDATA[
29744
Federal Register / Vol. 75, No. 102 / Thursday, May 27, 2010 / Notices
administrative and national policy
requirements in the application package
and reference these and other
requirements in the Applicable
Regulations section of this notice.
We reference the regulations outlining
the terms and conditions of an award in
the Applicable Regulations section of
this notice and include these and other
specific conditions in the GAN. The
GAN also incorporates your approved
application as part of your binding
commitments under the grant.
3. Reporting: At the end of your
project period, you must submit a final
performance report, including financial
information, as directed by the
Secretary. If you receive a multi-year
award, you must submit an annual
performance report that provides the
most current performance and financial
expenditure information as directed by
the Secretary under 34 CFR 75.118. The
Secretary may also require more
frequent performance reports under 34
CFR 75.720(c). For specific
requirements on reporting, please go to
https://www.ed.gov/fund/grant/apply/
appforms/appforms.html.
4. Performance measure: Under the
Government Performance and Results
Act of 1993, the Department has
developed the following performance
measure for measuring the overall
effectiveness of the Gulf Coast Recovery
Grant Initiative: the percentage of
grantees that successfully accomplish
their project goals and objectives. The
Department will collect data for this
measure from grantees’ final
performance reports.
VII. Agency Contact
wwoods2 on DSK1DXX6B1PROD with NOTICES
FOR FURTHER INFORMATION CONTACT:
April Bolton-Smith, U.S. Department of
Education, 400 Maryland Avenue, SW.,
room 3E304, Washington, DC 20202–
6200. Telephone: (202) 260–1475 or by
e-mail: gulfcoastrecovery@ed.gov.
If you use a TDD, call the FRS, toll
free, at 1–800–877–8339.
VIII. Other Information
Accessible Format: Individuals with
disabilities can obtain this document
and a copy of the application package in
an accessible format (e.g., braille, large
print, audiotape, or computer diskette)
on request to the program contact
person listed under FOR FURTHER
INFORMATION CONTACT in section VII of
this notice.
Electronic Access to This Document:
You can view this document, as well as
all other documents of this Department
published in the Federal Register, in
text or Adobe Portable Document
Format (PDF) on the Internet at the
following site: https://www.ed.gov/news/
VerDate Mar<15>2010
15:26 May 26, 2010
Jkt 220001
fedregister. To use PDF you must have
Adobe Acrobat Reader, which is
available free at this site.
Note: The official version of this document
is the document published in the Federal
Register. Free Internet access to the official
edition of the Federal Register and the Code
of Federal Regulations is available on GPO
Access at: https://www.gpoaccess.gov/nara/
index.html.
Dated: May 24, 2010.
´
Thelma Melendez de Santa Ana,
Assistant Secretary for Elementary and
Secondary Education.
[FR Doc. 2010–12800 Filed 5–26–10; 8:45 am]
BILLING CODE 4000–01–P
DEPARTMENT OF EDUCATION
Federal Pell Grant, Federal Perkins
Loan, Federal Work-Study, Federal
Supplemental Educational Opportunity
Grant, William D. Ford Federal Direct
Loan, and TEACH Grant Programs
AGENCY: Federal Student Aid, U.S.
Department of Education.
ACTION: Notice of revision of the Federal
Need Analysis Methodology for the
2011–2012 award year.
SUMMARY: The Secretary announces the
annual updates to the tables that will be
used in the statutory ‘‘Federal Need
Analysis Methodology’’ to determine a
student’s expected family contribution
(EFC) for award year 2011–2012 for the
student financial aid programs
authorized under title IV of the Higher
Education Act of 1965, as amended
(HEA). An EFC is the amount a student
and his or her family may reasonably be
expected to contribute toward the
student’s postsecondary educational
costs for purposes of determining
financial aid eligibility. The Title IV
programs include the Federal Pell Grant,
Federal Perkins Loan, Federal WorkStudy, Federal Supplemental
Educational Opportunity Grant, William
D. Ford Federal Direct Loan, and the
Teach Grant Programs (Title IV, HEA
Programs).
FOR FURTHER INFORMATION CONTACT: Ms.
Marya Dennis, Management and
Program Analyst, U.S. Department of
Education, room 63G2, Union Center
Plaza, 830 First Street, NE., Washington,
DC 20202–5454. Telephone: (202) 377–
3385.
If you use a telecommunications
device for the deaf (TDD), call the
Federal Relay Service (FRS), toll free, at
1–800–877–8339.
Individuals with disabilities can
obtain this document in an accessible
format (e.g., braille, large print,
PO 00000
Frm 00039
Fmt 4703
Sfmt 4703
audiotape, or computer diskette) on
request to the contact person listed
under FOR FURTHER INFORMATION
CONTACT.
SUPPLEMENTARY INFORMATION: Part F of
title IV of the HEA specifies the criteria,
data elements, calculations, and tables
used in the Federal Need Analysis
Methodology EFC calculations.
Section 478 of part F of title IV of the
HEA requires the Secretary to adjust
four of the tables—the Income
Protection Allowance, the Adjusted Net
Worth of a Business or Farm, the
Education Savings and Asset Protection
Allowance, and the Assessment
Schedules and Rates—each award year
for general price inflation. The changes
are based, in general, upon increases in
the Consumer Price Index.
