Federal Need Analysis Methodology for the 2012-2013 Award Year, 30139-30142 [2011-12812]
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Federal Register / Vol. 76, No. 100 / Tuesday, May 24, 2011 / Notices
(FONSI) on May 17, 2011. The Navy’s
EA and NMFS’ FONSI for this action are
available for review at https://
www.nmfs.noaa.gov/pr/permits/
incidental.htm.
Determinations
NMFS has determined that the impact
of conducting the specific activities
described in this notice and in the IHA
request in the specific geographic region
in the Hood Canal, Washington may
result, at worst, in a temporary
modification in behavior (Level B
harassment) of small numbers of marine
mammals. Further, this activity is
expected to result in a negligible impact
on the affected species or stocks of
marine mammals. The provision
requiring that the activity not have an
unmitigable impact on the availability
of the affected species or stock of marine
mammals for subsistence uses is not
implicated for this action.
Authorization
As a result of these determinations,
NMFS has issued an IHA to the Navy to
conduct a pile replacement project in
the Hood Canal from the period of July
16, 2011, through July 15, 2012,
provided the previously mentioned
mitigation, monitoring, and reporting
requirements are incorporated.
Dated: May 17, 2011.
James H. Lecky,
Director, Office of Protected Resources,
National Marine Fisheries Service.
[FR Doc. 2011–12769 Filed 5–23–11; 8:45 am]
BILLING CODE 3510–22–P
DEPARTMENT OF EDUCATION
Federal Need Analysis Methodology
for the 2012–2013 Award Year
Federal Student Aid,
Department of Education.
ACTION: Notice of revision of the Federal
Need Analysis Methodology for the
2012–2013 award year.
jlentini on DSK4TPTVN1PROD with NOTICES
AGENCY:
Overview Information:
[CFDA Numbers 84.063; 84.038; 84.033;
84.007; 84.268; 84.379].
Federal Need Analysis Methodology for
the 2012–2013 award year; Federal Pell
Grant, Federal Perkins Loan, Federal
Work-Study, Federal Supplemental
Educational Opportunity Grant, William
D. Ford Federal Direct Loan, and
TEACH Grant Programs.
SUMMARY: The Secretary announces the
annual updates to the tables that will be
used in the statutory ‘‘Federal Need
Analysis Methodology’’ to determine a
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16:47 May 23, 2011
Jkt 223001
student’s expected family contribution
(EFC) for award year 2012–2013 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 that 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 2012–2013, 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 2010 and December
2011. However, because the Secretary
must publish these tables before
December 2011, 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
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30139
2011. The Secretary must also account
for any misestimation of inflation for the
prior year. In developing the table
values for the 2011–2012 award year,
the Secretary assumed a 1.2 percent
increase in the CPI–U for the period
December 2009 through December 2010.
Actual inflation for this time period was
1.4 percent. The Secretary estimates that
the increase in the CPI–U for the period
December 2010 through December 2011
will be 0.8 percent. 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
independent students without
dependents other than a spouse. As
amended by the CCRAA, the HEA now
includes new 2012–2013 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 2012–2013 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 2012–2013 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 $6,000. The
IPAs for parents of dependent students
for award year 2012–2013 are:
The IPAs for independent students
with dependents other than a spouse for
award year 2012–13 are:
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Federal Register / Vol. 76, No. 100 / Tuesday, May 24, 2011 / Notices
PARENTS OF DEPENDENT STUDENTS
Number in college
Family size
1
2
3
4
5
6
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
2
$16,390
20,410
25,210
29,740
34,790
3
$13,590
17,620
22,400
26,940
31,990
4
5
..................
$14,820
19,620
24,150
29,200
..................
..................
$16,810
21,340
26,390
..................
..................
..................
$18,560
23,600
For each additional family member add $3,930.
For each additional college student subtract $2,790.
INDEPENDENT STUDENTS WITH DEPENDENTS OTHER THAN A SPOUSE
Number in college
Family size
1
2
3
4
5
6
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................
2
$23,630
29,420
36,330
42,870
50,130
3
$19,590
25,400
32,300
38,820
46,100
4
5
..................
$21,360
28,280
34,800
42,090
..................
..................
$24,230
30,770
38,030
..................
..................
..................
$26,750
34,020
For each additional family member add $5,660.
