29894 Federal Register / Vol. 63, No. 104 / Monday, June 1, 1998 / Notices

DEPARTMENT OF EDUCATION

Office of Postsecondary Education;

Notice of Revision of the Need

Analysis Methodology for the 1999–

2000 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 1999–

2000 for the Title IV, HEA student

financial assistance programs (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. 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, General

Provisions Branch, Policy Development

Division, U.S. Department of Education,

600 Independence Ave., S.W. (Room

3053, ROB–3), Washington, D.C. 20202–

5444, telephone (202) 708–8242.

Individuals who use a

telecommunications device for the deaf

(TDD) may call the Federal Information

Relay Service (FIRS) at 1–800–877–8339

between 8 a.m. and 8 p.m., Eastern time

Monday through Friday. 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 this paragraph.

SUPPLEMENTARY INFORMATION: Part F of

Title IV of the Higher Education Act of

1965, as amended (HEA), specifies the

criteria, data elements, calculations and

tables used in the Federal Need

Analysis Methodology EFC calculations.

Section 478 in Part F 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 inflation into

account. The changes are based, in

general, upon increases in the Consumer

Price Index.

For the award year 1999–2000, the

Secretary is charged with updating the

income protection allowances, adjusted

net worth of a business or farm, and the

assessment schedules and rates to

account for inflation that took place

between December 1997 and December

1998. However, since the Secretary must

publish these tables before December

1998, 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 1997. The Secretary

estimates that the increase in the

Consumer Price Index for all Urban

Consumers for the period December

1997 through December 1998 will be 2.5

percent. The updated tables are set forth

in sections 1, 2, and 4.

The Secretary must also revise, for

each award year, the table on asset

protection allowance as provided for in

section 478(d). The Education Savings

and Asset Protection Allowance table

for the award year 1999–2000 has been

updated below in section 3.

Section 477(b)(5) of Part F 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.

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 allowances for parents of

dependent students and independent

students with dependents other than a

spouse for award year 1999–2000 are:

Family size

Number in college

1 2 3 4 5

2 ................................................................................................................ 12,260 10,160 .................... .................... ....................

3 ................................................................................................................ 15,260 13,180 11,080 .................... ....................

4 ................................................................................................................ 18,850 16,750 14.670 12,570 ....................

5 ................................................................................................................ 22,240 20,140 18,060 15,960 13,880

6 ................................................................................................................ 26,010 23,920 21,830 19,740 17,650

For each addiional family member add $2,940.

For each additional college student subtract 2,090.

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

such 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 Then the adjusted new worth is

Less than $1 ............................................................................................. 0

$1 to $85,000 ............................................................................................ $0 + 40% of NW

$85,001 to $260,000 ................................................................................. $34,000 + 50% of NW over $85,000

$260,001 to $435,000 ............................................................................... $121,500 + 60% of NW over $266,00.

$435,001 or more ..................................................................................... $226,500 + 100% of NW over $435,000
Federal Register / Vol. 63, No. 104 / Monday, June 1, 1998 / Notices 29895

