§ 1087qq. Family contribution for independent students with dependents other than a spouse
(a)
Computation of expected family contribution
For 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—
(2)
assessing such adjusted available income in accordance with an assessment schedule set forth in subsection (d) of this section;
(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 and part
C of subchapter
I of chapter
34 of title
42 is requested; and
(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)—
(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):
If student’s State or territory of residence is— | And family’s total income is— | less than $15,000 | $15,000 or more |
---|---|---|---|
(1)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 allowance
The 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:
Family Size | (including student) | Number in College | 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:
Family Size | (including student) | Number in College | 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:
Family Size | (including student) | Number in College | 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:
Family Size | (including student) | Number in College | 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 allowance
The employment expense allowance is determined as follows (or a successor table prescribed by the Secretary under section
1087rr of this title):
(c)
Family’s contribution from assets
(2)
Family net worth
The family net worth is calculated by adding—
(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:
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):
If the age of the student is— | And the student is | married | single |
---|---|---|---|
(1)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 |
(d)
Assessment schedule
The adjusted available income (as determined under subsection (a)(1) of this section 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):
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.