20 U.S. Code § 1087qq - Family contribution for independent students with dependents other than a spouse

(a) Computation of expected family contributionFor each independent student with dependents other than a spouse, the expected family contribution is equal to the amount determined by—
(1) computing adjusted available income by adding—
(A)
the family’s available income (determined in accordance with subsection (b)); and
(B)
the family’s contribution from assets (determined in accordance with subsection (c));
(2)
assessing such adjusted available income in accordance with an assessment schedule set forth in subsection (d);
(3)
dividing the assessment resulting under paragraph (2) by the number of family members who are enrolled or accepted for enrollment, on at least a half-time basis, in a degree, certificate, or other program leading to a recognized educational credential at an institution of higher education that is an eligible institution in accordance with the provisions of section 1094 of this title during the award period for which assistance under this subchapter is requested; and
(4) for periods of enrollment of less than 9 months, for purposes other than subpart 2 of part A—
(A)
dividing the quotient resulting under paragraph (3) by 9; and
(B)
multiplying the result by the number of months in the period of enrollment;
except that the amount determined under this subsection shall not be less than zero.
(b) Family’s available income
(1) In generalThe family’s available income is determined by deducting from total income (as defined in section 1087vv of this title)—
(A)
Federal income taxes;
(B)
an allowance for State and other taxes, determined in accordance with paragraph (2);
(C)
an allowance for social security taxes, determined in accordance with paragraph (3);
(D)
an income protection allowance, determined in accordance with paragraph (4);
(E)
an employment expense allowance, determined in accordance with paragraph (5); and
(F)
the amount of any tax credit taken under section 25A of title 26.
(2) Allowance for State and other taxes

The allowance for State and other taxes is equal to an amount determined by multiplying total income (as defined in section 1087vv of this title) by a percentage determined according to the following table (or a successor table prescribed by the Secretary under section 1087rr of this title):

Percentages for Computation of State and Other Tax Allowance

If student’s State or territory of residence is—

And family’s total income is—

less than $15,000

$15,000 or more

then the percentage is—

Alaska, Puerto Rico, Wyoming

 3

 2

American Samoa, Guam, Louisiana, Nevada, Texas, Trust Territory, Virgin Islands

 4

 3

Florida, South Dakota, Tennessee, New Mexico

 5

 4

North Dakota, Washington

 6

 5

Alabama, Arizona, Arkansas, Indiana, Mississippi, Missouri, Montana, New Hampshire, Oklahoma, West Virginia

 7

 6

Colorado, Connecticut, Georgia, Illinois, Kansas, Kentucky

 8

 7

California, Delaware, Idaho, Iowa, Nebraska, North Carolina, Ohio, Pennsylvania, South Carolina, Utah, Vermont, Virginia, Canada, Mexico

 9

 8

Maine, New Jersey

10

 9

District of Columbia, Hawaii, Maryland, Massachusetts, Oregon, Rhode Island

11

10

Michigan, Minnesota

12

11

Wisconsin

13

12

New York

14

13

Other

 9

 8

(3) Allowance for social security taxes

The allowance for social security taxes is equal to the amount estimated to be earned by the student (and spouse, if appropriate) multiplied by the social security withholding rate appropriate to the tax year preceding the award year, up to the maximum statutory social security tax withholding amount for that same tax year.

(4) Income protection allowanceThe income protection allowance is determined by the tables described in subparagraphs (A) through (D) (or a successor table prescribed by the Secretary under section 1087rr of this title).
(A) Academic year 2009–2010

For academic year 2009–2010, the income protection allowance is determined by the following table:

Income Protection Allowance

Family Size

Number in College

(including student)

1

2

3

4

5

For each

additional

subtract:

2

$17,720

$14,690

3

 22,060

 19,050

$16,020

4

 27,250

 24,220

 21,210

$18,170

5

 32,150

 29,120

 26,100

 23,070

$20,060

6

 37,600

 34,570

 31,570

 28,520

 25,520

 $3,020

For each additional add:

4,240

4,240

4,240

4,240

4,240

(B) Academic year 2010–2011

For academic year 2010–2011, the income protection allowance is determined by the following table:

