Federal Need Analysis Methodology for the 2018-19 Award Year-Federal Pell Grant, Federal Perkins Loan, Federal Work-Study, Federal Supplemental Educational Opportunity Grant, William D. Ford Federal Direct Loan, Iraq and Afghanistan Service Grant and TEACH Grant Programs, 20322-20327 [2017-08779]
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20322
Federal Register / Vol. 82, No. 82 / Monday, May 1, 2017 / Notices
choices often diverge considerably, and
allow study of the paths taken by these
different graduates. B&B:16/17 main
study data collection is scheduled to
take place from July 2017 through
March 2018.
Dated: April 26, 2017.
Stephanie Valentine,
Acting Director, Information Collection
Clearance Division, Office of the Chief Privacy
Officer, Office of Management.
[FR Doc. 2017–08739 Filed 4–28–17; 8:45 am]
BILLING CODE 4000–01–P
DEPARTMENT OF EDUCATION
Federal Need Analysis Methodology
for the 2018–19 Award Year—Federal
Pell Grant, Federal Perkins Loan,
Federal Work-Study, Federal
Supplemental Educational Opportunity
Grant, William D. Ford Federal Direct
Loan, Iraq and Afghanistan Service
Grant and TEACH Grant Programs
Federal Student Aid,
Department of Education.
ACTION: Notice.
AGENCY:
Catalog of Federal Domestic Assistance
(CFDA) Numbers: 84.063; 84.038;
84.033; 84.007; 84.268; 84.408; 84.379.
SUMMARY: The Secretary announces the
annual updates to the tables used in the
statutory Federal Need Analysis
Methodology that determines a
student’s expected family contribution
(EFC) for award year (AY) 2018–19 for
these student financial aid programs.
The intent of this notice is to alert the
financial aid community and the
broader public to these required annual
updates used in the determination of
student aid eligibility.
FOR FURTHER INFORMATION CONTACT:
Marya Dennis, 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 Higher Education Act of
1965, as amended (HEA), specifies the
criteria, data elements, calculations, and
tables the Department of Education
(Department) uses in the Federal Need
Analysis Methodology to determine the
EFC.
Section 478 of the HEA requires the
Secretary to annually update the
following four tables for price
inflation—the Income Protection
Allowance (IPA), the Adjusted Net
Worth (NW) of a Business or Farm, the
Education Savings and Asset Protection
Allowance, and the Assessment
Schedules and Rates. The updates are
based, in general, upon increases in the
Consumer Price Index (CPI).
For AY 2018–19, the Secretary is
charged with updating the IPA for
parents of dependent students, adjusted
NW of a business or farm, the education
savings and asset protection allowance,
and the assessment schedules and rates
to account for inflation that took place
between December 2016 and December
2017. However, because the Secretary
must publish these tables before
December 2017, the increases in the
tables must be based on a percentage
equal to the estimated percentage
increase in the Consumer Price Index
for All Urban Consumers (CPI–U) for
2017. The Secretary must also account
for any under- or over-estimation of
inflation for the preceding year.
In developing the table values for the
2017–18 AY, the Secretary’s assumed
2.1 percent increase in the CPI–U for the
period December 2015 through
December 2016 was the actual inflation
for this time period. The Secretary
estimates that the increase in the CPI–
U for the period December 2016 through
December 2017 will be 2.3 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 affecting the IPA tables for the
2009–10 through 2012–13 AYs and
required the Department to use a
percentage of the estimated CPI to
update the table in subsequent years.
These changes to the IPA impact
dependent students, as well as
independent students with dependents
other than a spouse and independent
students without dependents other than
a spouse. This notice includes the new
2018–19 AY values for the IPA tables,
which reflect the CCRAA amendments.
The updated tables are in sections 1
(Income Protection Allowance), 2
(Adjusted Net Worth of a Business or
Farm), and 4 (Assessment Schedules
and Rates) of this notice.
As provided for in section 478(d) of
the HEA, the Secretary must also revise
the education savings and asset
protection allowances for each AY. The
Education Savings and Asset Protection
Allowance table for AY 2018–19 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 on
increases in the Bureau of Labor
Statistics’ marginal costs budget for a
two-worker family compared to a oneworker family. The items covered by
this calculation are: Food away from
home, apparel, transportation, and
household furnishings and operations.
