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 Department of Education
 AGENCY: Federal Student Aid, U.S. Department of Education.
 ACTION: Notice of revision of the Federal Need Analysis Methodology for the 2010-2011 award year.
 SUMMARY: The Secretary 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 2010-2011 for the student financial aid programs authorized under title IV of the Higher Education Act of 1965, as amended (HEA). 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 programs include the Federal Pell Grant, Academic Competitiveness Grant, National Science and Mathematics Access to Retain Talent Grant, Federal Perkins Loan, Federal Work-Study, Federal Supplemental Educational Opportunity Grant, Federal Family Education Loan, and William D. Ford Federal Direct Loan Programs (Title IV, HEA Programs).
 FOR FURTHER INFORMATION CONTACT: Ms. Marya Dennis, Management and Program Analyst, U.S. Department of Education, 63G2, Union Center Plaza, 830 First Street, NE., Washington, DC 20202. 
                        *Telephone:*
                         (202) 377-3385. If you use a telecommunications device for the deaf (TDD), call the Federal Relay Service (FRS), toll free, at 1-800-877-8339. Individuals with disabilities can obtain this document in an accessible format (e.g., braille, large print, audiotape or compact disk) on request to the contact person listed under 
                        **FOR FURTHER INFORMATION CONTACT**
                        .


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 title IV 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 for general price inflation. The changes are based, in general, upon increases in the Consumer Price Index. For award year 2010-2011 the Secretary is charged with updating the income protection allowance for parents of dependent students, adjusted net worth of a business or farm, and the assessment schedules and rates to account for inflation that took place between December 2008 and December 2009. However, because the Secretary must publish these tables before December 2009, 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 2009. The Secretary estimates that the increase in the Consumer Price Index for All Urban Consumers (CPI-U) for the period December 2008 through December 2009 will be 4.1 percent. Additionally, section 601 of the College Cost Reduction and Access Act of 2007 (CCRAA, Pub. L. 110-84) amended sections 475 through 478 of the HEA by updating the procedures for determining the income protection allowance for dependent students as well as the income protection allowance tables for both independent students with dependents other than a spouse and independent students without dependents other than a spouse. As amended by the CCRAA, the HEA established new 2010-2011 award year values for these income protection allowances. The updated tables are in sections 1, 2, and 4 of this notice. The Secretary must also revise, for each award year, the education savings and asset protection allowances as provided for in section 478(d) of the HEA. The Education Savings and Asset Protection Allowance table for award year 2010-2011 has been updated in section 3 of this notice. Section 478(h) of the HEA also requires the Secretary to increase the amount specified for the Employment Expense Allowance, adjusted for inflation. This calculation is based upon increases in the Bureau of Labor Statistics budget of the marginal costs for a two-worker family compared to a one-worker family for food away from home, apparel, transportation, and household furnishings and operations. The Employment Expense Allowance table for award year 2010-2011 has been updated in section 5 of this notice. The HEA provides for the following annual updates: 1. 
                    *Income Protection Allowance.*
                     This allowance is the amount of living expenses associated with the maintenance of an individual or family that may be offset against the family's income. It varies by family size. The income protection allowance for the dependent student is $4,500. The income protection allowances for parents of dependent students for award year 2010-2011 are: 
                    ( print page 26380) Parents of Dependent Students
[Number in college]
Family Size
1
2
3
4
52
$16,230
$13,4503
20,210
17,450
$14,6704
24,970
22,190
19,430
$16,6505
29,460
26,680
23,920
21,140
$18,3806
34,460
31,680
28,920
26,140
23,380
 For each additional family member add $3,890. For each additional college student subtract $2,760. The income protection allowances (IPA) for independent students with dependents other than a spouse for award year 2010-11 are: Independent Students With Dependents Other Than 
                        **a**
                         Spouse
[Number in college]
Family size
1
2
3
4
52
$19,690
$16,3303
24,510
21,160
$17,8004
30,280
26,910
23,560
$20,1905
35,730
32,350
29,000
25,640
$22,2906
41,780
38,410
35,080
31,690
28,350
 For each additional family member add $4,710. For each additional college student subtract $3,350. The income protection allowances for single independent students and independent students without dependents other than a spouse for award year 2010-11 are: Marital status
Number in college
IPASingle
1
$7,780Married
2
7,780Married
1
12,460
 2. 
