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 Department of Education
 AGENCY: Office of Student Financial Assistance, Department of Education.
 ACTION: Notice of revision of the Federal need analysis methodology for the 2001-2002 award year.
 SUMMARY: The Secretary of Education announces the annual updates to the tables that will be used in the statutory “Federal Need Analysis Methodology” to determine a student's expected family contribution (EFC) for award year 2001-2002 under part F of title IV of the Higher Education Act (HEA) of 1965, as amended (Title IV, HEA Programs). An EFC is the amount a student and his or her family may reasonably be expected to contribute toward the student's postsecondary educational costs for purposes of determining financial aid eligibility. The title IV, HEA Programs include the Federal Pell Grant, campus-based (Federal Perkins Loan, Federal Work-Study, and Federal Supplemental Educational Opportunity Grant Programs), Federal Family Education Loan, and William D. Ford Federal Direct Loan Programs.
 FOR FURTHER INFORMATION CONTACT: Ms. Edith Bell, Program Specialist, U.S. Department of Education, 400 Maryland Avenue, SW., (Room 4621, ROB-3), Washington, DC 20202-5444. 
                        ( print page 34455)
                        Telephone: (202) 708-5591. If you use a telecommunications device for the deaf (TDD), you may call the Federal Information Relay Service (FIRS) at 1-800-877-8339. Individuals with disabilities may obtain this document in an alternate format (
                        *e.g.,*
                         Braille, large print, audiotape or computer diskette) on request to the contact person listed in the preceding paragraph.


SUPPLEMENTARY INFORMATION: Part F of title IV of the HEA specifies the criteria, data elements, calculations, and tables used in the Federal Need Analysis Methodology EFC calculations. Section 478 of part F of the HEA requires the Secretary to adjust four of the tables—the Income Protection Allowance, the Adjusted Net Worth of a Business or Farm, the Education Savings and Asset Protection Allowance, and the Assessment Schedules and Rates—each award year to take into account inflation. The changes are based, in general, upon increases in the Consumer Price Index. For the award year 2001-2002 the Secretary is charged with updating the income protection allowance, adjusted net worth of a business or farm, and the assessment schedules and rates to account for inflation that took place between December 1999 and December 2000. However, since the Secretary must publish these tables before December 2000, the increases in the tables must be based upon a percentage equal to the estimated percentage increase in the Consumer Price Index for all Urban Consumers for 1999. The Secretary estimates that the increase in the Consumer Price Index for all Urban Consumers for the period December 1999 through December 2000 will be 2.3 percent. The updated tables are in sections 1, 2, and 4 of this notice. The Secretary must also revise, for each award year, the table on asset protection allowance as provided for in section 478(d) of the HEA. The Education Savings and Asset Protection Allowance table for the award year 2001-2002 has been updated in section 3 of this notice. Section 477(b)(5) of part F of the HEA also requires the Secretary to increase the amount specified for the Employment Expense Allowance to account for inflation based upon increases in the Bureau of Labor Statistics budget of the marginal costs for a two-earner compared to a one-earner family for meals away from home, apparel and upkeep, transportation, and housekeeping services. Therefore, the Secretary is increasing this allowance as described in section 5 of this notice. The HEA provides for the following annual updates: 1. 
                    *Income Protection Allowance.*
                     This allowance is the amount of reasonable living expenses that would be associated with the maintenance of an individual or family. The allowance is offset against the family's income and varies by family size. The income protection allowance for the dependent student is $2,250. The income protection allowances for parents of dependent students and independent students with dependents other than a spouse for award year 2001-2002 are: Family size
Number in college1
2
3
4
52
12,760
10,5803
15,890
13,720
11,5404
19,630
17,440
15,270
13,0905
23,160
20,970
18,800
16,620
14,4506
27,090
24,900
22,730
20,550
18,380For each additional family member add $3,060.For each additional college student subtract $2,170.