The Employment Expense Allowance
table for AY 2018–19 has been updated
in section 5 of this notice.
The HEA requires the following
annual updates:
1. Income Protection Allowance. 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. The allowance varies by family
size. The IPA for the dependent student
is $6,570. The IPAs for parents of
dependent students for AY 2018–19 are
as follows:
PARENTS OF DEPENDENT STUDENTS
Number in college
Family size
srobinson on DSK5SPTVN1PROD with NOTICES
1
2
3
4
5
6
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2
3
4
5
$18,320
22,810
28,170
33,240
38,880
$15,180
19,690
25,040
30,100
35,740
$16,560
21,920
26,990
32,630
$18,790
23,850
29,490
$20,740
26,380
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01MYN1
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For each additional family member
add $4,390. For each additional college
student subtract $3,120.
The IPAs for independent students
with dependents other than a spouse for
AY 2018–19 are as follows:
INDEPENDENT STUDENTS WITH DEPENDENTS OTHER THAN A SPOUSE
Number in college
Family size
1
2
3
4
5
6
Single ........
Married ......
4
5
$21,450
27,810
35,370
42,500
50,480
$23,390
30,960
38,100
46,080
$26,530
33,690
41,640
$29,290
37,250
formula protects a portion of the value
of the assets.
The portion of these assets included
Married ......
1
16,380
in the contribution calculation is
computed according to the following
2. Adjusted Net Worth of a Business
schedule. This schedule is used for
or Farm. A portion of the full NW
parents of dependent students,
(assets less debts) of a business or farm
independent students without
is excluded from the calculation of an
IPA
dependents other than a spouse, and
EFC because (1) the income produced
independent students with dependents
$10,220 from these assets is already assessed in
other than a spouse.
10,220 another part of the formula; and (2) the
For each additional family member
add $6,200. For each additional college
student subtract $4,400.
The IPAs for single independent
students and independent students
without dependents other than a spouse
for AY 2018–19 are as follows:
Marital
status
3
$25,870
32,210
39,780
46,940
54,890
...........................................................................................
...........................................................................................
...........................................................................................
...........................................................................................
...........................................................................................
2
Number in
college
1
2
Marital
status
Number in
college
IPA
If the NW of a business or farm is
Then the adjusted NW is
Less than $1 .............................................................................................
$1 to $130,000 .........................................................................................
$130,001 to $390,000 ..............................................................................
$390,001 to $655,000 ..............................................................................
$655,001 or more .....................................................................................
$0.
$0 + 40% of NW.
$52,000 + 50% of NW over $130,000.
$182,000 + 60% of NW over $390,000.
$341,000 + 100% of NW over $655,000.
3. Education Savings and Asset
Protection Allowance. This allowance
protects a portion of NW (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.
PARENTS OF DEPENDENT STUDENTS
And they are
If the age of the older parent is
Married
Single
srobinson on DSK5SPTVN1PROD 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
or less .....................................................................................................................................................
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1,200
2,400
3,500
4,700
5,900
7,100
8,300
9,400
10,600
11,800
13,000
14,200
15,300
16,500
17,700
18,100
18,500
18,900
19,300
19,800
01MYN1
0
700
1,400
2,200
2,900
3,600
4,300
5,000
5,800
6,500
7,200
7,900
8,600
9,400
10,100
10,800
11,000
11,300
11,500
11,800
12,000
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Federal Register / Vol. 82, No. 82 / Monday, May 1, 2017 / Notices
PARENTS OF DEPENDENT STUDENTS—Continued
And they are
If the age of the older parent is
Married
Single
Then the education savings and asset
protection allowance is
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 ...................................................................................................................................................
20,300
20,700
21,300
21,800
22,300
22,900
23,500
24,100
24,800
25,400
26,100
26,800
27,600
28,300
29,100
30,000
30,800
31,700
32,600
33,600
12,300
12,600
12,900
13,200
13,500
13,800
14,100
14,400
14,800
15,200
15,500
15,900
16,300
16,700
17,100
17,600
18,000
18,500
19,000
19,500
INDEPENDENT STUDENTS WITH DEPENDENTS OTHER THAN A SPOUSE
And they are
If the age of the student is
Married
Single
srobinson on DSK5SPTVN1PROD 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
or less .....................................................................................................................................................
.................................................................................................................................................................
