§1087oo — Title 20 Education | U.S. Code

Summary

Calculates a student aid index (a number schools use to decide need) for dependent students by adding three parts: a parents’ assessment, the student’s assessed income, and the student’s assessed assets. The final number cannot be less than −$1,500. Parents’ assessment comes from adding parents’ available income and available assets, then applying a sliding-rate table to that total. Parents’ available income is total income minus federal income tax, payroll tax (using Social Security/Medicare rates and the wage base), an income protection allowance (family-size amounts: 2=$23,330; 3=$29,040; 4=$35,870; 5=$42,320; 6=$49,500; each extra person +$5,590), and an employment expense allowance (the smaller of $4,000 or 35% of parents’ earned income). Parents’ available assets equal (parents’ assets minus an age-based asset protection allowance) times 12%, but not less than zero. The age-based allowance varies by the oldest parent’s age and whether one or two parents are counted (values set in a table). The parents’ assessment table then converts that adjusted amount into a parents’ contribution using specified dollar brackets and percent rates. Which parents count depends on family situation: married parents together count both; divorced or separated count the parent who gives more support; if a parent died, follow rules about the surviving parent or no parental income; a stepparent’s income is included if the parent is remarried at application. The student’s assessed income is half of their income after subtracting federal tax, payroll tax, a $9,410 income protection allowance, and any allowance for parents’ negative available income. The student’s assessed assets are 20% of the student’s assets, not less than zero.

Title 20, §1087oo

Education — Source: USLM XML via OLRC

(a)(1)Except as provided in paragraph (2), for each dependent student, the student aid index is equal to the sum of—

(A)the assessment of the parents’ adjusted available income (determined in accordance with subsection (b));

(B)the assessment of the student’s available income (determined in accordance with subsection (g)); and

(C)the student’s available assets (determined in accordance with subsection (h)).

(2)If the sum determined under paragraph (1) with respect to a dependent student is less than − $1,500, the student aid index for the dependent student shall be − $1,500.

(b)The assessment of parents’ adjusted available income is equal to the amount determined by—

(1)computing adjusted available income by adding—

(A)the parents’ available income (determined in accordance with subsection (c)); and

(B)the parents’ available assets (determined in accordance with subsection (d));

(2)assessing such adjusted available income in accordance with the assessment schedule set forth in subsection (e); and

(3)considering such assessment resulting under paragraph (2) as the amount determined under this subsection.

(c)(1)The parents’ available income is determined by subtracting 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)The allowance for payroll taxes is equal to the sum of—

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

(B)the amount earned by the parents 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)The income protection allowance shall equal the amount determined in the following table, as adjusted by the Secretary pursuant to section 1087rr(b) of this title: Income Protection Allowance (to be adjusted for 2023–2024 and succeeding years) Family Size (includingstudent)Amount 2$23,330 3$29,040 4$35,870 5$42,320 6$49,500 For each additional add$5,590.

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

(d)(1)(A)Except as provided in subparagraph (B), the parents’ available assets are equal to—

(i)the difference between the parents’ assets and the asset protection allowance (determined in accordance with paragraph (2)); multiplied by

(ii)12 percent.

(B)The parents’ available assets under this subsection shall not be less than zero.

(2)The asset protection allowance is calculated based on the following table (as revised by the Secretary pursuant to section 10877rr(d) of this title): Asset Protection Allowances for Parents of Dependent Students If the age of the oldest parent is—And there are two parentsone parent 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.

(e)The assessment of the parents’ adjusted available income (as determined under subsection (b)(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): Parents’ Contribution From AAI If the parents’ AAI is—Then the parents’ contribution from AAI is— Less than − $6,820− $1,500 − $6,820 to $17,40022% 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.

(f)(1)Parental income and assets in the case of student whose parents are married and not separated, or who are unmarried but live together, shall include the income and assets of both parents.

(2)Parental income and assets for a student whose parents are divorced or separated, but not remarried, is determined by including only the income and assets of the parent who provides the greater portion of the student’s financial support.

