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
<![CDATA[
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]
-----------------------------------------------------------------------
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
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.
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