.................................................................................................................................................................
.................................................................................................................................................................
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1,200
2,400
3,500
4,700
5,900
7,100
8,300
9,400
10,600
11,800
13,000
14,200
15,300
16,500
17,700
18,100
18,500
18,900
19,300
19,800
20,300
20,700
21,300
21,800
22,300
22,900
23,500
24,100
24,800
25,400
26,100
26,800
27,600
28,300
29,100
30,000
01MYN1
0
700
1,400
2,200
2,900
3,600
4,300
5,000
5,800
6,500
7,200
7,900
8,600
9,400
10,100
10,800
11,000
11,300
11,500
11,800
12,000
12,300
12,600
12,900
13,200
13,500
13,800
14,100
14,400
14,800
15,200
15,500
15,900
16,300
16,700
17,100
17,600
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Federal Register / Vol. 82, No. 82 / Monday, May 1, 2017 / Notices
INDEPENDENT STUDENTS WITH DEPENDENTS OTHER THAN A SPOUSE—Continued
And they are
If the age of the student is
Married
Single
Then the education savings and asset
protection allowance is
62
63
64
65
.................................................................................................................................................................
.................................................................................................................................................................
.................................................................................................................................................................
or older ...................................................................................................................................................
30,800
31,700
32,600
33,600
18,000
18,500
19,000
19,500
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
srobinson on DSK5SPTVN1PROD with NOTICES
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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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
from family financial resources toward
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educational expenses. 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.
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1,200
2,400
3,500
4,700
5,900
7,100
8,300
9,400
10,600
11,800
13,000
14,200
15,300
16,500
17,700
18,100
18,500
18,900
19,300
19,800
20,300
20,700
21,300
21,800
22,300
22,900
23,500
24,100
24,800
25,400
26,100
26,800
27,600
28,300
29,100
30,000
30,800
31,700
32,600
33,600
0
700
1,400
2,200
2,900
3,600
4,300
5,000
5,800
6,500
7,200
7,900
8,600
9,400
10,100
10,800
11,000
11,300
11,500
11,800
12,000
12,300
12,600
12,900
13,200
13,500
13,800
14,100
14,400
14,800
15,200
15,500
15,900
16,300
16,700
17,100
17,600
18,000
18,500
19,000
19,500
The AAI represents a measure of a
family’s financial strength, which
considers both income and assets.
The parents’ contribution for a
dependent student is computed
according to the following schedule:
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Federal Register / Vol. 82, No. 82 / Monday, May 1, 2017 / Notices
If AAI is
Then the contribution is
Less than ¥$3,409 ..................................................................................
($3,409) to $16,400 ..................................................................................
$16,401 to $20,500 ..................................................................................
$20,501 to $24,700 ..................................................................................
$24,701 to $28,900 ..................................................................................
$28,901 to $33,100 ..................................................................................
$33,101 or more .......................................................................................
¥$750.
22% of AAI.
$3,608 + 25%
$4,633 + 29%
$5,851 + 34%
$7,279 + 40%
$8,959 + 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
$16,400.
$20,500.
$24,700.
$28,900.
$33,100.
spouse is computed according to the
following schedule:
If AAI is
Then the contribution is
Less than ¥$3,409 ..................................................................................
($3,409) to $16,400 ..................................................................................
$16,401 to $20,500 ..................................................................................
$20,501 to $24,700 ..................................................................................
$24,701 to $28,900 ..................................................................................
$28,901 to $33,100 ..................................................................................
$33,101 or more .......................................................................................
¥$750.
22% of AAI.
$3,608 + 25%
$4,633 + 29%
$5,851 + 34%
$7,279 + 40%
$8,959 + 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 on
the marginal differences in costs for a
two-worker family compared to a oneworker family. The items covered by
these additional expenses are: Food
away from home, apparel,
of
of
of
of
of
AAI
AAI
AAI
AAI
AAI
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
$4,000 or 35 percent of earned income.
6. Allowance for State and Other
Taxes. The allowance for State and
other taxes protects a portion of parents’
and students’ incomes from being
considered available for postsecondary
over
over
over
over
over
$16,400.
$20,500.
$24,700.
$28,900.
$33,100.
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.