For award year 2011–2012, the
Secretary is charged with updating the
income protection allowance for parents
of dependent students, adjusted net
worth of a business or farm, and the
assessment schedules and rates to
account for inflation that took place
between December 2009 and December
2010. However, because the Secretary
must publish these tables before
December 2010, the increases in the
tables must be based upon a percentage
equal to the estimated percentage
increase in the Consumer Price Index
for All Urban Consumers (CPI–U) for
2010. The Secretary must also account
for any misestimation of inflation for the
prior year. In developing the table
values for the 2010–2011 award year,
the Secretary assumed a 4.1 percent
increase in the CPI–U for the period
December 2008 through December 2009.
Actual inflation for this time period was
2.7 percent. The Secretary estimates that
the increase in the CPI–U for the period
December 2009 through December 2010
will be 1.2 percent. Last year’s
overestimate of inflation for 2009 (4.1
percent minus 2.7 percent) exceeds this
year’s estimate of inflation for 2010.
However, the Secretary lacks statutory
authority to reduce the table values in
the need analysis formula. Thus, the
income protection allowance for parents
of dependent students, the adjusted net
worth of a business or farm, and the
assessment schedules and rates are
unchanged from 2010–2011.
Additionally, section 601 of the College
Cost Reduction and Access Act of 2007
(CCRAA, Pub. L. 110–84) amended
sections 475 through 478 of the HEA by
updating the procedures for determining
the income protection allowance for
dependent students as well as the
income protection allowance tables for
both independent students with
dependents other than a spouse and
E:\FR\FM\27MYN1.SGM
27MYN1
Federal Register / Vol. 75, No. 102 / Thursday, May 27, 2010 / Notices
independent students without
dependents other than a spouse. As
amended by the CCRAA, the HEA
established new 2011–2012 award year
values for these income protection
allowances. The updated tables are in
sections 1, 2, and 4 of this notice.
The Secretary must also revise, for
each award year, the education savings
and asset protection allowances as
provided for in section 478(d) of the
HEA. The Education Savings and Asset
Protection Allowance table for award
29745
table for award year 2011–2012 has been
updated in section 5 of this notice.
The HEA provides for the following
annual updates:
1. Income Protection Allowance (IPA).
This allowance is the amount of living
expenses associated with the
maintenance of an individual or family
that may be offset against the family’s
income. It varies by family size. The IPA
for the dependent student is $5,250. The
IPAs for parents of dependent students
for award year 2011–2012 are:
year 2011–2012 has been updated in
section 3 of this notice. Section 478(h)
of the HEA also requires the Secretary
to increase the amount specified for the
Employment Expense Allowance,
adjusted for inflation. This calculation
is based upon increases in the Bureau of
Labor Statistics budget of the marginal
costs for a two-worker family compared
to a one-worker family for food away
from home, apparel, transportation, and
household furnishings and operations.
The Employment Expense Allowance
PARENTS OF DEPENDENT STUDENTS
Number in college
Family size
2
3
4
5
6
1
.......................................................................
.......................................................................
.......................................................................
.......................................................................
.......................................................................
For each additional family member
add $3,890.
2
$16,230
20,210
24,970
29,460
34,460
3
$13,450
17,450
22,190
26,680
31,680
4
5
............................
$14,670
19,430
23,920
28,920
............................
............................
$16,650
21,140
26,140
............................
............................
............................
$18,380
23,380
For each additional college student
subtract $2,760.
The IPAs for independent students
with dependents other than a spouse for
award year 2011–12 are:
INDEPENDENT STUDENTS WITH DEPENDENTS OTHER THAN A SPOUSE
Number in college
Family size
2
3
4
5
6
1
.......................................................................
.......................................................................
.......................................................................
.......................................................................
.......................................................................
For each additional family member
add $5,180.
For each additional college student
subtract $3,690.
The IPAs for single independent
students and independent students
without dependents other than a spouse
for award year 2011–12 are:
2
$21,660
26,960
33,300
39,300
45,950
3
$17,960
23,280
29,600
35,590
42,250
4
5
............................
$19,580
25,920
31,900
38,580
............................
............................
$22,210
28,200
34,860
............................
............................
............................
$24,520
31,190
income produced from these assets is
already assessed in another part of the
formula; and (2) the formula protects a
Single ................
1
$8,550 portion of the value of the assets. The
Married ..............
2
8,550 portion of these assets included in the
Married ..............
1
13,710 contribution calculation is computed
according to the following schedule.
2. Adjusted Net Worth (NW) of a
This schedule is used for parents of
Business or Farm. A portion of the full
dependent students, independent
net value of a business or farm is
students without dependents other than
excluded from the calculation of an
a spouse, and independent students
expected contribution because—(1) The with dependents other than a spouse.
Marital status
Number in
college
IPA
wwoods2 on DSK1DXX6B1PROD with NOTICES
If the net worth of a business or farm is—
Then the adjusted net worth (NW) is—
Less than $1 ............................................................................................................................................
$1 to $115,000 .........................................................................................................................................
$115,001 to $345,000 ..............................................................................................................................
$345,001 to $580,000 ..............................................................................................................................
$580,001 or more .....................................................................................................................................
$0.
$0 + 40% of NW.
$46,000 + 50% of NW over $115,000.
$161,000 + 60% of NW over $345,000.
$302,000 + 100% of NW over $580,000.
3. Education Savings and Asset
Protection Allowance. This allowance
protects a portion of net worth (assets
less debts) from being considered
VerDate Mar<15>2010
15:26 May 26, 2010
Jkt 220001
available for postsecondary educational
expenses. There are three asset
protection allowance tables—one for
parents of dependent students, one for
PO 00000
Frm 00040
Fmt 4703
Sfmt 4703
independent students without
dependents other than a spouse, and
one for independent students with
dependents other than a spouse.
