Federal Need Analysis Methodology for the 2021-22 Award Year-Federal Pell Grant, Federal Work-Study, Federal Supplemental Educational Opportunity Grant, William D. Ford Federal Direct Loan, Iraq and Afghanistan Service Grant, and TEACH Grant Programs, 34605-34609 [2020-12169]

Download as PDF Federal Register / Vol. 85, No. 109 / Friday, June 5, 2020 / Notices Pease ANGB, NH Mandatory Source of Supply: CW Resources, Inc., New Britain, CT Contracting Activity: DEPT OF THE ARMY, W7NN USPFO ACTIVITY NH ARNG Service Type: Janitorial/Custodial Mandatory for: US Army, IL027 Forest Park AFRC, Forest Park, IL Mandatory Source of Supply: Jewish Child and Family Services, Chicago, IL Contracting Activity: DEPT OF THE ARMY, W6QM MICC FT MCCOY (RC) Michael R. Jurkowski, Deputy Director, Business & PL Operations. [FR Doc. 2020–12196 Filed 6–4–20; 8:45 am] BILLING CODE 6353–01–P CONSUMER PRODUCT SAFETY COMMISSION Wednesday, June 10, 2020; 1:30 p.m. PLACE: via Teleconference. STATUS: Commission Meeting—Closed to the Public. MATTERS TO BE CONSIDERED: Staff will brief the Commission on the status of a compliance program. TIME AND DATE: CONTACT PERSON FOR MORE INFORMATION: Alberta E. Mills, Secretary, Division of the Secretariat, Office of the General Counsel, U.S. Consumer Product Safety Commission, 4330 East-West Highway, Bethesda, MD 20814, (301) 504–7479. Dated: June 3, 2020. Alberta E. Mills, Secretary. [FR Doc. 2020–12336 Filed 6–3–20; 11:15 am] BILLING CODE 6355–01–P DEPARTMENT OF EDUCATION Federal Need Analysis Methodology for the 2021–22 Award Year—Federal Pell Grant, 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: 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) 2021–22 for lotter on DSK9F5VC42PROD with NOTICES SUMMARY: 18:21 Jun 04, 2020 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 2021–22, 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 2019 and December 2020. However, because the Secretary must publish these tables before December 2020, 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 2020. The Secretary must also account for any under- or over-estimation of inflation for the preceding year. In developing the table values for the 2020–21 AY, the Secretary assumed a 2.4 percent increase in the CPI–U for the period December 2018 through December 2019. The actual inflation for this time period was 2.3 percent. The Secretary estimates that the increase in the CPI–U for the period December 2019 SUPPLEMENTARY INFORMATION: Sunshine Act Meeting VerDate Sep<11>2014 student financial aid programs, Catalog of Federal Domestic Assistance (CFDA) numbers 84.063, 84.033, 84.007, 84.268, 84.408, and 84.379. This notice alerts 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. Email: Marya.Dennis@ed.gov. 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. Jkt 250001 PO 00000 Frm 00017 Fmt 4703 Sfmt 4703 34605 through December 2020 will be 2.0 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 2021–22 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. Under 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 2021–22 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 2021–22 has been updated in section 5 of this notice. 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. This table has been updated in section 6 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 dependent students is $6,970. The IPAs for parents of dependent students for AY 2021–22 are as follows: E:\FR\FM\05JNN1.SGM 05JNN1 34606 Federal Register / Vol. 85, No. 109 / Friday, June 5, 2020 / Notices PARENTS OF DEPENDENT STUDENTS Number in college Family size 2 3 4 5 6 ........................................................................................... ........................................................................................... ........................................................................................... ........................................................................................... ........................................................................................... For each additional family member add $4,660. For each additional college student subtract $3,310. 1 2 $19,440 24,200 29,890 35,270 41,250 $16,110 20,900 26,570 31,940 37,930 3 4 5 ........................ $17,570 23,260 28,640 34,620 ........................ ........................ $19,930 25,310 31,300 ........................ ........................ ........................ $22,000 27,990 The IPAs for independent students with dependents other than a spouse for AY 2021–22 are as follows: INDEPENDENT STUDENTS WITH DEPENDENTS OTHER THAN A SPOUSE Number in college Family size 2 3 4 5 6 ........................................................................................... ........................................................................................... ........................................................................................... ........................................................................................... ........................................................................................... For each additional family member add $6,580. For each additional college student subtract $4,670. 1 2 $27,450 34,180 42,200 49,800 58,240 $22,760 29,510 37,520 45,100 53,550 The IPAs for single independent students and independent students 3 4 5 ........................ $24,810 32,850 40,430 48,900 ........................ ........................ $28,150 35,750 44,180 ........................ ........................ ........................ $31,080 39,520 without dependents other than a spouse for AY 2021–22 are as follows: INDEPENDENT STUDENTS WITHOUT DEPENDENTS OTHER THAN A SPOUSE Number in college Marital status 1 Single ....................................................................................................................................................................... Married ..................................................................................................................................................................... 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 Then the adjusted NW is Less than $1 ............................................................................................................................................ $1 to $140,000 ......................................................................................................................................... $140,001 to $415,000 .............................................................................................................................. $415,001 to $695,000 .............................................................................................................................. $695,001 or more ..................................................................................................................................... lotter on DSK9F5VC42PROD with NOTICES VerDate Sep<11>2014 18:21 Jun 04, 2020 Jkt 250001 for postsecondary educational expenses. There are three asset protection allowance tables: One for parents of dependent students, one for PO 00000 Frm 00018 Fmt 4703 ........................ $10,840 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 3. Education Savings and Asset Protection Allowance. This allowance protects a portion of NW (assets less debts) from being considered available $10,840 17,380 2 Sfmt 4703 $0. $0 + 40% of NW. $56,000 + 50% of NW over $140,000. $193,500 + 60% of NW over $415,000. $361,500 + 100% of NW over $695,000. independent students without dependents other than a spouse, and one for independent students with dependents other than a spouse. E:\FR\FM\05JNN1.SGM 05JNN1 34607 Federal Register / Vol. 85, No. 109 / Friday, June 5, 2020 / Notices PARENTS OF DEPENDENT STUDENTS, AND INDEPENDENT STUDENTS WITH DEPENDENTS OTHER THAN A SPOUSE, AND INDEPENDENT STUDENTS WITHOUT DEPENDENTS OTHER THAN A SPOUSE And the older parent or the independent student is If the age of the older parent is, or If the age of the independent student is Married Single Then the 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 ................................................................................................................................................................. ............................................................................................................................................................................. ............................................................................................................................................................................. ............................................................................................................................................................................. ............................................................................................................................................................................. ............................................................................................................................................................................. ............................................................................................................................................................................. ............................................................................................................................................................................. ............................................................................................................................................................................. ............................................................................................................................................................................. ............................................................................................................................................................................. ............................................................................................................................................................................. ............................................................................................................................................................................. ............................................................................................................................................................................. ............................................................................................................................................................................. ............................................................................................................................................................................. ............................................................................................................................................................................. ............................................................................................................................................................................. ............................................................................................................................................................................. ............................................................................................................................................................................. ............................................................................................................................................................................. ............................................................................................................................................................................. ............................................................................................................................................................................. ............................................................................................................................................................................. ............................................................................................................................................................................. ............................................................................................................................................................................. ............................................................................................................................................................................. ............................................................................................................................................................................. ............................................................................................................................................................................. ............................................................................................................................................................................. ............................................................................................................................................................................. ............................................................................................................................................................................. ............................................................................................................................................................................. ............................................................................................................................................................................. ............................................................................................................................................................................. ............................................................................................................................................................................. ............................................................................................................................................................................. ............................................................................................................................................................................. ............................................................................................................................................................................. ............................................................................................................................................................................. 