PERCENT OF INCOME PAID IN STATE TAXES, BY STATUS OF HAVING DEPENDENTS OTHER THAN A SPOUSE, INCOME
LEVEL, AND STATE
Parents of dependents and
independents with dependents
other than a spouse
State
Percent of total income
srobinson on DSK5SPTVN1PROD with NOTICES
Under $15,000
Alabama .......................................................................................................................
Alaska ..........................................................................................................................
Arizona .........................................................................................................................
Arkansas ......................................................................................................................
California ......................................................................................................................
Colorado ......................................................................................................................
Connecticut ..................................................................................................................
Delaware ......................................................................................................................
District of Columbia .....................................................................................................
Florida ..........................................................................................................................
Georgia ........................................................................................................................
Hawaii ..........................................................................................................................
Idaho ............................................................................................................................
Illinois ...........................................................................................................................
Indiana .........................................................................................................................
Iowa .............................................................................................................................
Kansas .........................................................................................................................
Kentucky ......................................................................................................................
Louisiana ......................................................................................................................
Maine ...........................................................................................................................
Maryland ......................................................................................................................
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and independents
without
dependents
other than a
spouse
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$15,000 & Up
3
2
3
4
8
4
8
4
7
3
5
5
4
6
4
5
4
5
3
6
8
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3
4
3
3
3
3
2
3
2
3
5
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Federal Register / Vol. 82, No. 82 / Monday, May 1, 2017 / Notices
PERCENT OF INCOME PAID IN STATE TAXES, BY STATUS OF HAVING DEPENDENTS OTHER THAN A SPOUSE, INCOME
LEVEL, AND STATE—Continued
Parents of dependents and
independents with dependents
other than a spouse
State
Percent of total income
Under $15,000
srobinson on DSK5SPTVN1PROD with NOTICES
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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and independents
without
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other than a
spouse
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Program Authority: 20 U.S.C. 1087rr.
Dated: April 26, 2017.
James W. Runcie,
Chief Operating Officer Federal Student Aid.
[FR Doc. 2017–08779 Filed 4–28–17; 8:45 am]
BILLING CODE 4000–01–P
DEPARTMENT OF EDUCATION
[Docket ID ED–2017–OCFO–0013]
Privacy Act of 1974; System of
Records
Office of the Chief Financial
Officer, Department of Education.
ACTION: Rescindment of System of
Records Notice.
AGENCY:
In accordance with the
Privacy Act of 1974, the Department of
Education (Department) rescinds from
its existing inventory of systems of
records notices subject to the Privacy
SUMMARY:
PO 00000
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Act the system of records notice entitled
‘‘Files and Lists of Potential and Current
Consultants, Grant Application
Reviewers, Peer Reviewers, and Site
Visitors’’ (18–03–04).
DATES: Submit your comments on this
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This rescinded system of records will
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E:\FR\FM\01MYN1.SGM
01MYN1
]]>Agencies
[Federal Register Volume 82, Number 82 (Monday, May 1, 2017)]
[Notices]
[Pages 20322-20327]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-08779]
-----------------------------------------------------------------------
DEPARTMENT OF EDUCATION
Federal Need Analysis Methodology for the 2018-19 Award Year--
Federal Pell Grant, Federal Perkins Loan, Federal Work-Study, Federal
Supplemental Educational Opportunity Grant, William D. Ford Federal
Direct Loan, Iraq and Afghanistan Service Grant and TEACH Grant
Programs
AGENCY: Federal Student Aid, Department of Education.
ACTION: Notice.
-----------------------------------------------------------------------
Catalog of Federal Domestic Assistance (CFDA) Numbers: 84.063; 84.038;
84.033; 84.007; 84.268; 84.408; 84.379.
SUMMARY: The Secretary announces the annual updates to the tables used
in the statutory Federal Need Analysis Methodology that determines a
student's expected family contribution (EFC) for award year (AY) 2018-
19 for these student financial aid programs. The intent of this notice
is to alert the financial aid community and the broader public to these
required annual updates used in the determination of student aid
eligibility.
FOR FURTHER INFORMATION CONTACT: Marya Dennis, 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 Higher Education
Act of 1965, as amended (HEA), specifies the criteria, data elements,
calculations, and tables the Department of Education (Department) uses
in the Federal Need Analysis Methodology to determine the EFC.
