[Federal Register Volume 74, Number 104 (Tuesday, June 2, 2009)]
[Notices]
[Pages 26379-26383]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-12668]
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DEPARTMENT OF EDUCATION
Federal Pell Grant, Academic Competitiveness Grant, National
Science and Mathematics Access To Retain Talent Grant, Federal Perkins
Loan, Federal Work-Study, Federal Supplemental Educational Opportunity
Grant, Federal Family Education Loan, and William D. Ford Federal
Direct Loan Programs
AGENCY: Federal Student Aid, U.S. Department of Education.
ACTION: Notice of revision of the Federal Need Analysis Methodology for
the 2010-2011 award year.
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SUMMARY: The Secretary announces the annual updates to the tables that
will be used in the statutory ``Federal Need Analysis Methodology'' to
determine a student's expected family contribution (EFC) for award year
2010-2011 for the student financial aid programs authorized under title
IV of the Higher Education Act of 1965, as amended (HEA). An EFC is the
amount a student and his or her family may reasonably be expected to
contribute toward the student's postsecondary educational costs for
purposes of determining financial aid eligibility. The Title IV
programs include the Federal Pell Grant, Academic Competitiveness
Grant, National Science and Mathematics Access to Retain Talent Grant,
Federal Perkins Loan, Federal Work-Study, Federal Supplemental
Educational Opportunity Grant, Federal Family Education Loan, and
William D. Ford Federal Direct Loan Programs (Title IV, HEA Programs).
FOR FURTHER INFORMATION CONTACT: Ms. Marya Dennis, Management and
Program Analyst, U.S. Department of Education, 63G2, Union Center
Plaza, 830 First Street, NE., Washington, DC 20202. Telephone: (202)
377-3385.
If you use a telecommunications device for the deaf (TDD), call the
Federal Relay Service (FRS), toll free, at 1-800-877-8339.
Individuals with disabilities can obtain this document in an
accessible format (e.g., braille, large print, audiotape or compact
disk) on request to the contact person listed under FOR FURTHER
INFORMATION CONTACT.
SUPPLEMENTARY INFORMATION: Part F of title IV of the HEA specifies the
criteria, data elements, calculations, and tables used in the Federal
Need Analysis Methodology EFC calculations.
Section 478 of part F of title IV of the HEA requires the Secretary
to adjust four of the tables--the Income Protection Allowance, the
Adjusted Net Worth of a Business or Farm, the Education Savings and
Asset Protection Allowance, and the Assessment Schedules and Rates--
each award year for general price inflation. The changes are based, in
general, upon increases in the Consumer Price Index.
For award year 2010-2011 the Secretary is charged with updating the
income protection allowance for parents of dependent students, adjusted
net worth of a business or farm, and the assessment schedules and rates
to account for inflation that took place between December 2008 and
December 2009. However, because the Secretary must publish these tables
before December 2009, the increases in the tables must be based upon a
percentage equal to the estimated percentage increase in the Consumer
Price Index for All Urban Consumers for 2009. The Secretary estimates
that the increase in the Consumer Price Index for All Urban Consumers
(CPI-U) for the period December 2008 through December 2009 will be 4.1
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 by updating the procedures for determining the income
protection allowance for dependent students as well as the income
protection allowance tables for both independent students with
dependents other than a spouse and independent students without
dependents other than a spouse. As amended by the CCRAA, the HEA
established new 2010-2011 award year values for these income protection
allowances. The updated tables are in sections 1, 2, and 4 of this
notice.
The Secretary must also revise, for each award year, the education
savings and asset protection allowances as provided for in section
478(d) of the HEA. The Education Savings and Asset Protection Allowance
table for award year 2010-2011 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 upon increases in the
Bureau of Labor Statistics budget of the marginal costs for a two-
worker family compared to a one-worker family for food away from home,
apparel, transportation, and household furnishings and operations. The
Employment Expense Allowance table for award year 2010-2011 has been
updated in section 5 of this notice.
The HEA provides for 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. It varies by
family size. The income protection allowance for the dependent student
is $4,500. The income protection allowances for parents of dependent
students for award year 2010-2011 are:
[[Page 26380]]
Parents of Dependent Students
[Number in college]
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Family Size 1 2 3 4 5
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2............................... $16,230 $13,450 .............. .............. ..............