Income Protection Allowance

Family Size

Number in College

(including student)

1

2

3

4

5

For each

additional

subtract:

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

$3,350

For each additional add:

4,710

4,710

4,710

4,710

4,710

(C) Academic year 2011–2012

For academic year 2011–2012, the income protection allowance is determined by the following table:

Income Protection Allowance

Family Size

Number in College

(including student)

1

2

3

4

5

For each

additional

subtract:

2

$21,660

$17,960

3

 26,960

 23,280

$19,580

4

 33,300

 29,600

 25,920

$22,210

5

 39,300

 35,590

 31,900

 28,200

$24,520

6

 45,950

 42,250

 38,580

 34,860

 31,190

$3,690

For each additional add:

5,180

5,180

5,180

5,180

5,180

(D) Academic year 2012–2013

For academic year 2012–2013, the income protection allowance is determined by the following table:

Income Protection Allowance

Family Size

Number in College

(including student)

1

2

3

4

5

For each

additional

subtract:

2

$23,630

$19,590

3

 29,420

 25,400

$21,360

4

 36,330

 32,300

 28,280

$24,230

5

 42,870

 38,820

 34,800

 30,770

$26,750

6

 50,130

 46,100

 42,090

 38,030

 34,020

$4,020

For each additional add:

5,660

5,660

5,660

5,660

5,660

(5) Employment expense allowanceThe employment expense allowance is determined as follows (or a successor table prescribed by the Secretary under section 1087rr of this title):
(A)
If the student is married and the student’s spouse is employed in the year for which their income is reported, such allowance is equal to the lesser of $2,500 or 35 percent of the earned income of the student or spouse with the lesser earned income.
(B)
If a student qualifies as a surviving spouse or as a head of household as defined in section 2 of title 26, such allowance is equal to the lesser of $2,500 or 35 percent of the student’s earned income.
(c) Family’s contribution from assets
(1) In generalThe family’s contribution from assets is equal to—
(A)
the family net worth (determined in accordance with paragraph (2)); minus
(B)
the asset protection allowance (determined in accordance with paragraph (3)); multiplied by
(C)
the asset conversion rate (determined in accordance with paragraph (4)), except that the result shall not be less than zero.
(2) Family net worthThe family net worth is calculated by adding—
(A)
the current balance of checking and savings accounts and cash on hand;
(B)
the net value of investments and real estate, excluding the net value in the principal place of residence; and
(C)
the adjusted net worth of a business or farm, computed on the basis of the net worth of such business or farm (hereafter referred to as “NW”), determined in accordance with the following table (or a successor table prescribed by the Secretary under section 1087rr of this title), except as provided under section 1087vv(f) of this title:

Adjusted Net Worth of a Business or Farm

If the net worth of a business or farm is—

Then the adjusted net worth is—

Less than $1

$0

$1–$75,000

40 percent of NW

$75,001–$225,000

$30,000 plus 50 percent of NW over $75,000

$225,001–$375,000

$105,000 plus 60 percent of NW over $225,000

$375,001 or more

$195,000 plus 100 percent of NW over $375,000

(3) Asset protection allowance

The asset protection allowance is calculated according to the following table (or a successor table prescribed by the Secretary under section 1087rr of this title):

Asset Protection Allowances for Families and Students

If the age of the student is—

And the student is

married

single

then the allowance is—

25 or less

 $  0

   $0

26

 2,200

 1,600

27

 4,300

 3,200

28

 6,500

 4,700

29

 8,600

 6,300

30

10,800

 7,900

31

13,000

 9,500

32

15,100

11,100

33

17,300

12,600

34

19,400

14,200

35

21,600

15,800

36

23,800

17,400

37

25,900

19,000

38

28,100

20,500

39

30,200

22,100

40

32,400

23,700

41

33,300

24,100

42

34,100

24,700

43

35,000

25,200

44

35,700

25,800

45

36,600

26,300

46

37,600

26,900

47

38,800

27,600

48

39,800

28,200

49

40,800

28,800

50

41,800

29,500

51

43,200

30,200

52

44,300

31,100

53

45,700

31,800

54

47,100

32,600

55

48,300

33,400

56

49,800

34,400

57

51,300

35,200

58

52,900

36,200

59

54,800

37,200

60

56,500

38,100

61

58,500

39,200

62

60,300

40,300

63

62,400

41,500

64

64,600

42,800

65 or more

66,800

44,000

(4) Asset conversion rate

The asset conversion rate is 7 percent.

