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Summary: Notice of revision of the Federal Need Analysis Methodology for the 2009-2010 award year

Publication Date: May 29, 2008

Page Numbers: 30904-30908

Summary: Notice of revision of the Federal Need Analysis Methodology for the 2009-2010 award year

Posted on 05-29-2008

[Federal Register: May 29, 2008 (Volume 73, Number 104)]
[Notices]               
[Page 30904-30908]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr29my08-53]                         

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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 2009-2010 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 
2009-2010 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), call the 
Federal Relay Service (FRS), toll free at 1-800-877-8339.
    Individuals with disabilities can obtain this document in an 
alternative format (e.g., Braille, large print, audiotape or compact 
disk) 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 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 adjust for general price inflation. The changes are 
based, in general, upon increases in the Consumer Price Index.
    For award year 2009-2010 the Secretary is charged with updating the 
income protection allowance for parents of dependent students, adjusted 
net worth of a business or farm, and the assessment schedules and rates 
to account for inflation that took place between December 2007 and 
December

[[Page 30905]]

2008. However, because the Secretary must publish these tables before 
December 2008, 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 2008. The Secretary estimates 
that the increase in the Consumer Price Index for All Urban Consumers 
(CPI-U) for the period December 2007 through December 2008 will be 1.7 
percent. Additionally, the College Cost Reduction and Access Act 
(CCRAA, Pub. L. 110-84) 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. CCRAA established new 2009-2010 award year values for these 
income protection allowances. 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 2009-2010 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 2009-2010 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 $3,750. The income protection allowances for parents of dependent 
students for award year 2009-2010 are:

*Note: The Following Charts have been omitted. Please See PDF for Details

Parents of Dependent Students (See PDF For Chart)

Independent students with dependents other than a spouse (See PDF For Chart)

Dependent Students (See PDF For Chart)

Independent Students Without Dependents Other Than a Spouse (See PDF For Chart)

Independent Students With Dependents Other Than a Spouse  (See PDF For Chart)

The parents' contribution for a dependent student is computed  (See PDF For Chart)
according to the following schedule:


    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.

(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; 84.375 Academic 
Competitiveness Grant; 84.376 National Science and Mathematics 
Access to Retain Talent Grant)

    Program Authority: 20 U.S.C. 1087rr.

    Dated: May 22, 2008.
Lawrence A. Warder, Acting Chief Operating Officer, Federal Student Aid.
[FR Doc. E8-11953 Filed 5-28-08; 8:45 am]

BILLING CODE 4000-01-P
Attachments/Enclosures:

Last Modified: 05/28/2008