(3)Parental income and assets in the case of the death of any parent is determined as follows:

(A)If either of the parents has died, the surviving parent shall be considered a single parent, until that parent has remarried.

(B)If both parents have died, the student shall not report any parental income or assets.

(4)If a parent whose income and assets are taken into account under paragraph (2), or if a parent who is a widow or widower and whose income is taken into account under paragraph (3), has remarried, the income of that parent’s spouse shall be included in determining the parent’s assessment of adjusted available income if the student’s parent and the stepparent are married as of the date of application for the award year concerned.

(5)Parental income and assets in the case of a student whose parent is not described in paragraph (1) and is a single parent who is not divorced, separated, or remarried, shall include the income and assets of such single parent.

(g)(1)The student’s available income is equal to—

(A)the difference between the student’s total income (determined in accordance with section 480) and the adjustment to student income (determined in accordance with paragraph (2)); multiplied by

(B)50 percent,

(2)The adjustment to student income is equal to the sum of—

(A)Federal income taxes;

(B)an allowance for payroll taxes determined in accordance with paragraph (3);

(C)an income protection allowance that is equal to $9,410, as adjusted pursuant to section 1087rr(b) of this title; and

(D)an allowance for parents’ negative available income, determined in accordance with paragraph (4).

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

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

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

(4)The allowance for parents’ negative available income is the amount, if any, by which the sum of the amounts deducted under subsection (c)(1) exceeds the sum of the parents’ total income (as defined in section 1087vv of this title) and the parents’ available assets (as determined in accordance with subsection (d)).

(h)The student’s assets are determined by calculating the assets of the student and multiplying such amount by 20 percent, except that the result shall not be less than zero.

