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Summary: Notice of revised of the Federal Need Analysis Methodology for the 2008-2009 Award Year

Publication Date: June 1, 2007
FRPart:

Page Numbers: 30568-30572

Summary: Notice of revised of the Federal Need Analysis Methodology for the 2008-2009 award year.

Posted on 06-01-2007

[Federal Register: June 1, 2007 (Volume 72, Number 105)]
[Notices]               
[Page 30568-30572]
From the Federal Register Online via GPO Access [http://www.access.gpo.gov]
[DOCID:fr01jn07-61]                         

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DEPARTMENT OF EDUCATION

 
Federal Pell Grant, Academic Competitiveness Grant, National 
Science and Mathematics Access To Retain Talent 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, U.S. Department of Education.

ACTION: Notice of revision of the Federal Need Analysis Methodology for 
the 2008-2009 award year.

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SUMMARY: The Secretary 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 
2008-2009 for the student financial aid programs authorized under Title 
IV of the Higher Education Act of 1965, as amended (HEA). 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 
programs include the Federal Pell Grant, Academic Competitiveness 
Grant, National Science and Mathematics Access to Retain Talent Grant, 
Federal Perkins Loan, Federal Work-Study, Federal Supplemental 
Educational Opportunity Grant, Federal Family Education Loan, and 
William D. Ford Federal Direct Loan Programs (Title IV HEA Programs).

FOR FURTHER INFORMATION CONTACT: Ms. Marya Dennis, Management and 
Program Analyst, U.S. Department 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 Relay Service (FRS) 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 Title IV requires the Secretary to adjust 
four of the tables--the Income Protection Allowance, the Adjusted Net 
Worth of a Farm or Business, the Education Savings and Asset Protection 
Allowance, and the Assessment Schedules and Rates--each award year to 
adjust for general price inflation. The changes are based, in general, 
upon increases in the Consumer Price Index.
    For award year 2008-2009 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 2006 and December 2007. However, because 
the Secretary must publish these tables before December 2007, 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 2006. The Secretary estimates that the increase in the 
Consumer Price Index for All Urban Consumers (CPI-U) for the period 
December 2006 through December 2007 will be 2.8 percent. Additionally, 
the Higher Education Reconciliation Act of 2005 (HERA, Pub. L. 109-171) 
modified the updating procedure for the income protection allowance for 
dependent students and the income protection allowance tables for both 
independent students with dependents other than a spouse and 
independent students without dependents other than a spouse. HERA 
established new 2007-08 award year values for these income protection 
allowances, which are being updated for the 2008-09 award year using 
the Secretary's estimated inflation rate of 2.8 percent. The updated 
tables are in sections 1, 2, and 4 of this notice.
    The Secretary must also revise, for each award year, the education 
savings and asset protection allowances as provided for in section 
478(d) of the HEA. The Education Savings and Asset Protection Allowance 
table for award year 2008-2009 has been updated in section 3 of this 
notice. Section 478(h) of the HEA also requires the Secretary to 
increase the amount specified for the Employment Expense Allowance, 
adjusted for inflation. This calculation is based upon increases in the 
Bureau of Labor Statistics budget of the marginal costs for a two-
worker family compared to a one-worker family for food away from home, 
apparel, transportation, and household furnishings and operations. The 
Employment Expense Allowance table for award year 2008-2009 has been 
updated in section 5 of this notice.
The HEA provides for the following annual updates:
1. Income Protection Allowance. This allowance is the amount of living expenses associated with the maintenance of an individual or family that may be offset against the family's income. It varies by family size. The income protection allowance for the dependent student is $3,080. The income protection allowances for parents of dependent students for award year 2008-2009 are: [[Page 30569]] **NOTE: SEE PDF FILE FOR CHART FOR "Parents of Dependent Students" ** NOTE: SEE PDF FILE FOR CHART FOR "Independent Students With Dependents Other Than a Spouse" [[Page 30570]] **NOTE: SEE PDF FILE FOR CHART FOR "Dependent Students" **NOTE: SEE PDF FILE FOR CHART FOR "Independent Students Without Dependents Other Than a Spouse" **NOTE: SEE PDDF FILE FOR CHART FOR "Independent Students With Dependents Other Than a Spouse" You may view this document, as well as all other documents of this Department published in the Federal Register, in text or Adobe Portable Document Format (PDF) on the Internet at the following site:
http://www.ed.gov/news/fedregister. To use PDF you must have Adobe Acrobat Reader, which is available free at this site. If you have questions about using PDF, call the U.S. Government Printing Office (GPO), toll free, at 1-888-293-6498; or in the Washington, DC, area at (202) 512-1530. Note: The official version of this document is the document published in the Federal Register. Free Internet access to the official edition of the Federal Register and the Code of Federal Regulations is available on GPO Access at: http://www.gpoaccess.gov/nara/index.html
Catalogof 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; 84.375 Academic Competitiveness Grant; 84.376 National Science and Mathematics Access to Retain Talent Grant) Dated: May 29, 2007. Theresa S. Shaw, Chief Operating Officer, Federal Student Aid. [FR Doc. E7-10621 Filed 5-31-07; 8:45 am] BILLING CODE 4000-01-P

Last Modified: 05/31/2007