Section 478 of the HEA requires the Secretary to annually update
the following four tables for price inflation--the Income Protection
Allowance (IPA), the Adjusted Net Worth (NW) of a Business or Farm, the
Education Savings and Asset Protection Allowance, and the Assessment
Schedules and Rates. The updates are based, in general, upon increases
in the Consumer Price Index (CPI).
For AY 2018-19, the Secretary is charged with updating the IPA for
parents of dependent students, adjusted NW of a business or farm, the
education savings and asset protection allowance, and the assessment
schedules and rates to account for inflation that took place between
December 2016 and December 2017. However, because the Secretary must
publish these tables before December 2017, the increases in the tables
must be based on a percentage equal to the estimated percentage
increase in the Consumer Price Index for All Urban Consumers (CPI-U)
for 2017. The Secretary must also account for any under- or over-
estimation of inflation for the preceding year.
In developing the table values for the 2017-18 AY, the Secretary's
assumed 2.1 percent increase in the CPI-U for the period December 2015
through December 2016 was the actual inflation for this time period.
The Secretary estimates that the increase in the CPI-U for the period
December 2016 through December 2017 will be 2.3 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 affecting the IPA tables for the 2009-10 through 2012-13 AYs
and required the Department to use a percentage of the estimated CPI to
update the table in subsequent years. These changes to the IPA impact
dependent students, as well as independent students with dependents
other than a spouse and independent students without dependents other
than a spouse. This notice includes the new 2018-19 AY values for the
IPA tables, which reflect the CCRAA amendments. The updated tables are
in sections 1 (Income Protection Allowance), 2 (Adjusted Net Worth of a
Business or Farm), and 4 (Assessment Schedules and Rates) of this
notice.
As provided for in section 478(d) of the HEA, the Secretary must
also revise the education savings and asset protection allowances for
each AY. The Education Savings and Asset Protection Allowance table for
AY 2018-19 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 on increases in the Bureau of
Labor Statistics' marginal costs budget for a two-worker family
compared to a one-worker family. The items covered by this calculation
are: Food away from home, apparel, transportation, and household
furnishings and operations. The Employment Expense Allowance table for
AY 2018-19 has been updated in section 5 of this notice.
The HEA requires the following annual updates:
1. Income Protection Allowance. 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. The allowance
varies by family size. The IPA for the dependent student is $6,570. The
IPAs for parents of dependent students for AY 2018-19 are as follows:
Parents of Dependent Students
----------------------------------------------------------------------------------------------------------------
Number in college
Family size -------------------------------------------------------------------------------
1 2 3 4 5
----------------------------------------------------------------------------------------------------------------
2............................... $18,320 $15,180
3............................... 22,810 19,690 $16,560
4............................... 28,170 25,040 21,920 $18,790
5............................... 33,240 30,100 26,990 23,850 $20,740
6............................... 38,880 35,740 32,630 29,490 26,380
----------------------------------------------------------------------------------------------------------------
[[Page 20323]]
For each additional family member add $4,390. For each additional
college student subtract $3,120.
The IPAs for independent students with dependents other than a
spouse for AY 2018-19 are as follows:
Independent Students With Dependents Other Than a Spouse
----------------------------------------------------------------------------------------------------------------
Number in college
Family size -------------------------------------------------------------------------------
1 2 3 4 5
----------------------------------------------------------------------------------------------------------------
2............................... $25,870 $21,450
3............................... 32,210 27,810 $23,390
4............................... 39,780 35,370 30,960 $26,530
5............................... 46,940 42,500 38,100 33,690 $29,290
6............................... 54,890 50,480 46,080 41,640 37,250
----------------------------------------------------------------------------------------------------------------
For each additional family member add $6,200. For each additional
college student subtract $4,400.
The IPAs for single independent students and independent students
without dependents other than a spouse for AY 2018-19 are as follows:
------------------------------------------------------------------------
Number in
Marital status college IPA
------------------------------------------------------------------------
Single.................................. 1 $10,220
Married................................. 2 10,220
Married................................. 1 16,380
------------------------------------------------------------------------
2. Adjusted Net Worth of a Business or Farm. A portion of the full
NW (assets less debts) of a business or farm is excluded from the
calculation of an EFC 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 NW of a business or farm is Then the adjusted NW is
------------------------------------------------------------------------
Less than $1........................... $0.
$1 to $130,000......................... $0 + 40% of NW.
$130,001 to $390,000................... $52,000 + 50% of NW over
$130,000.