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 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, lotter on DSK9F5VC42PROD with NOTICES Then the contribution is Less than ¥$3,409 .................................................................................................................................. ¥$3,409 to $17,400 ................................................................................................................................ $17,401 to $21,800 .................................................................................................................................. $21,801 to $26,200 .................................................................................................................................. $26,201 to $30,700 .................................................................................................................................. $30,701 to $35,100 .................................................................................................................................. $35,101 or more ....................................................................................................................................... 18:21 Jun 04, 2020 Jkt 250001 PO 00000 Frm 00019 0 100 300 400 600 700 800 1,000 1,100 1,300 1,400 1,500 1,700 1,800 2,000 2,100 2,200 2,200 2,300 2,300 2,400 2,400 2,500 2,500 2,600 2,700 2,700 2,800 2,900 2,900 3,000 3,100 3,100 3,200 3,300 3,400 3,500 3,600 3,700 3,800 3,900 which considers both income and assets. The contribution of parents of dependent students, and independent students with dependents other than a spouse, is computed according to the following schedule: If AAI is VerDate Sep<11>2014 0 400 700 1,100 1,500 1,800 2,200 2,600 2,900 3,300 3,700 4,000 4,400 4,800 5,100 5,500 5,600 5,700 5,900 6,000 6,200 6,300 6,500 6,600 6,800 7,000 7,100 7,300 7,500 7,700 7,900 8,100 8,400 8,600 8,800 9,100 9,300 9,600 9,900 10,200 10,500 Fmt 4703 Sfmt 4703 ¥$750 22% of AAI. $3,828 + 25% $4,928 + 29% $6,204 + 34% $7,734 + 40% $9,494 + 47% E:\FR\FM\05JNN1.SGM 05JNN1 of of of of of AAI AAI AAI AAI AAI over over over over over $17,400. $21,800. $26,200. $30,700. $35,100. 34608 Federal Register / Vol. 85, No. 109 / Friday, June 5, 2020 / Notices 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, 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. PERCENT OF INCOME PAID IN STATE TAXES BY STATE, DEPENDENCY STATUS, AND INCOME LEVEL Parents of dependent students and independent students with dependents other than a spouse State Income under $15,000 Income $15,000 & up Dependent students and independent students without dependents other than a spouse lotter on DSK9F5VC42PROD with NOTICES All income Alabama ....................................................................................................................................... Alaska .......................................................................................................................................... Arizona ......................................................................................................................................... Arkansas ...................................................................................................................................... California ...................................................................................................................................... Colorado ...................................................................................................................................... Connecticut .................................................................................................................................. Delaware ...................................................................................................................................... District of Columbia ..................................................................................................................... Florida .......................................................................................................................................... Georgia ........................................................................................................................................ Hawaii .......................................................................................................................................... Idaho ............................................................................................................................................ Illinois ........................................................................................................................................... Indiana ......................................................................................................................................... Iowa ............................................................................................................................................. Kansas ......................................................................................................................................... Kentucky ...................................................................................................................................... Louisiana ...................................................................................................................................... Maine ........................................................................................................................................... Maryland ...................................................................................................................................... Massachusetts ............................................................................................................................. Michigan ....................................................................................................................................... Minnesota .................................................................................................................................... Mississippi .................................................................................................................................... Missouri ........................................................................................................................................ Montana ....................................................................................................................................... Nebraska ...................................................................................................................................... Nevada ......................................................................................................................................... New Hampshire ........................................................................................................................... New Jersey .................................................................................................................................. New Mexico ................................................................................................................................. New York ..................................................................................................................................... North Carolina .............................................................................................................................. North Dakota ................................................................................................................................ Ohio ............................................................................................................................................. Oklahoma ..................................................................................................................................... Oregon ......................................................................................................................................... Pennsylvania ................................................................................................................................ Rhode Island ................................................................................................................................ South Carolina ............................................................................................................................. South Dakota ............................................................................................................................... Tennessee ................................................................................................................................... Texas ........................................................................................................................................... Utah ............................................................................................................................................. Vermont ....................................................................................................................................... Virginia ......................................................................................................................................... Washington .................................................................................................................................. West Virginia ................................................................................................................................ Wisconsin ..................................................................................................................................... VerDate Sep<11>2014 18:21 Jun 04, 2020 Jkt 250001 PO 00000 Frm 00020 Fmt 4703 Sfmt 4703 E:\FR\FM\05JNN1.SGM 3 2 4 4 9 4 9 5 7 3 5 5 5 6 4 5 4 5 3 6 8 7 5 7 3 5 5 5 3 4 9 3 10 5 2 5 3 7 5 6 4 2 2 3 5 6 6 3 3 6 05JNN1 2 1 3 3 8 3 8 4 6 2 4 4 4 5 3 4 3 4 2 5 7 6 4 6 2 4 4 4 2 3 8 2 9 4 1 4 2 6 4 5 3 1 1 2 4 5 5 2 2 5 2 0 2 3 6 3 5 3 6 1 4 4 4 3 3 3 3 4 2 3 6 4 3 5 2 3 3 3 1 1 5 2 7 3 1 3 2 5 3 4 3 1 1 1 4 3 4 1 3 4 34609 Federal Register / Vol. 85, No. 109 / Friday, June 5, 2020 / Notices PERCENT OF INCOME PAID IN STATE TAXES BY STATE, DEPENDENCY STATUS, AND INCOME LEVEL—Continued Parents of dependent students and independent students with dependents other than a spouse State Income under $15,000 Income $15,000 & up Dependent students and independent students without dependents other than a spouse All income 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. Electronic Access to This Document: The official version of this document is the document published in the Federal Register. You may access the official edition of the Federal Register and the Code of Federal Regulations at www.govinfo.gov. 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. Mark A. Brown, Chief Operating Officer, Federal Student Aid. [FR Doc. 2020–12169 Filed 6–4–20; 8:45 am] BILLING CODE 4000–01–P DEPARTMENT OF EDUCATION lotter on DSK9F5VC42PROD with NOTICES [Docket No.: ED–2020–SCC–0054] Agency Information Collection Activities; Submission to the Office of Management and Budget for Review and Approval; Comment Request; Special Education-Individual Reporting on Regulatory Compliance Related to the Personnel Development Program’s Service Obligation and the Government Performance and Results Act (GPRA) Office of Special Education and Rehabilitative Services (OSERS), Department of Education (ED). AGENCY: VerDate Sep<11>2014 18:21 Jun 04, 2020 Jkt 250001 ACTION: Notice. In accordance with the Paperwork Reduction Act of 1995, ED is proposing a revision of an existing information collection. DATES: Interested persons are invited to submit comments on or before July 6, 2020. ADDRESSES: Written comments and recommendations for proposed information collection requests should be sent within 30 days of publication of this notice to www.reginfo.gov/public/ do/PRAMain. Find this particular information collection request by selecting ‘‘Department of Education’’ under ‘‘Currently Under Review,’’ then check ‘‘Only Show ICR for Public Comment’’ checkbox. FOR FURTHER INFORMATION CONTACT: For specific questions related to collection activities, please contact Richelle Davis, 202–245–7401. SUPPLEMENTARY INFORMATION: The Department of Education (ED), in accordance with the Paperwork Reduction Act of 1995 (PRA) (44 U.S.C. 3506(c)(2)(A)), provides the general public and Federal agencies with an opportunity to comment on proposed, revised, and continuing collections of information. This helps the Department assess the impact of its information collection requirements and minimize the public’s reporting burden. It also helps the public understand the Department’s information collection requirements and provide the requested data in the desired format. ED is soliciting comments on the proposed information collection request (ICR) that is described below. The Department of Education is especially interested in public comment addressing the following issues: (1) Is this collection necessary to the proper functions of the Department; (2) will this information be processed and used in a timely manner; (3) is the estimate of burden accurate; (4) how might the Department enhance the quality, utility, and clarity of the information to be collected; and (5) how SUMMARY: PO 00000 Frm 00021 Fmt 4703 Sfmt 4703 2 2 1 1 1 1 might the Department minimize the burden of this collection on the respondents, including through the use of information technology. Please note that written comments received in response to this notice will be considered public records. Title of Collection: Special EducationIndividual Reporting on Regulatory Compliance Related to the Personnel Development Program’s Service Obligation and the Government Performance and Results Act (GPRA). OMB Control Number: 1820–0686. Type of Review: A revision of an existing information collection. Respondents/Affected Public: Individuals or Households. Total Estimated Number of Annual Responses: 34,262. Total Estimated Number of Annual Burden Hours: 8,328. Abstract: The Office of Special Education Program’s Personnel Development Program aims to increase the supply of qualified personnel in the field of special education. The program awards competitive grants to Institutions of Higher Education to support scholars who are preparing to provide special education and related services to children and youth with disabilities. Scholars who receive funding agree to work in the field of special education or related services for two years for each year of support they receive. The Personnel Development Program Data Collection System collects data from grantees, scholars, and employers who verify that scholars are employed in the field of special education or related services. This data collection serves three program needs. First, data from grantees, scholars, and employers are necessary to assess the performance of the Personnel Development Program on its Government Performance Results Act measures. Second, data from all three sources are necessary to determine if scholars comply with the service obligation requirements. And finally, project-specific performance data are E:\FR\FM\05JNN1.SGM 05JNN1

