20 U.S.C. § 1087qq (EDUCATION)
§ 1087qq. Family contribution for independent students with dependents other than a spouse
(a) Computation of expected family contribution
For each independent student with dependents other than a spouse, the expected family contribution is equal to the amount determined by—
(1) computing adjusted available income by adding—
(A) the family’s available income (determined in accordance with subsection (b)); and
(B) the family’s contribution from assets (determined in accordance with subsection (c));
(2) assessing such adjusted available income in accordance with an assessment schedule set forth in subsection (d);
(3) dividing the assessment resulting under paragraph (2) by the number of family members who are enrolled or accepted for enrollment, on at least a half-time basis, in a degree, certificate, or other program leading to a recognized educational credential at an institution of higher education that is an eligible institution in accordance with the provisions of section 1094 of this title during the award period for which assistance under this subchapter is requested; and
(4) for periods of enrollment of less than 9 months, for purposes other than subpart 2 of part A—
(A) dividing the quotient resulting under paragraph (3) by 9; and
(B) multiplying the result by the number of months in the period of enrollment;
except that the amount determined under this subsection shall not be less than zero.
(b) Family’s available income
(1) In general
The family’s available income is determined by deducting from total income (as defined in section 1087vv of this title)—
(A) Federal income taxes;
(B) an allowance for State and other taxes, determined in accordance with paragraph (2);
(C) an allowance for social security taxes, determined in accordance with paragraph (3);
(D) an income protection allowance, determined in accordance with paragraph (4);
(E) an employment expense allowance, determined in accordance with paragraph (5); and
(F) the amount of any tax credit taken under section 25A of title 26.
(2) Allowance for State and other taxes
The allowance for State and other taxes is equal to an amount determined by multiplying total income (as defined in section 1087vv of this title) by a percentage determined according to the following table (or a successor table prescribed by the Secretary under section 1087rr of this title):
Percentages for Computation of State and Other Tax Allowance
If student’s State or territory of residence is—
And family’s total income is—
less than $15,000
$15,000 or more
then the percentage is—
Alaska, Puerto Rico, Wyoming
3
2
American Samoa, Guam, Louisiana, Nevada, Texas, Trust Territory, Virgin Islands
4
3
Florida, South Dakota, Tennessee, New Mexico
5
4
North Dakota, Washington
6
5
Alabama, Arizona, Arkansas, Indiana, Mississippi, Missouri, Montana, New Hampshire, Oklahoma, West Virginia
7
6
Colorado, Connecticut, Georgia, Illinois, Kansas, Kentucky
8
7
California, Delaware, Idaho, Iowa, Nebraska, North Carolina, Ohio, Pennsylvania, South Carolina, Utah, Vermont, Virginia, Canada, Mexico
9
8
Maine, New Jersey
10
9
District of Columbia, Hawaii, Maryland, Massachusetts, Oregon, Rhode Island
11
10
Michigan, Minnesota
12
11
Wisconsin
13
12
New York
14
13
Other
9
8
(3) Allowance for social security taxes
The allowance for social security taxes is equal to the amount estimated to be earned by the student (and spouse, if appropriate) multiplied by the social security withholding rate appropriate to the tax year preceding the award year, up to the maximum statutory social security tax withholding amount for that same tax year.
(4) Income protection allowance
The income protection allowance is determined by the tables described in subparagraphs (A) through (D) (or a successor table prescribed by the Secretary under section 1087rr of this title).