E:\FR\FM\27MYN1.SGM
27MYN1
29746
Federal Register / Vol. 75, No. 102 / Thursday, May 27, 2010 / Notices
DEPENDENT STUDENTS
And they are
Married
If the age of the older parent is
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
Single
Then the education savings and asset protection allowance is—
or less .............................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
or older ...........................................................................................................
0
2,500
5,100
7,600
10,200
12,700
15,300
17,800
20,400
22,900
25,500
28,000
30,600
33,100
35,700
38,200
38,900
39,900
40,900
41,900
42,900
44,000
45,100
46,200
47,400
48,800
50,000
51,200
52,800
54,300
55,600
57,300
58,700
60,400
62,200
64,000
65,800
67,700
70,000
72,000
74,000
0
900
1,800
2,700
3,500
4,400
5,300
6,200
7,100
8,000
8,900
9,800
10,600
11,500
12,400
13,300
13,600
13,900
14,200
14,500
14,900
15,200
15,500
15,900
16,300
16,700
17,100
17,500
18,000
18,400
18,800
19,300
19,800
20,300
20,800
21,400
22,000
22,600
23,200
23,800
24,500
INDEPENDENT STUDENTS WITHOUT DEPENDENTS OTHER THAN A SPOUSE
And they are
Married
wwoods2 on DSK1DXX6B1PROD with NOTICES
If the age of the student is
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
Then the education savings and asset protection allowance is—
or less .............................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
VerDate Mar<15>2010
15:26 May 26, 2010
Jkt 220001
PO 00000
Single
Frm 00041
Fmt 4703
Sfmt 4703
0
2,500
5,100
7,600
10,200
12,700
15,300
17,800
20,400
22,900
25,500
28,000
30,600
33,100
35,700
38,200
38,900
39,900
E:\FR\FM\27MYN1.SGM
27MYN1
0
900
1,800
2,700
3,500
4,400
5,300
6,200
7,100
8,000
8,900
9,800
10,600
11,500
12,400
13,300
13,600
13,900
29747
Federal Register / Vol. 75, No. 102 / Thursday, May 27, 2010 / Notices
INDEPENDENT STUDENTS WITHOUT DEPENDENTS OTHER THAN A SPOUSE—Continued
And they are
Married
If the age of the student is
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
Single
Then the education savings and asset protection allowance is—
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
or older ...........................................................................................................
40,900
41,900
42,900
44,000
45,100
46,200
47,400
48,800
50,000
51,200
52,800
54,300
55,600
57,300
58,700
60,400
62,200
64,000
65,800
67,700
70,000
72,000
74,000
14,200
14,500
14,900
15,200
15,500
15,900
16,300
16,700
17,100
17,500
18,000
18,400
18,800
19,300
19,800
20,300
20,800
21,400
22,000
22,600
23,200
23,800
24,500
INDEPENDENT STUDENTS WITH DEPENDENTS OTHER THAN A SPOUSE
And they are
Married
wwoods2 on DSK1DXX6B1PROD with NOTICES
If the age of the student is
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
Then the education savings and asset protection allowance is—
or less .............................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
VerDate Mar<15>2010
15:26 May 26, 2010
Jkt 220001
PO 00000
Single
Frm 00042
Fmt 4703
Sfmt 4703
0
2,500
5,100
7,600
10,200
12,700
15,300
17,800
20,400
22,900
25,500
28,000
30,600
33,100
35,700
38,200
38,900
39,900
40,900
41,900
42,900
44,000
45,100
46,200
47,400
48,800
50,000
51,200
52,800
54,300
55,600
57,300
58,700
60,400
62,200
E:\FR\FM\27MYN1.SGM
27MYN1
0
900
1,800
2,700
3,500
4,400
5,300
6,200
7,100
8,000
8,900
9,800
10,600
11,500
12,400
13,300
13,600
13,900
14,200
14,500
14,900
15,200
15,500
15,900
16,300
16,700
17,100
17,500
18,000
18,400
18,800
19,300
19,800
20,300
20,800
29748
Federal Register / Vol. 75, No. 102 / Thursday, May 27, 2010 / Notices
INDEPENDENT STUDENTS WITH DEPENDENTS OTHER THAN A SPOUSE—Continued
And they are
Married
If the age of the student is
60
61
62
63
64
65
Single
Then the education savings and asset protection allowance is—
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
or older ...........................................................................................................
4. Assessment Schedules and Rates.
Two schedules that are subject to
updates, one for parents of dependent
students and one for independent
students with dependents other than a
spouse, are used to determine the EFC
toward educational expenses from
64,000
65,800
67,700
70,000
72,000
74,000
family financial resources. For
dependent students, the EFC is derived
from an assessment of the parents’
adjusted available income (AAI). For
independent students with dependents
other than a spouse, the EFC is derived
from an assessment of the family’s AAI.
21,400
22,000
22,600
23,200
23,800
24,500
The AAI represents a measure of a
family’s financial strength, which
considers both income and assets.
The parents’ contribution for a
dependent student is computed
according to the following schedule:
If AAI is—
Then the contribution is—
Less than ¥$3,409 ..................................................................................................................................
($3,409) to $14,500 ..................................................................................................................................
$14,501 to $18,200 ..................................................................................................................................