                    *Adjusted Net Worth (NW) of a Business or Farm.*
                     A portion of the full net value of a business or farm is excluded from the calculation of an expected contribution because—(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—
Then the adjusted net worth is—Less than $1
$0.$1 to $115,000
$0 + 40% of NW.$115,001 to $345,000
$46,000 + 50% of NW over $115,000.$345,001 to $580,000
$161,000 + 60% of NW over $345,000.$580,001 or more
$302,000 + 100% of NW over $580,000.
 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 they areMarried
SingleThen the education savings and asset protection allowance is—25 or less
0
026
2,800
1,10027
5,500
2,20028
8,300
3,30029
11,100
4,40030
13,800
5,50031
16,600
6,60032
19,400
7,70033
22,100
8,70034
24,900
9,80035
27,700
10,90036
30,400
12,00037
33,200
13,10038
36,000
14,20039
38,700
15,30040
41,500
16,40041
42,200
16,70042
43,300
17,10043
44,400
17,50044
45,500
17,90045
46,600
18,30046
47,700
18,70047
48,900
19,10048
50,100
19,600( print page 26381)49
51,300
20,10050
52,900
20,50051
54,200
21,00052
55,500
21,50053
57,100
22,00054
58,500
22,60055
60,200
23,20056
62,000
23,70057
63,500
24,30058
65,300
25,00059
67,200
25,60060
69,200
26,30061
71,200
27,00062
73,200
27,80063
75,600
28,50064
77,700
29,30065 or older
80,300
30,100
 Independent Students Without Dependents Other Than 
                        a
                         Spouse
If the age of the student is
And they areMarried
SingleThen the education savings and asset protection allowance is—25 or less
0
026
2,800
1,10027
5,500
2,20028
8,300
3,30029
11,100
4,40030
13,800
5,50031
16,600
6,60032
19,400
7,70033
22,100
8,70034
24,900
9,80035
27,700
10,90036
30,400
12,00037
33,200
13,10038
36,000
14,20039
38,700
15,30040
41,500
16,40041
42,200
16,70042
43,300
17,10043
44,400
17,50044
45,500
17,90045
46,600
18,30046
47,700
18,70047
48,900
19,10048
50,100
19,60049
51,300
20,10050
52,900
20,50051
54,200
21,00052
55,500
21,50053
57,100
22,00054
58,500
22,60055
60,200
23,20056
62,000
23,70057
63,500
24,30058
65,300
25,00059
67,200
25,60060
69,200
26,30061
71,200
27,00062
73,200
27,80063
75,600
28,50064
77,700
29,30065 or older
80,300
30,100
 Independent Students With Dependents Other Than 
                        a
                         Spouse
If the age of the student is
And they areMarried
SingleThen the education savings and asset protection allowance is—25 or less
0
026
2,800
1,10027
5,500
2,20028
8,300
3,30029
11,100
4,40030
13,800
5,50031
16,600
6,60032
19,400
7,70033
22,100
8,70034
24,900
9,80035
27,700
10,90036
30,400
12,00037
33,200
13,10038
36,000
14,20039
38,700
15,30040
41,500
16,40041
42,200
16,70042
43,300
17,10043
44,400
17,50044
45,500
17,90045
46,600
18,30046
47,700
18,70047
48,900
19,10048
50,100
19,60049
51,300
20,10050
52,900
20,50051
54,200
21,00052
55,500
21,50053
57,100
22,00054
58,500
22,60055
60,200
23,20056
62,000
23,70057
63,500
24,30058
65,300
25,00059
67,200
25,60060
69,200
26,30061
71,200
27,00062
73,200
27,80063
75,600
28,50064
77,700
29,30065 or older
80,300
30,100
 4. 
                    *Assessment Schedules and Rates.*
                     Two schedules that are subject to updates, one for parents of dependent students and one for independent students with dependents other than a spouse, are used to determine the EFC toward educational expenses from family financial resources. For dependent students, the EFC is derived from an assessment of the parents' adjusted available income (AAI). For independent students with dependents other than a spouse, the EFC 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
−$750.($3,409) to $14,500
22% of AAI.$14,501 to $18,200
$3,190 + 25% of AAI over $14,500.$18,201 to $21,900
$4,115 + 29% of AAI over $18,200.$21,901 to $25,600
$5,188 + 34% of AAI over $21,900.$25,601 to $29,300
$6,446 + 40% of AAI over $25,600.$29,301 or more
$7,926 + 47% of AAI over $29,300.
