Federal Need Analysis Methodology for the 2013-2014 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, 31600-31605 [2012-12939]
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31600
Federal Register / Vol. 77, No. 103 / Tuesday, May 29, 2012 / Notices
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Michael Yudin,
Deputy Assistant Secretary for Policy and
Strategic Initiatives, Delegated Authority To
Perform the Functions and Duties of the
Assistant Secretary for Elementary and
Secondary Education.
[FR Doc. 2012–12835 Filed 5–25–12; 8:45 am]
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Correction
In notice document 2012–12278
appearing on pages 29989 through
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2012 make the following correction:
On page 29989, in the second column,
under the heading ‘‘Deadline for
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‘‘September 3, 2012’’ should read
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[FR Doc. C1–2012–12278 Filed 5–25–12; 8:45 am]
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DEPARTMENT OF EDUCATION
Federal Need Analysis Methodology
for the 2013–2014 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
Federal Student Aid,
Department of Education.
ACTION: Notice.
AGENCY:
Overview Information: Catalog of
Federal Domestic Assistance (CFDA)
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.
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 2013–2014 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) or a text
telephone (TTY), call the Federal Relay
Service (FRS), toll free, at 1–800–877–
8339.
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
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Sfmt 4703
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 (CPI).
For award year 2013–2014, 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 2011 and December
2012. However, because the Secretary
must publish these tables before
December 2012, 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
2012. The Secretary must also account
for any misestimation of inflation for the
prior year. In developing the table
values for the 2012–13 award year, the
Secretary assumed a 0.8 percent
increase in the CPI–U for the period
December 2010 through December 2011.
Actual inflation for this time period was
2.9 percent. The Secretary estimates that
the increase in the CPI–U for the period
December 2011 through December 2012
will be 2.2 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 2013–2014 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 2013–2014 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
E:\FR\FM\29MYN1.SGM
29MYN1
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Federal Register / Vol. 77, No. 103 / Tuesday, May 29, 2012 / Notices
table for award year 2013–2014 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 $6,130. The
IPAs for parents of dependent students
for award year 2013–2014 are:
PARENTS OF DEPENDENT STUDENTS
Number in college
Family size
1
2
3
4
5
6
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
For each additional family member
add $4,100.
2
$17,100
21,290
26,290
31,020
36,290
3
$14,170
18,380
23,370
28,100
33,360
For each additional college student
subtract $2,910.
4
5
....................
15,450
20,460
25,190
30,450
....................
....................
17,530
22,260
27,530
....................
....................
....................
19,350
24,620
The IPAs for independent students
with dependents other than a spouse for
award year 2013–14 are:
INDEPENDENT STUDENTS WITH DEPENDENTS OTHER THAN A SPOUSE
Number in college
Family size
1
2
3
4
5
6
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
2
$24,150
30,070
37,130
43,810
51,230
$20,020
25,960
33,010
39,670
47,110
The IPAs for single independent
students and independent students
For each additional family member
add $5,780.
For each additional college student
subtract $4,110.
3
4
5
....................
21,830
28,900
35,570
43,020
....................
....................
24,760
31,450
38,870
....................
....................
....................
27,340
34,770
without dependents other than a spouse
for award year 2013–14 are:
Number in college
Marital status
Single .......................................................................................................................................................................
Married .....................................................................................................................................................................
Married .....................................................................................................................................................................
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
$9,540
9,540
15,290
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 farm is—
Then the adjusted net worth is—
Less than $1 .............................................................................................
$1 to $120,000 .........................................................................................
$120,001 to $365,000 ..............................................................................
$365,001 to $610,000 ..............................................................................
$610,001 or more .....................................................................................
srobinson on DSK4SPTVN1PROD with NOTICES
1
2
1
IPA
$0.
0 + 40% of NW.
48,000 + 50% of NW over $120,000.
170,500 + 60% of NW over $365,000.
317,500 + 100% of NW over $610,000.