 The income protection allowances for independent students without dependents other than a spouse for award year 2001-2002 are: Marital status
Number in collegeSingle
1
$5,110Married
2
5,110Married
1
8,180
 2. 
                    *Adjusted Net Worth (NW) of a Business or Farm.*
                     A portion of the full net value of a farm or business is excluded from the calculation of an expected contribution since—(1) the income produced from these assets is already assessed in another part of the formula; and (2) the formula protects a portion of the value of the assets. The portion of these assets included in the contribution calculation is computed according to the following schedule. This schedule is used for parents of dependent students, independent students without dependents other than a spouse, and independent students with dependents other than a spouse. If the net worth of a business or farm is—
The adjusted net worth is—Less than $1
0$1 to $90,000
0
+
40%
of NW$90,001 to $275,000
36,000
+
50%
of NW over
$90,000$275,001 to $455,000
128,500
+
60%
of NW over
275,000$455,001 or more
236,500
+
100%
of NW over
455,000
 
 
 3. 
                    *Education Savings and Asset Protection Allowance.*
                     This allowance protects a portion of net worth (assets less debts) from being considered available for postsecondary educational expenses. There are three asset protection allowance tables—one for parents of dependent students, one for independent students without dependents other than a spouse, and one for independent students with dependents other than a spouse. Dependent Students
If the age of the older parent is—
And there are—Two parents
One parentThen the education savings and asset protection allowance is—25 or less
0
026
2,500
1,50027
5,000
2,90028
7,500
4,40029
10,000
5,80030
12,500
7,30031
15,000
8,80032
17,500
10,20033
19,900
11,70034
22,400
13,10035
24,900
14,60036
27,400
16,10037
29,900
17,50038
32,400
19,00039
34,900
20,40040
37,400
21,90041
38,400
22,30042
39,300
22,80043
40,300
23,30044
41,400
23,80045
42,400
24,40046
43,500
24,90047
44,600
25,50048
45,700
26,10049
46,800
26,70050
48,300
27,20051
49,500
27,90052
50,800
28,60053
52,300
29,40054
53,600
30,10055
55,300
30,80056
56,900
31,50057
58,700
32,40058
60,400
33,20059
62,200
34,20060
64,100
35,00061
66,000
36,00062
68,300
37,00063
70,600
38,00064
72,700
39,10065 and over
75,100
40,400
 Independent Students Without Dependents Other Than a Spouse
If the age of the student is—
And the student is—Married
SingleThen the education savings and asset protection allowance is—25 or less
0
026
2,500
1,50027
5,000
2,90028
7,500
4,40029
10,000
5,80030
12,500
7,30031
15,000
8,80032
17,500
10,20033
19,900
11,70034
22,400
13,10035
24,900
14,60036
27,400
16,10037
29,900
17,50038
32,400
19,00039
34,900
20,40040
37,400
21,90041
38,400
22,30042
39,300
22,80043
40,300
23,30044
41,400
23,80045
42,400
24,40046
43,500
24,90047
44,600
25,50048
45,700
26,10049
46,800
26,70050
48,300
27,20051
49,500
27,90052
50,800
28,60053
52,300
29,40054
53,600
30,10055
55,300
30,80056
56,900
31,50057
58,700
32,40058
60,400
33,20059
62,200
34,20060
64,100
35,00061
66,000
36,00062
68,300
37,00063
70,600
38,00064
72,700
39,10065 and over
75,100
40,400
 Independent Students With Dependents Other Than a Spouse
If the age of the student is—
And the student is—Married
SingleThen the education savings and assets protection allowance is—25 or less
0
026
2,500
1,50027
5,000
2,90028
7,500
4,40029
10,000
5,80030
12,500
7,30031
15,000
8,80032
17,500
10,20033
19,900
11,70034
22,400
13,10035
24,900
14,60036
27,400
16,10037
29,900
17,50038
32,400
19,00039
34,900
20,40040
37,400
21,90041
38,400
22,30042
39,300
22,80043
40,300
23,30044
41,400
23,80045
42,400
24,40046
43,500
24,90047
44,600
25,50048
45,700
26,10049
46,800
26,70050
48,300
27,20051
49,500
27,90052
50,800
28,60053
52,300
29,40054
53,600
30,10055
55,300
30,80056
56,900
31,50057
58,700
32,40058
60,400
33,20059
62,200
34,20060
64,100
35,00061
66,000
36,00062
68,300
37,00063
70,600
38,00064
72,700,
39,10065 and over
75,100
40,400
 4. 