(d) Assessment schedule

The adjusted available income (as determined under subsection (a)(1) and hereafter referred to as “AAI”) is assessed according to the following table (or a successor table prescribed by the Secretary under section 1087rr of this title):

Assessment From Adjusted Available Income (AAI)

If AAI is—

Then the assessment is—

Less than −$3,409

−$750

−$3,409 to $9,400

22% of AAI

$9,401 to $11,800

$2,068 + 25% of AAI over $9,400

$11,801 to $14,200

$2,668 + 29% of AAI over $11,800

$14,201 to $16,600

$3,364 + 34% of AAI over $14,200

$16,601 to $19,000

$4,180 + 40% of AAI over $16,600

$19,001 or more

$5,140 + 47% of AAI over $19,000

(e) Computations in case of separation, divorce, or death

In the case of a student who is divorced or separated, or whose spouse has died, the spouse’s income and assets shall not be considered in determining the family’s available income or assets.

Amendment of Section

Pub. L. 116–260, div. FF, title VII, §§ 701(b), 702(f), Dec. 27, 2020, 134 Stat. 3137, 3147, provided that, effective July 1, 2023, except as otherwise expressly provided, and applicable with respect to award year 2023–2024 and each subsequent award year, as determined under this chapter, this section is amended to read as follows:

§ 1087qq. Student aid index for independent students with dependents other than a spouse

(a) Computation of student aid index

(1) In general

For each independent student with dependents other than a spouse, the student aid index is equal to the amount determined by—

(A) computing adjusted available income by adding—

(i) the family’s available income (determined in accordance with subsection (b)); and

(ii) the family’s available assets (determined in accordance with subsection (c));

(B) assessing such adjusted available income in accordance with an assessment schedule set forth in subsection (d); and

(C) considering such assessment resulting under subparagraph (B) as the amount determined under this subsection.

(2) Exception

If the sum determined under paragraph (1) with respect to an independent student with dependents other than a spouse is less than − $1,500, the student aid index for the independent student shall be − $1,500.

(b) Family’s available income

(1) In general

The family’s available income is determined by deducting from total income (as defined in section 1087vv of this title)—

(A) Federal income taxes;

(B) an allowance for payroll taxes, determined in accordance with paragraph (2);

(C) an income protection allowance, determined in accordance with paragraph (3); and

(D) an employment expense allowance, determined in accordance with paragraph (4).

(2) Allowance for payroll taxes

The allowance for payroll taxes is equal to the sum of—

(A) the total amount earned by the student (and spouse, if appropriate), multiplied by the rate of tax under section 3101(b) of title 26; and

(B) the amount earned by the student (and spouse, if appropriate) that does not exceed such contribution and benefit base (twice such contribution and benefit base, in the case of a joint return) for the year of the earnings, multiplied by the rate of tax applicable to such earnings under section 3101(a) of title 26.

(3) Income protection allowance

The income protection allowance shall equal the amount determined in the following table, as adjusted by the Secretary pursuant to section 1078rr(b) of this title:

(A) In the case of a married independent student with dependents:

Income Protection Allowance (to be adjusted for 2023–2024 and succeeding years)

Family Size (including

student)

Amount

3

$46,140

4

$56,970

5

$67,230

6

$78,620

For each additional add

$8,880.

(B) In the case of a single independent student with dependents:

Income Protection Allowance (to be adjusted for 2023–2024 and succeeding years)

Family Size (including

student)

Amount

2

$43,920

3

$54,690

4

$67,520

5

$79,680

6

$93,180

For each additional add

$10,530.