$18,201 to $21,900 ..................................................................................................................................
$21,901 to $25,600 ..................................................................................................................................
$25,601 to $29,300 ..................................................................................................................................
$29,301 or more .......................................................................................................................................
¥$750.
22% of AAI.
$3,190 + 25%
$4,115 + 29%
$5,188 + 34%
$6,446 + 40%
$7,926 + 47%
The contribution for an independent
student with dependents other than a
of
of
of
of
of
AAI
AAI
AAI
AAI
AAI
over
over
over
over
over
spouse is computed according to the
following schedule:
If AAI is—
Then the contribution is—
Less than ¥$3,409 ..................................................................................................................................
($3,409) to $14,500 ..................................................................................................................................
$14,501 to $18,200 ..................................................................................................................................
$18,201 to $21,900 ..................................................................................................................................
$21,901 to $25,600 ..................................................................................................................................
$25,601 to $29,300 ..................................................................................................................................
$29,301 or more .......................................................................................................................................
¥$750.
22% of AAI.
$3,190 + 25%
$4,115 + 29%
$5,188 + 34%
$6,446 + 40%
$7,926 + 47%
5. Employment Expense Allowance.
This allowance for employment-related
expenses, which is used for the parents
of dependent students and for married
independent students, recognizes
additional expenses incurred by
working spouses and single-parent
households. The allowance is based
upon the marginal differences in costs
for a two-worker family compared to a
one-worker family for food away from
home, apparel, transportation, and
household furnishings and operations.
wwoods2 on DSK1DXX6B1PROD with NOTICES
$14,500.
$18,200.
$21,900.
$25,600.
$29,300.
The employment expense allowance
for parents of dependent students,
married independent students without
dependents other than a spouse, and
independent students with dependents
other than a spouse is the lesser of
$3,500 or 35 percent of earned income.
6. Allowance for State and Other
Taxes. The allowance for State and
other taxes protects a portion of the
parents’ and students’ income from
being considered available for
postsecondary educational expenses.
VerDate Mar<15>2010
15:26 May 26, 2010
Jkt 220001
PO 00000
Frm 00043
$15,000 & Up
(in percent)
3
Fmt 4703
Sfmt 4703
over
over
over
over
over
$14,500.
$18,200.
$21,900.
$25,600.
$29,300.
Dependents and
independents without
dependents other than a
spouse
State
Alabama .......................................................................................
AAI
AAI
AAI
AAI
AAI
There are four categories for State and
other taxes, one each for parents of
dependent students, independent
students with dependents other than a
spouse, dependent students, and
independent students without
dependents other than a spouse. Section
478(g) of the HEA directs the Secretary
to update the tables for State and other
taxes after reviewing the Statistics of
Income file data maintained by the
Internal Revenue Service.
Parents of dependents and independents with
dependents other than a spouse
Under $15,000
(in percent)
of
of
of
of
of
E:\FR\FM\27MYN1.SGM
All
(in percent)
2
27MYN1
2
Federal Register / Vol. 75, No. 102 / Thursday, May 27, 2010 / Notices
Parents of dependents and independents with
dependents other than a spouse
Dependents and
independents without
dependents other than a
spouse
State
Under $15,000
(in percent)
wwoods2 on DSK1DXX6B1PROD with NOTICES
Alaska ..........................................................................................
Arizona .........................................................................................
Arkansas ......................................................................................
California ......................................................................................
Colorado ......................................................................................
Connecticut ..................................................................................
Delaware ......................................................................................
District of Columbia .....................................................................
Florida ..........................................................................................
Georgia ........................................................................................
Hawaii ..........................................................................................
Idaho ............................................................................................
Illinois ...........................................................................................
Indiana .........................................................................................
Iowa .............................................................................................
Kansas .........................................................................................
Kentucky ......................................................................................
Louisiana ......................................................................................
Maine ...........................................................................................
Maryland ......................................................................................
Massachusetts .............................................................................
Michigan .......................................................................................
Minnesota ....................................................................................
Mississippi ....................................................................................
Missouri ........................................................................................
Montana .......................................................................................
Nebraska ......................................................................................
Nevada .........................................................................................
New Hampshire ...........................................................................
New Jersey ..................................................................................
New Mexico .................................................................................
New York .....................................................................................
North Carolina ..............................................................................
North Dakota ................................................................................
Ohio .............................................................................................
Oklahoma .....................................................................................
Oregon .........................................................................................
Pennsylvania ................................................................................
Rhode Island ................................................................................
South Carolina .............................................................................
South Dakota ...............................................................................
Tennessee ...................................................................................
Texas ...........................................................................................
Utah .............................................................................................
Vermont .......................................................................................
Virginia .........................................................................................
Washington ..................................................................................
West Virginia ................................................................................
Wisconsin .....................................................................................
Wyoming ......................................................................................
Other ............................................................................................
Electronic Access to This Document:
You can view this document, as well as
all other documents of this Department
published in the Federal Register, in
text or Adobe Portable Document
Format (PDF) on the Internet at the
following site: https://www.ed.gov/news/
fedregister. To use PDF you must have
Adobe Acrobat Reader, which is
available free at this site.
Note: The official version of this document
is the document published in the Federal
Register. Free Internet access to the official
VerDate Mar<15>2010
15:26 May 26, 2010
Jkt 220001
$15,000 & Up
(in percent)
2
5
4
8
5
7
5
7
4
6
4
5
6
4
5
5
5
3
6
8
6
5
6
3
5
5
5
4
5
10
3
9
6
3
6
4
8
5
7
5
2
2
3
5
6
6
4
3
7
2
3
edition of the Federal Register and the Code
of Federal Regulations is available on GPO
Access at: https://www.gpoaccess.gov/nara/
index.html.
