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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

FR part
IV
Attachments:
PublicationDate: 6/1/99
FRPart: IV
RegPartsAffected:
PageNumbers: 29511-29515
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.
CommentDueDate:

  

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[


[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
------------------------------------------------------------------------

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Note: The official version of this document is the document
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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;
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




]

Last Modified: 06/01/1999