(A) Academic year 2009–2010
For academic year 2009–2010, the income protection allowance is determined by the following table:
Income Protection Allowance
Family Size
Number in College
(including student)
1
2
3
4
5
For each
additional
subtract:
2
$17,720
$14,690
3
22,060
19,050
$16,020
4
27,250
24,220
21,210
$18,170
5
32,150
29,120
26,100
23,070
$20,060
6
37,600
34,570
31,570
28,520
25,520
$3,020
For each additional add:
4,240
4,240
4,240
4,240
4,240
(B) Academic year 2010–2011
For academic year 2010–2011, the income protection allowance is determined by the following table:
Income Protection Allowance
Family Size
Number in College
(including student)
1
2
3
4
5
For each
additional
subtract:
2
$19,690
$16,330
3
24,510
21,160
$17,800
4
30,280
26,910
23,560
$20,190
5
35,730
32,350
29,000
25,640
$22,290
6
41,780
38,410
35,080
31,690
28,350
$3,350
For each additional add:
4,710
4,710
4,710
4,710
4,710
(C) Academic year 2011–2012
For academic year 2011–2012, the income protection allowance is determined by the following table:
Income Protection Allowance
Family Size
Number in College
(including student)
1
2
3
4
5
For each
additional
subtract:
2
$21,660
$17,960
3
26,960
23,280
$19,580
4
33,300
29,600
25,920
$22,210
5
39,300
35,590
31,900
28,200
$24,520
6
45,950
42,250
38,580
34,860
31,190
$3,690
For each additional add:
5,180
5,180
5,180
5,180
5,180
(D) Academic year 2012–2013
For academic year 2012–2013, the income protection allowance is determined by the following table:
Income Protection Allowance
Family Size
Number in College
(including student)
1
2
3
4
5
For each
additional
subtract:
2
$23,630
$19,590
3
29,420
25,400
$21,360
4
36,330
32,300
28,280
$24,230
5
42,870
38,820
34,800
30,770
$26,750
6
50,130
46,100
42,090
38,030
34,020
$4,020
For each additional add:
5,660
5,660
5,660
5,660
5,660
(5) Employment expense allowance
The employment expense allowance is determined as follows (or a successor table prescribed by the Secretary under section 1087rr of this title):
(A) If the student is married and the student’s spouse is employed in the year for which their income is reported, such allowance is equal to the lesser of $2,500 or 35 percent of the earned income of the student or spouse with the lesser earned income.
(B) If a student qualifies as a surviving spouse or as a head of household as defined in section 2 of title 26, such allowance is equal to the lesser of $2,500 or 35 percent of the student’s earned income.
(c) Family’s contribution from assets
(1) In general
The family’s contribution from assets is equal to—
(A) the family net worth (determined in accordance with paragraph (2)); minus
(B) the asset protection allowance (determined in accordance with paragraph (3)); multiplied by
(C) the asset conversion rate (determined in accordance with paragraph (4)), except that the result shall not be less than zero.
(2) Family net worth
The family net worth is calculated by adding—
(A) the current balance of checking and savings accounts and cash on hand;
(B) the net value of investments and real estate, excluding the net value in the principal place of residence; and
(C) the adjusted net worth of a business or farm, computed on the basis of the net worth of such business or farm (hereafter referred to as “NW”), determined in accordance with the following table (or a successor table prescribed by the Secretary under section 1087rr of this title), except as provided under section 1087vv(f) of this title:
Adjusted Net Worth of a Business or Farm
If the net worth of a business or farm is—
Then the adjusted net worth is—
Less than $1
$0
$1–$75,000
40 percent of NW
$75,001–$225,000
$30,000 plus 50 percent of NW over $75,000
$225,001–$375,000
$105,000 plus 60 percent of NW over $225,000
$375,001 or more
$195,000 plus 100 percent of NW over $375,000
(3) Asset protection allowance
The asset protection allowance is calculated according to the following table (or a successor table prescribed by the Secretary under section 1087rr of this title):
Asset Protection Allowances for Families and Students
If the age of the student is—
And the student is
married
single
then the allowance is—
25 or less
$ 0
$0
26
2,200
1,600
27
4,300
3,200
28
6,500
4,700
29
8,600
6,300
30
10,800
7,900
31
13,000
9,500
32
15,100
11,100
33
17,300
12,600
34
19,400
14,200
35
21,600
15,800
36
23,800
17,400
37
25,900
19,000
38
28,100
20,500
39
30,200
22,100
40
32,400
23,700
41
33,300
24,100
42
34,100
24,700
43
35,000
25,200
44
35,700
25,800
45
36,600
26,300
46
37,600
26,900
47
38,800
27,600
48
39,800
28,200
49
40,800
28,800
50
41,800
29,500
51
43,200
30,200
52
44,300
31,100
53
45,700
31,800
54
47,100
32,600
55
48,300
33,400
56
49,800
34,400
57
51,300
35,200
58
52,900
36,200
59
54,800
37,200
60
56,500
38,100
61
58,500
39,200
62
60,300
40,300
63
62,400
41,500
64
64,600
42,800
65 or more
66,800
44,000
(4) Asset conversion rate
The asset conversion rate is 7 percent.