For each additional college student subtract $4,020.
The IPAs for single independent
students and independent students
without dependents other than a spouse
for award year 2012–13 are:
If the Net Worth (NW)
of a
business or farm is—
Then the Adjusted
Net Worth is—
$585,001 or more ......
$304,500 + 100% of
NW over $585,000
jlentini on DSK4TPTVN1PROD with NOTICES
3. Education Savings and Asset
Number in
Marital status
IPA
Protection Allowance. This allowance
college
protects a portion of net worth (assets
Single ....................
1
$9,330 less debts) from being considered
Married ..................
2
9,330 available for postsecondary educational
Married ..................
1
14,960 expenses. There are three asset
protection allowance tables—one for
2. Adjusted Net Worth (NW) of a
parents of dependent students, one for
Business or Farm. A portion of the full
independent students without
net worth (assets less debts) of a
dependents other than a spouse, and
business or farm is excluded from the
one for independent students with
calculation of an expected contribution
dependents other than a spouse.
because—(1) The income produced from
these assets is already assessed in
DEPENDENT STUDENTS
another part of the formula; and (2) the
formula protects a portion of the value
And they are
If the age of the older
of the assets. The portion of these assets
parent is
Married
Single
included in the contribution calculation
is computed according to the following
Then the education
schedule. This schedule is used for
savings and asset
parents of dependent students,
protection
allowindependent students without
ance is—
dependents other than a spouse, and
25 or less ..................
$0
$0
independent students with dependents
26 ..............................
2,400
800
other than a spouse.
If the Net Worth (NW)
of a
business or farm is—
Then the Adjusted
Net Worth is—
Less than $1 ..............
$1 to $115,000 ..........
$115,00 to $350,000
$0
$0 + 40% of NW
$46,000 + 50% of
NW over $115,000
$163,500 + 60% of
NW over $350,000
$350,001 to $585,000
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27
28
29
30
31
32
33
34
35
36
37
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4,900
7,300
9,700
12,200
14,600
17,000
19,500
21,900
24,300
26,800
29,200
Sfmt 4703
1,700
2,500
3,400
4,200
5,100
5,900
6,800
7,600
8,500
9,300
10,200
DEPENDENT STUDENTS—Continued
If the age of the older
parent is
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
..............................
..............................
..............................
..............................
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or older ................
E:\FR\FM\24MYN1.SGM
24MYN1
And they are
Married
31,600
34,100
36,500
37,500
38,400
39,300
40,300
41,300
42,300
43,400
44,400
45,500
46,600
48,000
49,200
50,700
51,900
53,400
54,700
56,300
58,000
59,700
61,400
63,100
65,000
66,800
68,700
71,000
Single
11,000
11,900
12,700
13,000
13,300
13,600
13,900
14,200
14,500
14,900
15,200
15,600
16,000
16,300
16,700
17,100
17,500
17,900
18,500
18,900
19,400
19,900
20,400
20,900
21,500
22,100
22,700
23,300
Federal Register / Vol. 76, No. 100 / Tuesday, May 24, 2011 / Notices
INDEPENDENT STUDENTS WITHOUT
DEPENDENTS OTHER THAN A SPOUSE
If the age of the
student is
And they are
Married
or less ..................
..............................
..............................
..............................
..............................
..............................
..............................
..............................
..............................
..............................
..............................
..............................
..............................
..............................
..............................
..............................
..............................
..............................
..............................
..............................
..............................
..............................
..............................
..............................
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..............................
..............................
..............................
..............................
..............................
..............................
..............................
..............................
..............................
..............................
..............................
..............................
or older ................
If the age of the
student is
Single
Then the education
savings and asset
protection
allowance 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
INDEPENDENT STUDENTS WITH DEPENDENTS
OTHER
THAN
A
SPOUSE—Continued
$0
2,400
4,900
7,300
9,700
12,200
14,600
17,000
19,500
21,900
24,300
26,800
29,200
31,600
34,100
36,500
37,500
38,400
39,300
40,300
41,300
42,300
43,400
44,400
45,500
46,600
48,000
49,200
50,700
51,900
53,400
54,700
56,300
58,000
59,700
61,400
63,100
65,000
66,800
68,700
71,000
$0
800
1,700
2,500
3,400
4,200
5,100
5,900
6,800
7,600
8,500
9,300
10,200
11,000
11,900
12,700
13,000
13,300
13,600
13,900
14,200
14,500
14,900
15,200
15,600
16,000
16,300
16,700
17,100
17,500
17,900
18,500
18,900
19,400
19,900
20,400
20,900
21,500
22,100
22,700
23,300
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
..............................