$390,001 to $655,000................... $182,000 + 60% of NW over
$390,000.
$655,001 or more....................... $341,000 + 100% of NW over
$655,000.
------------------------------------------------------------------------
3. Education Savings and Asset Protection Allowance. This allowance
protects a portion of NW (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.
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................................ 1,200 700
27................................ 2,400 1,400
28................................ 3,500 2,200
29................................ 4,700 2,900
30................................ 5,900 3,600
31................................ 7,100 4,300
32................................ 8,300 5,000
33................................ 9,400 5,800
34................................ 10,600 6,500
35................................ 11,800 7,200
36................................ 13,000 7,900
37................................ 14,200 8,600
38................................ 15,300 9,400
39................................ 16,500 10,100
40................................ 17,700 10,800
41................................ 18,100 11,000
42................................ 18,500 11,300
43................................ 18,900 11,500
44................................ 19,300 11,800
45................................ 19,800 12,000
[[Page 20324]]
46................................ 20,300 12,300
47................................ 20,700 12,600
48................................ 21,300 12,900
49................................ 21,800 13,200
50................................ 22,300 13,500
51................................ 22,900 13,800
52................................ 23,500 14,100
53................................ 24,100 14,400
54................................ 24,800 14,800
55................................ 25,400 15,200
56................................ 26,100 15,500
57................................ 26,800 15,900
58................................ 27,600 16,300
59................................ 28,300 16,700
60................................ 29,100 17,100
61................................ 30,000 17,600
62................................ 30,800 18,000
63................................ 31,700 18,500
64................................ 32,600 19,000
65 or older....................... 33,600 19,500
------------------------------------------------------------------------
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................................ 1,200 700
27................................ 2,400 1,400
28................................ 3,500 2,200
29................................ 4,700 2,900
30................................ 5,900 3,600
31................................ 7,100 4,300
32................................ 8,300 5,000
33................................ 9,400 5,800
34................................ 10,600 6,500
35................................ 11,800 7,200
36................................ 13,000 7,900
37................................ 14,200 8,600
38................................ 15,300 9,400
39................................ 16,500 10,100
40................................ 17,700 10,800
41................................ 18,100 11,000
42................................ 18,500 11,300
43................................ 18,900 11,500
44................................ 19,300 11,800
45................................ 19,800 12,000
46................................ 20,300 12,300
47................................ 20,700 12,600
48................................ 21,300 12,900
49................................ 21,800 13,200
50................................ 22,300 13,500
51................................ 22,900 13,800
52................................ 23,500 14,100
53................................ 24,100 14,400
54................................ 24,800 14,800
55................................ 25,400 15,200
56................................ 26,100 15,500
57................................ 26,800 15,900
58................................ 27,600 16,300
59................................ 28,300 16,700
60................................ 29,100 17,100
61................................ 30,000 17,600
[[Page 20325]]
62................................ 30,800 18,000
63................................ 31,700 18,500
64................................ 32,600 19,000
65 or older....................... 33,600 19,500
------------------------------------------------------------------------
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................................ 1,200 700
27................................ 2,400 1,400
28................................ 3,500 2,200
29................................ 4,700 2,900
30................................ 5,900 3,600
31................................ 7,100 4,300
32................................ 8,300 5,000
33................................ 9,400 5,800
34................................ 10,600 6,500
35................................ 11,800 7,200
36................................ 13,000 7,900
37................................ 14,200 8,600
38................................ 15,300 9,400
39................................ 16,500 10,100
40................................ 17,700 10,800
41................................ 18,100 11,000
42................................ 18,500 11,300
43................................ 18,900 11,500
44................................ 19,300 11,800
45................................ 19,800 12,000
46................................ 20,300 12,300
47................................ 20,700 12,600
48................................ 21,300 12,900
49................................ 21,800 13,200
50................................ 22,300 13,500
51................................ 22,900 13,800
52................................ 23,500 14,100
53................................ 24,100 14,400
54................................ 24,800 14,800
55................................ 25,400 15,200
56................................ 26,100 15,500
57................................ 26,800 15,900
58................................ 27,600 16,300
59................................ 28,300 16,700
60................................ 29,100 17,100
61................................ 30,000 17,600
62................................ 30,800 18,000
63................................ 31,700 18,500
64................................ 32,600 19,000
65 or older....................... 33,600 19,500
------------------------------------------------------------------------
4. Assessment Schedules and Rates. Two schedules that are subject
to updates--one for parents of dependent students and one for
independent students with dependents other than a spouse--are used to
determine the EFC from family financial resources toward educational
expenses. For dependent students, the EFC is derived from an assessment
of the parents' adjusted available income (AAI). For independent
students with dependents other than a spouse, the EFC is derived from
an assessment of the family's AAI. The AAI represents a measure of a
family's financial strength, which considers both income and assets.
