[Federal Register: June 1, 1999 (Volume 64, Number 104)] [Notices] [Page 29511-29515] From the Federal Register Online via GPO Access [wais.access.gpo.gov] [DOCID:fr01jn99-158] [[Page 29511]] _______________________________________________________________________ Part IV 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; Notice [[Page 29512]] 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 AGENCY: Office of Student Financial Assistance, Department of Education. ACTION: Notice of revision of the Federal need analysis methodology for the 2000-2001 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 2000-2001 under Part F of Title IV of the Higher Education Act of 1965, as amended (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 for purposes of determining financial aid eligibility. 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, 400 Maryland Avenue, SW. (Room 3053, ROB-3), Washington, DC 20202-5444. Telephone: (202) 708-8242. If you use a telecommunications device for the deaf (TDD), you may call the Federal Information Relay Service (FIRS) at 1-800-877-8339. 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 the preceding paragraph. 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 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 to take into account inflation. The changes are based, in general, upon increases in the Consumer Price Index. For the award year 2000-2001, the Secretary is charged with updating the income protection allowance, adjusted net worth of a business or farm, and the assessment schedules and rates to account for inflation that took place between December 1998 and December 1999. However, since the Secretary must publish these tables before December 1999, the increases in the tables must be based upon the percentage equal to the estimated percentage increase in the Consumer Price Index for all Urban Consumers for 1998. The Secretary estimates that the increase in the Consumer Price Index for all Urban Consumers for the period December 1998 through December 1999 will be 2.4 percent. The updated tables are in sections 1, 2, and 4 of this notice. 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 2000-2001 has been updated in section 3 of this notice. Section 477(b)(5) of Part F of the HEA 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 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 of this notice. 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 2000-2001 are: ---------------------------------------------------------------------------------------------------------------- Number in college Family size ---------------------------------------------------------------- 1 2 3 4 5 ---------------------------------------------------------------------------------------------------------------- 2.............................................. $12,450 $10,320 ........... ........... ........... 3.............................................. 15,500 13,380 $11,250 ........... ........... 4.............................................. 19,140 17,010 14,890 $12,760 ........... 5.............................................. 22,580 20,450 18,340 16,210 $14,090 6.............................................. 26,420 24,290 22,170 20,040 17,920 ---------------------------------------------------------------------------------------------------------------- For each additional 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 these assets is already assessed in anther 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 of farm is Then the adjusted new worth is ---------------------------------------------------------------------------------------------------------------- Less than $1................................ $0. $1 to $90,000............................... $0 + 40% of NW. $90,001 to $265,000......................... $36,000 + 50% of NW over $90,000. $265,001 to $445,000........................ $123,500 + 60% of NW over $265,000. $445,001 or more............................ $231,500 + 100% of NW over $445,000. ---------------------------------------------------------------------------------------------------------------- [[Page 29513]] 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 ------------------------------------------------------------------------ And there are If the age of the older parents is: ------------------------- Two parents One parent ----Then the education--- savings and asset protection allowance is-- ------------------------------------------------------------------------ 25 or less.................................... 0 0 26............................................ 2,600 1,600 27............................................ 5,200 3,300 28............................................ 7,800 4,900 29............................................ 10,500 6,600 30............................................ 13,100 8,200 31............................................ 15,700 9,800 32............................................ 18,300 11,500 33............................................ 20,900 13,100 34............................................ 23,500 14,800 35............................................ 26,100 16,400 36............................................ 28,700 18,000 37............................................ 31,400 19,700 38............................................ 34,000 21,300 39............................................ 36,600 23,000 40............................................ 39,200 24,600 41............................................ 39,900 25,200 42............................................ 40,900 25,800 43............................................ 42,000 26,300 44............................................ 43,100 26,900 45............................................ 44,400 27,400 46............................................ 45,600 28,100 47............................................ 46,700 28,700 48............................................ 47,900 29,300 49............................................ 49,100 30,000 50............................................ 50,300 30,700 51............................................ 51,900 31,400 52............................................ 53,200 32,000 53............................................ 54,800 33,000 54............................................ 56,200 33,800 55............................................ 57,900 34,700 56............................................ 59,700 35,600 57............................................ 61,500 36,400 58............................................ 63,400 37,500 59............................................ 65,300 38,500 60............................................ 