Federal Need Analysis Methodology for the 2022-23 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, 38067-38071 [2021-15217]

Download as PDF Federal Register / Vol. 86, No. 135 / Monday, July 19, 2021 / Notices Interested persons are invited to submit comments on or before August 18, 2021. 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 information collection request by selecting ‘‘Department of Education’’ under ‘‘Currently Under Review,’’ then check ‘‘Only Show ICR for Public Comment’’ checkbox. Comments may also be sent to ICDocketmgr@ed.gov. FOR FURTHER INFORMATION CONTACT: For specific questions related to collection activities, please contact Karen Epps, 202–453–6337. 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 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: Higher Education Emergency Relief Fund (HEERF) Improper Payments Information Form. OMB Control Number: 1840–0851. Type of Review: An extension without change of a currently approved collection. Respondents/Affected Public: Private Sector; State, Local, and Tribal Governments. Total Estimated Number of Annual Responses: 5,138. lotter on DSK11XQN23PROD with NOTICES1 DATES: VerDate Sep<11>2014 18:23 Jul 16, 2021 Jkt 253001 Total Estimated Number of Annual Burden Hours: 5,138. Abstract: Under the CARES Act’s Higher Education Emergency Relief Fund (HEERF), the Department has made over 12,000 awards to institutions of higher education (IHEs) to support emergency financial aid to students and institutional costs associated with significant changes to the delivery of instruction due to the coronavirus. This form will be used by institutions that have improperly drawn down funds from their award accounts to provide the Department with information regarding funds being returned to correct these improper payments. Dated: July 14, 2021. Kate Mullan, PRA Coordinator, Strategic Collections and Clearance Governance and Strategy Division, Office of Chief Data Officer, Office of Planning, Evaluation and Policy Development. [FR Doc. 2021–15248 Filed 7–16–21; 8:45 am] BILLING CODE 4000–01–P DEPARTMENT OF EDUCATION Federal Need Analysis Methodology for the 2022–23 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, U.S. 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) 2022–23 for student financial aid programs, Assistance Listing Numbers 84.063, 84.033, 84.007, 84.268, 84.408, and 84.379. The intent of this notice is to alert the financial aid community and the broader public to these required annual updates used in the determination of student aid eligibility. FOR FURTHER INFORMATION CONTACT: Kerri Moseley-Hobbs, U.S. Department of Education, Union Center Plaza, 830 First Street NE, Washington, DC 20202– 5454. Telephone: (202) 377–3291. 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 SUMMARY: PO 00000 Frm 00081 Fmt 4703 Sfmt 4703 38067 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 2022–23, 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 2020 and December 2021. However, because the Secretary must publish these tables before December 2021, 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 2021. The Secretary must also account for any under- or over-estimation of inflation for the preceding year. In developing the table values for the 2021–22 AY, the Secretary assumed a 2.0 percent increase in the CPI–U for the period December 2019 through December 2020. The actual inflation for this time period was 1.2 percent. The Secretary estimates that the increase in the CPI–U for the period December 2020 through December 2021 will be 1.8 percent. Additionally, section 601 of the College Cost Reduction and Access Act of 2007 (CCRAA, Pub. L. 110–84) amended sections 475 through 478 of the HEA 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 2022–23 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 E:\FR\FM\19JYN1.SGM 19JYN1 38068 Federal Register / Vol. 86, No. 135 / Monday, July 19, 2021 / Notices 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 2022–23 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. After review of the 2018 Statistics of Income data file, the Secretary has determined that for AY 2022–2023 this table will not be updated. Changes to tax law in 2018 resulted in a cap of state, local, and other taxes that can be claimed as deductions on federal income tax returns. This led to a large drop in the share of filers claiming the deduction and thus the total amount of these taxes paid, causing the Statistics of Income data file to less accurately reflect state, local, and other taxes paid in 2018. While the 2018 Statistics of Income data file shows a substantial decline in state, local, and other taxes paid as share of income, more accurate data confirms that the year-over-year change in share of income put toward state and local taxes paid as a share of income grew from 9.80 percent to 9.89 percent. Therefore, the table in section 6 of this notice has not been updated and will remain the same as AY 2021–2022. 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 $7,040. The IPAs for parents of dependent students for AY 2022–23 are as follows: PARENTS OF DEPENDENT STUDENTS Number in college Family size 2 3 4 5 6 ........................................................................................... ........................................................................................... ........................................................................................... ........................................................................................... ........................................................................................... For each additional family member add $4,700. For each additional college student subtract $3,340. 1 2 $19,630 24,440 30,190 35,620 41,670 $16,270 21,100 26,830 32,260 38,310 3 4 5 ........................ $17,740 23,490 28,920 34,970 ........................ ........................ $20,130 25,560 31,610 ........................ ........................ ........................ $22,220 28,270 The IPAs for independent students with dependents other than a spouse for AY 2022–23 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 $6,640. For each additional college student subtract $4,720. 1 2 $27,720 34,520 42,620 50,300 58,820 $22,980 29,800 37,900 45,550 54,090 The IPAs for single independent students and independent students 3 4 5 ........................ $25,060 33,180 40,830 49,380 ........................ ........................ $28,430 36,100 44,620 ........................ ........................ ........................ $31,380 39,910 without dependents other than a spouse for AY 2022–23 are as follows: INDEPENDENT STUDENTS WITHOUT DEPENDENTS OTHER THAN SPOUSE Number in college Marital status 1 lotter on DSK11XQN23PROD with NOTICES1 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 VerDate Sep<11>2014 18:23 Jul 16, 2021 Jkt 253001 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. PO 00000 Frm 00082 Fmt 4703 Sfmt 4703 $10,950 17,550 2 ........................ $10,950 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, E:\FR\FM\19JYN1.SGM 19JYN1 38069 Federal Register / Vol. 86, No. 135 / Monday, July 19, 2021 / Notices 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 ............................................................................................................................................ $1 to $140,000 ......................................................................................................................................... $140,001 to $420,000 .............................................................................................................................. $420,001 to $700,000 .............................................................................................................................. $700,001 or more ..................................................................................................................................... 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 $0. $0 + 40% of NW. $56,000 + 50% of NW over $140,000. $196,500 + 60% of NW over $420,000. $364,000 + 100% of NW over $700,000. independent students without dependents other than a spouse, and one for independent students with dependents other than a spouse. 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 lotter on DSK11XQN23PROD with NOTICES1 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 VerDate Sep<11>2014 18:23 Jul 16, 2021 Jkt 253001 students and one for independent students with dependents other than a spouse—are used to determine the EFC PO 00000 Frm 00083 Fmt 4703 Sfmt 4703 0 200 400 600 800 1,000 1,200 1,400 1,700 1,900 2,100 2,300 2,500 2,700 2,900 3,100 3,200 3,200 3,300 3,400 3,500 3,600 3,700 3,700 3,800 3,900 4,000 4,100 4,200 4,400 4,500 4,600 4,700 4,900 5,000 5,100 5,300 5,400 5,600 5,800 5,900 from family financial resources that contribute to educational expenses. For dependent students, the EFC is derived E:\FR\FM\19JYN1.SGM 19JYN1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 38070 Federal Register / Vol. 86, No. 135 / Monday, July 19, 2021 / Notices 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 .................................................................................................................................. ¥$3,409 to $17,500 ................................................................................................................................ $17,501 to $22,000 .................................................................................................................................. $22,001 to $26,500 .................................................................................................................................. $26,501 to $31,000 .................................................................................................................................. $30,001 to $35,500 .................................................................................................................................. $35,501 or more ....................................................................................................................................... 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 ¥$750. 22% of AAI. $3,850 + 25% $4,975 + 29% $6,280 + 34% $7,810 + 40% $9,610 + 47% of of of of of AAI AAI AAI AAI AAI over over over over over $17,500. $22,000. $26,500. $31,000. $35,500. 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 DSK11XQN23PROD with NOTICES1 All income Alabama ....................................................................................................................................... Alaska .......................................................................................................................................... Arizona ......................................................................................................................................... Arkansas ...................................................................................................................................... California ...................................................................................................................................... Colorado ...................................................................................................................................... Connecticut .................................................................................................................................. Delaware ...................................................................................................................................... District of Columbia ..................................................................................................................... Florida .......................................................................................................................................... Georgia ........................................................................................................................................ Hawaii .......................................................................................................................................... Idaho ............................................................................................................................................ Illinois ........................................................................................................................................... Indiana ......................................................................................................................................... Iowa ............................................................................................................................................. Kansas ......................................................................................................................................... Kentucky ...................................................................................................................................... Louisana ...................................................................................................................................... Maine ........................................................................................................................................... Maryland ...................................................................................................................................... Massachussets ............................................................................................................................ Michigan ....................................................................................................................................... Minnesota .................................................................................................................................... Mississippi .................................................................................................................................... Missouri ........................................................................................................................................ Montana ....................................................................................................................................... Nebraska ...................................................................................................................................... Nevada ......................................................................................................................................... New Hampshire ........................................................................................................................... New Jersey .................................................................................................................................. New Mexico ................................................................................................................................. VerDate Sep<11>2014 18:23 Jul 16, 2021 Jkt 253001 PO 00000 Frm 00084 Fmt 4703 Sfmt 4703 E:\FR\FM\19JYN1.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 19JYN1 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 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 38071 Federal Register / Vol. 86, No. 135 / Monday, July 19, 2021 / 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 lotter on DSK11XQN23PROD with NOTICES1 New York ..................................................................................................................................... North Carolina .............................................................................................................................. North Dakota ................................................................................................................................ Ohio ............................................................................................................................................. Oklahoma ..................................................................................................................................... Oregon ......................................................................................................................................... Pennsylvania ................................................................................................................................ Rhode Island ................................................................................................................................ South Carolina ............................................................................................................................. South Dakota ............................................................................................................................... Tennessee ................................................................................................................................... Texas ........................................................................................................................................... Utah ............................................................................................................................................. Vermont ....................................................................................................................................... Virginia ......................................................................................................................................... Washington .................................................................................................................................. West Virginia ................................................................................................................................ Wisconsin ..................................................................................................................................... Wyoming ...................................................................................................................................... Other ............................................................................................................................................ Accessible Format: On request to the program contact person listed under FOR FURTHER INFORMATION CONTACT, individuals with disabilities can obtain this document in an accessible format. The Department will provide the requestor with an accessible format that may include Rich Text Format (RTF) or text format (txt), a thumb drive, an MP3 file, Braille, large print, audiotape, or compact disc, or other accessible format. 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 the 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 the 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. VerDate Sep<11>2014 18:23 Jul 16, 2021 Jkt 253001 Program Authority: 20 U.S.C. 1087rr. Richard Cordray, Chief Operating Officer, Federal Student Aid. [FR Doc. 2021–15217 Filed 7–16–21; 8:45 am] BILLING CODE 4000–01–P DEPARTMENT OF EDUCATION [Docket No.: ED–2021–SCC–0072] Agency Information Collection Activities; Submission to the Office of Management and Budget for Review and Approval; Comment Request; Maintenance-of-Effort Requirements and Waiver Requests Under the Elementary and Secondary School Emergency Relief (ESSER) Fund and the Governor’s Emergency Education Relief (GEER) Fund Office of Elementary and Secondary Education (OESE), Department of Education (ED). ACTION: Notice. AGENCY: In accordance with the Paperwork Reduction Act of 1995, ED is proposing an extension without change of a currently approved collection. DATES: Interested persons are invited to submit comments on or before August 18, 2021. ADDRESSES: Written comments and recommendations for proposed information collection requests should SUMMARY: PO 00000 Frm 00085 Fmt 4703 Sfmt 4703 10 5 2 5 3 7 5 6 4 2 2 3 5 6 6 3 3 6 2 2 9 4 1 4 2 6 4 5 3 1 1 2 4 5 5 2 2 5 1 1 7 3 1 3 2 5 3 4 3 1 1 1 4 3 4 1 3 4 1 1 be sent within 30 days of publication of this notice to www.reginfo.gov/public/ do/PRAMain. Find this information collection request by selecting ‘‘Department of Education’’ under ‘‘Currently Under Review,’’ then check ‘‘Only Show ICR for Public Comment’’ checkbox. Comments may also be sent to ICDocketmgr@ed.gov. For specific questions related to collection activities, please contact Britt Jung, (202) 453–6046. FOR FURTHER INFORMATION CONTACT: 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 SUPPLEMENTARY INFORMATION: E:\FR\FM\19JYN1.SGM 19JYN1