3. Education Savings and Asset
Protection Allowance. This allowance
protects a portion of net worth (assets
less debts) from being considered
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available for postsecondary educational
expenses. There are three asset
protection allowance tables—one for
parents of dependent students, one for
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independent students without
dependents other than a spouse, and
one for independent students with
dependents other than a spouse.
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Federal Register / Vol. 77, No. 103 / Tuesday, May 29, 2012 / Notices
PARENTS OF 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
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
or less .................................................................................................................................
.............................................................................................................................................
.............................................................................................................................................
.............................................................................................................................................
.............................................................................................................................................
.............................................................................................................................................
.............................................................................................................................................
.............................................................................................................................................
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.............................................................................................................................................
.............................................................................................................................................
.............................................................................................................................................
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.............................................................................................................................................
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.............................................................................................................................................
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.............................................................................................................................................
.............................................................................................................................................
.............................................................................................................................................
.............................................................................................................................................
.............................................................................................................................................
.............................................................................................................................................
.............................................................................................................................................
.............................................................................................................................................
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.............................................................................................................................................
.............................................................................................................................................
.............................................................................................................................................
.............................................................................................................................................
.............................................................................................................................................
.............................................................................................................................................
.............................................................................................................................................
or older ...............................................................................................................................
0
2,100
4,300
6,400
8,600
10,700
12,800
15,000
17,100
19,300
21,400
23,500
25,700
27,800
30,000
32,100
32,900
33,700
34,500
35,400
36,200
37,100
38,000
39,000
39,900
40,900
42,100
43,100
44,200
45,500
46,800
47,900
49,300
50,800
52,200
53,500
55,000
56,900
58,500
60,100
61,800
0
600
1,300
1,900
2,500
3,200
3,800
4,400
5,100
5,700
6,300
7,000
7,600
8,200
8,900
9,500
9,700
9,900
10,100
10,300
10,600
10,800
11,100
11,300
11,600
11,900
12,200
12,500
12,800
13,100
13,400
13,700
14,100
14,400
14,800
15,100
15,600
16,000
16,400
16,900
17,400
INDEPENDENT STUDENTS WITHOUT DEPENDENTS OTHER THAN A SPOUSE
srobinson on DSK4SPTVN1PROD with NOTICES
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
or less .................................................................................................................................
.............................................................................................................................................
.............................................................................................................................................
.............................................................................................................................................
.............................................................................................................................................
.............................................................................................................................................
.............................................................................................................................................
.............................................................................................................................................
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0
2,100
4,300
6,400
8,600
10,700
12,800
15,000
17,100
19,300
21,400
23,500
25,700
27,800
30,000
32,100
32,900
33,700
34,500
35,400
29MYN1
0
600
1,300
1,900
2,500
3,200
3,800
4,400
5,100
5,700
6,300
7,000
7,600
8,200
8,900
9,500
9,700
9,900
10,100
10,300
31603
Federal Register / Vol. 77, No. 103 / Tuesday, May 29, 2012 / Notices
INDEPENDENT STUDENTS WITHOUT DEPENDENTS OTHER THAN A SPOUSE—Continued
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 ...............................................................................................................................
36,200
37,100
38,000
39,000
39,900
40,900
42,100
43,100
44,200
45,500
46,800
47,900
49,300
50,800
52,200
53,500
55,000
56,900
58,500
60,100
61,800
10,600
10,800
11,100
11,300
11,600
11,900
12,200
12,500
12,800
13,100
13,400
13,700
14,100
14,400
14,800
15,100
15,600
16,000
16,400
16,900
17,400
INDEPENDENT STUDENTS WITH DEPENDENTS OTHER THAN A SPOUSE
And they are
If the age of the older student is
Married
Single
srobinson on DSK4SPTVN1PROD with NOTICES
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
or less .................................................................................................................................
.............................................................................................................................................
.............................................................................................................................................
.............................................................................................................................................
.............................................................................................................................................
.............................................................................................................................................
.............................................................................................................................................