67,200 39,400 61............................................ 69,600 40,600 62............................................ 71,600 41,700 63............................................ 74,100 42,900 64............................................ 76,600 44,100 65 and over................................... 78,900 45,500 ------------------------------------------------------------------------ Independent Students Without Dependents Other Than a Spouse ------------------------------------------------------------------------ And the student is If the age of the student is ------------------------- Married Single ----Then the education--- savings and asset protection allowance is-- ------------------------------------------------------------------------ 25 or less.................................... 0 0 26............................................ 2,600 1,600 27............................................ 5,200 3,300 28............................................ 7,800 4,900 29............................................ 10,500 6,600 30............................................ 13,100 8,200 31............................................ 15,700 9,800 32............................................ 18,300 11,500 33............................................ 20,900 13,100 34............................................ 23,500 14,800 35............................................ 26,100 16,400 36............................................ 28,700 18,000 37............................................ 31,400 19,700 38............................................ 34,000 21,300 39............................................ 36,600 23,000 40............................................ 39,200 24,600 41............................................ 39,900 25,200 42............................................ 40,900 25,800 43............................................ 42,000 26,300 44............................................ 43,100 26,900 45............................................ 44,400 27,400 46............................................ 45,600 28,100 47............................................ 46,700 28,700 48............................................ 47,900 29,300 49............................................ 49,100 30,000 50............................................ 50,300 30,700 51............................................ 51,900 31,400 52............................................ 53,200 32,200 53............................................ 54,800 33,000 54............................................ 56,200 33,800 55............................................ 57,900 34,700 56............................................ 59,700 35,600 57............................................ 61,500 36,400 58............................................ 63,400 37,500 59............................................ 65,300 38,500 60............................................ 67,200 39,400 61............................................ 69,600 40,600 62............................................ 71,600 41,700 63............................................ 74,100 42,900 64............................................ 76,600 44,100 65 and over................................... 78,900 45,500 ------------------------------------------------------------------------ Independent Students With Dependents Other Than a Spouse ------------------------------------------------------------------------ And the student is If the age of the students is ------------------------- Married Single ----Then the education--- savings and asset protection allowance is-- ------------------------------------------------------------------------ 25 or less.................................... 0 0 26............................................ 2,600 1,600 27............................................ 5,200 3,300 28............................................ 7,800 4,900 29............................................ 10,500 6,600 30............................................ 13,100 8,200 31............................................ 15,700 9,800 32............................................ 18,300 11,500 33............................................ 20,900 13,100 34............................................ 23,500 14,800 35............................................ 26,100 16,400 36............................................ 28,700 18,00 37............................................ 31,400 19,700 38............................................ 34,000 21,300 39............................................ 36,600 23,000 40............................................ 39,200 24,600 41............................................ 39,900 25,200 42............................................ 40,900 25,800 43............................................ 42,000 26,300 44............................................ 43,100 26,900 45............................................ 44,400 27,400 46............................................ 45,600 28,100 47............................................ 46,700 28,700 48............................................ 47,900 29,300 49............................................ 49,100 30,000 50............................................ 50,300 30,700 51............................................ 51,900 31,400 52............................................ 53,200 32,200 53............................................ 54,800 33,000 54............................................ 56,200 33,800 55............................................ 57,900 34,700 56............................................ 59,700 35,600 57............................................ 61,500 36,400 58............................................ 63,400 37,500 59............................................ 65,300 38,500 60............................................ 67,200 39,400 61............................................ 69,600 40,600 62............................................ 71,600 41,700 63............................................ 74,100 42,900 64............................................ 76,600 44,100 65 and over................................... 78,900 45,500 ------------------------------------------------------------------------ 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: [[Page 29514]] ------------------------------------------------------------------------ If AAI is-- Then the contribution is-- ------------------------------------------------------------------------ Less than--$3,409 ($3,409)... -$750. ($3,409) to $11,100.......... 