(Catalog of Federal Domestic Assistance
Numbers: 84.063 Federal Pell Grant Program;
84.038 Federal Perkins Loan Program; 84.033
Federal Work-Study Programs; 84.007
Federal Supplemental Educational
Opportunity Grant Program; 84.268 William
D. Ford Federal Direct Loan Program; 84.379
TEACH Grant Program)
Frm 00044
Fmt 4703
Sfmt 9990
All
(in percent)
1
4
3
7
4
6
4
6
3
5
3
4
5
3
4
4
4
2
5
7
5
4
5
2
4
4
4
3
4
9
2
8
5
2
5
3
7
4
6
4
1
1
2
4
5
5
3
2
6
1
2
0
3
3
5
3
4
3
6
1
4
4
4
2
3
3
3
4
2
4
6
4
3
4
2
3
3
3
1
1
5
2
6
4
1
4
3
5
3
4
3
1
1
1
4
3
4
1
2
4
1
2
Dated: May 24, 2010.
William J. Taggart,
Chief Operating Officer, Federal Student Aid.
[FR Doc. 2010–12799 Filed 5–26–10; 8:45 am]
BILLING CODE 4000–01–P
Program Authority: 20 U.S.C. 1087rr.
PO 00000
29749
E:\FR\FM\27MYN1.SGM
27MYN1
]]>Agencies
[Federal Register Volume 75, Number 102 (Thursday, May 27, 2010)]
[Notices]
[Pages 29744-29749]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-12799]
-----------------------------------------------------------------------
DEPARTMENT OF EDUCATION
Federal Pell Grant, Federal Perkins Loan, Federal Work-Study,
Federal Supplemental Educational Opportunity Grant, William D. Ford
Federal Direct Loan, and TEACH Grant Programs
AGENCY: Federal Student Aid, U.S. Department of Education.
ACTION: Notice of revision of the Federal Need Analysis Methodology for
the 2011-2012 award year.
-----------------------------------------------------------------------
SUMMARY: The Secretary announces the annual updates to the tables that
will be used in the statutory ``Federal Need Analysis Methodology'' to
determine a student's expected family contribution (EFC) for award year
2011-2012 for the student financial aid programs authorized under title
IV of the Higher Education Act of 1965, as amended (HEA). An EFC is the
amount a student and his or her family may reasonably be expected to
contribute toward the student's postsecondary educational costs for
purposes of determining financial aid eligibility. The Title IV
programs include the Federal Pell Grant, Federal Perkins Loan, Federal
Work-Study, Federal Supplemental Educational Opportunity Grant, William
D. Ford Federal Direct Loan, and the Teach Grant Programs (Title IV,
HEA Programs).
FOR FURTHER INFORMATION CONTACT: Ms. Marya Dennis, Management and
Program Analyst, U.S. Department of Education, room 63G2, Union Center
Plaza, 830 First Street, NE., Washington, DC 20202-5454. Telephone:
(202) 377-3385.
If you use a telecommunications device for the deaf (TDD), call the
Federal Relay Service (FRS), toll free, at 1-800-877-8339.
Individuals with disabilities can obtain this document in an
accessible format (e.g., braille, large print, audiotape, or computer
diskette) on request to the contact person listed under FOR FURTHER
INFORMATION CONTACT.
SUPPLEMENTARY INFORMATION: Part F of title IV of the HEA specifies the
criteria, data elements, calculations, and tables used in the Federal
Need Analysis Methodology EFC calculations.
Section 478 of part F of title IV of the HEA requires the Secretary
to adjust four of the tables--the Income Protection Allowance, the
Adjusted Net Worth of a Business or Farm, the Education Savings and
Asset Protection Allowance, and the Assessment Schedules and Rates--
each award year for general price inflation. The changes are based, in
general, upon increases in the Consumer Price Index.
For award year 2011-2012, the Secretary is charged with updating
the income protection allowance for parents of dependent students,
adjusted net worth of a business or farm, and the assessment schedules
and rates to account for inflation that took place between December
2009 and December 2010. However, because the Secretary must publish
these tables before December 2010, the increases in the tables must be
based upon a percentage equal to the estimated percentage increase in
the Consumer Price Index for All Urban Consumers (CPI-U) for 2010. The
Secretary must also account for any misestimation of inflation for the
prior year. In developing the table values for the 2010-2011 award
year, the Secretary assumed a 4.1 percent increase in the CPI-U for the
period December 2008 through December 2009. Actual inflation for this
time period was 2.7 percent. The Secretary estimates that the increase
in the CPI-U for the period December 2009 through December 2010 will be
1.2 percent. Last year's overestimate of inflation for 2009 (4.1
percent minus 2.7 percent) exceeds this year's estimate of inflation
for 2010. However, the Secretary lacks statutory authority to reduce
the table values in the need analysis formula. Thus, the income
protection allowance for parents of dependent students, the adjusted
net worth of a business or farm, and the assessment schedules and rates
are unchanged from 2010-2011. Additionally, section 601 of the College
Cost Reduction and Access Act of 2007 (CCRAA, Pub. L. 110-84) amended
sections 475 through 478 of the HEA by updating the procedures for
determining the income protection allowance for dependent students as
well as the income protection allowance tables for both independent
students with dependents other than a spouse and
[[Page 29745]]
independent students without dependents other than a spouse. As amended
by the CCRAA, the HEA established new 2011-2012 award year values for
these income protection allowances. The updated tables are in sections
1, 2, and 4 of this notice.