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0
2,100
4,300
6,400
8,600
10,700
12,800
15,000
17,100
19,300
21,400
23,500
25,700
27,800
30,000
32,100
32,900
33,700
34,500
35,400
36,200
37,100
38,000
39,000
39,900
40,900
42,100
43,100
44,200
45,500
46,800
47,900
49,300
50,800
52,200
53,500
55,000
56,900
58,500
60,100
29MYN1
0
600
1,300
1,900
2,500
3,200
3,800
4,400
5,100
5,700
6,300
7,000
7,600
8,200
8,900
9,500
9,700
9,900
10,100
10,300
10,600
10,800
11,100
11,300
11,600
11,900
12,200
12,500
12,800
13,100
13,400
13,700
14,100
14,400
14,800
15,100
15,600
16,000
16,400
16,900
31604
Federal Register / Vol. 77, No. 103 / Tuesday, May 29, 2012 / Notices
INDEPENDENT STUDENTS WITH DEPENDENTS OTHER THAN A SPOUSE—Continued
And they are
If the age of the older student is
Married
Single
Then the education savings and asset protection allowance is—
65 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
61,800
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.
17,400
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 ..................................................................................
($3,409) to $15,300 ..................................................................................
$15,301 to $19,200 ..................................................................................
$19,201 to $23,100 ..................................................................................
$23,101 to $27,000 ..................................................................................
$27,001 to $30,900 ..................................................................................
$30,901 or more .......................................................................................
¥$750
22% of AAI
$3,366 + 25%
$4,341 + 29%
$5,472 + 34%
$6,798 + 40%
$8,358 + 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
$15,300
$19,200
$23,100
$27,000
$30,900
spouse is computed according to the
following schedule:
If AAI is—
Then the contribution is—
Less than ¥$3,409 ..................................................................................
($3,409) to $15,300 ..................................................................................
$15,301 to $19,200 ..................................................................................
$19,201 to $23,100 ..................................................................................
$23,101 to $27,000 ..................................................................................
$27,001 to $30,900 ..................................................................................
$30,901 or more .......................................................................................
¥$750
22% of AAI
$3,366 + 25%
$4,341 + 29%
$5,472 + 34%
$6,798 + 40%
$8,358 + 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.
of
of
of
of
of
AAI
AAI
AAI
AAI
AAI
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
$3,900 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.
over
over
over
over
over
$15,300
$19,200
$23,100
$27,000
$30,900
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
srobinson on DSK4SPTVN1PROD with NOTICES
State
Percent of total income
Under $15,000
Alabama ...........................................................................................................................
Alaska ..............................................................................................................................
Arizona .............................................................................................................................
Arkansas ..........................................................................................................................
California ..........................................................................................................................
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$15,000 & Up
3
2
4
4
8
E:\FR\FM\29MYN1.SGM
All
2
1
3
3
7
29MYN1
Dependents and
independents
without dependents other than a
spouse
2
0
2
3
5
31605
Federal Register / Vol. 77, No. 103 / Tuesday, May 29, 2012 / Notices
Parents of dependents and
independents with dependents other
than a spouse
State
Percent of total income
Under $15,000
srobinson on DSK4SPTVN1PROD with NOTICES
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 ................................................................................................................................
Accessible Format: Individuals with
disabilities can obtain this document in
an accessible format (e.g., braille, large
print, audiotape, or compact disc) on
request to the contact person listed
under FOR FURTHER INFORMATION
CONTACT in this section.
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is the document published in the
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the official edition of the Federal
Register and the Code of Federal
Regulations is available via the Federal
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At this site you can view this document,
as well as all other documents of this
VerDate Mar<15>2010
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Jkt 226001
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Program Authority: 20 U.S.C. 1087rr.
PO 00000
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Dated: May 23, 2012.
James W. Runcie,
Chief Operating Officer, Federal Student Aid.
[FR Doc. 2012–12939 Filed 5–25–12; 8:45 am]
BILLING CODE 4000–01–P
DEPARTMENT OF EDUCATION
Equity and Excellence Commission
Office for Civil Rights, U.S.
Department of Education.
ACTION: Notice of an open meeting.
