Indiana Administrative Code
Title 500 - COMMISSION FOR HIGHER EDUCATION OF THE STATE OF INDIANA
Article 1 - ADMINISTRATION OF SCHOLARSHIP AND GRANT PROGRAMS
Rule 1 - Grant and Scholarship Programs
Section 1-6 - Determination of parental contribution and expected family contribution

(a) Federal methodology, as specified by resolution of the commission, shall be used to determine the parental contribution (PC) and expected family contribution (EFC). Both the PC and EFC shall always be calculated on the basis of actual income for the calendar year prior to the beginning of an application period and assets at the time of application, except as the commission may otherwise direct. Absent specific legislative language to the contrary, the commission may adjust the methodology due to budgetary constraints.

(b) For a dependent student, the PC figure shall be derived from the parental data submitted on an approved application by the applicant. Also, if the applicant's parents are separated or divorced at the time of application, only the prior year's income and current household and asset information of the parent with whom the student lived the most during the last twelve (12) months, or, if the student lived with each parent an equal number of days, of the parent who provided the most financial support during the last twelve (12) months or during the most recent calendar year that support was received shall be considered, including the following:

(c) For an independent student, the EFC shall be derived from data submitted by the applicant on the approved application. The following shall also apply to the determination of an EFC for independent students:

(d) The commission may apply a factor that increases or decreases the PC and EFC of all applicants (both dependent and independent) if, in the commission's judgment, such adjustments are necessary and appropriate.

(e) The commission shall not adjust the PC or EFC or recalculate an award for any of the following reasons:

(f) In the event of the death of one (1) of the parents of an applicant, the commission may recalculate the PC on the basis of the surviving parent's prior calendar year's income and current year's assets and issue a revised award at any time. Should an applicant be orphaned, the commission may reclassify the applicant as an independent and issue a revised award based on the applicant's revised EFC. Adjustments under either provision mentioned in this section must be made during the academic term in which the student is enrolled.

(g) In the event of the death of the spouse of an independent student, the commission may recalculate the EFC on the basis of the student's prior year's income and current year's assets and issue a revised award at any time from the beginning of an application period up to the reconciliation dates established by the commission for the eligible institution attended.

(h) For an applicant under section 5(b)(2)(A) or 5(b)(2)(B) of this rule, income from and assets of trusts administered in the applicant's behalf by a court-appointed guardian, trustee, or conservator shall be considered in calculating the EFC. The commission shall not consider the income of relatives or others with whom an applicant may live in calculating the EFC of an applicant classified as an independent student under section 5(b)(2)(A) or 5(b)(2)(B) of this rule if such relatives or other persons are not the applicant's adoptive parents.

(i) In determining the financial resources available to an applicant, the commission may not consider excludable bond interest as prescribed under IC 20-12-21-6.2[IC 20-12 was repealed by P.L. 2-2007, SECTION 390, effective July 1, 2007. See IC 21-12-3-6.] or assets under an Internal Revenue Service Section 529 Plan.