(d) Assessment schedule
The adjusted available income (as determined under subsection (a)(1) and hereafter referred to as “AAI”) is assessed according to the following table (or a successor table prescribed by the Secretary under section 1087rr of this title):
Assessment From Adjusted Available Income (AAI)
If AAI is—
Then the assessment is—
Less than −$3,409
−$750
−$3,409 to $9,400
22% of AAI
$9,401 to $11,800
$2,068 + 25% of AAI over $9,400
$11,801 to $14,200
$2,668 + 29% of AAI over $11,800
$14,201 to $16,600
$3,364 + 34% of AAI over $14,200
$16,601 to $19,000
$4,180 + 40% of AAI over $16,600
$19,001 or more
$5,140 + 47% of AAI over $19,000
(e) Computations in case of separation, divorce, or death
In the case of a student who is divorced or separated, or whose spouse has died, the spouse’s income and assets shall not be considered in determining the family’s available income or assets.
(Pub. L. 89–329, title IV, § 477, as added Pub. L. 99–498, title IV, § 406(a), Oct. 17, 1986, 100 Stat. 1465; amended Pub. L. 100–50, § 14(1)–(6), (8), (18), (19), June 3, 1987, 101 Stat. 349–351; Pub. L. 102–325, title IV, § 471(a), July 23, 1992, 106 Stat. 597; Pub. L. 103–208, § 2(g)(2), (7), Dec. 20, 1993, 107 Stat. 2472; Pub. L. 105–78, title VI, § 609(i), Nov. 13, 1997, 111 Stat. 1524; Pub. L. 105–244, title IV, § 475, Oct. 7, 1998, 112 Stat. 1730; Pub. L. 109–171, title VIII, § 8017(c)(1), Feb. 8, 2006, 120 Stat. 173; Pub. L. 110–84, title VI, § 601(c), Sept. 27, 2007, 121 Stat. 802; Pub. L. 111–39, title IV, § 406(a)(3), July 1, 2009, 123 Stat. 1948; Pub. L. 116–260, div. FF, title VII, § 702(f), Dec. 27, 2020, 134 Stat. 3147.)
heading: Amendment of Section
text: Pub. L. 116–260, div. FF, title VII, §§ 701(b), 702(f), Dec. 27, 2020, 134 Stat. 3137, 3147, provided that, effective July 1, 2023, except as otherwise expressly provided, and applicable with respect to award year 2023–2024 and each subsequent award year, as determined under this chapter, this section is amended to read as follows:
§ 1087qq. Student aid index for independent students with dependents other than a spouse
(a) Computation of student aid index
(1) In general
For each independent student with dependents other than a spouse, the student aid index is equal to the amount determined by—
(A) computing adjusted available income by adding—
(i) the family’s available income (determined in accordance with subsection (b)); and
(ii) the family’s available assets (determined in accordance with subsection (c));
(B) assessing such adjusted available income in accordance with an assessment schedule set forth in subsection (d); and
(C) considering such assessment resulting under subparagraph (B) as the amount determined under this subsection.
(2) Exception
If the sum determined under paragraph (1) with respect to an independent student with dependents other than a spouse is less than − $1,500, the student aid index for the independent student shall be − $1,500.
(b) Family’s available income
(1) In general
The family’s available income is determined by deducting from total income (as defined in section 1087vv of this title)—
(A) Federal income taxes;
(B) an allowance for payroll taxes, determined in accordance with paragraph (2);
(C) an income protection allowance, determined in accordance with paragraph (3); and
(D) an employment expense allowance, determined in accordance with paragraph (4).
(2) Allowance for payroll taxes
The allowance for payroll taxes is equal to the sum of—
(A) the total amount earned by the student (and spouse, if appropriate), multiplied by the rate of tax under section 3101(b) of title 26; and
(B) the amount earned by the student (and spouse, if appropriate) that does not exceed such contribution and benefit base (twice such contribution and benefit base, in the case of a joint return) for the year of the earnings, multiplied by the rate of tax applicable to such earnings under section 3101(a) of title 26.
(3) Income protection allowance
The income protection allowance shall equal the amount determined in the following table, as adjusted by the Secretary pursuant to section 1078rr(b) of this title:
(A) In the case of a married independent student with dependents:
Income Protection Allowance (to be adjusted for 2023–2024 and succeeding years)
Family Size (including
student)
Amount
3
$46,140
4
$56,970
5
$67,230
6
$78,620
For each additional add
$8,880.