..............................
..............................
..............................
..............................
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..............................
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..............................
..............................
..............................
..............................
..............................
..............................
..............................
..............................
..............................
..............................
or older ................
And they are
Married
19,500
21,900
24,300
26,800
29,200
31,600
34,100
36,500
37,500
38,400
39,300
40,300
41,300
42,300
43,400
44,400
45,500
46,600
48,000
49,200
50,700
51,900
53,400
54,700
56,300
58,000
59,700
61,400
63,100
65,000
66,800
68,700
71,000
Single
6,800
7,600
8,500
9,300
10,200
11,000
11,900
12,700
13,000
13,300
13,600
13,900
14,200
14,500
14,900
15,200
15,600
16,000
16,300
16,700
17,100
17,500
17,900
18,500
18,900
19,400
19,900
20,400
20,900
21,500
22,100
22,700
23,300
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
independent students with dependents
DEPENDENTS OTHER THAN A SPOUSE other than a spouse, the EFC is derived
from an assessment of the family’s AAI.
And they are
The AAI represents a measure of a
If the age of the
student is
family’s financial strength, which
Married
Single
considers both income and assets.
Parents’ contribution for a dependent
Then the education
savings and asset student is computed according to the
protection
allow- following schedule:
jlentini on DSK4TPTVN1PROD with NOTICES
ance is—
25
26
27
28
29
30
31
32
or less ..................
..............................
..............................
..............................
..............................
..............................
..............................
..............................
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$0
2,400
4,900
7,300
9,700
12,200
14,600
17,000
16:47 May 23, 2011
$0
800
1,700
2,500
3,400
4,200
5,100
5,900
Jkt 223001
If AAI is—
Then the contribution
is—
Less than ¥$3,409 ...
($3,409) to $14,600 ...
$14,601 to $18,400 ...
¥$750
22% of AAI
$3,212 + 25% of AAI
over $14,600
$4,162 + 29% of AAI
over $18,400
$18,401 to $22,100 ...
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30141
If AAI is—
Then the contribution
is—
$22,101 to $25,900 ...
$5,235 + 34% of AAI
over $22,100
$6,527 + 40% of AAI
over $25,900
$8,007 + 47% of AAI
over $29,600
$25,901 to $29,600 ...
$29,601 or more ........
The contribution for an independent
student with dependents other than a
spouse is computed according to the
following schedule:
If AAI is—
Less than ¥$3,409 ...
($3,409) to $14,600 ...
$14,601 to $18,400 ...
$18,401 to $22,100 ...
$22,101 to $25,900 ...
$25,901 to $29,600 ...
$29,601 or more ........
Then the contribution
is—
¥$750
22% of AAI
$3,212 + 25% of
over $14,600
$4,162 + 29% of
over $18,400
$5,235 + 34% of
over $22,100
$6,527 + 40% of
over $25,900
$8,007 + 47% of
over $29,600
AAI
AAI
AAI
AAI
AAI
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
$3,600 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.
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30142
Federal Register / Vol. 76, No. 100 / Tuesday, May 24, 2011 / Notices
Parents of dependents and independents with dependents other
than a spouse
State
Percent of total income
Dependents
and independents without dependents other
than a spouse
Under $15,000
$15,000 & up
All (%)
3
2
5
4
8
5
8
5
8
4
6
5
5
5
4
5
5
6
4
6
9
7
5
7
3
5
5
5
3
5
9
3
10
6
3
6
4
8
6
7
5
2
2
3
5
6
6
4
3
8
2
3
2
1
4
3
7
4
7
4
7
3
5
4
4
4
3
4
4
5
3
5
8
6
4
6
2
4
4
4
2
4
8
2
9
5
2
5
3
7
5
6
4
1
1
2
4
5
5
3
2
7
1
2
2
0
3
3
5
3
5
4
6
1
4
4
4
2
3
3
3
4
2
4
6
4
3
5
2
3
3
3
1
1
5
2
7
4
1
4
3
5
3
4
4
1
1
1
4
3
4
1
3
4
1
3
jlentini on DSK4TPTVN1PROD with NOTICES
Alabama .................................................................................................................................