3. Education Savingss 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 parent

then the

education

savings and

asset protection allowance is

25 or less .......... 0 0

26 ...................... 2,500 1,600

27 ...................... 5,000 3,200

28 ...................... 7,500 4,800

29 ...................... 10,000 6,400

30 ...................... 12,500 8,000

31 ...................... 15,000 9,600

32 ...................... 17,500 11,200

33 ...................... 19,900 12,900

34 ...................... 22,400 14,500

35 ...................... 24,900 16,100

36 ...................... 27,400 17,700

37 ...................... 29,900 19,300

38 ...................... 32,400 20,900

39 ...................... 34,900 22,500

40 ...................... 37,400 24,100

41 ...................... 38,400 24,500

42 ...................... 39,400 25,100

43 ...................... 40,400 25,600

44 ...................... 41,400 26,200

45 ...................... 42,500 26,800

46 ...................... 43,500 27,400

47 ...................... 44,600 28,000

48 ...................... 45,800 28,700

49 ...................... 46,900 29,400

50 ...................... 48,400 30,100

51 ...................... 49,600 30,700

52 ...................... 50,900 31,600

53 ...................... 52,500 32,300

54 ...................... 53,800 33,100

55 ...................... 55,400 33,900

56 ...................... 57,100 34,700

57 ...................... 58,900 35,700

58 ...................... 60,700 36,500

59 ...................... 62,500 37,600

60 ...................... 64,400 38,700

61 ...................... 66,600 39,700

62 ...................... 69,000 40,900

63 ...................... 71,000 42,000

64 ...................... 73,400 43,200

65 and over ....... 75,900 44,400

INDEPENDENT STUDENTS WITHOUT

DEPENDENTS OTHER THAN A SPOUSE

If the age of the

student is

And the student is

married

single

then the

education

savings and

asset protection allowance is

25 or less .......... 0 0

26 ...................... 2,500 1,600

27 ...................... 5,000 3,200

28 ...................... 7,500 4,800

29 ...................... 10,000 6,400

30 ...................... 12,500 8,000

31 ...................... 15,000 9,600

32 ...................... 17,500 11,200

33 ...................... 19,900 12,900

34 ...................... 22,400 14,500

35 ...................... 24,900 16,100

36 ...................... 27,400 17,700

37 ...................... 29,900 19,300

38 ...................... 32,400 20,900

39 ...................... 34,900 22,500

40 ...................... 37,400 24,100

41 ...................... 38,400 24,500

42 ...................... 39,400 25,100

43 ...................... 40,400 25,600

44 ...................... 41,400 26,200

45 ...................... 42,500 26,800

46 ...................... 43,500 27,400

47 ...................... 44,600 28,000

48 ...................... 45,800 28,700

49 ...................... 46,900 29,400

50 ...................... 48,400 30,100

51 ...................... 49,600 30,700

52 ...................... 50,900 31,600

53 ...................... 52,500 32,300

54 ...................... 53,800 33,100

55 ...................... 55,400 33,900

56 ...................... 57,100 34,700

57 ...................... 58,900 35,700

58 ...................... 60,700 36,500

59 ...................... 62,500 37,600

60 ...................... 64,400 38,700

61 ...................... 66,600 39,700

62 ...................... 69,000 40,900

63 ...................... 71,000 42,000

64 ...................... 73,400 43,200

65 and over ....... 75,900 44,400

INDEPENDENT STUDENTS WITH

DEPENDENTS OTHER THAN A SPOUSE

If the age of the

student is

And the student is

married

single

then the

education

savings and

asset protection allowance is

25 or less .......... 0 0

26 ...................... 2,500 1,600

27 ...................... 5,000 3,200

28 ...................... 7,500 4,800

29 ...................... 10,000 6,400

30 ...................... 12,500 8,000

31 ...................... 15,000 9,600

32 ...................... 17,500 11,200

33 ...................... 19,900 12,900

INDEPENDENT STUDENTS WITH DEPENDENTS OTHER THAN A

SPOUSE—Continued

If the age of the

student is

And the student is

married

single

then the

education

savings and

asset protection allowance is

34 ...................... 22,400 14,500

35 ...................... 24,900 16,100

36 ...................... 27,400 17,700

37 ...................... 29,900 19,300

38 ...................... 32,400 20,900

39 ...................... 34,900 22,500

40 ...................... 37,400 24,100

41 ...................... 38,400 24,500

42 ...................... 39,400 25,100

43 ...................... 40,400 26,600

44 ...................... 41,400 26,200

45 ...................... 42,500 26,800

46 ...................... 43,500 27,400

47 ...................... 44,600 28,000

48 ...................... 45,800 28,700

49 ...................... 46,900 29,400

50 ...................... 48,400 30,100

51 ...................... 49,600 30,700

52 ...................... 50,900 31,600

53 ...................... 52,500 32,300

54 ...................... 53,800 33,200

55 ...................... 55,400 33,900

56 ...................... 57,100 34,700

57 ...................... 58,900 35,700

59 ...................... 62,500 37,600

60 ...................... 64,400 38,700

61 ...................... 66,600 39,700

62 ...................... 69,000 40,900

63 ...................... 71,000 42,000

64 ...................... 73,400 43,200

65 and over ....... 75,900 44,400

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:
29896 Federal Register / Vol. 63, No. 104 / Monday, June 1, 1998 / Notices

If AAI is Then the contribution is

Less than ¥$3,409 ($3,409) .................................................................... $¥750

($3,409) to $11,000 .................................................................................. 22% of AAI

$11,001 to $13,700 ................................................................................... $2,420+ 25% of AAI over $11,000

$13,701 to $16,500 ................................................................................... $3,095+ 29% of AAI over $13,700

$16,501 to $19,300 ................................................................................... $3,907+ 34% of AAI over $16,500

$19,301 to $22,100 ................................................................................... $4,859+ 40% of AAI over $19,300

$22,101 or more ....................................................................................... $5,979+ 47% of AAI over $22,100

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 $11,000 .................................................................................. 22% of AAI

$11,001 to $13,700 ................................................................................... $2,420+25% of AAI over $11,000

$13,701 to $16,500 ................................................................................... $3,095+29% of AAI over $13,700

$16,501 to $19,300 ................................................................................... $3,907+34% of AAI over $16,500

$19,301 to $22,100 ................................................................................... $4,859+40% of AAI over $19,300

$22,101 or more ....................................................................................... $5,979+47% of AAI over $22,100

5. Employment Expense Allowance

This allowance for employmentrelated 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-earner

family compared to a one-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

$2,800 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

education expenses. There are four

tables for state and other taxes, one each

for parents of dependent students,

dependent students, independent

students without dependents other than

a spouse, and independent students

with 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 or

$15,000 or

more

then the

percentage

is

then the

percentage

is

Wyoming, Tennessee, Nevada, Alaska, Texas ............................................................................................................... 3 2

Louisiana, Florida, Washington, South Dakota ............................................................................................................... 4 3

