§ 1087vv. Definitions
As used in this part:
(a)
Total income
(1)
Except as provided in paragraph (2), the term “total income” is equal to adjusted gross income plus untaxed income and benefits for the preceding tax year minus excludable income (as defined in subsection (e) of this section).
(2)
No portion of any student financial assistance received from any program by an individual, no portion of a national service educational award or post-service benefit received by an individual under title I of the National and Community Service Act of 1990 (42 U.S.C. 12511 et seq.), no portion of any tax credit taken under section
25A of title
26, and no distribution from any qualified education benefit described in subsection (f)(3) that is not subject to Federal income tax, shall be included as income or assets in the computation of expected family contribution for any program funded in whole or in part under this chapter.
(b)
Untaxed income and benefits
(1)
The term “untaxed income and benefits” means—
(C)
veteran’s benefits such as death pension, dependency, and indemnity compensation, but excluding veterans’ education benefits as defined in subsection (c);
(E)
housing, food, and other allowances (excluding rent subsidies for low-income housing) for military, clergy, and others (including cash payments and cash value of benefits);
(F)
cash support or any money paid on the student’s behalf, except, for dependent students, funds provided by the student’s parents;
(c)
Veteran and veterans’ education benefits
(1)
The term “veteran” means any individual who—
(2)
The term “veterans’ education benefits” means veterans’ benefits the student will receive during the award year, including but not limited to benefits under the following provisions of law:
(D)
Chapter
1607 of title
10 (Educational Assistance Program for Reserve Component Members Supporting Contingency Operations and Certain Other Operations).
(E)
Chapter
30 of title
38 (All-Volunteer Force Educational Assistance Program, also known as the “Montgomery GI Bill—active duty”).
(F)
Chapter
31 of title
38 (Training and Rehabilitation for Veterans with Service-Connected Disabilities).
(J)
Section 903 of the Department of Defense Authorization Act, 1981 (10 U.S.C. 2141 note ) (Educational Assistance Pilot Program).
(d)
Independent student
(1)
Definition
The term “independent”, when used with respect to a student, means any individual who—
(B)
is an orphan, in foster care, or a ward of the court, at any time when the individual is 13 years of age or older;
(C)
is an emancipated minor or is in legal guardianship as determined by a court of competent jurisdiction in the individual’s State of legal residence;
(D)
is a veteran of the Armed Forces of the United States (as defined in subsection (c)(1) of this section) or is currently serving on active duty in the Armed Forces for other than training purposes;
(H)
has been verified during the school year in which the application is submitted as either an unaccompanied youth who is a homeless child or youth (as such terms are defined in section 725 of the McKinney-Vento Homeless Assistance Act [42 U.S.C. 11434a]), or as unaccompanied, at risk of homelessness, and self-supporting, by—
(i)
a local educational agency homeless liaison, designated pursuant to section 722(g)(1)(J)(ii) of the McKinney-Vento Homeless Assistance Act [42 U.S.C. 11432
(g)(1)(J)(ii)];
(ii)
the director of a program funded under the Runaway and Homeless Youth Act [42 U.S.C. 5701 et seq.] or a designee of the director;
(2)
Simplifying the dependency override process
A financial aid administrator may make a determination of independence under paragraph (1)(I) based upon a documented determination of independence that was previously made by another financial aid administrator under such paragraph in the same award year.
(e)
Excludable income
The term “excludable income” means—
(1)
any student financial assistance awarded based on need as determined in accordance with the provisions of this part, including any income earned from work under part
C of subchapter
I of chapter
34 of title
42;
(2)
any living allowance received by a participant in a program established under the National and Community Service Act of 1990 [42 U.S.C. 12501 et seq.];
(f)
Assets
(1)
The term “assets” means cash on hand, including the amount in checking and savings accounts, time deposits, money market funds, trusts, stocks, bonds, other securities, mutual funds, tax shelters, qualified education benefits (except as provided in paragraph (3)), and the net value of real estate, income producing property, and business and farm assets.
