20 U.S.C. § 1087pp — Student aid index for independent students without dependents other than a spouse

submitted 40 years ago by Pub. L. 89-329 to r/title-20-EDUCATION · 682 words · no verdicts yet

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(a) Computation of student aid index

(1) In general

For each independent student without dependents other than a spouse, the student aid index is equal to (except as provided in paragraph (2)) the sum of—

(A)

the family’s available income (determined in accordance with subsection (b)); and

(B)

the family’s available assets (determined in accordance with subsection (c)).

(2) Exception

If the sum determined under paragraph (1) with respect to an independent student without dependents other than a spouse is less than − $1,500, the student aid index for the independent student shall be − $1,500.

(b) Family’s available income

(1) In general

The family’s available income is determined by—

(A)

deducting from total income (as defined in section 1087vv of this title)—

(i)

Federal income taxes;

(ii)

an allowance for payroll taxes, determined in accordance with paragraph (2);

(iii)

an income protection allowance that is equal to—

(I)

in the case of a single independent student without dependents, $14,630, as adjusted pursuant to section 1078rr(b) of this title; and

(II)

in the case of a married independent student without dependents, $23,460, as adjusted pursuant to section 1078rr(b) of this title; and

(iv)

in the case of a married independent student, an employment expense allowance, as determined in accordance with paragraph (3); and

(B)

multiplying the amount determined under subparagraph (A) by 50 percent.

(2) Allowance for payroll taxes

The allowance for payroll taxes is equal to the sum of—

(A)

the total amount earned by the student (and spouse, if appropriate), multiplied by the rate of tax under section 3101(b) of title 26; and

(B)

the amount earned by the student (and spouse, if appropriate) that does not exceed such contribution and benefit base (twice such contribution and benefit base, in the case of a joint return) for the year of the earnings, multiplied by the rate of tax applicable to such earnings under section 3101(a) of title 26.

(3) Employment expense allowance

The employment expense allowance is equal to the following:

(A)

If the student is married, such allowance is equal to the lesser of $4,000 or 35 percent of the couple’s combined earned income (as adjusted by the Secretary pursuant to section 1087rr(g) of this title).

(B)

If the student is not married, the employment expense allowance is zero.

(1) In general

(A) Determination

Except as provided in subparagraph (B), the family’s available assets are equal to—

(i)

the difference between the family’s assets (as defined in section 1087vv(f) of this title) and the asset protection allowance (determined in accordance with paragraph (2)); multiplied by

(ii)

20 percent.

(B) Not less than zero

The family’s available assets under this subsection shall not be less than zero.

(2) Asset protection allowance

The asset protection allowance is calculated based on the following table (as revised by the Secretary pursuant to section 1087rr(d) of this title):

Asset Protection Allowances for Families and Students
If the age of the student is—	And the student is
married	single
	then the allowance is—
25 or less	$  0	$0
26	$400	$100
27	$700	$300
28	$1,100	$400
29	$1,500	$600
30	$1,800	$700
31	$2,200	$800
32	$2,600	$1,000
33	$2,900	$1,100
34	$3,300	$1,300
35	$3,700	$1,400
36	$4,000	$1,500
37	$4,400	$1,700
38	$4,800	$1,800
39	$5,100	$2,000
40	$5,500	$2,100
41	$5,600	$2,200
42	$5,700	$2,200
43	$5,900	$2,300
44	$6,000	$2,300
45	$6,200	$2,400
46	$6,300	$2,400
47	$6,500	$2,500
48	$6,600	$2,500
49	$6,800	$2,600
50	$7,000	$2,700
51	$7,100	$2,700
52	$7,300	$2,800
53	$7,500	$2,900
54	$7,700	$2,900
55	$7,900	$3,000
56	$8,100	$3,100
57	$8,400	$3,100
58	$8,600	$3,200
59	$8,800	$3,300
60	$9,100	$3,400
61	$9,300	$3,500
62	$9,600	$3,600
63	$9,900	$3,700
64	$10,200	$3,800
65 or more	$10,500	$3,900.

(d) Computations in case of separation, divorce, or death

In the case of a student who is divorced or separated, or whose spouse has died, the spouse’s income and assets shall not be considered in determining the family’s available income or assets.

Source credit: (Pub. L. 89–329, title IV, § 476, as added Pub. L. 99–498, title IV, § 406(a), Oct. 17, 1986, 100 Stat. 1463; amended Pub. L. 100–50, § 14(1), (3), (4), (13)–(17), June 3, 1987, 101 Stat. 349, 351; Pub. L. 102–325, title IV, § 471(a), July 23, 1992, 106 Stat. 594; Pub. L. 103–208, § 2(g)(6), Dec. 20, 1993, 107 Stat. 2472; Pub. L. 105–78, title VI, § 609(h), Nov. 13, 1997, 111 Stat. 1524; Pub. L. 105–244, title IV, § 474, Oct. 7, 1998, 112 Stat. 1730; Pub. L. 109–171, title VIII, § 8017(b)(1), Feb. 8, 2006, 120 Stat. 173; Pub. L. 110–84, title VI, § 601(b), Sept. 27, 2007, 121 Stat. 801; Pub. L. 116–260, div. FF, title VII, § 702(e), Dec. 27, 2020, 134 Stat. 3145.)

history & why it existsrecord from the source credit

1986Enacted · Pub. L. 89-329 · 100 Stat. 1463
1987Amended · Pub. L. 100-50 · 101 Stat. 349, 351
1992Amended · Pub. L. 102-325 · 106 Stat. 594
1993Amended · Pub. L. 103-208 · 107 Stat. 2472
1997Amended · Pub. L. 105-78 · 111 Stat. 1524
1998Amended · Pub. L. 105-244 · 112 Stat. 1730
2006Amended · Pub. L. 109-171 · 120 Stat. 173
2007Amended · Pub. L. 110-84 · 121 Stat. 801
2020Amended · Pub. L. 116-260 · 134 Stat. 3145

A history note hasn’t been published yet. The record shows enactment by Pub. L. 89-329 on 1986-10-17.

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