Alabama, Mississippi ........................................................................................................................................................ 5 4

North Dakota, Illinois, Connecticut, New Mexico, Missouri, West Virginia, Arizona, Indiana, Oklahoma, Arkansas ..... 6 5

New Hampshire, Pennsylvania, Colorado, Georgia, Kansas, Kentucky, Idaho .............................................................. 7 6

North Carolina, Virginia, Delaware, South Carolina, Ohio, Utah, Nebraska, Montana, California, New Jersey, Iowa,

Vermont, Hawaii ........................................................................................................................................................... 8 7

Massachusetts, Rhode Island, Michigan, Minnesota, Maine, Maryland ......................................................................... 9 8

District of Columbia, Wisconsin, Oregon ......................................................................................................................... 10 9

New York .......................................................................................................................................................................... 11 10

Other ................................................................................................................................................................................ 4 3
Federal Register / Vol. 63, No. 104 / Monday, June 1, 1998 / Notices 29897

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 or

$15,000 or

more

then the

percentage

is

then the

percentage

is

Wyoming, Tennessee, Nevada, Alaska, Texas ............................................................................................................... 3 2

Louisiana, Florida, Washington, South Dakota ............................................................................................................... 4 3

Alabama, Mississippi ........................................................................................................................................................ 5 4

North Dakota, Illinois, Connecticut, New Mexico, Missouri, West Virginia, Arizona, Indiana, Oklahoma, Arkansas ..... 6 5

New Hampshire, Pennsylvania, Colorado, Georgia, Kansas, Kentucky, Idaho .............................................................. 7 6

North Carolina, Virginia, Delaware, South Carolina, Ohio, Utah, Nebraska, Montana, California, New Jersey, Iowa,

Vermont, Hawaii ........................................................................................................................................................... 8 7

Massachusetts, Rhode Island, Michigan, Minnesota, Maine, Maryland ......................................................................... 9 8

District of Columbia, Wisconsin, Oregon ......................................................................................................................... 10 9

New York .......................................................................................................................................................................... 11 10

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 ..................................................................................... 0

Florida, New Hampshire ...................................................................................................................................................................... 1

Connecticut, Louisiana, Illinois, North Dakota ..................................................................................................................................... 2

Mississippi, Arizona, Alabama, Pennsylvania, New Jersey, Missouri ................................................................................................. 3

Nebraska, Indiana, Colorado, New Mexico, Oklahoma, Kansas, West Virginia, Rhode Island, Virginia, Georgia, Arkansas, Vermont, Michigan ................................................................................................................................................................................. 4

Montana, Idaho, Utah, Kentucky, Massachusetts, California, North Carolina, South Carolina, Ohio, Iowa, Delaware, Maine, Wisconsin ............................................................................................................................................................................................... 5

Oregon, Maryland, Minnesota, Hawaii ................................................................................................................................................ 6

District of Columbia, New York ............................................................................................................................................................ 7

Other .................................................................................................................................................................................................... 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 ......................................................................................... 0

Florida, New Hampshire .......................................................................................................................................................................... 1

Connecticut, Louisiana, Illinois, North Dakota ......................................................................................................................................... 2

Mississippi, Arizona, Alabama, Pennsylvania, New Jersey, Missouri ..................................................................................................... 3

Nebraska, Indiana, Colorado, New Mexico, Oklahoma, Kansas, West Virginia, Rhode Island, Virginia, Georgia, Arkansas, Vermont, Michigan ..................................................................................................................................................................................... 4

Montana, Idaho, Utah, Kentucky, Massachusetts, California, North Carolina, South Carolina, Ohio, Iowa, Delaware, Maine, Wisconsin ................................................................................................................................................................................................... 5

Oregon, Maryland, Minnesota, Hawaii .................................................................................................................................................... 6

District of Columbia, New York ................................................................................................................................................................ 7

Other ........................................................................................................................................................................................................ 2

Electronic Access to This Document

Anyone may view this document, as

well as all other Department of

Education documents published in the

Federal Register, in text or portable

document format (pdf) on the World

Wide Web at either of the following

sites:

http://ocfo.ed.gov/fedreg.htm

http://www.ed.gov/news.html

To use the pdf you must have the

Adobe Acrobat Reader Program with

Search, which is available free through

either of the previous sites. If you have

questions about using the pdf, call the

U.S. Government Printing Office toll

free at 1–888–293–6498.

Program Authority: 20 U.S.C. 1087rr.

(CFDA Nos.: 84.063 Federal Pell Grant;

84.038 Federal Perkins Loan; 84.033

Federal Work-Study; 84.007 Federal

Supplemental Educational Opportunity

Grant; 84.032 Federal Family Education

Loan; and 84.268 William D. Ford Federal

Direct Loan Programs)

Dated: May 27, 1998.

David A. Longanecker,

Assistant Secretary for Postsecondary

Education.

[FR Doc. 98–14426 Filed 5–29–98; 8:45 am]

BILLING CODE 4000–01–P