AGENCY:
This notice sets forth the
schedule and proposed agenda of an up-
SUMMARY:
E:\FR\FM\29MYN1.SGM
29MYN1
Agencies
[Federal Register Volume 77, Number 103 (Tuesday, May 29, 2012)]
[Notices]
[Pages 31600-31605]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-12939]
-----------------------------------------------------------------------
DEPARTMENT OF EDUCATION
Federal Need Analysis Methodology for the 2013-2014 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
AGENCY: Federal Student Aid, Department of Education.
ACTION: Notice.
-----------------------------------------------------------------------
Overview Information: Catalog of Federal Domestic Assistance (CFDA)
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.
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
2013-2014 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) or a text
telephone (TTY), call the Federal Relay Service (FRS), toll free, at 1-
800-877-8339.
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 (CPI).
For award year 2013-2014, 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
2011 and December 2012. However, because the Secretary must publish
these tables before December 2012, 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 2012. The
Secretary must also account for any misestimation of inflation for the
prior year. In developing the table values for the 2012-13 award year,
the Secretary assumed a 0.8 percent increase in the CPI-U for the
period December 2010 through December 2011. Actual inflation for this
time period was 2.9 percent. The Secretary estimates that the increase
in the CPI-U for the period December 2011 through December 2012 will be
2.2 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 2013-2014 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 2013-2014 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
[[Page 31601]]
table for award year 2013-2014 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 $6,130. The IPAs for
parents of dependent students for award year 2013-2014 are:
Parents of Dependent Students
----------------------------------------------------------------------------------------------------------------
Number in college
Family size ----------------------------------------------------------------
1 2 3 4 5
----------------------------------------------------------------------------------------------------------------
2.............................................. $17,100 $14,170 ........... ........... ...........
3.............................................. 21,290 18,380 15,450 ........... ...........
4.............................................. 26,290 23,370 20,460 17,530 ...........
5.............................................. 31,020 28,100 25,190 22,260 19,350
6.............................................. 36,290 33,360 30,450 27,530 24,620
----------------------------------------------------------------------------------------------------------------
For each additional family member add $4,100.
For each additional college student subtract $2,910.
The IPAs for independent students with dependents other than a
spouse for award year 2013-14 are:
Independent Students With Dependents Other Than a Spouse
----------------------------------------------------------------------------------------------------------------
Number in college
Family size ----------------------------------------------------------------
1 2 3 4 5
----------------------------------------------------------------------------------------------------------------
2.............................................. $24,150 $20,020 ........... ........... ...........
3.............................................. 30,070 25,960 21,830 ........... ...........
4.............................................. 37,130 33,010 28,900 24,760 ...........
5.............................................. 43,810 39,670 35,570 31,450 27,340
6.............................................. 51,230 47,110 43,020 38,870 34,770
----------------------------------------------------------------------------------------------------------------
For each additional family member add $5,780.
For each additional college student subtract $4,110.
The IPAs for single independent students and independent students
without dependents other than a spouse for award year 2013-14 are:
------------------------------------------------------------------------
Number in
Marital status college IPA
------------------------------------------------------------------------
Single.................................. 1 $9,540
Married................................. 2 9,540
Married................................. 1 15,290
------------------------------------------------------------------------
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 is--
farm is--
------------------------------------------------------------------------
Less than $1........................... $0.
$1 to $120,000......................... 0 + 40% of NW.
$120,001 to $365,000................... 48,000 + 50% of NW over
$120,000.
$365,001 to $610,000................... 170,500 + 60% of NW over
$365,000.
$610,001 or more....................... 317,500 + 100% of NW over
$610,000.