                    *Assessment Schedules and Rates.*
                     Two schedules, one for dependent students and one for independent students with dependents other than a spouse, are used to determine the expected contribution toward educational expenses from family financial resources. For dependent students, the expected parental contribution is derived from an assessment of the parents adjusted available income (AAI). For independent students with dependents other than a spouse, the expected contribution is derived from an assessment of the family's AAI. The AAI represents a measure of a family's financial strength, which considers both income and assets. The parents' contribution for a dependent student is computed according to the following schedule: If AAI is—
Then the contribution is—Less than -$3,409 ($3,409)
-$750($3,409) to $11,400

+
22%
of AAI( print page 34457)$11,401 to $14,300
2,508
+
25%
of AAI over
$11,400$14,301 to $17,200
3,233
+
29%
of AAI over
14,300$17,201 to $20,100
4,074
+
34%
of AAI over
17,200$20,101 to $23,000
5,060
+
40%
of AAI over
20,100$23,001 or more
6,220
+
47%
of AAI over
23,000
 The contribution for an independent student with dependents other than a spouse is computed according to the following schedule: If AAI is—
Then the contribution is—Less than -$3,409 ($3,409)
-$750($3,409) to $11,400


22%
of AAI$11,401 to $14,300
2,508
+
25%
of AAI over
$11,400$14,301 to $17,200
3,233
+
29%
of AAI over
14,300$17,201 to $20,100
4,074
+
34%
of AAI over
17,200$20,101 to $23,000
5,060
+
40%
of AAI over
20,100$23,001 or more
6,220
+
47%
of AAI over
23,000
 5. 
                    *Employment Expense Allowance.*
                     This allowance for employment-related expenses, which is used for the parents of dependent students and for married independent students with dependents, recognizes additional expenses incurred by working spouses and single-parent households. The allowance is based upon the marginal differences in costs for a two wage earner family compared to a one wage earner family for meals away from home, apparel and upkeep, transportation, and housekeeping services. The employment expense allowance for parents of dependent students, married independent students without dependents other than a spouse, and independent students with dependents other than a spouse is the lesser of $2,900 or 35 percent of earned income. 6. 
                    *Allowance for State and Other Taxes.*
                     This allowance for State and other taxes protects a portion of the parents' and student's income from being considered available for postsecondary educational expenses. There are four tables for State and other taxes, one each for parents of dependent students, independent students with dependents other than a spouse, dependent students, and independent students without dependents other than a spouse. Parents of Dependent Students
If parents' State or territory of residence is:
And parents' total income is—less than $15,000
$15,000 or morethen the percentage is—Wyoming, Tennessee, Nevada, Alaska, Texas
3
2Louisiana, Florida, Washington, South Dakota
4
3Alabama, Mississippi
5
4North Dakota, Illinois, Connecticut, New Mexico, Missouri, West Virginia, Arizona, Indiana, Oklahoma, Arkansas
6
5New Hampshire, Pennsylvania, Colorado, Georgia, Kansas, Kentucky, Idaho
7
6North Carolina, Virginia, Delaware, South Carolina, Ohio, Utah, Nebraska, Montana, California, New Jersey, Iowa, Vermont, Hawaii
8
7Massachusetts, Rhode Island, Michigan, Minnesota, Maine, Maryland
9
8District of Columbia, Wisconsin, Oregon
10
9New York
11