3............................... 20,210 17,450 $14,670 .............. ..............
4............................... 24,970 22,190 19,430 $16,650 ..............
5............................... 29,460 26,680 23,920 21,140 $18,380
6............................... 34,460 31,680 28,920 26,140 23,380
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For each additional family member add $3,890.
For each additional college student subtract $2,760.
The income protection allowances (IPA) for independent students
with dependents other than a spouse for award year 2010-11 are:
Independent Students With Dependents Other Than a Spouse
[Number in college]
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Family size 1 2 3 4 5
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2............................... $19,690 $16,330 .............. .............. ..............
3............................... 24,510 21,160 $17,800 .............. ..............
4............................... 30,280 26,910 23,560 $20,190 ..............
5............................... 35,730 32,350 29,000 25,640 $22,290
6............................... 41,780 38,410 35,080 31,690 28,350
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For each additional family member add $4,710.
For each additional college student subtract $3,350.
The income protection allowances for single independent students
and independent students without dependents other than a spouse for
award year 2010-11 are:
------------------------------------------------------------------------
Number in
Marital status college IPA
------------------------------------------------------------------------
Single.................................. 1 $7,780
Married................................. 2 7,780
Married................................. 1 12,460
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2. Adjusted Net Worth (NW) of a Business or Farm. A portion of the
full net value of a business or farm is excluded from the calculation
of an expected contribution because--(1) The income produced from these
assets is already assessed in another part of the formula; and (2) the
formula protects a portion of the value of the assets. The portion of
these assets included in the contribution calculation is computed
according to the following schedule. This schedule is used for parents
of dependent students, independent students without dependents other
than a spouse, and independent students with dependents other than a
spouse.
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If the net worth of a business or farm Then the adjusted net worth is--
is--
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Less than $1........................... $0.
$1 to $115,000......................... $0 + 40% of NW.
$115,001 to $345,000................... $46,000 + 50% of NW over
$115,000.
$345,001 to $580,000................... $161,000 + 60% of NW over
$345,000.
$580,001 or more....................... $302,000 + 100% of NW over
$580,000.
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3. Education Savings and Asset Protection Allowance. This allowance
protects a portion of net worth (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.
Dependent Students
------------------------------------------------------------------------
And they are
If the age of the older parent is -------------------------
Married Single
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Then the education
savings and asset
protection allowance is--
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25 or less.................................... 0 0
26............................................ 2,800 1,100
27............................................ 5,500 2,200
28............................................ 8,300 3,300
29............................................ 11,100 4,400
30............................................ 13,800 5,500
31............................................ 16,600 6,600
32............................................ 19,400 7,700
33............................................ 22,100 8,700
34............................................ 24,900 9,800
35............................................ 27,700 10,900
36............................................ 30,400 12,000
37............................................ 33,200 13,100
38............................................ 36,000 14,200
39............................................ 38,700 15,300
40............................................ 41,500 16,400
41............................................ 42,200 16,700
42............................................ 43,300 17,100
43............................................ 44,400 17,500
44............................................ 45,500 17,900
45............................................ 46,600 18,300
46............................................ 47,700 18,700
47............................................ 48,900 19,100
48............................................ 50,100 19,600
[[Page 26381]]
49............................................ 51,300 20,100
50............................................ 52,900 20,500
51............................................ 54,200 21,000
52............................................ 55,500 21,500
53............................................ 57,100 22,000
54............................................ 58,500 22,600
55............................................ 60,200 23,200
56............................................ 62,000 23,700
57............................................ 63,500 24,300
58............................................ 65,300 25,000
59............................................ 67,200 25,600
60............................................ 69,200 26,300
61............................................ 71,200 27,000
62............................................ 73,200 27,800
63............................................ 75,600 28,500
64............................................ 77,700 29,300
65 or older................................... 80,300 30,100
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Independent Students Without Dependents Other Than a Spouse
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And they are
If the age of the student is -------------------------
Married Single
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Then the education
savings and asset
protection allowance is--
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25 or less.................................... 0 0
26............................................ 2,800 1,100
27............................................ 5,500 2,200
28............................................ 8,300 3,300
