28454 Federal Register / Vol. 60, No. 104 / Wednesday, May 31, 1995 / Notices

DEPARTMENT OF EDUCATION

Federal Pell Grant, Federal Perkins

Loan, Federal Work-Study, Federal

Supplemental Educational Opportunity

Grant, Federal Family Education Loan,

and William D. Ford Federal Direct

Loan Programs; Revision of the Need

Analysis Methodology for the 1996–97

Award Year

AGENCY: Department of Education.

ACTION: Notice.

SUMMARY: The Secretary of Education

announces the annual update to the

tables used in the need analysis

methodology that an institution of

higher education must use in

calculating expected family

contributions for the 1996–97 award

year under the Federal Pell Grant,

campus-based (Federal Perkins Loan,

Federal Work-Study, and Federal

Supplemental Educational Opportunity

Grant), Federal Family Education Loan

and William D. Ford Federal Direct

Loan programs. The Secretary takes this

action under the authority of Title IV of

the Higher Education Act of 1965, as

amended (HEA).

FOR FURTHER INFORMATION CONTACT: Ms.

Edith Bell, Program Specialist, General

Provisions Branch, Policy Development

Division, U.S. Department of Education,

600 Independence Avenue, S.W. (Room

3053, ROB–3), Washington, DC. 20202–

5444, telephone (202) 708–7888. Deaf

and hearing impaired individuals may

call the Federal Information Relay

Service at 1–800–877–8339 between 8

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

through Friday.

SUPPLEMENTARY INFORMATION: The need

analysis methodology is used to

determine student eligibility for

assistance under Title IV of the HEA.

This methodology, referred to as the

Federal Needs Analysis Methodology, is

used to calculate the expected family

contribution (EFC) for the Federal Pell

Grant, the campus-based (Federal

Perkins Loan, Federal Work-Study, and

Federal Supplemental Educational

Opportunity Grant), Federal Family

Education Loan, and William D. Ford

Federal Direct Loan programs. This

methodology is established by statute.

Federal Needs Analysis Methodology

Part F of Title IV of the HEA specifies

the criteria, data elements, calculations,

and tables for the computation of

expected family contributions for the

Federal Pell Grant, campus-based,

Federal Family Education Loan, and

William D. Ford Federal Direct Loan

programs. In addition, section 478

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 for the 12

months between December 31 of the

previous year and December 31 of the

current year. The changes are based, in

general, upon increases in the Consumer

Price Index.

For the award year 1996–97, 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 1994 and December

1995. However, since the Secretary must

publish these tables before December

1995, 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 1994. The Secretary

estimates that the increase in the

Consumer Price Index for all Urban

Consumers for the period December

1994 through December 1995 will be 3.0

percent. The updated tables for the

1996–97 award year 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) of the HEA. The

Education Savings and Asset Protection

Allowance table for the award year

1996–97 has been updated below in

section 3.3.

Section 477(b)(5) 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 oneearner 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 the award year 1996–97 are:

Family size (including student)

Number in College

1 2 3 4 5

2 ................................................................................................................ $11,480 $9,510 ................... ................... ...................

3 ................................................................................................................ $14,290 $12,340 $10,380 ................... ...................

4 ................................................................................................................ $17,650 $15,690 $13,740 $11,770 ...................

5 ................................................................................................................ $20,830 $18,860 $16,910 $14,950 $12,990

6 ................................................................................................................ $24,360 $22,400 $20,450 $18,480 $16,530

For each additional family member add $2,750.

For each additional college student subtract $1,950.

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.
Federal Register / Vol. 60, No. 104 / Wednesday, May 31, 1995 / Notices 28455

If the net worth of a business or farm is— Then the adjusted net worth is:

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

1 to $80,000 ............................................................................................. 0+40% of NW.

80,001 to $245,000 .................................................................................. 32,000+50% of NW over $80,000.

245,001 to $410,000 ................................................................................ 114,500+60% of NW over $245,000.

410,001 or more ....................................................................................... 213,500+100% of NW over $410,000.

