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]
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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
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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.
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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
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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 .....................................................................................................................................
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for postsecondary educational expenses.
There are three asset protection
allowance tables: One for parents of
dependent students, one for
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........................
$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.
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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 .................................................................................................................................................................
.............................................................................................................................................................................
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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
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
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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
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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
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You may also access documents of the
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Specifically, through the advanced
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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
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[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:
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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
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]]>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]
=======================================================================
-----------------------------------------------------------------------
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,
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
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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