Agencies

[Federal Register Volume 86, Number 135 (Monday, July 19, 2021)]
[Notices]
[Pages 38067-38071]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-15217]


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DEPARTMENT OF EDUCATION


Federal Need Analysis Methodology for the 2022-23 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, U.S. 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) 2022-
23 for student financial aid programs, Assistance Listing Numbers 
84.063, 84.033, 84.007, 84.268, 84.408, and 84.379. The intent of this 
notice is to alert the financial aid community and the broader public 
to these required annual updates used in the determination of student 
aid eligibility.

FOR FURTHER INFORMATION CONTACT: Kerri Moseley-Hobbs, U.S. Department 
of Education, Union Center Plaza, 830 First Street NE, Washington, DC 
20202-5454. Telephone: (202) 377-3291.
    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 2022-23, 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 2020 and December 2021. However, because the Secretary must 
publish these tables before December 2021, 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 2021. The Secretary must also account for any under- or over-
estimation of inflation for the preceding year.
    In developing the table values for the 2021-22 AY, the Secretary 
assumed a 2.0 percent increase in the CPI-U for the period December 
2019 through December 2020. The actual inflation for this time period 
was 1.2 percent. The Secretary estimates that the increase in the CPI-U 
for the period December 2020 through December 2021 will be 1.8 percent.
    Additionally, section 601 of the College Cost Reduction and Access 
Act of 2007 (CCRAA, Pub. L. 110-84) amended sections 475 through 478 of 
the HEA 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 2022-23 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

[[Page 38068]]

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 2022-23 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. After 
review of the 2018 Statistics of Income data file, the Secretary has 
determined that for AY 2022-2023 this table will not be updated. 
Changes to tax law in 2018 resulted in a cap of state, local, and other 
taxes that can be claimed as deductions on federal income tax returns. 
This led to a large drop in the share of filers claiming the deduction 
and thus the total amount of these taxes paid, causing the Statistics 
of Income data file to less accurately reflect state, local, and other 
taxes paid in 2018. While the 2018 Statistics of Income data file shows 
a substantial decline in state, local, and other taxes paid as share of 
income, more accurate data confirms that the year-over-year change in 
share of income put toward state and local taxes paid as a share of 
income grew from 9.80 percent to 9.89 percent. Therefore, the table in 
section 6 of this notice has not been updated and will remain the same 
as AY 2021-2022.
    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 $7,040. The 
IPAs for parents of dependent students for AY 2022-23 are as follows:

                                          Parents of Dependent Students
----------------------------------------------------------------------------------------------------------------
                                                                 Number in college
           Family size           -------------------------------------------------------------------------------
                                         1               2               3               4               5
----------------------------------------------------------------------------------------------------------------
2...............................         $19,630         $16,270  ..............  ..............  ..............
3...............................          24,440          21,100         $17,740  ..............  ..............
4...............................          30,190          26,830          23,490         $20,130  ..............
5...............................          35,620          32,260          28,920          25,560         $22,220
6...............................          41,670          38,310          34,970          31,610          28,270
----------------------------------------------------------------------------------------------------------------

    For each additional family member add $4,700. For each additional 
college student subtract $3,340.
    The IPAs for independent students with dependents other than a 
spouse for AY 2022-23 are as follows:

