| Publication Date: December 2004 FRPart: |
Page Numbers: 76926-76927
Summary: 2005-06 Federal Needs Analysis - Allowance for State and Other Taxes
Posted on 12-28-2004
[Federal Register: December 23, 2004 (Volume 69, Number 246)]
[Notices]
[Page 76926-76927]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr23de04-45]
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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: Federal Student Aid, Department of Education.
ACTION: Notice of revision of the Federal Need Analysis Methodology for
the 2005-2006 award year.
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SUMMARY: The Secretary of Education announces the updates to the state
tax tables that will be used in the statutory ``Federal Need Analysis
Methodology'' to determine a student's expected family contribution
(EFC) for award year 2005-2006 under part F of title IV of the Higher
Education Act of 1965 (HEA), 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. Marya Dennis, Management and
Program Analyst, USDepartment of Education, Union Center Plaza, 830
First Street, NE., Washington, DC 20202. Telephone: (202) 377-3385. 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
alternative 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. The Secretary published these
adjusted tables in the Federal Register on June 17, 2004. See 69 FR
33890.
Section 478(g) of part F of the HEA further directs the Secretary
to update the tables for State and other taxes after reviewing the
Department of Treasury's Statistics of Income file data maintained by
the Internal Revenue Service. The Secretary delayed publication of
these tables in order to complete a thorough review of the available
information from the Statistics of Income file data maintained by the
Internal Revenue Service. Also, a provision in the Consolidated
Appropriations Act, 2004 (Pub. L. 108-199), directed the Advisory
Committee on Student Financial Assistance to examine the efficiency,
effectiveness and fairness of the current procedures to update formula
offsets and allowances. The Secretary considered the preliminary
findings of the Advisory Committee's analysis as he reviewed the
Statistics of Income file data.
Finally, section 482 of part F of the HEA requires the Secretary to
publish the annual Federal Need Analysis Methodology updates by June 1.
On June 16, 2004, also as required by section 482 of part F of the HEA,
the Secretary informed the Chairmen and Ranking Members of the House
Education and Workforce and Senate Health, Education, Labor, and
Pensions Committees that the Department did not meet this deadline.
The State tax table information for 2005-2006 is as follows:
Allowance for State and Other Taxes. The 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.
[In percent]
|
State
|
Parents
of dependents and
independents with dependents other than a spouse ------------------------------------ |
Dependents
and independents without dependents other than a |
||
| ------------------------------------------------------------------------------------------------------------- | ||||
| Under
$15,000 (in percent) |
$15,000
and up (in percent) |
spouse--all (in percent) |
||
| Alabama | ............................................................. | 3 | 2 | 2 |
| Alaska | ............................................................. | 2 | 1 | 0 |
| Arizona | ............................................................. | 4 | 3 | 2 |
| Arkansas | ............................................................. | 3 | 2 | 3 |
| [[Page 76927]] | ||||
| California | ............................................................. | 7 | 6 | 5 |
| Colorado | ............................................................. | 4 | 3 | 3 |
| Connecticut | ............................................................. | 7 | 6 | 4 |
| Delaware | ............................................................. | 4 | 3 | 3 |
| District of Columbia | ............................................................. | 7 | 6 | 6 |
| Florida | ............................................................. | 2 | 1 | 0 |
| Georgia | ............................................................. | 5 | 4 | 3 |
| Hawaii | ............................................................. | 4 | 3 | 4 |
| Idaho | ............................................................. | 5 | 4 | 3 |
| Illinois | ............................................................. | 5 | 4 | 2 |
| Indiana | ............................................................. | 4 | 3 | 3 |
| Iowa | ............................................................. | 5 | 4 | 3 |
| Kansas | ............................................................. | 5 | 4 | 3 |
| Kentucky | ............................................................. | 5 | 4 | 4 |
| Louisiana | ............................................................. | 2 | 1 | 2 |
| Maine | ............................................................. | 6 | 5 | 4 |
| Maryland | ............................................................. | 7 | 6 | 5 |
| Massachusetts | ............................................................. | 6 | 5 | 4 |
| Michigan | ............................................................. | 5 | 4 | 3 |
| Minnesota | ............................................................. | 6 | 5 | 4 |
| Mississippi | ............................................................. | 3 | 2 | 2 |
| Missouri | ............................................................. | 4 | 3 | 3 |
| Montana | ............................................................. | 5 | 4 | 3 |
| Nebraska | ............................................................. | 5 | 4 | 3 |
| Nevada | ............................................................. | 2 | 1 | 1 |
| New Hampshire | ............................................................. | 4 | 3 | 1 |
| New Jersey | ............................................................. | 8 | 7 | 4 |
| New Mexico | ............................................................. | 4 | 3 | 3 |
| New York | ............................................................. | 8 | 7 | 5 |
| North Carolina | ............................................................. | 6 | 5 | 4 |
| North Dakota | ............................................................. | 2 | 1 | 1 |
| Ohio | ............................................................. | 6 | 5 | 4 |
| Oklahoma | ............................................................. | 4 | 3 | 3 |
| Oregon | ............................................................. | 7 | 6 | 5 |
| Pennsylvania | ............................................................. | 5 | 4 | 3 |
| Rhode Island | ............................................................. | 7 | 6 | 4 |
| South Carolina | ............................................................. | 5 | 4 | 3 |
| South Dakota | ............................................................. | 1 | 0 | 0 |
| Tennessee | ............................................................. | 1 | 0 | 0 |
| Texas | ............................................................. | 2 | 1 | 0 |
| Utah | ............................................................. | 5 | 4 | 4 |
| Vermont | ............................................................. | 6 | 5 | 3 |
| Virginia | ............................................................. | 5 | 4 | 3 |
| Washington | ............................................................. | 2 | 1 | 0 |
| West Virginia | ............................................................. | 3 | 2 | 2 |
| Wisconsin | ............................................................. | 7 | 6 | 4 |
| Wyoming | ............................................................. | 1 | 0 | 0 |
| Other | ............................................................. | 3 | 2 | 2 |
| ------------------------------------------------------------------------------------------------------------- | ||||
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Note: The official version of this document is the document
published in the Federal Register. Free Internet access to the
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Regulations is available on GPO Access at:
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(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;
84.268 William D. Ford Federal Direct Loan Program)
Dated: December 17, 2004.
Theresa S. Shaw,
Chief Operating Officer, Federal Student Aid.
[FR Doc. E4-3779 Filed 12-22-04; 8:45 am]
BILLING CODE 4000-01-P