The parents' contribution for a dependent student is computed
according to the following schedule:
[[Page 20326]]
------------------------------------------------------------------------
If AAI is Then the contribution is
------------------------------------------------------------------------
Less than -$3,409...................... -$750.
($3,409) to $16,400.................... 22% of AAI.
$16,401 to $20,500..................... $3,608 + 25% of AAI over
$16,400.
$20,501 to $24,700..................... $4,633 + 29% of AAI over
$20,500.
$24,701 to $28,900..................... $5,851 + 34% of AAI over
$24,700.
$28,901 to $33,100..................... $7,279 + 40% of AAI over
$28,900.
$33,101 or more........................ $8,959 + 47% of AAI over
$33,100.
------------------------------------------------------------------------
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 $16,400.................... 22% of AAI.
$16,401 to $20,500..................... $3,608 + 25% of AAI over
$16,400.
$20,501 to $24,700..................... $4,633 + 29% of AAI over
$20,500.
$24,701 to $28,900..................... $5,851 + 34% of AAI over
$24,700.
$28,901 to $33,100..................... $7,279 + 40% of AAI over
$28,900.
$33,101 or more........................ $8,959 + 47% of AAI over
$33,100.
------------------------------------------------------------------------
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 on the marginal differences in costs for a two-worker family
compared to a one-worker family. The items covered by these additional
expenses are: 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 $4,000 or 35 percent of earned income.
6. Allowance for State and Other Taxes. The allowance for State and
other taxes protects a portion of parents' and students' incomes 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.
Percent of Income Paid in State Taxes, by Status of Having Dependents Other Than a Spouse, Income Level, and
State
----------------------------------------------------------------------------------------------------------------
Parents of dependents and Dependents and
independents with dependents independents
other 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................................................. 3 2 2
Arkansas................................................ 4 3 3
California.............................................. 8 7 6
Colorado................................................ 4 3 3
Connecticut............................................. 8 7 5
Delaware................................................ 4 3 3
District of Columbia.................................... 7 6 6
Florida................................................. 3 2 1
Georgia................................................. 5 4 3
Hawaii.................................................. 5 4 4
Idaho................................................... 4 3 3
Illinois................................................ 6 5 3
Indiana................................................. 4 3 3
Iowa.................................................... 5 4 3
Kansas.................................................. 4 3 2
Kentucky................................................ 5 4 3
Louisiana............................................... 3 2 2
Maine................................................... 6 5 3
Maryland................................................ 8 7 5
[[Page 20327]]
Massachusetts........................................... 6 5 4
Michigan................................................ 4 3 2
Minnesota............................................... 6 5 4
Mississippi............................................. 3 2 2
Missouri................................................ 4 3 3
Montana................................................. 4 3 3
Nebraska................................................ 5 4 3
Nevada.................................................. 2 1 1
New Hampshire........................................... 4 3 1
New Jersey.............................................. 9 8 4
New Mexico.............................................. 3 2 2
New York................................................ 9 8 6
North Carolina.......................................... 5 4 3
North Dakota............................................ 2 1 1
Ohio.................................................... 5 4 3
Oklahoma................................................ 3 2 2
Oregon.................................................. 7 6 5
Pennsylvania............................................ 5 4 3
Rhode Island............................................ 6 5 3
South Carolina.......................................... 4 3 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.............................................. 3 2 1
West Virginia........................................... 3 2 2
Wisconsin............................................... 6 5 4
Wyoming................................................. 2 1 1
Other................................................... 2 1 1
----------------------------------------------------------------------------------------------------------------
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 notice.
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 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: April 26, 2017.
James W. Runcie,
Chief Operating Officer Federal Student Aid.
[FR Doc. 2017-08779 Filed 4-28-17; 8:45 am]
BILLING CODE 4000-01-P