29............................................ 11,100 4,400
30............................................ 13,800 5,500
31............................................ 16,600 6,600
32............................................ 19,400 7,700
33............................................ 22,100 8,700
34............................................ 24,900 9,800
35............................................ 27,700 10,900
36............................................ 30,400 12,000
37............................................ 33,200 13,100
38............................................ 36,000 14,200
39............................................ 38,700 15,300
40............................................ 41,500 16,400
41............................................ 42,200 16,700
42............................................ 43,300 17,100
43............................................ 44,400 17,500
44............................................ 45,500 17,900
45............................................ 46,600 18,300
46............................................ 47,700 18,700
47............................................ 48,900 19,100
48............................................ 50,100 19,600
49............................................ 51,300 20,100
50............................................ 52,900 20,500
51............................................ 54,200 21,000
52............................................ 55,500 21,500
53............................................ 57,100 22,000
54............................................ 58,500 22,600
55............................................ 60,200 23,200
56............................................ 62,000 23,700
57............................................ 63,500 24,300
58............................................ 65,300 25,000
59............................................ 67,200 25,600
60............................................ 69,200 26,300
61............................................ 71,200 27,000
62............................................ 73,200 27,800
63............................................ 75,600 28,500
64............................................ 77,700 29,300
65 or older................................... 80,300 30,100
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Independent Students With Dependents Other Than a Spouse
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And they are
If the age of the student is -------------------------
Married Single
------------------------------------------------------------------------
Then the education
savings and asset
protection allowance is--
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25 or less.................................... 0 0
26............................................ 2,800 1,100
27............................................ 5,500 2,200
28............................................ 8,300 3,300
29............................................ 11,100 4,400
30............................................ 13,800 5,500
31............................................ 16,600 6,600
32............................................ 19,400 7,700
33............................................ 22,100 8,700
34............................................ 24,900 9,800
35............................................ 27,700 10,900
36............................................ 30,400 12,000
37............................................ 33,200 13,100
38............................................ 36,000 14,200
39............................................ 38,700 15,300
40............................................ 41,500 16,400
41............................................ 42,200 16,700
42............................................ 43,300 17,100
43............................................ 44,400 17,500
44............................................ 45,500 17,900
45............................................ 46,600 18,300
46............................................ 47,700 18,700
47............................................ 48,900 19,100
48............................................ 50,100 19,600
49............................................ 51,300 20,100
50............................................ 52,900 20,500
51............................................ 54,200 21,000
52............................................ 55,500 21,500
53............................................ 57,100 22,000
54............................................ 58,500 22,600
55............................................ 60,200 23,200
56............................................ 62,000 23,700
57............................................ 63,500 24,300
58............................................ 65,300 25,000
59............................................ 67,200 25,600
60............................................ 69,200 26,300
61............................................ 71,200 27,000
62............................................ 73,200 27,800
63............................................ 75,600 28,500
64............................................ 77,700 29,300
65 or older................................... 80,300 30,100
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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 toward educational expenses from family financial
resources. For dependent students, the EFC is derived from an
assessment of the parents' adjusted available income (AAI). For
independent students with dependents other than a spouse, the EFC is
derived from an assessment of the family's AAI. The AAI represents a
measure of a family's financial strength, which considers both income
and assets.
The parents' contribution for a dependent student is computed
according to the following schedule:
------------------------------------------------------------------------
If AAI is-- Then the contribution is--
------------------------------------------------------------------------
Less than -$3,409...................... -$750.
($3,409) to $14,500.................... 22% of AAI.
$14,501 to $18,200..................... $3,190 + 25% of AAI over
$14,500.
$18,201 to $21,900..................... $4,115 + 29% of AAI over
$18,200.
$21,901 to $25,600..................... $5,188 + 34% of AAI over
$21,900.
$25,601 to $29,300..................... $6,446 + 40% of AAI over
$25,600.
$29,301 or more........................ $7,926 + 47% of AAI over
$29,300.
------------------------------------------------------------------------
The contribution for an independent student 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.
[[Page 26382]]
($3,409) to $14,500.................... 22% of AAI.
$14,501 to $18,200..................... $3,190 + 25% of AAI over
$14,500.