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 ......................................................................................................................................
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Note: The official version of this document
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VerDate Mar<15>2010
16:47 May 23, 2011
Jkt 223001
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.
(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)
PO 00000
Frm 00055
Fmt 4703
Sfmt 9990
Program Authority: 20 U.S.C. 1087rr.
Dated: May 19, 2011.
James Runcie,
Deputy Chief Operating Officer, Federal
Student Aid.
[FR Doc. 2011–12812 Filed 5–23–11; 8:45 am]
BILLING CODE 4000–01–P
E:\FR\FM\24MYN1.SGM
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]]>Agencies
[Federal Register Volume 76, Number 100 (Tuesday, May 24, 2011)]
[Notices]
[Pages 30139-30142]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-12812]
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DEPARTMENT OF EDUCATION
Federal Need Analysis Methodology for the 2012-2013 Award Year
AGENCY: Federal Student Aid, Department of Education.
ACTION: Notice of revision of the Federal Need Analysis Methodology for
the 2012-2013 award year.
-----------------------------------------------------------------------
Overview Information:
[CFDA Numbers 84.063; 84.038; 84.033; 84.007; 84.268; 84.379].
Federal Need Analysis Methodology for the 2012-2013 award year; Federal
Pell Grant, Federal Perkins Loan, Federal Work-Study, Federal
Supplemental Educational Opportunity Grant, William D. Ford Federal
Direct Loan, and TEACH Grant Programs.
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
2012-2013 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 that 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 2012-2013, 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
2010 and December 2011. However, because the Secretary must publish
these tables before December 2011, 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 2011. The
Secretary must also account for any misestimation of inflation for the
prior year. In developing the table values for the 2011-2012 award
year, the Secretary assumed a 1.2 percent increase in the CPI-U for the
period December 2009 through December 2010. Actual inflation for this
time period was 1.4 percent. The Secretary estimates that the increase
in the CPI-U for the period December 2010 through December 2011 will be
0.8 percent. 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 independent students without
dependents other than a spouse. As amended by the CCRAA, the HEA now
includes new 2012-2013 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 2012-2013 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 2012-2013 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 $6,000. The IPAs for
parents of dependent students for award year 2012-2013 are:
The IPAs for independent students with dependents other than a
spouse for award year 2012-13 are:
[[Page 30140]]
Parents of Dependent Students
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Number in college
Family size -----------------------------------------------------------
1 2 3 4 5
----------------------------------------------------------------------------------------------------------------
2................................................... $16,390 $13,590 .......... .......... ..........
3................................................... 20,410 17,620 $14,820 .......... ..........
4................................................... 25,210 22,400 19,620 $16,810 ..........
5................................................... 29,740 26,940 24,150 21,340 $18,560
6................................................... 34,790 31,990 29,200 26,390 23,600
----------------------------------------------------------------------------------------------------------------
For each additional family member add $3,930.
For each additional college student subtract $2,790.
Independent Students With Dependents Other Than a Spouse
----------------------------------------------------------------------------------------------------------------
Number in college
Family size -----------------------------------------------------------
1 2 3 4 5
----------------------------------------------------------------------------------------------------------------
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
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For each additional family member add $5,660.
For each additional college student subtract $4,020.
The IPAs for single independent students and independent students
without dependents other than a spouse for award year 2012-13 are:
------------------------------------------------------------------------
Number in
Marital status college IPA
------------------------------------------------------------------------
Single.......................................... 1 $9,330
Married......................................... 2 9,330
Married......................................... 1 14,960
------------------------------------------------------------------------
2. Adjusted Net Worth (NW) of a Business or Farm. A portion of the
full net worth (assets less debts) 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 (NW) of a business or Then the Adjusted Net Worth
farm is-- is--
------------------------------------------------------------------------
Less than $1.............................. $0
$1 to $115,000............................ $0 + 40% of NW
$115,00 to $350,000....................... $46,000 + 50% of NW over
$115,000
$350,001 to $585,000...................... $163,500 + 60% of NW over
$350,000
$585,001 or more.......................... $304,500 + 100% of NW over
$585,000
------------------------------------------------------------------------
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.