 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
−$750.( print page 26382)($3,409) to $14,500
22% of AAI.$14,501 to $18,200
$3,190 + 25% of AAI over $14,500.$18,201 to $21,900
$4,115 + 29% of AAI over $18,200.$21,901 to $25,600
$5,188 + 34% of AAI over $21,900.$25,601 to $29,300
$6,446 + 40% of AAI over $25,600.$29,301 or more
$7,926 + 47% of AAI over $29,300.
 5. 
                    *Employment Expense Allowance.*
                     This allowance for employment-related expenses, which is used for the parents of dependent students and for married independent students, recognizes additional expenses incurred by working spouses and single-parent households. The allowance is based upon the marginal differences in costs for a two-worker family compared to a one-worker family for food away from home, apparel, transportation, and household furnishings and operations. 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 $3,500 or 35 percent of earned income. 6. 
                    *Allowance for State and Other Taxes.*
                     The allowance for State and other taxes protects a portion of the parents' and students' income from being considered available for postsecondary educational expenses. There are four categories 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. Section 478(g) of the HEA directs the Secretary to update the tables for State and other taxes after reviewing the Statistics of Income file data maintained by the Internal Revenue Service. State
Parents of dependents and independents with dependents other than a spouse
Dependents and independents without dependents other than a spouseUnder $15,000
$15,000 & up
AllAlabama
3%
2%
2%Alaska
2%
1%
0%Arizona
4%
3%
3%Arkansas
4%
3%
3%California
9%
8%
5%Colorado
5%
4%
3%Connecticut
8%
7%
4%Delaware
5%
4%
3%District of Columbia
7%
6%
6%Florida
4%
3%
1%Georgia
5%
4%
4%Hawaii
5%
4%
4%Idaho
5%
4%
4%Illinois
6%
5%
2%Indiana
4%
3%
3%Iowa
5%
4%
3%Kansas
5%
4%
3%Kentucky
5%
4%
4%Louisiana
3%
2%
2%Maine
6%
5%
4%Maryland
8%
7%
5%Massachusetts
7%
6%
4%Michigan
5%
4%
3%Minnesota
6%
5%
4%Mississippi
3%
2%
2%Missouri
5%
4%
3%Montana
5%
4%
3%Nebraska
5%
4%
3%Nevada
3%
2%
1%New Hampshire
5%
4%
1%New Jersey
9%
8%
4%New Mexico
3%
2%
2%New York
10%
9%
6%North Carolina
6%
5%
4%North Dakota
3%
2%
1%Ohio
6%
5%
4%Oklahoma
4%
3%
3%Oregon
7%
6%
5%Pennsylvania
5%
4%
3%Rhode Island
7%
6%
4%South Carolina
5%
4%
3%South Dakota
2%
1%
1%( print page 26383)Tennessee
2%
1%
1%Texas
3%
2%
1%Utah
5%
4%
4%Vermont
6%
5%
3%Virginia
7%
6%
4%Washington
3%
2%
1%West Virginia
3%
2%
2%Wisconsin
7%
6%
4%Wyoming
2%
1%
1%Other
3%
2%
2%
 You may view this document, as well as all other documents of this Department published in the 
                    **Federal Register**
                    , in text or Adobe Portable Document Format (PDF) on the Internet at the following site: 
                    *http://www.ed.gov/​news/​fedregister*. To use PDF you must have Adobe Acrobat Reader, which is available free at this site. If you have questions about using PDF, call the U.S. Government Printing Office (GPO), toll free, at 1-888-293-6498; or in the 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.gpoaccess.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; 84.268 William D. Ford Federal Direct Loan Program; 84.375 Academic Competitiveness Grant; 84.376 National Science and Mathematics Access to Retain Talent Grant) Program Authority:
                    20 U.S.C. 1087rr. Dated: May 27, 2009. James F. Manning, Acting Chief Operating Officer Federal Student Aid.


[FR Doc. E9-12668 Filed 6-1-09; 8:45 am] BILLING CODE 4000-01-P