(4) Employment expense allowance

The employment expense allowance is equal to the lesser of $4,000 or 35 percent of the student’s earned income or the combined earned income of the student and the student’s spouse, if applicable (as adjusted by the Secretary pursuant to section 1087rr(g) of this title).

(c) Family’s available assets

(1) In general

(A) Determination

Except as provided in subparagraph (B), the family’s available assets are equal to—

(i) the difference between the family’s assets (as defined in 1087vv(f) of this title) and the asset protection allowance (determined in accordance with paragraph (2)); multiplied by

(ii) 7 percent.

(B) Not less than zero

The family’s available assets under this subsection shall not be less than zero.

(2) Asset protection allowance

The asset protection allowance is calculated based on the following table (as revised by the Secretary pursuant to section 1087rr(d) of this title):

Asset Protection Allowances for Families and Students

If the age of the student is—

And the student is

married

single

then the allowance is—

25 or less

 $  0

   $0

26

 $400

 $100

27

 $700

 $300

28

 $1,100

 $400

29

 $1,500

 $600

30

 $1,800

 $700

31

 $2,200

 $800

32

 $2,600

 $1,000

33

 $2,900

 $1,100

34

 $3,300

 $1,300

35

 $3,700

 $1,400

36

 $4,000

 $1,500

37

 $4,400

 $1,700

38

 $4,800

 $1,800

39

 $5,100

 $2,000

40

 $5,500

 $2,100

41

 $5,600

 $2,200

42

 $5,700

 $2,200

43

 $5,900

 $2,300

44

 $6,000

 $2,300

45

 $6,200

 $2,400

46

 $6,300

 $2,400

47

 $6,500

 $2,500

48

 $6,600

 $2,500

49

 $6,800

 $2,600

50

 $7,000

 $2,700

51

 $7,100

 $2,700

52

 $7,300

 $2,800

53

 $7,500

 $2,900

54

 $7,700

 $2,900

55

 $7,900

 $3,000

56

 $8,100

 $3,100

57

 $8,400

 $3,100

58

 $8,600

 $3,200

59

 $8,800

 $3,300

60

 $9,100

 $3,400

61

 $9,300

 $3,500

62

 $9,600

 $3,600

63

 $9,900

 $3,700

64

$10,200

 $3,800

65 or more

$10,500

 $3,900.

(d) Assessment schedule

The assessment of adjusted available income (as determined under subsection (a)(1) and hereafter in this subsection referred to as “AAI”) is calculated based on the following table (as revised by the Secretary pursuant to section 1087rr(e) of this title):

Assessment From Adjusted Available Income

If AAI is—

Then the assessment is—

Less than − $6,820

− $1,500

− $6,820 to $17,400

22% of AAI

$17,401 to $21,800

$3,828 + 25% of AAI over $17,400

$21,801 to $26,200

$4,928 + 29% of AAI over $21,800

$26,201 to $30,700

$6,204 + 34% of AAI over $26,200

$30,701 to $35,100

$7,734 + 40% of AAI over $30,700

$35,101 or more

$9,494 + 47% of AAI over $35,100.

(e) Computations in case of separation, divorce, or death

In the case of a student who is divorced or separated, or whose spouse has died, the spouse’s income and assets shall not be considered in determining the family’s available income or assets.

See 2020 Amendment note below.

Amendments

2020—Pub. L. 116–260 amended section generally. Prior to amendment, section related to family contribution for independent students with dependents other than a spouse.

2009—Subsec. (b)(5)(B). Pub. L. 111–39 made technical amendment to reference in original act which appears in text as reference to section 2 of title 26.

2007—Subsec. (b)(4). Pub. L. 110–84 amended par. (4) generally. Prior to amendment, par. (4) consisted of a single table to be used to determine income protection allowances.

2006—Subsec. (c)(4). Pub. L. 109–171 substituted “7” for “12”.

1998—Subsec. (a)(4). Pub. L. 105–244 added par. (4).

1997—Subsec. (b)(1)(F). Pub. L. 105–78 added subpar. (F).

1993—Subsec. (b)(4). Pub. L. 103–208, § 2(g)(2), substituted “$9,510” for “9,510” in table.