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 parent

Then the education savings

and asset protection allowance is—

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

26 ............................................................................................................................................................................. 2,300 1,600

27 ............................................................................................................................................................................. 4,600 3,300

28 ............................................................................................................................................................................. 7,000 4,900

29 ............................................................................................................................................................................. 9,300 6,500

30 ............................................................................................................................................................................. 11,600 8,200

31 ............................................................................................................................................................................. 13,900 9,800

32 ............................................................................................................................................................................. 16,200 11,400

33 ............................................................................................................................................................................. 18,600 13,100

34 ............................................................................................................................................................................. 20,900 14,700

35 ............................................................................................................................................................................. 23,200 16,300

36 ............................................................................................................................................................................. 25,500 18,000

37 ............................................................................................................................................................................. 27,800 19,600

38 ............................................................................................................................................................................. 30,200 21,200

39 ............................................................................................................................................................................. 32,500 22,900

40 ............................................................................................................................................................................. 34,800 24,500

41 ............................................................................................................................................................................. 35,500 25,000

42 ............................................................................................................................................................................. 36,400 25,600

43 ............................................................................................................................................................................. 37,300 26,100

44 ............................................................................................................................................................................. 38,300 26,700

45 ............................................................................................................................................................................. 39,200 27,200

46 ............................................................................................................................................................................. 40,300 27,900

47 ............................................................................................................................................................................. 41,300 28,600

48 ............................................................................................................................................................................. 42,300 29,300

49 ............................................................................................................................................................................. 43,700 29,800

50 ............................................................................................................................................................................. 44,800 30,500

51 ............................................................................................................................................................................. 45,900 31,300

52 ............................................................................................................................................................................. 47,400 32,000

53 ............................................................................................................................................................................. 48,500 33,000

54 ............................................................................................................................................................................. 50,100 33,700

55 ............................................................................................................................................................................. 51,600 34,500

56 ............................................................................................................................................................................. 53,200 35,500

57 ............................................................................................................................................................................. 54,800 36,400

58 ............................................................................................................................................................................. 56,500 37,400

59 ............................................................................................................................................................................. 58,200 38,300

60 ............................................................................................................................................................................. 60,000 39,400

61 ............................................................................................................................................................................. 62,100 40,500

62 ............................................................................................................................................................................. 64,300 41,700

63 ............................................................................................................................................................................. 66,200 42,900

64 ............................................................................................................................................................................. 68,400 44,100

65 and older ............................................................................................................................................................. 70,800 45,500
28456 Federal Register / Vol. 60, No. 104 / Wednesday, May 31, 1995 / Notices

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 ............................................................................................................................................................................. 2,300 1,600

27 ............................................................................................................................................................................. 4,600 3,300

28 ............................................................................................................................................................................. 7,000 4,900

29 ............................................................................................................................................................................. 9,300 6,500

30 ............................................................................................................................................................................. 11,600 8,200

31 ............................................................................................................................................................................. 13,900 9,800

32 ............................................................................................................................................................................. 16,200 11,400

33 ............................................................................................................................................................................. 18,600 13,100

34 ............................................................................................................................................................................. 20,900 14,700

35 ............................................................................................................................................................................. 23,200 16,300

36 ............................................................................................................................................................................. 25,500 18,000

37 ............................................................................................................................................................................. 27,800 19,600

38 ............................................................................................................................................................................. 30,200 21,200

39 ............................................................................................................................................................................. 32,500 22,900

40 ............................................................................................................................................................................. 34,800 24,500

41 ............................................................................................................................................................................. 35,500 25,000

42 ............................................................................................................................................................................. 36,400 25,600

43 ............................................................................................................................................................................. 37,300 26,100

44 ............................................................................................................................................................................. 38,300 26,700

45 ............................................................................................................................................................................. 39,200 27,200

46 ............................................................................................................................................................................. 40,300 27,900

47 ............................................................................................................................................................................. 41,300 28,600

48 ............................................................................................................................................................................. 42,300 29,300

49 ............................................................................................................................................................................. 43,700 29,800

50 ............................................................................................................................................................................. 44,800 30,500

51 ............................................................................................................................................................................. 45,900 31,300

52 ............................................................................................................................................................................. 47,400 32,000

53 ............................................................................................................................................................................. 48,500 33,000

54 ............................................................................................................................................................................. 50,100 33,700

55 ............................................................................................................................................................................. 51,600 34,500

56 ............................................................................................................................................................................. 53,200 35,500

57 ............................................................................................................................................................................. 54,800 36,400

58 ............................................................................................................................................................................. 56,500 37,400

59 ............................................................................................................................................................................. 58,200 38,300

60 ............................................................................................................................................................................. 60,000 39,400

61 ............................................................................................................................................................................. 62,100 40,500

62 ............................................................................................................................................................................. 64,300 41,700

63 ............................................................................................................................................................................. 66,200 42,900

64 ............................................................................................................................................................................. 68,400 44,100

65 and older ............................................................................................................................................................. 70,800 45,500

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 ............................................................................................................................................................................. 2,300 1,600

27 ............................................................................................................................................................................. 4,600 3,300

28 ............................................................................................................................................................................. 7,000 4,900