Agencies

[Federal Register Volume 85, Number 109 (Friday, June 5, 2020)]
[Notices]
[Pages 34605-34609]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-12169]


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DEPARTMENT OF EDUCATION


Federal Need Analysis Methodology for the 2021-22 Award Year--
Federal Pell Grant, 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.

-----------------------------------------------------------------------

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) 2021-
22 for student financial aid programs, Catalog of Federal Domestic 
Assistance (CFDA) numbers 84.063, 84.033, 84.007, 84.268, 84.408, and 
84.379. This notice alerts 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. Email: 
[email protected].
    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 2021-22, 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 2019 and December 2020. However, because the Secretary must 
publish these tables before December 2020, 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 2020. The Secretary must also account for any under- or over-
estimation of inflation for the preceding year.
    In developing the table values for the 2020-21 AY, the Secretary 
assumed a 2.4 percent increase in the CPI-U for the period December 
2018 through December 2019. The actual inflation for this time period 
was 2.3 percent. The Secretary estimates that the increase in the CPI-U 
for the period December 2019 through December 2020 will be 2.0 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 2021-22 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.
    Under 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 2021-22 
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 2021-22 has been updated in section 5 of this notice.
    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. This table 
has been updated in section 6 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 dependent students is $6,970. The 
IPAs for parents of dependent students for AY 2021-22 are as follows:

[[Page 34606]]



                                          Parents of Dependent Students
----------------------------------------------------------------------------------------------------------------
                                                                 Number in college
           Family size           -------------------------------------------------------------------------------
                                         1               2               3               4               5
----------------------------------------------------------------------------------------------------------------
2...............................         $19,440         $16,110  ..............  ..............  ..............
3...............................          24,200          20,900         $17,570  ..............  ..............
4...............................          29,890          26,570          23,260         $19,930  ..............
5...............................          35,270          31,940          28,640          25,310         $22,000
6...............................          41,250          37,930          34,620          31,300          27,990
----------------------------------------------------------------------------------------------------------------

    For each additional family member add $4,660. For each additional 
college student subtract $3,310.
    The IPAs for independent students with dependents other than a 
spouse for AY 2021-22 are as follows:

                            Independent Students With Dependents Other Than a Spouse
----------------------------------------------------------------------------------------------------------------
                                                                 Number in college
           Family size           -------------------------------------------------------------------------------
                                         1               2               3               4               5
----------------------------------------------------------------------------------------------------------------
2...............................         $27,450         $22,760  ..............  ..............  ..............
3...............................          34,180          29,510         $24,810  ..............  ..............
4...............................          42,200          37,520          32,850         $28,150  ..............
5...............................          49,800          45,100          40,430          35,750         $31,080
6...............................          58,240          53,550          48,900          44,180          39,520
----------------------------------------------------------------------------------------------------------------

    For each additional family member add $6,580. For each additional 
college student subtract $4,670.
    The IPAs for single independent students and independent students 
without dependents other than a spouse for AY 2021-22 are as follows:

       Independent Students Without Dependents Other Than a Spouse
------------------------------------------------------------------------
                                                 Number in college
             Marital status              -------------------------------
                                                 1               2
------------------------------------------------------------------------
Single..................................         $10,840  ..............
Married.................................          17,380         $10,840
------------------------------------------------------------------------

    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 $140,000..............................  $0 + 40% of NW.
$140,001 to $415,000........................  $56,000 + 50% of NW over $140,000.
$415,001 to $695,000........................  $193,500 + 60% of NW over $415,000.
$695,001 or more............................  $361,500 + 100% of NW over $695,000.
----------------------------------------------------------------------------------------------------------------

    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.

[[Page 34607]]



