Working Students Act

To amend title IV of the Higher Education Act of 1965 in order to increase the amount of financial support available for working students. 1. Short title This Act may be cited as the Working Students Act 2. Increasing support for working students by 35 percent (a) Dependent students Section 475(g)(2)(D) of the Higher Education Act of 1965 ( 20 U.S.C. 1087oo(g)(2)(D) (D) an income protection allowance (or a successor amount prescribed by the Secretary under section 478) of $9,010 for academic year 2020–2021; . (b) Independent students without dependents other than a spouse Section 476(b)(1)(A)(iv) of the Higher Education Act of 1965 ( 20 U.S.C. 1087pp(b)(1)(A)(iv) (iv) an income protection allowance (or a successor amount prescribed by the Secretary under section 478)— (I) for single or separated students, or married students where both are enrolled pursuant to subsection (a)(2), of $14,010 for academic year 2020–2021; and (II) for married students where 1 is enrolled pursuant to subsection (a)(2), of $22,460 for academic year 2020–2021; . (c) Independent students with dependents other than a spouse Section 477(b)(4) of the Higher Education Act of 1965 ( 20 U.S.C. 1087qq(b)(4) (4) Income protection allowance The income protection allowance is determined by the following table (or a successor table prescribed by the Secretary under section 478), for academic year 2020–2021: Income Protection Allowance Family Number in College (including 1 2 3 4 5 For each additional subtract: 2 $36,370 $30,160 $6,180 3 45,290 39,100 $32,890 4 55,920 49,720 43,540 $37,300 5 65,990 59,750 53,570 47,360 $41,180 6 77,170 70,960 64,790 58,540 52,370 For each additional add: 8,710 . (d) Updated tables and amounts Section 478(b) of the Higher Education Act of 1965 ( 20 U.S.C. 1087rr(b) (1) in paragraph (1), by striking subparagraphs (A) and (B) and inserting the following: (A) In general For each academic year after academic year 2020–2021, the Secretary shall publish in the Federal Register a revised table of income protection allowances for the purpose of sections 475(c)(4) and 477(b)(4), subject to subparagraphs (B) and (C). (B) Table for independent students For each academic year after academic year 2020–2021, the Secretary shall develop the revised table of income protection allowances by increasing each of the dollar amounts contained in the table of income protection allowances under section 477(b)(4) by a percentage equal to the estimated percentage increase in the Consumer Price Index (as determined by the Secretary for the most recent calendar year ending prior to the beginning of the academic year for which the determination is being made), and rounding the result to the nearest $10. ; and (2) in paragraph (2), by striking shall be developed shall be developed for each academic year after academic year 2020–2021, by increasing each of the dollar amounts contained in such section for academic year 2020–2021 by a percentage equal to the estimated percentage increase in the Consumer Price Index (as determined by the Secretary for the most recent calendar year ending prior to the beginning of the academic year for which the determination is being made), and rounding the result to the nearest $10. (e) Effective date The amendments made by this section shall take effect beginning on July 1, 2020 and shall apply to grant and award determinations made under title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1001

Summary: Working Students Act This bill increases the income protection allowance levels used to calculate a&nbsp;working student's expected family contribution and need for financial assistance. An income protection allowance is an amount for basic living expenses that is protected from being considered income available for postsecondary educational expenses.