$18,201 to $21,900..................... $4,115 + 29% of AAI over
$18,200.
$21,901 to $25,600..................... $5,188 + 34% of AAI over
$21,900.
$25,601 to $29,300..................... $6,446 + 40% of AAI over
$25,600.
$29,301 or more........................ $7,926 + 47% of AAI over
$29,300.
------------------------------------------------------------------------
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 upon the marginal differences in costs for a two-worker family
compared to a one-worker family for 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 $3,500 or 35 percent of earned income.
6. Allowance for State and Other Taxes. The allowance for State and
other taxes protects a portion of the parents' and students' income
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. 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.
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Parents of dependents and Dependents and
independents with dependents independents
other than a spouse without
-------------------------------- dependents
State other than a
spouse
Under $15,000 $15,000 & up ---------------
All
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Alabama......................................................... 3% 2% 2%
Alaska.......................................................... 2% 1% 0%
Arizona......................................................... 4% 3% 3%
Arkansas........................................................ 4% 3% 3%
California...................................................... 9% 8% 5%
Colorado........................................................ 5% 4% 3%
Connecticut..................................................... 8% 7% 4%
Delaware........................................................ 5% 4% 3%
District of Columbia............................................ 7% 6% 6%
Florida......................................................... 4% 3% 1%
Georgia......................................................... 5% 4% 4%
Hawaii.......................................................... 5% 4% 4%
Idaho........................................................... 5% 4% 4%
Illinois........................................................ 6% 5% 2%
Indiana......................................................... 4% 3% 3%
Iowa............................................................ 5% 4% 3%
Kansas.......................................................... 5% 4% 3%
Kentucky........................................................ 5% 4% 4%
Louisiana....................................................... 3% 2% 2%
Maine........................................................... 6% 5% 4%
Maryland........................................................ 8% 7% 5%
Massachusetts................................................... 7% 6% 4%
Michigan........................................................ 5% 4% 3%
Minnesota....................................................... 6% 5% 4%
Mississippi..................................................... 3% 2% 2%
Missouri........................................................ 5% 4% 3%
Montana......................................................... 5% 4% 3%
Nebraska........................................................ 5% 4% 3%
Nevada.......................................................... 3% 2% 1%
New Hampshire................................................... 5% 4% 1%
New Jersey...................................................... 9% 8% 4%
New Mexico...................................................... 3% 2% 2%
New York........................................................ 10% 9% 6%
North Carolina.................................................. 6% 5% 4%
North Dakota.................................................... 3% 2% 1%
Ohio............................................................ 6% 5% 4%
Oklahoma........................................................ 4% 3% 3%
Oregon.......................................................... 7% 6% 5%
Pennsylvania.................................................... 5% 4% 3%
Rhode Island.................................................... 7% 6% 4%
South Carolina.................................................. 5% 4% 3%
South Dakota.................................................... 2% 1% 1%
[[Page 26383]]
Tennessee....................................................... 2% 1% 1%
Texas........................................................... 3% 2% 1%
Utah............................................................ 5% 4% 4%
Vermont......................................................... 6% 5% 3%
Virginia........................................................ 7% 6% 4%
Washington...................................................... 3% 2% 1%
West Virginia................................................... 3% 2% 2%
Wisconsin....................................................... 7% 6% 4%
Wyoming......................................................... 2% 1% 1%
Other........................................................... 3% 2% 2%
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Regulations is available on GPO Access at: http://www.gpoaccess.gov/nara/index.html
(Catalog of Federal Domestic Assistance Numbers: 84.007 Federal
Supplemental Educational Opportunity Grant; 84.032 Federal Family
Education Loan Program; 84.033 Federal Work-Study Program; 84.038
Federal Perkins Loan Program; 84.063 Federal Pell Grant Program;
84.268 William D. Ford Federal Direct Loan Program; 84.375 Academic
Competitiveness Grant; 84.376 National Science and Mathematics
Access to Retain Talent Grant)
Program Authority: 20 U.S.C. 1087rr.
Dated: May 27, 2009.
James F. Manning,
Acting Chief Operating Officer Federal Student Aid.
[FR Doc. E9-12668 Filed 6-1-09; 8:45 am]
BILLING CODE 4000-01-P