The Secretary must also revise, for each award year, the education
savings and asset protection allowances as provided for in section
478(d) of the HEA. The Education Savings and Asset Protection Allowance
table for award year 2011-2012 has been updated in section 3 of this
notice. Section 478(h) of the HEA also requires the Secretary to
increase the amount specified for the Employment Expense Allowance,
adjusted for inflation. This calculation is based upon increases in the
Bureau of Labor Statistics budget of the marginal costs for a two-
worker family compared to a one-worker family for food away from home,
apparel, transportation, and household furnishings and operations. The
Employment Expense Allowance table for award year 2011-2012 has been
updated in section 5 of this notice.
The HEA provides for the following annual updates:
1. Income Protection Allowance (IPA). This allowance is the amount
of living expenses associated with the maintenance of an individual or
family that may be offset against the family's income. It varies by
family size. The IPA for the dependent student is $5,250. The IPAs for
parents of dependent students for award year 2011-2012 are:
Parents of Dependent Students
--------------------------------------------------------------------------------------------------------------------------------------------------------
Number in college
---------------------------------------------------------------------------------------------------------------------------------------------------------
Family size 1 2 3 4 5
--------------------------------------------------------------------------------------------------------------------------------------------------------
2............................................................. $16,230 $13,450 ................ ................ ................
3............................................................. 20,210 17,450 $14,670 ................ ................
4............................................................. 24,970 22,190 19,430 $16,650 ................
5............................................................. 29,460 26,680 23,920 21,140 $18,380
6............................................................. 34,460 31,680 28,920 26,140 23,380
--------------------------------------------------------------------------------------------------------------------------------------------------------
For each additional family member add $3,890.
For each additional college student subtract $2,760.
The IPAs for independent students with dependents other than a
spouse for award year 2011-12 are:
Independent Students With Dependents Other Than a Spouse
--------------------------------------------------------------------------------------------------------------------------------------------------------
Number in college
---------------------------------------------------------------------------------------------------------------------------------------------------------
Family size 1 2 3 4 5
--------------------------------------------------------------------------------------------------------------------------------------------------------
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
--------------------------------------------------------------------------------------------------------------------------------------------------------
For each additional family member add $5,180.
For each additional college student subtract $3,690.
The IPAs for single independent students and independent students
without dependents other than a spouse for award year 2011-12 are:
------------------------------------------------------------------------
Number in
Marital status college IPA
------------------------------------------------------------------------
Single........................................ 1 $8,550
Married....................................... 2 8,550
Married....................................... 1 13,710
------------------------------------------------------------------------
2. Adjusted Net Worth (NW) of a Business or Farm. A portion of the
full net value of a business or farm is excluded from the calculation
of an expected contribution because--(1) The income produced from these
assets is already assessed in another part of the formula; and (2) the
formula protects a portion of the value of the assets. The portion of
these assets included in the contribution calculation is computed
according to the following schedule. This schedule is used for parents
of dependent students, independent students without dependents other
than a spouse, and independent students with dependents other than a
spouse.
----------------------------------------------------------------------------------------------------------------
If the net worth of a business or farm is-- Then the adjusted net worth (NW) is--
----------------------------------------------------------------------------------------------------------------
Less than $1................................ $0.
$1 to $115,000.............................. $0 + 40% of NW.
$115,001 to $345,000........................ $46,000 + 50% of NW over $115,000.
$345,001 to $580,000........................ $161,000 + 60% of NW over $345,000.
$580,001 or more............................ $302,000 + 100% of NW over $580,000.
----------------------------------------------------------------------------------------------------------------
3. Education Savings and Asset Protection Allowance. This allowance
protects a portion of net worth (assets less debts) from being
considered available for postsecondary educational expenses. There are
three asset protection allowance tables--one for parents of dependent
students, one for independent students without dependents other than a
spouse, and one for independent students with dependents other than a
spouse.