Subsec. (e). Pub. L. 103–208, § 2(g)(7), added subsec. (e).

1992—Pub. L. 102–325 amended section generally, substituting provisions relating to family contribution for independent students with dependents other than a spouse for provisions relating to family contribution for independent students with dependents (including a spouse).

1987—Subsec. (a)(1)(C). Pub. L. 100–50, § 14(18), added subpar. (C).

Subsec. (b)(2). Pub. L. 100–50, § 14(1), substituted “section 1087rr of this title” for “section 1087ss of this title”.

Subsec. (b)(5)(A). Pub. L. 100–50, § 14(19), substituted “$2,100” for “$2,000”.

Subsec. (b)(7). Pub. L. 100–50, § 14(2), struck out “National” before “Center”.

Subsec. (c)(2)(B). Pub. L. 100–50, § 14(3), substituted “displaced homemaker” for “dislocated homemaker”.

Subsec. (c)(2)(C). Pub. L. 100–50, § 14(1), (4), substituted “section 1087rr of this title” for “section 1087ss of this title” in text, added table, and struck out former table which read as follows:

“Adjusted Net Worth of a Business or Farm

If the net worth of a business or farm is—

Then the adjusted net worth is:

Less than $1

$0

$1–$65,000

40 percent of NW

$65,001–$195,000

$26,000 plus 50 percent of NW over $65,000

$195,001–$325,000

$91,000 plus 60 percent of NW over $195,000

$325,001 or more

$169,000 plus 100 percent of NW over $325,000”.

Subsec. (c)(4)(B). Pub. L. 100–50, § 14(5), substituted “$15,999” for “$15,000”.

Subsec. (c)(4)(C). Pub. L. 100–50, § 14(6), substituted “$16,000” for “$15,000” in three places.

Subsec. (d). Pub. L. 100–50, § 14(1), (8), substituted “section 1087rr of this title” for “section 1087ss of this title” in text and inserted a minus sign before “$3,409” in two places in table.

Effective Date of 2020 Amendment

Amendment by Pub. L. 116–260 effective July 1, 2023, except as otherwise expressly provided, and applicable with respect to award year 2023–2024 and each subsequent award year, as determined under this chapter, see section 701(b) of Pub. L. 116–260, set out as a note under section 1001 of this title.

Effective Date of 2009 Amendment

Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.

Effective Date of 2007 Amendment

Amendment by Pub. L. 110–84 effective July 1, 2009, see section 601(e) of Pub. L. 110–84, set out as a note under section 1087oo of this title.

Effective Date of 2006 Amendment

Amendment by Pub. L. 109–171 effective July 1, 2006, except as otherwise provided, see section 8001(c) of Pub. L. 109–171, set out as a note under section 1002 of this title.

Pub. L. 109–171, title VIII, § 8017(c)(2), Feb. 8, 2006, 120 Stat. 173, provided that:

“The amendment made by paragraph (1) [amending this section] shall apply with respect to determinations of need for periods of enrollment beginning on or after July 1, 2007.”
Effective Date of 1998 Amendment

Amendment by Pub. L. 105–244, effective Oct. 7, 1998, and applicable with respect to determinations of need under this part for academic years beginning on or after July 1, 2000, see section 480A of Pub. L. 105–244, set out as a note under section 1087kk of this title.

Effective Date of 1993 Amendment

Amendment by Pub. L. 103–208 effective as if included in the Higher Education Amendments of 1992, Pub. L. 102–325, except as otherwise provided, see section 5(a) of Pub. L. 103–208, set out as a note under section 1051 of this title.

Effective Date of 1992 Amendment

Amendment by Pub. L. 102–325 applicable with respect to determinations of need under this part for award years beginning on or after July 1, 1993, see section 471(b) of Pub. L. 102–325, set out as a note under section 1087kk of this title.

Effective Date of 1987 Amendment

Amendment by Pub. L. 100–50 effective as if enacted as part of the Higher Education Amendments of 1986, Pub. L. 99–498, see section 27 of Pub. L. 100–50, set out as a note under section 1001 of this title.