29 ............................................................................................................................................................................. 9,300 6,500

30 ............................................................................................................................................................................. 11,600 8,200

31 ............................................................................................................................................................................. 13,900 9,800

32 ............................................................................................................................................................................. 16,200 11,400

33 ............................................................................................................................................................................. 18,600 13,100

34 ............................................................................................................................................................................. 20,900 14,700

35 ............................................................................................................................................................................. 23,200 16,300
Federal Register / Vol. 60, No. 104 / Wednesday, May 31, 1995 / Notices 28457

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—

36 ............................................................................................................................................................................. 25,500 18,000

37 ............................................................................................................................................................................. 27,800 19,600

38 ............................................................................................................................................................................. 30,200 21,200

39 ............................................................................................................................................................................. 32,500 22,900

40 ............................................................................................................................................................................. 34,800 24,500

41 ............................................................................................................................................................................. 35,500 25,000

42 ............................................................................................................................................................................. 36,400 25,600

43 ............................................................................................................................................................................. 37,300 26,100

44 ............................................................................................................................................................................. 38,300 26,700

45 ............................................................................................................................................................................. 39,200 27,200

46 ............................................................................................................................................................................. 40,300 27,900

47 ............................................................................................................................................................................. 41,300 28,600

48 ............................................................................................................................................................................. 42,300 29,300

49 ............................................................................................................................................................................. 43,700 29,800

50 ............................................................................................................................................................................. 44,800 30,500

51 ............................................................................................................................................................................. 45,900 31,300

52 ............................................................................................................................................................................. 47,400 32,000

53 ............................................................................................................................................................................. 48,500 33,000

54 ............................................................................................................................................................................. 50,100 33,700

55 ............................................................................................................................................................................. 51,600 34,500

56 ............................................................................................................................................................................. 53,200 35,500

57 ............................................................................................................................................................................. 54,800 36,400

58 ............................................................................................................................................................................. 56,500 37,400

59 ............................................................................................................................................................................. 58,200 38,300

60 ............................................................................................................................................................................. 60,000 39,400

61 ............................................................................................................................................................................. 62,100 40,500

62 ............................................................................................................................................................................. 64,300 41,700

63 ............................................................................................................................................................................. 66,200 42,900

64 ............................................................................................................................................................................. 68,400 44,100

65 and older ............................................................................................................................................................. 70,800 45,500

4. Assessment Schedules and Rates

Two separate assessment schedules—

one for dependent students, and one for

independent students with dependents

other than a spouse—are used in

determining the expected family

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 financial

strength which considers both income

and assets.

INDEPENDENT STUDENTS

If AAI is— Then the contribution

is—

Less than ¥$3,409 .. ¥$750.

$3,409 to $10,300 ..... 22% of AAI.

INDEPENDENT STUDENTS—Continued

If AAI is— Then the contribution

is—

$10,301 to $12,900 ... $2,266 +25% of AAI

over $10,300.

$12,901 to $15,500 ... $2,916 +29% of AAI

over $12,900.

$15,501 to $18,100 ... $3,670 +34% of AAI

over $15,500.

$18,101 to $20,700 ... $4,554 +40% of AAI

over $18,100.

$20,701 or more ....... $5,594 +47% of AAI

over $20,700.

INDEPENDENT STUDENTS WITH

DEPENDENTS OTHER THAN A SPOUSE

If AAI is— Then the contribution

is—

Less than ¥$3,409 .. ¥$750.

$3,409 to $10,300 ..... 22% of AAI.

$10,301 to $12,900 ... $2,266 +25% of AAI

over $10,300.

$12,901 to $15,500 ... $2,916 +29% of AAI

over $12,900.

$15,501 to $18,100 ... $3,670 +34% of AAI

over $15,500.

INDEPENDENT STUDENTS WITH DEPENDENTS OTHER THAN A

SPOUSE—Continued

If AAI is— Then the contribution

is—

$18,101 to $20,700 ... $4,554 +40% of AAI

over $18,100.

$20,701 or more ....... $5,594 +47% of AAI

over $20,700.

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
28458 Federal Register / Vol. 60, No. 104 / Wednesday, May 31, 1995 / Notices

dependents other than a spouse, and

independent students with dependents

other than a spouse is the lesser of

$2,600 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 of

more

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

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—

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
Federal Register / Vol. 60, No. 104 / Wednesday, May 31, 1995 / Notices 28459

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

(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 24, 1995.

David A. Longanecker

Assistant Secretary for Postsecondary

Education

[FR Doc. 95–13199 Filed 5–30–95; 8:45 am]

BILLING CODE 4000–01–P