Notes & Related Subsidiaries

Editorial Notes

Amendments

2024—Subsec. (g)(1). Pub. L. 118–40 amended par. (1) generally. Prior to amendment, text read as follows: “The student’s available income is equal to— “(A) the difference between the student’s total income (determined in accordance with section 1087vv of this title) and the adjustment to student income (determined in accordance with paragraph (2)); multiplied by “(B) 50 percent.” 2020—Pub. L. 116–260 amended section generally. Prior to amendment, section related to family contribution for dependent students. 2009—Subsec. (c)(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. (g)(2)(D). Pub. L. 110–84 amended subpar. (D) generally. Prior to amendment, subpar. (D) read as follows: “an income protection allowance of $3,000 (or a successor amount prescribed by the Secretary under section 1087rr of this title);”. 2006—Subsec. (g)(2)(D). Pub. L. 109–171, § 8017(a)(1)(A), substituted “$3,000” for “$2,200”. Subsec. (h). Pub. L. 109–171, § 8017(a)(1)(B), substituted “20” for “35”. 1998—Subsec. (b)(3). Pub. L. 105–244, § 473(a), which directed insertion of “, excluding the student’s parents,” after “number of family members”, was executed by making the insertion after “number of the family members” to reflect the probable intent of Congress. Subsec. (g)(2)(D). Pub. L. 105–244, § 473(b)(1)(A), substituted “$2,200 (or a successor amount prescribed by the Secretary under section 1087rr of this title);” for “$1,750; and”. Subsec. (g)(2)(F). Pub. L. 105–244, § 473(b)(1)(B), (C), added subpar. (F). Subsec. (g)(6). Pub. L. 105–244, § 473(b)(2), added par. (6). Subsec. (j). Pub. L. 105–244, § 473(c), added subsec. (j). 1997—Subsec. (c)(1)(F). Pub. L. 105–78, § 609(g)(1), added subpar. (F). Subsec. (g)(2)(E). Pub. L. 105–78, § 609(g)(2), added subpar. (E). 1993—Subsec. (c)(4). Pub. L. 103–208, § 2(g)(2), substituted “$9,510” for “9,510” in table. Subsec. (f)(3). Pub. L. 103–208, § 2(g)(3), in introductory provisions, substituted “If a parent” for “Income in the case of a parent”, “(1) of this subsection, or if a parent” for “(1) of this subsection, or a parent”, and “the income” for “is determined as follows: The income”. Subsec. (g)(1)(B). Pub. L. 103–208, § 2(g)(4), inserted closing parenthesis after “paragraph (2)”. Subsec. (g)(3). Pub. L. 103–208, § 2(g)(5), in table added last item relating to Other. 1992—Pub. L. 102–325 amended section generally, making minor changes in subsecs. (a) to (c) and (e) to (g), in subsec. (d) substituting provisions relating to parents’ contribution from assets for provisions relating to parents’ income supplemental amount from assets, in subsec. (h) substituting provisions relating to student contribution from assets for provisions relating to student and spouse income supplemental amount from assets, and in subsec. (i) substituting provisions relating to adjustments to parents’ contribution for enrollment periods other than 9 months for purposes other than subpart 2 of part A of this subchapter for provisions relating to adjustments for enrollment periods other than 9 months. 1987—Subsec. (c)(2), (4). Pub. L. 100–50, § 14(1), substituted “section 1087rr of this title” for “section 1087ss of this title”. Subsec. (c)(7). Pub. L. 100–50, § 14(2), struck out “National” before “Center”. Subsec. (d)(2)(B). Pub. L. 100–50, § 14(3), substituted “displaced homemaker” for “dislocated homemaker”. Subsec. (d)(2)(C). Pub. L. 100–50, § 14(1), substituted “section 1087rr of this title” for “section 1087ss of this title”. Pub. L. 100–50, § 14(4), added table after subpar. (C) 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–$65,00040 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. (d)(4)(B). Pub. L. 100–50, § 14(5), substituted “$15,999” for “$15,000”. Subsec. (d)(4)(C). Pub. L. 100–50, § 14(6), substituted “$16,000” for “$15,000” in three places. Subsec. (d)(4)(D). Pub. L. 100–50, § 14(7), substituted “income is less than zero” for “income is equal to or less than zero”. Subsec. (e). Pub. L. 100–50, § 14(8), inserted a minus sign before “$3,409” in two places in table. Subsec. (g)(1)(C). Pub. L. 100–50, § 14(9), substituted “paragraph (2)” for “paragraph (3)”. Subsec. (g)(3). Pub. L. 100–50, § 14(10), inserted “(or a successor table prescribed by the Secretary under section 1087rr of this title)” after “following table”. Subsec. (h). Pub. L. 100–50, § 14(11), added subsec. (h) and struck out former subsec. (h) which read as follows: “The student (and spouse) supplemental income amount from assets is determined by multiplying by 35 percent the sum of— “(1) the current balance of checking and savings accounts and cash on hand; and “(2) the net value of investments and real estate, including the net value in the principal place of residence except in the case of a dislocated worker (certified in accordance with title III of the Job Training Partnership Act) or a dislocated homemaker (as defined in section 1087vv(e) of this title).” Subsec. (i). Pub. L. 100–50, § 14(12), added subsec. (i).

Statutory Notes and Related Subsidiaries

Effective Date

of 2024 AmendmentAmendment by Pub. L. 118–40 effective and applicable as if included in title VII of div. FF of Pub. L. 116–260, see section 101(d) of div. B of Pub. L. 118–40, set out as a note under section 1070a of this title.

Effective Date

of 2020 AmendmentAmendment by Pub. L. 116–260 effective July 1, 2024, except as otherwise expressly provided, and applicable with respect to award year 2024–2025 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 AmendmentAmendment 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 Pub. L. 110–84, title VI, § 601(e), Sept. 27, 2007, 121 Stat. 804, provided that: “The

Amendments

made by this section [amending this section and section 1087pp, 1087qq, and 1087rr of this title] shall be effective on July 1, 2009.”

Effective Date

of 2006 AmendmentAmendment 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(a)(2), Feb. 8, 2006, 120 Stat. 173, provided that: “The

Amendments

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 AmendmentAmendment 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 AmendmentAmendment 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 AmendmentAmendment 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 AmendmentAmendment 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.

§1087oo Student aid index for dependent students

Summary

Title 20, §1087oo

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