(B) In the case of a single independent student with dependents:
Income Protection Allowance (to be adjusted for 2023–2024 and succeeding years)
Family Size (including
student)
Amount
2
$43,920
3
$54,690
4
$67,520
5
$79,680
6
$93,180
For each additional add
$10,530.
(4) Employment expense allowance
The employment expense allowance is equal to the lesser of $4,000 or 35 percent of the student’s earned income or the combined earned income of the student and the student’s spouse, if applicable (as adjusted by the Secretary pursuant to section 1087rr(g) of this title).
(c) Family’s available assets
(1) In general
(A) Determination
Except as provided in subparagraph (B), the family’s available assets are equal to—
(i) the difference between the family’s assets (as defined in 1087vv(f) of this title) and the asset protection allowance (determined in accordance with paragraph (2)); multiplied by
(ii) 7 percent.
(B) Not less than zero
The family’s available assets under this subsection shall not be less than zero.
(2) Asset protection allowance
The asset protection allowance is calculated based on the following table (as revised by the Secretary pursuant to section 1087rr(d) of this title):
Asset Protection Allowances for Families and Students
If the age of the student is—
And the student is
married
single
then the allowance is—
25 or less
$ 0
$0
26
$400
$100
27
$700
$300
28
$1,100
$400
29
$1,500
$600
30
$1,800
$700
31
$2,200
$800
32
$2,600
$1,000
33
$2,900
$1,100
34
$3,300
$1,300
35
$3,700
$1,400
36
$4,000
$1,500
37
$4,400
$1,700
38
$4,800
$1,800
39
$5,100
$2,000
40
$5,500
$2,100
41
$5,600
$2,200
42
$5,700
$2,200
43
$5,900
$2,300
44
$6,000
$2,300
45
$6,200
$2,400
46
$6,300
$2,400
47
$6,500
$2,500
48
$6,600
$2,500
49
$6,800
$2,600
50
$7,000
$2,700
51
$7,100
$2,700
52
$7,300
$2,800
53
$7,500
$2,900
54
$7,700
$2,900
55
$7,900
$3,000
56
$8,100
$3,100
57
$8,400
$3,100
58
$8,600
$3,200
59
$8,800
$3,300
60
$9,100
$3,400
61
$9,300
$3,500
62
$9,600
$3,600
63
$9,900
$3,700
64
$10,200
$3,800
65 or more
$10,500
$3,900.
(d) Assessment schedule
The assessment of adjusted available income (as determined under subsection (a)(1) and hereafter in this subsection referred to as “AAI”) is calculated based on the following table (as revised by the Secretary pursuant to section 1087rr(e) of this title):
Assessment From Adjusted Available Income
If AAI is—
Then the assessment is—
Less than − $6,820
− $1,500
− $6,820 to $17,400
22% of AAI
$17,401 to $21,800
$3,828 + 25% of AAI over $17,400
$21,801 to $26,200
$4,928 + 29% of AAI over $21,800
$26,201 to $30,700
$6,204 + 34% of AAI over $26,200
$30,701 to $35,100
$7,734 + 40% of AAI over $30,700
$35,101 or more
$9,494 + 47% of AAI over $35,100.
(e) Computations in case of separation, divorce, or death
In the case of a student who is divorced or separated, or whose spouse has died, the spouse’s income and assets shall not be considered in determining the family’s available income or assets.
See 2020 Amendment note below.
heading: Amendments
text: 2020—Pub. L. 116–260 amended section generally. Prior to amendment, section related to family contribution for independent students with dependents other than a spouse.
2009—Subsec. (b)(5)(B). Pub. L. 111–39 made technical amendment to reference in original act which appears in text as reference to section 2 of title 26.
2007—Subsec. (b)(4). Pub. L. 110–84 amended par. (4) generally. Prior to amendment, par. (4) consisted of a single table to be used to determine income protection allowances.
2006—Subsec. (c)(4). Pub. L. 109–171 substituted “7” for “12”.
1998—Subsec. (a)(4). Pub. L. 105–244 added par. (4).
1997—Subsec. (b)(1)(F). Pub. L. 105–78 added subpar. (F).