(2)
With respect to determinations of need under this subchapter and part
C of subchapter
I of chapter
34 of title
42, other than for subpart 4 of part A of this subchapter, the term “assets” shall not include the net value of—
(4)
In determining the value of assets in a determination of need under this subchapter and part
C of subchapter
I of chapter
34 of title
42 (other than for subpart 4 of part A of this subchapter), the value of a qualified education benefit shall be—
(g)
Net assets
The term “net assets” means the current market value at the time of application of the assets (as defined in subsection (f) of this section), minus the outstanding liabilities or indebtedness against the assets.
(h)
Treatment of income taxes paid to other jurisdictions
(1)
The tax on income paid to the Governments of the Commonwealth of Puerto Rico, Guam, American Samoa, the Virgin Islands, or the Commonwealth of the Northern Mariana Islands, the Republic of the Marshall Islands, the Federated States of Micronesia, or Palau under the laws applicable to those jurisdictions, or the comparable tax paid to the central government of a foreign country, shall be treated as Federal income taxes.
(2)
References in this part to title 26, Federal income tax forms, and the Internal Revenue Service shall, for purposes of the tax described in paragraph (1), be treated as references to the corresponding laws, tax forms, and tax collection agencies of those jurisdictions, respectively, subject to such adjustments as the Secretary may provide by regulation.
(i)
Current balance
The term “current balance of checking and savings accounts” does not include any funds over which an individual is barred from exercising discretion and control because of the actions of any State in declaring a bank emergency due to the insolvency of a private deposit insurance fund.
(j)
Other financial assistance
(1)
For purposes of determining a student’s eligibility for funds under this subchapter and part
C of subchapter
I of chapter
34 of title
42, estimated financial assistance not received under this subchapter and part
C of subchapter
I of chapter
34 of title
42 shall include all scholarships, grants, loans, or other assistance known to the institution at the time the determination of the student’s need is made, including national service educational awards or post-service benefits under title I of the National and Community Service Act of 1990 (42 U.S.C. 12511 et seq.), but excluding veterans’ education benefits as defined in subsection (c).
(2)
Notwithstanding paragraph (1), a tax credit taken under section
25A of title
26, or a distribution that is not includable in gross income under section 529 of such title, under another prepaid tuition plan offered by a State, or under a Coverdell education savings account under section 530 of such title, shall not be treated as estimated financial assistance for purposes of section
1087kk
(3) of this title.
(3)
Notwithstanding paragraph (1) and section
1087ll of this title, assistance not received under this subchapter and part
C of subchapter
I of chapter
34 of title
42 may be excluded from both estimated financial assistance and cost of attendance, if that assistance is provided by a State and is designated by such State to offset a specific component of the cost of attendance. If that assistance is excluded from either estimated financial assistance or cost of attendance, it shall be excluded from both.
(k)
Dependents
(1)
Except as otherwise provided, the term “dependent of the parent” means the student, dependent children of the student’s parents, including those children who are deemed to be dependent students when applying for aid under this subchapter and part
C of subchapter
I of chapter
34 of title
42, and other persons who live with and receive more than one-half of their support from the parent and will continue to receive more than half of their support from the parent during the award year.
(2)
Except as otherwise provided, the term “dependent of the student” means the student’s dependent children and other persons (except the student’s spouse) who live with and receive more than one-half of their support from the student and will continue to receive more than half of their support from the student during the award year.
(l)
Family size
(1)
In determining family size in the case of a dependent student—
(A)
if the parents are not divorced or separated, family members include the student’s parents, and the dependents of the student’s parents including the student;
(B)
if the parents are divorced or separated, family members include the parent whose income is included in computing available income and that parent’s dependents, including the student; and
(C)
if the parents are divorced and the parent whose income is so included is remarried, or if the parent was a widow or widower who has remarried, family members also include, in addition to those individuals referred to in subparagraph (B), the new spouse and any dependents of the new spouse if that spouse’s income is included in determining the parents’ adjusted available income.
(m)
Business assets
The term “business assets” means property that is used in the operation of a trade or business, including real estate, inventories, buildings, machinery, and other equipment, patents, franchise rights, and copyrights.
(n)
Special combat pay
The term “special combat pay” means pay received by a member of the Armed Forces because of exposure to a hazardous situation.