Publication Date: May 24, 2011
Posted Date: May 24, 2011
Subject: Notice of revision of the Federal Need Analysis Methodology for the 2012-2013 award year.
FR Type: Notice
[Federal Register Volume 76, Number 100 (Tuesday, May 24, 2011)]
[Notices]
[Pages 30139-30142]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-12812]
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DEPARTMENT OF EDUCATION
Federal Need Analysis Methodology for the 2012-2013 Award Year
AGENCY: Federal Student Aid, Department of Education.
ACTION: Notice of revision of the Federal Need Analysis Methodology for
the 2012-2013 award year.
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Overview Information:
[CFDA Numbers 84.063; 84.038; 84.033; 84.007; 84.268; 84.379].
Federal Need Analysis Methodology for the 2012-2013 award year; Federal
Pell Grant, Federal Perkins Loan, Federal Work-Study, Federal
Supplemental Educational Opportunity Grant, William D. Ford Federal
Direct Loan, and TEACH Grant Programs.
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
2012-2013 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 that 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, Federal Perkins Loan, Federal
Work-Study, Federal Supplemental Educational Opportunity Grant, William
D. Ford Federal Direct Loan, and the Teach Grant Programs (Title IV,
HEA Programs).
FOR FURTHER INFORMATION CONTACT: Ms. Marya Dennis, Management and
Program Analyst, U.S. Department of Education, room 63G2, Union Center
Plaza, 830 First Street, NE., Washington, DC 20202-5454. 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
accessible format (e.g., braille, large print, audiotape, or computer
diskette) on request to the contact person listed under FOR FURTHER
INFORMATION CONTACT.
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 for general price inflation. The changes are based, in
general, upon increases in the Consumer Price Index.
For award year 2012-2013, 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
2010 and December 2011. However, because the Secretary must publish
these tables before December 2011, 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 (CPI-U) for 2011. The
Secretary must also account for any misestimation of inflation for the
prior year. In developing the table values for the 2011-2012 award
year, the Secretary assumed a 1.2 percent increase in the CPI-U for the
period December 2009 through December 2010. Actual inflation for this
time period was 1.4 percent. The Secretary estimates that the increase
in the CPI-U for the period December 2010 through December 2011 will be
0.8 percent. Additionally, section 601 of the College Cost Reduction
and Access Act of 2007 (CCRAA, Pub. L. 110-84) amended sections 475
through 478 of the HEA by updating the procedures for determining the
income protection allowance for dependent students, as well as the
income protection allowance tables for both independent students with
dependents other than a spouse, and independent students without
dependents other than a spouse. As amended by the CCRAA, the HEA now
includes new 2012-2013 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 2012-2013 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 2012-2013 has been
updated in section 5 of this notice.
The HEA provides for the following annual updates:
1. Income Protection Allowance (IPA). 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 IPA for the dependent student is $6,000. The IPAs for
parents of dependent students for award year 2012-2013 are:
The IPAs for independent students with dependents other than a
spouse for award year 2012-13 are:
[[Page 30140]]
*NOTE: CHART'S OMITTED -- SEE PDF
Electronic Access to This Document: You can 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.
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: 84.063 Federal Pell
Grant Program; 84.038 Federal Perkins Loan Program; 84.033 Federal
Work-Study Programs; 84.007 Federal Supplemental Educational
Opportunity Grant Program; 84.268 William D. Ford Federal Direct
Loan Program; 84.379 TEACH Grant Program)
Program Authority: 20 U.S.C. 1087rr.
Dated: May 19, 2011.
James Runcie,
Deputy Chief Operating Officer, Federal Student Aid.
[FR Doc. 2011-12812 Filed 5-23-11; 8:45 am]
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