Postsecondary education: Federal Pell grant program, etc. 2000 award year; table updates,
[Federal Register: June 1, 1998 (Volume 63, Number 104)]
[Notices]
[Page 29893-29897]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr01jn98-45]
[[Page 29893]]
Part XII
Department of Education
Office of Postsecondary Education; Notice of Revision of the Need Analysis Methodology for the 1999-2000 Award Year; Notice
[[Page 29894]]
DEPARTMENT OF EDUCATION
Office of Postsecondary Education; Notice of Revision of the Need Analysis Methodology for the 1999-2000 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 1999-2000 for the Title IV, HEA student financial assistance programs (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. 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, 600 Independence Ave., S.W. (Room 3053, ROB-3), Washington, D.C. 20202-5444, telephone (202) 708-8242. Individuals who use a telecommunications device for the deaf (TDD) may call the Federal Information Relay Service (FIRS) at 1-800-877-8339 between 8 a.m. and 8 p.m., Eastern time Monday through Friday. 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 this paragraph.
SUPPLEMENTARY INFORMATION: Part F of Title IV of the Higher Education Act of 1965, as amended (HEA), specifies the criteria, data elements, calculations and tables used in the Federal Need Analysis Methodology EFC calculations.
Section 478 in Part F 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 inflation into account. The changes are based, in general, upon increases in the Consumer Price Index.
For the award year 1999-2000, 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 1997 and December 1998. However, since the Secretary must publish these tables before December 1998, 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 1997. The Secretary estimates that the increase in the Consumer Price Index for all Urban Consumers for the period December 1997 through December 1998 will be 2.5 percent. The updated tables 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). The Education Savings and Asset Protection Allowance table for the award year 1999-2000 has been updated below in section 3.
Section 477(b)(5) of Part F 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 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.
The HEA provides for the following annual updates:
-
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 1999-2000 are:
Number in college
Family size
---------------------------------------------------------------- 1
2
3
4
5
-
12,260 10,160 ........... ........... ........... 3.............................................. 15,260 13,180 11,080 ........... ........... 4.............................................. 18,850 16,750 14.670 12,570 ........... 5.............................................. 22,240 20,140 18,060 15,960 13,880 6.............................................. 26,010 23,920 21,830 19,740 17,650
For each addiional family member add $2,940.
For each additional college student subtract 2,090.
-
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.
If the net worth of a business or farm
is
Then the adjusted new worth is
Less than $1........................... 0
$1 to $85,000.......................... $0 + 40% of NW
$85,001 to $260,000.................... $34,000 + 50% of NW over $85,000
$260,001 to $435,000................... $121,500 + 60% of NW over $266,00.
$435,001 or more....................... $226,500 + 100% of NW over $435,000
[[Page 29895]]
-
Education Savingss 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
then the education If the age of the older parent is
two parents savings and one asset parent protection allowance is
25 or less....................................
0
0 26............................................
2,500
1,600 27............................................
5,000
3,200 28............................................
7,500
4,800 29............................................ 10,000
6,400 30............................................ 12,500
8,000 31............................................ 15,000
9,600 32............................................ 17,500 11,200 33............................................ 19,900 12,900 34............................................ 22,400 14,500 35............................................ 24,900 16,100 36............................................ 27,400 17,700 37............................................ 29,900 19,300 38............................................ 32,400 20,900 39............................................ 34,900 22,500 40............................................ 37,400 24,100 41............................................ 38,400 24,500 42............................................ 39,400 25,100 43............................................ 40,400 25,600 44............................................ 41,400 26,200 45............................................ 42,500 26,800 46............................................ 43,500 27,400 47............................................ 44,600 28,000 48............................................ 45,800 28,700 49............................................ 46,900 29,400 50............................................ 48,400 30,100 51............................................ 49,600 30,700 52............................................ 50,900 31,600 53............................................ 52,500 32,300 54............................................ 53,800 33,100 55............................................ 55,400 33,900 56............................................ 57,100 34,700 57............................................ 58,900 35,700 58............................................ 60,700 36,500 59............................................ 62,500 37,600 60............................................ 64,400 38,700 61............................................ 66,600 39,700 62............................................ 69,000 40,900 63............................................ 71,000 42,000 64............................................ 73,400 43,200 65 and over................................... 75,900 44,400
Independent Students Without Dependents Other Than a Spouse
And the student is
then the education If the age of the student is
savings and married
asset single protection allowance is
25 or less..................................
0
0 26..........................................
2,500
1,600 27..........................................
5,000
3,200 28..........................................
7,500
4,800 29..........................................
10,000
6,400 30..........................................
12,500
8,000 31..........................................
15,000
9,600 32..........................................
17,500
11,200 33..........................................
19,900
12,900 34..........................................