 Parents of Dependent Students, and Independent Students With Dependents
 Other Than a Spouse, and Independent Students Without Dependents Other
                              Than a Spouse
------------------------------------------------------------------------
                                            And the older parent or the
If the age of the older parent is, or If      independent student is
  the age of the independent student is  -------------------------------
                                              Married         Single
------------------------------------------------------------------------
                                               Then the allowance is
                                         -------------------------------
25 or less..............................               0               0
26......................................             400             100
27......................................             700             300
28......................................           1,100             400
29......................................           1,500             600
30......................................           1,800             700
31......................................           2,200             800
32......................................           2,600           1,000
33......................................           2,900           1,100
34......................................           3,300           1,300
35......................................           3,700           1,400
36......................................           4,000           1,500
37......................................           4,400           1,700
38......................................           4,800           1,800
39......................................           5,100           2,000
40......................................           5,500           2,100
41......................................           5,600           2,200
42......................................           5,700           2,200
43......................................           5,900           2,300
44......................................           6,000           2,300
45......................................           6,200           2,400
46......................................           6,300           2,400
47......................................           6,500           2,500
48......................................           6,600           2,500
49......................................           6,800           2,600
50......................................           7,000           2,700
51......................................           7,100           2,700
52......................................           7,300           2,800
53......................................           7,500           2,900
54......................................           7,700           2,900
55......................................           7,900           3,000
56......................................           8,100           3,100
57......................................           8,400           3,100
58......................................           8,600           3,200
59......................................           8,800           3,300
60......................................           9,100           3,400
61......................................           9,300           3,500
62......................................           9,600           3,600
63......................................           9,900           3,700
64......................................          10,200           3,800
65 or older.............................          10,500           3,900
------------------------------------------------------------------------

    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 contribution of parents of dependent students, and independent 
students 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 $17,400..........................  22% of AAI.
$17,401 to $21,800..........................  $3,828 + 25% of AAI over $17,400.
$21,801 to $26,200..........................  $4,928 + 29% of AAI over $21,800.
$26,201 to $30,700..........................  $6,204 + 34% of AAI over $26,200.
$30,701 to $35,100..........................  $7,734 + 40% of AAI over $30,700.
$35,101 or more.............................  $9,494 + 47% of AAI over $35,100.
----------------------------------------------------------------------------------------------------------------


[[Page 34608]]

    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.

               Percent of Income Paid in State Taxes by State, Dependency Status, and Income Level
----------------------------------------------------------------------------------------------------------------
                                                                   Parents of dependent students     Dependent
                                                                   and independent students with   students and
                                                                  dependents other than a spouse    independent
                                                                 --------------------------------    students
                                                                                                      without
                              State                                                                 dependents
                                                                   Income under   Income $15,000   other than a
                                                                      $15,000          & up           spouse
                                                                                                 ---------------
                                                                                                    All income
----------------------------------------------------------------------------------------------------------------
Alabama.........................................................               3               2               2
Alaska..........................................................               2               1               0
Arizona.........................................................               4               3               2
Arkansas........................................................               4               3               3
California......................................................               9               8               6
Colorado........................................................               4               3               3
Connecticut.....................................................               9               8               5
Delaware........................................................               5               4               3
District of Columbia............................................               7               6               6
Florida.........................................................               3               2               1
Georgia.........................................................               5               4               4
Hawaii..........................................................               5               4               4
Idaho...........................................................               5               4               4
Illinois........................................................               6               5               3
Indiana.........................................................               4               3               3
Iowa............................................................               5               4               3
Kansas..........................................................               4               3               3
Kentucky........................................................               5               4               4
Louisiana.......................................................               3               2               2
Maine...........................................................               6               5               3
Maryland........................................................               8               7               6
Massachusetts...................................................               7               6               4
Michigan........................................................               5               4               3
Minnesota.......................................................               7               6               5
Mississippi.....................................................               3               2               2
Missouri........................................................               5               4               3
Montana.........................................................               5               4               3
Nebraska........................................................               5               4               3
Nevada..........................................................               3               2               1
New Hampshire...................................................               4               3               1
New Jersey......................................................               9               8               5
New Mexico......................................................               3               2               2
New York........................................................              10               9               7
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               4
South Carolina..................................................               4               3               3
South Dakota....................................................               2               1               1
Tennessee.......................................................               2               1               1
Texas...........................................................               3               2               1
Utah............................................................               5               4               4
Vermont.........................................................               6               5               3
Virginia........................................................               6               5               4
Washington......................................................               3               2               1
West Virginia...................................................               3               2               3
Wisconsin.......................................................               6               5               4

[[Page 34609]]

 
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, 
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under FOR FURTHER INFORMATION CONTACT.
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by the Department.

    Program Authority: 20 U.S.C. 1087rr.

Mark A. Brown,
Chief Operating Officer, Federal Student Aid.
[FR Doc. 2020-12169 Filed 6-4-20; 8:45 am]
 BILLING CODE 4000-01-P