------------------------------------------------------------------------
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 31602]]
Parents of 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............................................................ 2,100 600
27............................................................ 4,300 1,300
28............................................................ 6,400 1,900
29............................................................ 8,600 2,500
30............................................................ 10,700 3,200
31............................................................ 12,800 3,800
32............................................................ 15,000 4,400
33............................................................ 17,100 5,100
34............................................................ 19,300 5,700
35............................................................ 21,400 6,300
36............................................................ 23,500 7,000
37............................................................ 25,700 7,600
38............................................................ 27,800 8,200
39............................................................ 30,000 8,900
40............................................................ 32,100 9,500
41............................................................ 32,900 9,700
42............................................................ 33,700 9,900
43............................................................ 34,500 10,100
44............................................................ 35,400 10,300
45............................................................ 36,200 10,600
46............................................................ 37,100 10,800
47............................................................ 38,000 11,100
48............................................................ 39,000 11,300
49............................................................ 39,900 11,600
50............................................................ 40,900 11,900
51............................................................ 42,100 12,200
52............................................................ 43,100 12,500
53............................................................ 44,200 12,800
54............................................................ 45,500 13,100
55............................................................ 46,800 13,400
56............................................................ 47,900 13,700
57............................................................ 49,300 14,100
58............................................................ 50,800 14,400
59............................................................ 52,200 14,800
60............................................................ 53,500 15,100
61............................................................ 55,000 15,600
62............................................................ 56,900 16,000
63............................................................ 58,500 16,400
64............................................................ 60,100 16,900
65 or older................................................... 61,800 17,400
----------------------------------------------------------------------------------------------------------------
Independent Students Without Dependents Other Than a Spouse
----------------------------------------------------------------------------------------------------------------
And they are
If the age of the older student is -------------------------------------------------
Married Single
----------------------------------------------------------------------------------------------------------------
Then the education savings and asset protection
allowance is--
----------------------------------------------------------------------------------------------------------------
25 or less.................................................... 0 0
26............................................................ 2,100 600
27............................................................ 4,300 1,300
28............................................................ 6,400 1,900
29............................................................ 8,600 2,500
30............................................................ 10,700 3,200
31............................................................ 12,800 3,800
32............................................................ 15,000 4,400
33............................................................ 17,100 5,100
34............................................................ 19,300 5,700
35............................................................ 21,400 6,300
36............................................................ 23,500 7,000
37............................................................ 25,700 7,600
38............................................................ 27,800 8,200
39............................................................ 30,000 8,900
40............................................................ 32,100 9,500
41............................................................ 32,900 9,700
42............................................................ 33,700 9,900
43............................................................ 34,500 10,100
44............................................................ 35,400 10,300
[[Page 31603]]
45............................................................ 36,200 10,600
46............................................................ 37,100 10,800
47............................................................ 38,000 11,100
48............................................................ 39,000 11,300
49............................................................ 39,900 11,600
50............................................................ 40,900 11,900
51............................................................ 42,100 12,200
52............................................................ 43,100 12,500
53............................................................ 44,200 12,800
54............................................................ 45,500 13,100
55............................................................ 46,800 13,400
56............................................................ 47,900 13,700
57............................................................ 49,300 14,100
58............................................................ 50,800 14,400
59............................................................ 52,200 14,800
60............................................................ 53,500 15,100
61............................................................ 55,000 15,600
62............................................................ 56,900 16,000
63............................................................ 58,500 16,400
64............................................................ 60,100 16,900
65 or older................................................... 61,800 17,400
----------------------------------------------------------------------------------------------------------------
Independent Students With Dependents Other Than a Spouse
----------------------------------------------------------------------------------------------------------------
And they are
If the age of the older student is -------------------------------------------------
Married Single
----------------------------------------------------------------------------------------------------------------