22,400
14,500 35..........................................
24,900
16,100 36..........................................
27,400
17,700 37..........................................
29,900
19,300 38..........................................
32,400
20,900 39..........................................
34,900
22,500 40..........................................
37,400
24,100 41..........................................
38,400
24,500 42..........................................
39,400
25,100 43..........................................
40,400
25,600 44..........................................
41,400
26,200 45..........................................
42,500
26,800 46..........................................
43,500
27,400 47..........................................
44,600
28,000 48..........................................
45,800
28,700 49..........................................
46,900
29,400 50..........................................
48,400
30,100 51..........................................
49,600
30,700 52..........................................
50,900
31,600 53..........................................
52,500
32,300 54..........................................
53,800
33,100 55..........................................
55,400
33,900 56..........................................
57,100
34,700 57..........................................
58,900
35,700 58..........................................
60,700
36,500 59..........................................
62,500
37,600 60..........................................
64,400
38,700 61..........................................
66,600
39,700 62..........................................
69,000
40,900 63..........................................
71,000
42,000 64..........................................
73,400
43,200 65 and over.................................
75,900
44,400
Independent Students With Dependents Other Than a Spouse
And the student is
then the education If the age of the student is
savings and married
asset single protection allowance is
25 or less..................................
0
0 26..........................................
2,500
1,600 27..........................................
5,000
3,200 28..........................................
7,500
4,800 29..........................................
10,000
6,400 30..........................................
12,500
8,000 31..........................................
15,000
9,600 32..........................................
17,500
11,200 33..........................................
19,900
12,900 34..........................................
22,400
14,500 35..........................................
24,900
16,100 36..........................................
27,400
17,700 37..........................................
29,900
19,300 38..........................................
32,400
20,900 39..........................................
34,900
22,500 40..........................................
37,400
24,100 41..........................................
38,400
24,500 42..........................................
39,400
25,100 43..........................................
40,400
26,600 44..........................................
41,400
26,200 45..........................................
42,500
26,800 46..........................................
43,500
27,400 47..........................................
44,600
28,000 48..........................................
45,800
28,700 49..........................................
46,900
29,400 50..........................................
48,400
30,100 51..........................................
49,600
30,700 52..........................................
50,900
31,600 53..........................................
52,500
32,300 54..........................................
53,800
33,200 55..........................................
55,400
33,900 56..........................................
57,100
34,700 57..........................................
58,900
35,700 59..........................................
62,500
37,600 60..........................................
64,400
38,700 61..........................................
66,600
39,700 62..........................................
69,000
40,900 63..........................................
71,000
42,000 64..........................................
73,400
43,200 65 and over.................................
75,900
44,400
-
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 29896]]
If AAI is
Then the contribution is
Less than -$3,409 ($3,409)............. $-750
($3,409) to $11,000.................... 22% of AAI
$11,001 to $13,700..................... $2,420+ 25% of AAI over $11,000 $13,701 to $16,500..................... $3,095+ 29% of AAI over $13,700 $16,501 to $19,300..................... $3,907+ 34% of AAI over $16,500 $19,301 to $22,100..................... $4,859+ 40% of AAI over $19,300 $22,101 or more........................ $5,979+ 47% of AAI over $22,100
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 $11,000.................... 22% of AAI
$11,001 to $13,700..................... $2,420+25% of AAI over $11,000 $13,701 to $16,500..................... $3,095+29% of AAI over $13,700 $16,501 to $19,300..................... $3,907+34% of AAI over $16,500 $19,301 to $22,100..................... $4,859+40% of AAI over $19,300 $22,101 or more........................ $5,979+47% of AAI over $22,100
-
Employment Expense Allowance
This allowance for employment-related 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 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.
-
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
And parents' total income is
less than $15,000 or If parents' State or territory of residence is $15,000 or more
then the then the percentage percentage is
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
[[Page 29897]]
Independent Students With Dependents Other Than a Spouse
And student's total income is
less than $15,000 or If student's State or territory of residence $15,000 or more is
------------------------- then the then the percentage percentage is
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
The percentage If student's State or territory of residence is
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
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,
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
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http://ocfo.ed.gov/fedreg.htm http://www.ed.gov/news.html
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Program Authority: 20 U.S.C. 1087rr.
(CFDA Nos.: 84.063 Federal Pell Grant; 84.038 Federal Perkins Loan; 84.033 Federal Work-Study; 84.007 Federal Supplemental Educational Opportunity Grant; 84.032 Federal Family Education Loan; and 84.268 William D. Ford Federal Direct Loan Programs)
Dated: May 27, 1998. David A. Longanecker, Assistant Secretary for Postsecondary Education.
[FR Doc. 98-14426Filed5-29-98; 8:45 am]
BILLING CODE 4000-01-P
