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Summary: 2004-2005 EFC Calculation - State Tax Tables

Publication Date: December, 2003

Author: Office of the Assistant Secretary of the OPE

Summary: 2004-2005 EFC Calculation – State Tax Tables


Posted on 12-22-2003


To: Financial Aid Community

From: Sally Stroup, Assistant Secretary for Postsecondary Education

Subject: 2004-2005 EFC Calculation – State Tax Tables

Date: December 22, 2003

On May 30, 2003, we published in the Federal Register the 2004-05 Expected Family Contribution (EFC) formula updates including, as required by the Higher Education Act (HEA), updated tables for state and other tax allowances. However, it now appears that the Congress will include in the Department’s fiscal year 2004 appropriations legislation, a special provision regarding the statutory requirement to update those tables and will direct us to use the 2003-04 state and other tax tables for the 2004-05 award year. We expect the Congress to pass the fiscal year 2004 appropriations legislation including this special provision sometime in January. Therefore, in anticipation of the Congressional directive and in order to minimize service disruptions and administrative burden, we have programmed, beginning with start-up on January 1, 2004, the central processing system to calculate 2004-2005 EFCs using the 2003-04 state and other tax tables. Also, the 2004-05 EFC Worksheets and Tables, which will be posted to IFAP shortly, reflect this decision.

Thank you for your continued support of the Federal student assistance programs.