[[Page 29746]]
Dependent Students
----------------------------------------------------------------------------------------------------------------
And they are
-----------------------------------------------------------
Married Single
----------------------------------------------------------------------------------------------------------------
If the age of the older parent is Then the education savings and asset protection allowance
is--
----------------------------------------------------------------------------------------------------------------
25 or less.......................................... 0 0
26.................................................. 2,500 900
27.................................................. 5,100 1,800
28.................................................. 7,600 2,700
29.................................................. 10,200 3,500
30.................................................. 12,700 4,400
31.................................................. 15,300 5,300
32.................................................. 17,800 6,200
33.................................................. 20,400 7,100
34.................................................. 22,900 8,000
35.................................................. 25,500 8,900
36.................................................. 28,000 9,800
37.................................................. 30,600 10,600
38.................................................. 33,100 11,500
39.................................................. 35,700 12,400
40.................................................. 38,200 13,300
41.................................................. 38,900 13,600
42.................................................. 39,900 13,900
43.................................................. 40,900 14,200
44.................................................. 41,900 14,500
45.................................................. 42,900 14,900
46.................................................. 44,000 15,200
47.................................................. 45,100 15,500
48.................................................. 46,200 15,900
49.................................................. 47,400 16,300
50.................................................. 48,800 16,700
51.................................................. 50,000 17,100
52.................................................. 51,200 17,500
53.................................................. 52,800 18,000
54.................................................. 54,300 18,400
55.................................................. 55,600 18,800
56.................................................. 57,300 19,300
57.................................................. 58,700 19,800
58.................................................. 60,400 20,300
59.................................................. 62,200 20,800
60.................................................. 64,000 21,400
61.................................................. 65,800 22,000
62.................................................. 67,700 22,600
63.................................................. 70,000 23,200
64.................................................. 72,000 23,800
65 or older......................................... 74,000 24,500
----------------------------------------------------------------------------------------------------------------
Independent Students Without Dependents Other Than a Spouse
----------------------------------------------------------------------------------------------------------------
And they are
-----------------------------------------------------------
Married Single
----------------------------------------------------------------------------------------------------------------
If the age of the student is Then the education savings and asset protection allowance
is--
----------------------------------------------------------------------------------------------------------------
25 or less.......................................... 0 0
26.................................................. 2,500 900
27.................................................. 5,100 1,800
28.................................................. 7,600 2,700
29.................................................. 10,200 3,500
30.................................................. 12,700 4,400
31.................................................. 15,300 5,300
32.................................................. 17,800 6,200
33.................................................. 20,400 7,100
34.................................................. 22,900 8,000
35.................................................. 25,500 8,900
36.................................................. 28,000 9,800
37.................................................. 30,600 10,600
38.................................................. 33,100 11,500
39.................................................. 35,700 12,400
40.................................................. 38,200 13,300
41.................................................. 38,900 13,600
42.................................................. 39,900 13,900
[[Page 29747]]
43.................................................. 40,900 14,200
44.................................................. 41,900 14,500
45.................................................. 42,900 14,900
46.................................................. 44,000 15,200
47.................................................. 45,100 15,500
48.................................................. 46,200 15,900
49.................................................. 47,400 16,300
50.................................................. 48,800 16,700
51.................................................. 50,000 17,100
52.................................................. 51,200 17,500
53.................................................. 52,800 18,000
54.................................................. 54,300 18,400
55.................................................. 55,600 18,800
56.................................................. 57,300 19,300
57.................................................. 58,700 19,800
58.................................................. 60,400 20,300
59.................................................. 62,200 20,800
60.................................................. 64,000 21,400
61.................................................. 65,800 22,000
62.................................................. 67,700 22,600
63.................................................. 70,000 23,200
64.................................................. 72,000 23,800
65 or older......................................... 74,000 24,500
----------------------------------------------------------------------------------------------------------------
Independent Students With Dependents Other Than a Spouse
----------------------------------------------------------------------------------------------------------------
And they are
-----------------------------------------------------------
Married Single
----------------------------------------------------------------------------------------------------------------
If the age of the student is Then the education savings and asset protection allowance
is--
----------------------------------------------------------------------------------------------------------------
25 or less.......................................... 0 0
26.................................................. 2,500 900
27.................................................. 5,100 1,800
28.................................................. 7,600 2,700
29.................................................. 10,200 3,500
30.................................................. 12,700 4,400
31.................................................. 15,300 5,300
32.................................................. 17,800 6,200
33.................................................. 20,400 7,100
34.................................................. 22,900 8,000
35.................................................. 25,500 8,900
36.................................................. 28,000 9,800
37.................................................. 30,600 10,600
38.................................................. 33,100 11,500
39.................................................. 35,700 12,400
40.................................................. 38,200 13,300
41.................................................. 38,900 13,600
42.................................................. 39,900 13,900
43.................................................. 40,900 14,200
44.................................................. 41,900 14,500
45.................................................. 42,900 14,900
46.................................................. 44,000 15,200
47.................................................. 45,100 15,500
48.................................................. 46,200 15,900
49.................................................. 47,400 16,300
50.................................................. 48,800 16,700
51.................................................. 50,000 17,100
52.................................................. 51,200 17,500
53.................................................. 52,800 18,000
54.................................................. 54,300 18,400
55.................................................. 55,600 18,800
56.................................................. 57,300 19,300
57.................................................. 58,700 19,800
58.................................................. 60,400 20,300
59.................................................. 62,200 20,800
[[Page 29748]]
60.................................................. 64,000 21,400
61.................................................. 65,800 22,000
62.................................................. 67,700 22,600
63.................................................. 70,000 23,200
64.................................................. 72,000 23,800
65 or older......................................... 74,000 24,500
----------------------------------------------------------------------------------------------------------------
4. Assessment Schedules and Rates. Two schedules that are subject
to updates, one for parents of dependent students and one for
independent students with dependents other than a spouse, are used to
determine the EFC toward educational expenses from family financial
resources. For dependent students, the EFC is derived from an
assessment of the parents' adjusted available income (AAI). For
independent students with dependents other than a spouse, the EFC is
derived from an assessment of the family's AAI. The AAI represents a
measure of a family's financial strength, which considers both income
and assets.
The parents' contribution for a dependent student is computed
according to the following schedule:
----------------------------------------------------------------------------------------------------------------
If AAI is-- Then the contribution is--
----------------------------------------------------------------------------------------------------------------
Less than -$3,409........................... -$750.
($3,409) to $14,500......................... 22% of AAI.
$14,501 to $18,200.......................... $3,190 + 25% of AAI over $14,500.
$18,201 to $21,900.......................... $4,115 + 29% of AAI over $18,200.
$21,901 to $25,600.......................... $5,188 + 34% of AAI over $21,900.