Dependent Students
------------------------------------------------------------------------
And they are
If the age of the older parent is ---------------------
Married Single
------------------------------------------------------------------------
Then the education
savings and asset
protection allowance
is--
------------------------------------------------------------------------
25 or less........................................ $0 $0
26................................................ 2,400 800
27................................................ 4,900 1,700
28................................................ 7,300 2,500
29................................................ 9,700 3,400
30................................................ 12,200 4,200
31................................................ 14,600 5,100
32................................................ 17,000 5,900
33................................................ 19,500 6,800
34................................................ 21,900 7,600
35................................................ 24,300 8,500
36................................................ 26,800 9,300
37................................................ 29,200 10,200
38................................................ 31,600 11,000
39................................................ 34,100 11,900
40................................................ 36,500 12,700
41................................................ 37,500 13,000
42................................................ 38,400 13,300
43................................................ 39,300 13,600
44................................................ 40,300 13,900
45................................................ 41,300 14,200
46................................................ 42,300 14,500
47................................................ 43,400 14,900
48................................................ 44,400 15,200
49................................................ 45,500 15,600
50................................................ 46,600 16,000
51................................................ 48,000 16,300
52................................................ 49,200 16,700
53................................................ 50,700 17,100
54................................................ 51,900 17,500
55................................................ 53,400 17,900
56................................................ 54,700 18,500
57................................................ 56,300 18,900
58................................................ 58,000 19,400
59................................................ 59,700 19,900
60................................................ 61,400 20,400
61................................................ 63,100 20,900
62................................................ 65,000 21,500
63................................................ 66,800 22,100
64................................................ 68,700 22,700
65 or older....................................... 71,000 23,300
------------------------------------------------------------------------
[[Page 30141]]
Independent Students Without Dependents Other Than a Spouse
------------------------------------------------------------------------
And they are
If the age of the student is ---------------------
Married Single
------------------------------------------------------------------------
Then the education
savings and asset
protection allowance
is--
------------------------------------------------------------------------
25 or less........................................ $0 $0
26................................................ 2,400 800
27................................................ 4,900 1,700
28................................................ 7,300 2,500
29................................................ 9,700 3,400
30................................................ 12,200 4,200
31................................................ 14,600 5,100
32................................................ 17,000 5,900
33................................................ 19,500 6,800
34................................................ 21,900 7,600
35................................................ 24,300 8,500
36................................................ 26,800 9,300
37................................................ 29,200 10,200
38................................................ 31,600 11,000
39................................................ 34,100 11,900
40................................................ 36,500 12,700
41................................................ 37,500 13,000
42................................................ 38,400 13,300
43................................................ 39,300 13,600
44................................................ 40,300 13,900
45................................................ 41,300 14,200
46................................................ 42,300 14,500
47................................................ 43,400 14,900
48................................................ 44,400 15,200
49................................................ 45,500 15,600
50................................................ 46,600 16,000
51................................................ 48,000 16,300
52................................................ 49,200 16,700
53................................................ 50,700 17,100
54................................................ 51,900 17,500
55................................................ 53,400 17,900
56................................................ 54,700 18,500
57................................................ 56,300 18,900
58................................................ 58,000 19,400
59................................................ 59,700 19,900
60................................................ 61,400 20,400
61................................................ 63,100 20,900
62................................................ 65,000 21,500
63................................................ 66,800 22,100
64................................................ 68,700 22,700
65 or older....................................... 71,000 23,300
------------------------------------------------------------------------
Independent Students With Dependents Other Than a Spouse
------------------------------------------------------------------------
And they are
If the age of the student is ---------------------
Married Single
------------------------------------------------------------------------
Then the education
savings and asset
protection allowance
is--
------------------------------------------------------------------------
25 or less........................................ $0 $0
26................................................ 2,400 800
27................................................ 4,900 1,700
28................................................ 7,300 2,500
29................................................ 9,700 3,400
30................................................ 12,200 4,200
31................................................ 14,600 5,100
32................................................ 17,000 5,900
33................................................ 19,500 6,800
34................................................ 21,900 7,600
35................................................ 24,300 8,500
36................................................ 26,800 9,300
37................................................ 29,200 10,200
38................................................ 31,600 11,000
39................................................ 34,100 11,900
40................................................ 36,500 12,700
41................................................ 37,500 13,000
42................................................ 38,400 13,300
43................................................ 39,300 13,600
44................................................ 40,300 13,900
45................................................ 41,300 14,200
46................................................ 42,300 14,500
47................................................ 43,400 14,900
48................................................ 44,400 15,200
49................................................ 45,500 15,600
50................................................ 46,600 16,000
51................................................ 48,000 16,300
52................................................ 49,200 16,700
53................................................ 50,700 17,100
54................................................ 51,900 17,500
55................................................ 53,400 17,900
56................................................ 54,700 18,500
57................................................ 56,300 18,900
58................................................ 58,000 19,400
59................................................ 59,700 19,900
60................................................ 61,400 20,400
61................................................ 63,100 20,900
62................................................ 65,000 21,500
63................................................ 66,800 22,100
64................................................ 68,700 22,700
65 or older....................................... 71,000 23,300
------------------------------------------------------------------------
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.
