20 USC 1087qq - Family contribution for independent students with dependents other than a spouse

U.S Code last checked for updates: May 02, 2024

§ 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

(3)

Allowance for social security taxes

(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

(B)

Academic year 2010–2011

(C)

Academic year 2011–2012

(D)

Academic year 2012–2013

(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

(4)

Asset conversion rate

(d)

Assessment schedule

(e)

Computations in case of separation, divorce, or death

(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.)

cite as: 20 USC 1087qq

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