1993—Subsec. (b)(4). Pub. L. 103–208, § 2(g)(2), substituted “$9,510” for “9,510” in table.
Subsec. (e). Pub. L. 103–208, § 2(g)(7), added subsec. (e).
1992—Pub. L. 102–325 amended section generally, substituting provisions relating to family contribution for independent students with dependents other than a spouse for provisions relating to family contribution for independent students with dependents (including a spouse).
1987—Subsec. (a)(1)(C). Pub. L. 100–50, § 14(18), added subpar. (C).
Subsec. (b)(2). Pub. L. 100–50, § 14(1), substituted “section 1087rr of this title” for “section 1087ss of this title”.
Subsec. (b)(5)(A). Pub. L. 100–50, § 14(19), substituted “$2,100” for “$2,000”.
Subsec. (b)(7). Pub. L. 100–50, § 14(2), struck out “National” before “Center”.
Subsec. (c)(2)(B). Pub. L. 100–50, § 14(3), substituted “displaced homemaker” for “dislocated homemaker”.
Subsec. (c)(2)(C). Pub. L. 100–50, § 14(1), (4), substituted “section 1087rr of this title” for “section 1087ss of this title” in text, added table, and struck out former table which read as follows:
“Adjusted Net Worth of a Business or Farm
If the net worth of a business or farm is—
Then the adjusted net worth is:
Less than $1
$0
$1–$65,000
40 percent of NW
$65,001–$195,000
$26,000 plus 50 percent of NW over $65,000
$195,001–$325,000
$91,000 plus 60 percent of NW over $195,000
$325,001 or more
$169,000 plus 100 percent of NW over $325,000”.
Subsec. (c)(4)(B). Pub. L. 100–50, § 14(5), substituted “$15,999” for “$15,000”.
Subsec. (c)(4)(C). Pub. L. 100–50, § 14(6), substituted “$16,000” for “$15,000” in three places.
Subsec. (d). Pub. L. 100–50, § 14(1), (8), substituted “section 1087rr of this title” for “section 1087ss of this title” in text and inserted a minus sign before “$3,409” in two places in table.
heading: Effective Date of 2020 Amendment
text: Amendment by Pub. L. 116–260 effective July 1, 2023, except as otherwise expressly provided, and applicable with respect to award year 2023–2024 and each subsequent award year, as determined under this chapter, see section 701(b) of Pub. L. 116–260, set out as a note under section 1001 of this title.
heading: Effective Date of 2009 Amendment
text: Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.
heading: Effective Date of 2007 Amendment
text: Amendment by Pub. L. 110–84 effective July 1, 2009, see section 601(e) of Pub. L. 110–84, set out as a note under section 1087oo of this title.
heading: Effective Date of 2006 Amendment
text: Amendment by Pub. L. 109–171 effective July 1, 2006, except as otherwise provided, see section 8001(c) of Pub. L. 109–171, set out as a note under section 1002 of this title.
Pub. L. 109–171, title VIII, § 8017(c)(2), Feb. 8, 2006, 120 Stat. 173, provided that: “The amendment made by paragraph (1) [amending this section] shall apply with respect to determinations of need for periods of enrollment beginning on or after July 1, 2007.”
heading: Effective Date of 1998 Amendment
text: Amendment by Pub. L. 105–244, effective Oct. 7, 1998, and applicable with respect to determinations of need under this part for academic years beginning on or after July 1, 2000, see section 480A of Pub. L. 105–244, set out as a note under section 1087kk of this title.
heading: Effective Date of 1993 Amendment
text: Amendment by Pub. L. 103–208 effective as if included in the Higher Education Amendments of 1992, Pub. L. 102–325, except as otherwise provided, see section 5(a) of Pub. L. 103–208, set out as a note under section 1051 of this title.
heading: Effective Date of 1992 Amendment
text: Amendment by Pub. L. 102–325 applicable with respect to determinations of need under this part for award years beginning on or after July 1, 1993, see section 471(b) of Pub. L. 102–325, set out as a note under section 1087kk of this title.
heading: Effective Date of 1987 Amendment
text: Amendment by Pub. L. 100–50 effective as if enacted as part of the Higher Education Amendments of 1986, Pub. L. 99–498, see section 27 of Pub. L. 100–50, set out as a note under section 1001 of this title.