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 $14,600....................... 22% of AAI
$14,601 to $18,400........................ $3,212 + 25% of AAI over
$14,600
$18,401 to $22,100........................ $4,162 + 29% of AAI over
$18,400
$22,101 to $25,900........................ $5,235 + 34% of AAI over
$22,100
$25,901 to $29,600........................ $6,527 + 40% of AAI over
$25,900
$29,601 or more........................... $8,007 + 47% of AAI over
$29,600
------------------------------------------------------------------------
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 $14,600....................... 22% of AAI
$14,601 to $18,400........................ $3,212 + 25% of AAI over
$14,600
$18,401 to $22,100........................ $4,162 + 29% of AAI over
$18,400
$22,101 to $25,900........................ $5,235 + 34% of AAI over
$22,100
$25,901 to $29,600........................ $6,527 + 40% of AAI over
$25,900
$29,601 or more........................... $8,007 + 47% of AAI over
$29,600
------------------------------------------------------------------------
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 $3,600 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.
[[Page 30142]]
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Parents of dependents and Dependents and
independents with dependents other independents
than a spouse without
State ------------------------------------ dependents other
Percent of total income than a spouse
-----------------------------------------------------
Under $15,000 $15,000 & up All (%)
----------------------------------------------------------------------------------------------------------------
Alabama................................................... 3 2 2
Alaska.................................................... 2 1 0
Arizona................................................... 5 4 3
Arkansas.................................................. 4 3 3
California................................................ 8 7 5
Colorado.................................................. 5 4 3
Connecticut............................................... 8 7 5
Delaware.................................................. 5 4 4
District of Columbia...................................... 8 7 6
Florida................................................... 4 3 1
Georgia................................................... 6 5 4
Hawaii.................................................... 5 4 4
Idaho..................................................... 5 4 4
Illinois.................................................. 5 4 2
Indiana................................................... 4 3 3
Iowa...................................................... 5 4 3
Kansas.................................................... 5 4 3
Kentucky.................................................. 6 5 4
Louisiana................................................. 4 3 2
Maine..................................................... 6 5 4
Maryland.................................................. 9 8 6
Massachusetts............................................. 7 6 4
Michigan.................................................. 5 4 3
Minnesota................................................. 7 6 5
Mississippi............................................... 3 2 2
Missouri.................................................. 5 4 3
Montana................................................... 5 4 3
Nebraska.................................................. 5 4 3
Nevada.................................................... 3 2 1
New Hampshire............................................. 5 4 1
New Jersey................................................ 9 8 5
New Mexico................................................ 3 2 2
New York.................................................. 10 9 7
North Carolina............................................ 6 5 4
North Dakota.............................................. 3 2 1
Ohio...................................................... 6 5 4
Oklahoma.................................................. 4 3 3
Oregon.................................................... 8 7 5
Pennsylvania.............................................. 6 5 3
Rhode Island.............................................. 7 6 4
South Carolina............................................ 5 4 4
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 3
Wisconsin................................................. 8 7 4
Wyoming................................................... 2 1 1
Other..................................................... 3 2 3
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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 19, 2011.
James Runcie,
Deputy Chief Operating Officer, Federal Student Aid.
[FR Doc. 2011-12812 Filed 5-23-11; 8:45 am]
BILLING CODE 4000-01-P