10Other
4
3
 **Independent Students With Dependents Other Than a Spouse**
If student's State or territory of residence is:
And student's total income is—Less than $15,000
$15,000 or morethen the percentage is—Wyoming, Tennessee, Nevada, Alaska, Texas
3
2Louisiana, Florida, Washington, South Dakota
4
3Alabama, Mississippi
5
4North Dakota, Illinois, Connecticut, New Mexico, Missouri, West Virginia, Arizona, Indiana, Oklahoma, Arkansas
6
5New Hampshire, Pennsylvania, Colorado, Georgia, Kansas, Kentucky, Idaho
7
6North Carolina, Virginia, Delaware, South Carolina, Ohio, Utah, Nebraska, Montana, California, New Jersey, Iowa, Vermont, Hawaii
8
7Massachusetts, Rhode Island, Michigan, Minnesota, Maine, Maryland
9
8District of Columbia, Wisconsin, Oregon
10
9New York
11
10( print page 34458)Other
4
3
 Dependent Students
If student's State or territory of residence is:
The percentage is—Alaska, Texas, South Dakota, Wyoming, Washington, Tennessee, Nevada
0Florida, New Hampshire
1Connecticut, Louisiana, Illinois, North Dakota
2Mississippi, Arizona, Alabama, Pennsylvania, New Jersey, Missouri
3Nebraska, Indiana, Colorado, New Mexico, Oklahoma, Kansas, West Virginia, Rhode Island, Virginia, Georgia, Arkansas, Vermont, Michigan
4Montana, Idaho, Utah, Kentucky, Massachusetts, California, North Carolina, South Carolina, Ohio, Iowa, Delaware, Maine, Wisconsin
5Oregon, Maryland, Minnesota, Hawaii
6District of Columbia, New York
7Other
2
 Independent Students Without Dependents Other Than a Spouse
If student's State or territory of residence is:
The percentage is—Alaska, Texas, South Dakota, Wyoming, Washington, Tennessee, Nevada
0Florida, New Hampshire
1Connecticut, Louisiana, Illinois, North Dakota
2Mississippi, Arizona, Alabama, Pennsylvania, New Jersey, Missouri
3Nebraska, Indiana, Colorado, New Mexico, Oklahoma, Kansas, West Virginia, Rhode Island, Virginia, Georgia, Arkansas, Vermont, Michigan
4Montana, Idaho, Utah, Kentucky, Massachusetts, California, North Carolina, South Carolina, Ohio, Iowa, Delaware, Maine, Wisconsin
5Oregon, Maryland, Minnesota, Hawaii
6District of Columbia, New York
7Other
2
 Electronic Access to This Document You may view this document, as well as all other Department of Education documents published in the 
                    **Federal Register**
                    , in text or Adobe Portable Document Format (PDF) on the Internet at the following sites: http://ocfo.ed.gov/​fedreg.htm http://www.ed.gov/​news.html http://www.ifap.ed.gov/​ To use the PDF you must have Adobe Acrobat Reader, which is available free at the previous sites. If you have questions about using the PDF, call the U.S. Government Printing Office (GPO), toll free, at 1-888-293-6498; or in Washington, DC, area at (202) 512-1530. Note: The official version of this document is the document published in the 
                        **Federal Register**
                        . Free Internet access to the official edition of the 
                        **Federal Register**
                         and the Code of Federal Regulations is available on GPO Access at: http://www.access.gpo.gov/​nara/​index.html (Catalog of Federal Domestic Assistance Numbers: 84.007 Federal Supplemental Educational Opportunity Grant; 84.032 Federal Family Education Loan Program; 84.033 Federal Work-Study Program; 84.038 Federal Perkins Loan Program; 84.063 Federal Pell Grant Program; William D. Ford Federal Direct Loan Program, 84.268) Dated: May 23, 2000. Jim Lynch, Acting Chief Operating Officer, Student Financial Assistance.


[FR Doc. 00-13399 Filed 5-26-00; 8:45 am] BILLING CODE 4000-01-U