99-13767. 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  

  • [Federal Register Volume 64, Number 104 (Tuesday, June 1, 1999)]
    [Notices]
    [Pages 29512-29515]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 99-13767]
    
    
    
    [[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
    
    Federal Register / Vol. 64, No. 104/ Tuesday, June 1, 1999 / 
    Notices
    
    [[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
    
    
    

Document Information

Published:
06/01/1999
Department:
Education Department
Entry Type:
Notice
Action:
Notice of revision of the Federal need analysis methodology for the 2000-2001 award year.
Document Number:
99-13767
Pages:
29512-29515 (4 pages)
PDF File:
99-13767.pdf