22% of AAI. $11,101 to $14,000........... $2,442 + 25% of AAI over $11,100. $14,001 to $16,800........... $3,167 + 29% of AAI over $14,000. $16,801 to $19,600........... $3,979 + 34% of AAI over $16,800. $19,601 to $22,500........... $4,931 + 40% of AAI over $19,600. $22,501 or more.............. $6,091 + 47% of AAI over $22,500. ------------------------------------------------------------------------ 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 $11,100.......... 22% of AAI. $11,101 to $14,000........... $2,442 + 25% of AAI over $11,100. $14,001 to $16,800........... $3,167 + 29% of AAI over $14,000. $16,801 to $19,600........... $3,979 + 34% of AAI over $16,800. $19,601 to $22,500........... $4,931 + 40$ of AAI over $19,600. $22,501 or more.............. $6,091 + 47% of AAI over $22,500. ------------------------------------------------------------------------ 5. Employment Expense Allowance. This allowance for employment- related expenses, which is used for the parents or 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 difference 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 students' income from being considered available for postsecondary educational expenses. There are four tables 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. Parents of Dependent Students ------------------------------------------------------------------------ And parents' total income is-- If parents' State or territory of ------------------------------- residence is Less than $15,000 or $15,000 or more ----Then the percentage is----- ------------------------------------------------------------------------ Wyoming, Tennessee, Nevada, Alaska, 3 2 Texas.................................. Louisiana, Florida, Washington, South 4 3 Dakota................................. Alabama, Mississippi.................... 5 4 North Dakota, Illinois, Connecticut, New 6 5 Mexico, Missouri, West Virginia, Arizona, Indiana, Oklahoma, Arkansas... New Hampshire, Pennsylvania, Colorado, 7 6 Georgia, Kansas, Kentucky, Idaho....... North Carolina, Virginia, Delaware, 8 7 South Carolina, Ohio, Utah, Nebraska, Montana, California, New Jersey, Iowa, Vermont, Hawaii........................ Massachusetts, Rhode Island, Michigan, 9 8 Minnesota, Maine, Maryland............. District of Columbia, Wisconsin, Oregon. 10 9 New York................................ 11 10 Other................................... 4 3 ------------------------------------------------------------------------ [[Page 29515]] Independent Students With Dependents Other Than a Spouse ------------------------------------------------------------------------ And student's total income is-- If student's State or territory of ------------------------------- residence is Less than $15,000 or $15,000 or more -----Then the percentage is---- ------------------------------------------------------------------------ Wyoming, Tennessee, Nevada, Alaska, 3 2 Texas.................................. Louisiana, Florida, Washington, South 4 3 Dakota................................. Alabama, Mississippi.................... 5 4 North Dakota, Illinois, Connecticut, New 6 5 Mexico, Missouri, West Virginia, Arizona, Indiana, Oklahoma, Arkansas... New Hampshire, Pennsylvania, Colorado, 7 6 Georgia, Kansas, Kentucky, Idaho....... North Carolina, Virginia, Delaware, 8 7 South Carolina, Ohio, Utah, Nebraska, Montana, California, New Jersey, Iowa, Vermont, Hawaii........................ Massachusetts, Rhode Island, Michigan, 9 8 Minnesota, Maine, Maryland............. District of Columbia, Wisconsin, Oregon. 10 9 New York................................ 11 10 Other................................... 4 3 ------------------------------------------------------------------------ Dependent Students ------------------------------------------------------------------------ The If student's State or territory of residence is percentage is-- ------------------------------------------------------------------------ Alaska, Texas, South Dakota, Wyoming, Washington, 0 Tennessee, Nevada......................................... Florida, New Hampshire..................................... 1 Connecticut, Louisiana, Illinois, North Dakota............. 2 Mississippi, Arizona, Alabama, Pennsylvania, New Jersey, 3 Missouri.................................................. Nebraska, Indiana, Colorado, New Mexico, Oklahoma, Kansas, 4 West Virginia, Rhode Island, Virginia, Georgia, Arkansas, Vermont, Michigan......................................... Montana, Idaho, Utah, Kentucky, Massachusetts, California, 5 North Carolina, South Carolina, Ohio, Iowa, Delaware, Maine, Wisconsin.......................................... Oregon, Maryland, Minnesota, Hawaii........................ 6 District of Columbia, New York............................. 7 Other...................................................... 2 ------------------------------------------------------------------------ Independent Students Without Dependents Other Than a Spouse ------------------------------------------------------------------------ The If student's State or territory of residence is percentage is-- ------------------------------------------------------------------------ Alaska, Texas, South Dakota, Wyoming, Washington, 0 Tennessee, Nevada......................................... Florida, New Hampshire..................................... 1 Connecticut, Louisiana, Illinois, North Dakota............. 2 Mississippi, Arizona, Alabama, Pennsylvania, New Jersey, 3 Missouri.................................................. Nebraka, Indiana, Colorado, New Mexico, Oklahoma, Kansas, 4 West Virginia, Rhode Island, Virginia, Georgia, Arkansas, Vermont, Michigan Montana, Idaho, Utah, Kentucky, Massachusetts, California, 5 North Carolina, South Carolina, Ohio, Iowa, Delaware, Maine, Wisconsin.......................................... Oregon, Maryland, Minnesota, Hawaii........................ 6 District of Columbia, New York............................. 7 Other...................................................... 2 ------------------------------------------------------------------------ Electronic Access to This Document You may view this document, as well as all other Department of Education documents published in the Federal Register, in text of Adobe Portable Document Format (PDF) on the Internet 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 at either of the previous sites. If you have questions about using the PDF, call the U.S. Government Printing Office (GPO), toll free at 1-888-293-6498, or in 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.access.gpo.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; William D. Ford Federal Direct Loan Program, 84.268) Dated: May 26, 1999. Greg Woods, Chief Operating Officer, Office of Student Financial Assistance. [FR Doc. 99-13767 Filed 5-28-99; 8:45 am] BILLING CODE 4000-01-M