$25,601 to $29,300.......................... $6,446 + 40% of AAI over $25,600.
$29,301 or more............................. $7,926 + 47% of AAI over $29,300.
----------------------------------------------------------------------------------------------------------------
The contribution for an independent student with dependents other
than a spouse is computed according to the following schedule:
----------------------------------------------------------------------------------------------------------------
If AAI is-- Then the contribution is--
----------------------------------------------------------------------------------------------------------------
Less than -$3,409........................... -$750.
($3,409) to $14,500......................... 22% of AAI.
$14,501 to $18,200.......................... $3,190 + 25% of AAI over $14,500.
$18,201 to $21,900.......................... $4,115 + 29% of AAI over $18,200.
$21,901 to $25,600.......................... $5,188 + 34% of AAI over $21,900.
$25,601 to $29,300.......................... $6,446 + 40% of AAI over $25,600.
$29,301 or more............................. $7,926 + 47% of AAI over $29,300.
----------------------------------------------------------------------------------------------------------------
5. Employment Expense Allowance. This allowance for employment-
related expenses, which is used for the parents of dependent students
and for married independent students, recognizes additional expenses
incurred by working spouses and single-parent households. The allowance
is based upon the marginal differences in costs for a two-worker family
compared to a one-worker family for food away from home, apparel,
transportation, and household furnishings and operations.
The employment expense allowance for parents of dependent students,
married independent students without dependents other than a spouse,
and independent students with dependents other than a spouse is the
lesser of $3,500 or 35 percent of earned income.
6. Allowance for State and Other Taxes. The allowance for State and
other taxes protects a portion of the parents' and students' income
from being considered available for postsecondary educational expenses.
There are four categories for State and other taxes, one each for
parents of dependent students, independent students with dependents
other than a spouse, dependent students, and independent students
without dependents other than a spouse. Section 478(g) of the HEA
directs the Secretary to update the tables for State and other taxes
after reviewing the Statistics of Income file data maintained by the
Internal Revenue Service.
----------------------------------------------------------------------------------------------------------------
Parents of dependents and independents with Dependents and
dependents other than a spouse independents without
-------------------------------------------------- dependents other than a
State spouse
Under $15,000 (in $15,000 & Up (in ------------------------
percent) percent) All (in percent)
----------------------------------------------------------------------------------------------------------------
Alabama.............................. 3 2 2
[[Page 29749]]
Alaska............................... 2 1 0
Arizona.............................. 5 4 3
Arkansas............................. 4 3 3
California........................... 8 7 5
Colorado............................. 5 4 3
Connecticut.......................... 7 6 4
Delaware............................. 5 4 3
District of Columbia................. 7 6 6
Florida.............................. 4 3 1
Georgia.............................. 6 5 4
Hawaii............................... 4 3 4
Idaho................................ 5 4 4
Illinois............................. 6 5 2
Indiana.............................. 4 3 3
Iowa................................. 5 4 3
Kansas............................... 5 4 3
Kentucky............................. 5 4 4
Louisiana............................ 3 2 2
Maine................................ 6 5 4
Maryland............................. 8 7 6
Massachusetts........................ 6 5 4
Michigan............................. 5 4 3
Minnesota............................ 6 5 4
Mississippi.......................... 3 2 2
Missouri............................. 5 4 3
Montana.............................. 5 4 3
Nebraska............................. 5 4 3
Nevada............................... 4 3 1
New Hampshire........................ 5 4 1
New Jersey........................... 10 9 5
New Mexico........................... 3 2 2
New York............................. 9 8 6
North Carolina....................... 6 5 4
North Dakota......................... 3 2 1
Ohio................................. 6 5 4
Oklahoma............................. 4 3 3
Oregon............................... 8 7 5
Pennsylvania......................... 5 4 3
Rhode Island......................... 7 6 4
South Carolina....................... 5 4 3
South Dakota......................... 2 1 1
Tennessee............................ 2 1 1
Texas................................ 3 2 1
Utah................................. 5 4 4
Vermont.............................. 6 5 3
Virginia............................. 6 5 4
Washington........................... 4 3 1
West Virginia........................ 3 2 2
Wisconsin............................ 7 6 4
Wyoming.............................. 2 1 1
Other................................ 3 2 2
----------------------------------------------------------------------------------------------------------------
Electronic Access to This Document: You can view this document, as
well as all other documents of this Department published in the Federal
Register, in text or Adobe Portable Document Format (PDF) on the
Internet at the following site: https://www.ed.gov/news/fedregister. To
use PDF you must have Adobe Acrobat Reader, which is available free at
this site.
Note: The official version of this document is the document
published in the Federal Register. Free Internet access to the
official edition of the Federal Register and the Code of Federal
Regulations is available on GPO Access at: https://www.gpoaccess.gov/nara/.
(Catalog of Federal Domestic Assistance Numbers: 84.063 Federal Pell
Grant Program; 84.038 Federal Perkins Loan Program; 84.033 Federal
Work-Study Programs; 84.007 Federal Supplemental Educational
Opportunity Grant Program; 84.268 William D. Ford Federal Direct
Loan Program; 84.379 TEACH Grant Program)
Program Authority: 20 U.S.C. 1087rr.
Dated: May 24, 2010.
William J. Taggart,
Chief Operating Officer, Federal Student Aid.
[FR Doc. 2010-12799 Filed 5-26-10; 8:45 am]
BILLING CODE 4000-01-P
