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

Summary

Compute the student aid index for an independent student with dependents (not a spouse) by adding the family’s available income to the family’s available assets, then applying the assessment schedule to that total. If the result is less than −$1,500, the index is −$1,500. Available income equals total income minus federal income taxes, a payroll-tax allowance, an income protection allowance, and an employment expense allowance. The payroll-tax allowance follows federal Social Security and Medicare rules. The income protection allowance is set by family size: for married students with dependents, 3=$46,140; 4=$56,970; 5=$67,230; 6=$78,620; each extra dependent adds $8,880 (adjusted for 2023–2024 and after). For single students with dependents, 2=$43,920; 3=$54,690; 4=$67,520; 5=$79,680; 6=$93,180; each extra adds $10,530. The employment expense allowance is the smaller of $4,000 or 35% of earned income (combined with a spouse’s if applicable). Available assets equal (assets minus an age-and-marital-status asset protection allowance) times 7%, but not less than zero. The asset protection table gives amounts by age and married/single status, ranging from $0 at 25 to $10,500 (married) and $3,900 (single) at 65 or more. Finally, apply the assessment table: AAI less than −$6,820 → −$1,500; −$6,820 to $17,400 → 22% of AAI; $17,401–$21,800 → $3,828 + 25% of amount over $17,400; $21,801–$26,200 → $4,928 + 29% over $21,800; $26,201–$30,700 → $6,204 + 34% over $26,200; $30,701–$35,100 → $7,734 + 40% over $30,700; $35,101+ → $9,494 + 47% over $35,100. If the student is divorced, separated, or widowed, the spouse’s income and assets are not counted.

Title 20, §1087qq

Education — Source: USLM XML via OLRC

(a)(1)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)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)(1)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)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)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 (includingstudent)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 (includingstudent)Amount 2$43,920 3$54,690 4$67,520 5$79,680 6$93,180 For each additional add$10,530.

(4)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)(1)(A)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)The family’s 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 1087rr(d) of this title): Asset Protection Allowances for Families and Students If the age of the student is—And the student is marriedsingle 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)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 $17,40022% 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.

(e)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.

Notes & Related Subsidiaries

Editorial Notes

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–$65,00040 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. (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.

Statutory Notes and Related Subsidiaries

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 AmendmentAmendment 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 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(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 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.

§1087qq Student Aid Index for Independent Students with Dependents Other Than a Spouse

Summary

Title 20, §1087qq

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Editorial Notes

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Statutory Notes and Related Subsidiaries

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