                            Independent Students With Dependents Other Than a Spouse
----------------------------------------------------------------------------------------------------------------
                                                                 Number in college
           Family size           -------------------------------------------------------------------------------
                                         1               2               3               4               5
----------------------------------------------------------------------------------------------------------------
2...............................         $27,720         $22,980  ..............  ..............  ..............
3...............................          34,520          29,800         $25,060  ..............  ..............
4...............................          42,620          37,900          33,180         $28,430  ..............
5...............................          50,300          45,550          40,830          36,100         $31,380
6...............................          58,820          54,090          49,380          44,620          39,910
----------------------------------------------------------------------------------------------------------------

    For each additional family member add $6,640. For each additional 
college student subtract $4,720.
    The IPAs for single independent students and independent students 
without dependents other than a spouse for AY 2022-23 are as follows:

        Independent Students Without Dependents Other Than Spouse
------------------------------------------------------------------------
                                                 Number in college
             Marital status              -------------------------------
                                                 1               2
------------------------------------------------------------------------
Single..................................         $10,950  ..............
Married.................................          17,550         $10,950
------------------------------------------------------------------------

    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,

[[Page 38069]]

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 $420,000........................  $56,000 + 50% of NW over $140,000.
$420,001 to $700,000........................  $196,500 + 60% of NW over $420,000.
$700,001 or more............................  $364,000 + 100% of NW over $700,000.
----------------------------------------------------------------------------------------------------------------

    3. Education Savings and Asset Protection Allowance. This allowance 
protects a portion of NW (assets less debts) from being considered 
available for postsecondary educational expenses. There are three asset 
protection allowance tables: One for parents of dependent students, one 
for independent students without dependents other than a spouse, and 
one for independent students with dependents other than a spouse.

 Parents of Dependent Students, and 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......................................             200               0
27......................................             400               0
28......................................             600               0
29......................................             800               0
30......................................           1,000               0
31......................................           1,200               0
32......................................           1,400               0
33......................................           1,700               0
34......................................           1,900               0
35......................................           2,100               0
36......................................           2,300               0
37......................................           2,500               0
38......................................           2,700               0
39......................................           2,900               0
40......................................           3,100               0
41......................................           3,200               0
42......................................           3,200               0
43......................................           3,300               0
44......................................           3,400               0
45......................................           3,500               0
46......................................           3,600               0
47......................................           3,700               0
48......................................           3,700               0
49......................................           3,800               0
50......................................           3,900               0
51......................................           4,000               0
52......................................           4,100               0
53......................................           4,200               0
54......................................           4,400               0
55......................................           4,500               0
56......................................           4,600               0
57......................................           4,700               0
58......................................           4,900               0
59......................................           5,000               0
60......................................           5,100               0
61......................................           5,300               0
62......................................           5,400               0
63......................................           5,600               0
64......................................           5,800               0
65 or older.............................           5,900               0
------------------------------------------------------------------------

    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 that contribute to 
educational expenses. For dependent students, the EFC is derived

[[Page 38070]]

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 $17,500..........................  22% of AAI.
$17,501 to $22,000..........................  $3,850 + 25% of AAI over $17,500.
$22,001 to $26,500..........................  $4,975 + 29% of AAI over $22,000.
$26,501 to $31,000..........................  $6,280 + 34% of AAI over $26,500.
$30,001 to $35,500..........................  $7,810 + 40% of AAI over $31,000.
$35,501 or more.............................  $9,610 + 47% of AAI over $35,500.
----------------------------------------------------------------------------------------------------------------

    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
Louisana........................................................               3               2               2
Maine...........................................................               6               5               3
Maryland........................................................               8               7               6
Massachussets...................................................               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

[[Page 38071]]

 
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
Wyoming.........................................................               2               1               1
Other...........................................................               2               1               1
----------------------------------------------------------------------------------------------------------------

    Accessible Format: On request to the program contact person listed 
under FOR FURTHER INFORMATION CONTACT, individuals with disabilities 
can obtain this document in an accessible format. The Department will 
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format.
    Electronic Access to This Document: The official version of this 
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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.

Richard Cordray,
Chief Operating Officer, Federal Student Aid.
[FR Doc. 2021-15217 Filed 7-16-21; 8:45 am]
BILLING CODE 4000-01-P