Then the education savings and asset protection
allowance is--
----------------------------------------------------------------------------------------------------------------
25 or less.................................................... 0 0
26............................................................ 2,100 600
27............................................................ 4,300 1,300
28............................................................ 6,400 1,900
29............................................................ 8,600 2,500
30............................................................ 10,700 3,200
31............................................................ 12,800 3,800
32............................................................ 15,000 4,400
33............................................................ 17,100 5,100
34............................................................ 19,300 5,700
35............................................................ 21,400 6,300
36............................................................ 23,500 7,000
37............................................................ 25,700 7,600
38............................................................ 27,800 8,200
39............................................................ 30,000 8,900
40............................................................ 32,100 9,500
41............................................................ 32,900 9,700
42............................................................ 33,700 9,900
43............................................................ 34,500 10,100
44............................................................ 35,400 10,300
45............................................................ 36,200 10,600
46............................................................ 37,100 10,800
47............................................................ 38,000 11,100
48............................................................ 39,000 11,300
49............................................................ 39,900 11,600
50............................................................ 40,900 11,900
51............................................................ 42,100 12,200
52............................................................ 43,100 12,500
53............................................................ 44,200 12,800
54............................................................ 45,500 13,100
55............................................................ 46,800 13,400
56............................................................ 47,900 13,700
57............................................................ 49,300 14,100
58............................................................ 50,800 14,400
59............................................................ 52,200 14,800
60............................................................ 53,500 15,100
61............................................................ 55,000 15,600
62............................................................ 56,900 16,000
63............................................................ 58,500 16,400
64............................................................ 60,100 16,900
[[Page 31604]]
65 or older................................................... 61,800 17,400
----------------------------------------------------------------------------------------------------------------
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 $15,300.................... 22% of AAI
$15,301 to $19,200..................... $3,366 + 25% of AAI over
$15,300
$19,201 to $23,100..................... $4,341 + 29% of AAI over
$19,200
$23,101 to $27,000..................... $5,472 + 34% of AAI over
$23,100
$27,001 to $30,900..................... $6,798 + 40% of AAI over
$27,000
$30,901 or more........................ $8,358 + 47% of AAI over
$30,900
------------------------------------------------------------------------
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 $15,300.................... 22% of AAI
$15,301 to $19,200..................... $3,366 + 25% of AAI over
$15,300
$19,201 to $23,100..................... $4,341 + 29% of AAI over
$19,200
$23,101 to $27,000..................... $5,472 + 34% of AAI over
$23,100
$27,001 to $30,900..................... $6,798 + 40% of AAI over
$27,000
$30,901 or more........................ $8,358 + 47% of AAI over
$30,900
------------------------------------------------------------------------
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 $3,900 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 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................................................... 4 3 2
Arkansas.................................................. 4 3 3
California................................................ 8 7 5
[[Page 31605]]
Colorado.................................................. 5 4 3
Connecticut............................................... 8 7 5
Delaware.................................................. 5 4 3
District of Columbia...................................... 7 6 5
Florida................................................... 3 2 1
Georgia................................................... 6 5 3
Hawaii.................................................... 4 3 3
Idaho..................................................... 5 4 3
Illinois.................................................. 5 4 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............................................. 7 6 4
Michigan.................................................. 5 4 3
Minnesota................................................. 6 5 4
Mississippi............................................... 3 2 3
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 4
New Mexico................................................ 3 2 2
New York.................................................. 9 8 6
North Carolina............................................ 6 5 4
North Dakota.............................................. 3 2 1
Ohio...................................................... 6 5 3
Oklahoma.................................................. 4 3 3
Oregon.................................................... 7 6 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 3
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..................................................... 2 1 2
----------------------------------------------------------------------------------------------------------------
Accessible Format: Individuals with disabilities can obtain this
document in an accessible format (e.g., braille, large print,
audiotape, or compact disc) on request to the contact person listed
under FOR FURTHER INFORMATION CONTACT in this section.
Electronic Access to This Document:
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
via the Federal Digital System at: www.gpo.gov/fdsys. At this site 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). To use PDF you must have Adobe Acrobat Reader,
which is available free at this site.
You may also access documents of the Department published in the
Federal Register by using the article search feature at:
www.federalregister.gov. Specifically, through the advanced search
feature at this site, you can limit your search to documents published
by the Department.
Program Authority: 20 U.S.C. 1087rr.
Dated: May 23, 2012.
James W. Runcie,
Chief Operating Officer, Federal Student Aid.
[FR Doc. 2012-12939 Filed 5-25-12; 8:45 am]
BILLING CODE 4000-01-P