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20 U.S.C. § 1087qq — Student aid index for independent students with dependents other than a spouse

submitted 40 years ago by Pub. L. 89-329 to r/title-20-EDUCATION · 867 words · no verdicts yet

in plain englishAI-generated · not legal advice

For an independent student with dependents other than a spouse, the index is an assessment of adjusted available income, using specified income and asset allowances and an assessment schedule.

(a) Computation. (1) Add family available income under (b) and family available assets under (c), assess that adjusted available income under (d), and use the assessment. (2) If the result is below negative $1,500, use negative $1,500. (b) Income. Subtract from total income (as defined in section 1087vv) Federal taxes, the payroll allowance in (2), the income-protection allowance in (3), and the employment allowance in (4). The payroll allowance is earnings of the student and, when appropriate, spouse times the section 3101(b) rate, plus earnings up to the contribution-and-benefit base—twice it for a joint return—times the section 3101(a) rate. For a married student with dependents, the income-protection allowance is $46,140 for family size 3, $56,970 for 4, $67,230 for 5, $78,620 for 6, plus $8,880 per additional person. For a single student with dependents, it is $43,920 for size 2, $54,690 for 3, $67,520 for 4, $79,680 for 5, $93,180 for 6, plus $10,530 per additional person. The Secretary adjusts these under section 1087rr(b). The employment allowance is the lesser of $4,000 or 35% of the student’s earned income or, when applicable, the student and spouse’s combined earned income, adjusted under section 1087rr(g). (c) Assets. Subtract the asset-protection allowance in (2) from family assets as defined in section 1087vv(f), multiply by 7%, and do not use a result below zero. The age table is the married/single table in section 1087oo(d)(2), as revised under section 1087rr(d). (d) Assessment schedule. For adjusted available income (AAI), use: below negative $6,820, negative $1,500; negative $6,820 through $17,400, 22% of AAI; $17,401–$21,800, $3,828 plus 25% over $17,400; $21,801–$26,200, $4,928 plus 29% over $21,800; $26,201–$30,700, $6,204 plus 34% over $26,200; $30,701–$35,100, $7,734 plus 40% over $30,700; $35,101 or more, $9,494 plus 47% over $35,100. The Secretary revises this under section 1087rr(e). (e) If the student is divorced or separated, or the spouse has died, exclude the spouse’s income and assets.

the actual law source: uscode.house.gov ↗public domain
(a) Computation of student aid index
(1) In general

For each independent student with dependents other than a spouse, the student aid index is equal to the amount determined by—

(A)

computing adjusted available income by adding—

(i)

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

(ii)

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

(B)

assessing such adjusted available income in accordance with an assessment schedule set forth in subsection (d); and

(C)

considering such assessment resulting under subparagraph (B) as the amount determined under this subsection.

(2) Exception

If the sum determined under paragraph (1) with respect to an independent student with 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 deducting from total income (as defined in section 1087vv of this title)—

(A)

Federal income taxes;

(B)

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

(C)

an income protection allowance, determined in accordance with paragraph (3); and

(D)

an employment expense allowance, determined in accordance with paragraph (4).

(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) Income protection allowance

The income protection allowance shall equal the amount determined in the following table, as adjusted by the Secretary pursuant to section 1078rr(b) of this title:

(A)

In the case of a married independent student with dependents:

Income Protection Allowance (to be adjusted for 2023–2024 and succeeding years)

Family Size (including

student)

Amount

3

$46,140

4

$56,970

5

$67,230

6

$78,620

For each additional add

$8,880.

(B)

In the case of a single independent student with dependents:

Income Protection Allowance (to be adjusted for 2023–2024 and succeeding years)

Family Size (including

student)

Amount

2

$43,920

3

$54,690

4

$67,520

5

$79,680

6

$93,180

For each additional add

$10,530.

(4) Employment expense allowance

The employment expense allowance is equal to the lesser of $4,000 or 35 percent of the student’s earned income or the combined earned income of the student and the student’s spouse, if applicable (as adjusted by the Secretary pursuant to section 1087rr(g) of this title).

(c) Family’s available assets
(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 1087vv(f) of this title) and the asset protection allowance (determined in accordance with paragraph (2)); multiplied by

(ii)

7 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) Assessment schedule

The assessment of adjusted available income (as determined under subsection (a)(1) and hereafter in this subsection referred to as “AAI”) is calculated based on the following table (as revised by the Secretary pursuant to section 1087rr(e) of this title):

Assessment From Adjusted Available Income

If AAI is—

Then the assessment is—

Less than − $6,820

− $1,500

− $6,820 to $17,400

22% of AAI

$17,401 to $21,800

$3,828 + 25% of AAI over $17,400

$21,801 to $26,200

$4,928 + 29% of AAI over $21,800

$26,201 to $30,700

$6,204 + 34% of AAI over $26,200

$30,701 to $35,100

$7,734 + 40% of AAI over $30,700

$35,101 or more

$9,494 + 47% of AAI over $35,100.

(e) 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, § 477, as added Pub. L. 99–498, title IV, § 406(a), Oct. 17, 1986, 100 Stat. 1465; amended Pub. L. 100–50, § 14(1)–(6), (8), (18), (19), June 3, 1987, 101 Stat. 349–351; Pub. L. 102–325, title IV, § 471(a), July 23, 1992, 106 Stat. 597; Pub. L. 103–208, § 2(g)(2), (7), Dec. 20, 1993, 107 Stat. 2472; Pub. L. 105–78, title VI, § 609(i), Nov. 13, 1997, 111 Stat. 1524; Pub. L. 105–244, title IV, § 475, Oct. 7, 1998, 112 Stat. 1730; Pub. L. 109–171, title VIII, § 8017(c)(1), Feb. 8, 2006, 120 Stat. 173; Pub. L. 110–84, title VI, § 601(c), Sept. 27, 2007, 121 Stat. 802; Pub. L. 111–39, title IV, § 406(a)(3), July 1, 2009, 123 Stat. 1948; Pub. L. 116–260, div. FF, title VII, § 702(f), Dec. 27, 2020, 134 Stat. 3147.)

history & why it existsrecord from the source credit
  • 1986Enacted · Pub. L. 89-329 · 100 Stat. 1465
  • 1987Amended · Pub. L. 100-50 · 101 Stat. 349
  • 1992Amended · Pub. L. 102-325 · 106 Stat. 597
  • 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. 802
  • 2009Amended · Pub. L. 111-39 · 123 Stat. 1948
  • 2020Amended · Pub. L. 116-260 · 134 Stat. 3147

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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