ALLcrimesfood&drugstaxestelecomcommercehealthconservationtransportationagricultureveteransbrowse all titles »
0

20 U.S.C. § 1087oo — Student aid index for dependent students

submitted 40 years ago by Pub. L. 89-329 to r/title-20-EDUCATION · 1,400 words · no verdicts yet

in plain englishAI-generated · not legal advice

For a dependent student, the student aid index combines assessed parental income and assets with assessed student income and assets. The section gives the deductions, allowances, asset table, income schedule, and family rules used in that calculation.

(a) Computation. (1) Unless paragraph (2) applies, add (A) the assessment of the parents’ adjusted available income under subsection (b), (B) the assessment of the student’s available income under subsection (g), and (C) the student’s available assets under subsection (h). (2) If that total is below negative $1,500, the index is negative $1,500. (b) Parents’ adjusted available income. Add the parents’ available income under (c) and available assets under (d), apply the assessment schedule in (e), and use that result. (c) Parents’ available income. Subtract from total income (a term defined in section 1087vv, not here) Federal income taxes, the payroll-tax allowance in (2), the income-protection allowance in (3), and the employment-expense allowance in (4). (2) The payroll allowance is the parents’ total earnings times the section 3101(b) tax rate, plus earnings up to the contribution-and-benefit base—twice that base for a joint return—times the section 3101(a) rate. (3) The income-protection allowance, adjusted under section 1087rr(b), is $23,330 for family size 2, $29,040 for 3, $35,870 for 4, $42,320 for 5, and $49,500 for 6, plus $5,590 for each additional person. (4) The employment allowance is the lesser of $4,000 or 35% of a single parent’s earned income or married parents’ combined earned income, as adjusted under section 1087rr(g). (d) Parents’ assets. Subtract the asset-protection allowance in (2) from the parents’ assets and multiply the difference by 12%; the result cannot be below zero. The allowance uses the age of the oldest parent and whether there are two parents: age 25 or less, $0/$0; ages 26–39, respectively $400/$100, $700/$300, $1,100/$400, $1,500/$600, $1,800/$700, $2,200/$800, $2,600/$1,000, $2,900/$1,100, $3,300/$1,300, $3,700/$1,400, $4,000/$1,500, $4,400/$1,700, $4,800/$1,800, $5,100/$2,000; ages 40–64, respectively $5,500/$2,100, $5,600/$2,200, $5,700/$2,200, $5,900/$2,300, $6,000/$2,300, $6,200/$2,400, $6,300/$2,400, $6,500/$2,500, $6,600/$2,500, $6,800/$2,600, $7,000/$2,700, $7,100/$2,700, $7,300/$2,800, $7,500/$2,900, $7,700/$2,900, $7,900/$3,000, $8,100/$3,100, $8,400/$3,100, $8,600/$3,200, $8,800/$3,300, $9,100/$3,400, $9,300/$3,500, $9,600/$3,600, $9,900/$3,700, $10,200/$3,800; age 65 or more, $10,500/$3,900. The first number is for two parents and the second for one. (e) 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% of AAI 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 the table under section 1087rr(e). (f) Parental income. (1) Married, nonseparated parents or unmarried parents living together: include both parents’ income and assets. (2) Divorced or separated parents who are not remarried: include only the parent providing the larger share of the student’s support. (3) If one parent dies, treat the survivor as single until remarriage; if both die, report no parental income or assets. (4) Include a remarried parent’s spouse’s income and assets if the parent’s information is otherwise included and they are married on the application date. (5) For a single parent who is not divorced, separated, or remarried and is not covered by (1), include that parent’s income and assets. (g) Student income. Subtract the adjustment in (2) from the student’s total income under section 480, multiply by 50%, and use at least negative $1,500 for 2024–2025 and at least zero afterward. The adjustment is Federal taxes, the payroll allowance in (3), a $9,410 income-protection allowance adjusted under section 1087rr(b), and the allowance in (4) for parents’ negative available income. The payroll allowance is total student earnings times the section 3101(b) rate plus earnings up to the contribution-and-benefit base times the section 3101(a) rate. The parents’ negative-income allowance is the amount, if any, by which deductions under (c)(1) exceed the parents’ total income plus available assets under (d). (h) Student assets. Calculate the student’s assets, multiply by 20%, and do not use a result below zero.
the actual law source: uscode.house.gov ↗public domain
(a) Computation of student aid index
(1) In general

Except as provided in paragraph (2), for each dependent student, the student aid index is equal to the sum of—

(A)

the assessment of the parents’ adjusted available income (determined in accordance with subsection (b));

(B)

the assessment of the student’s available income (determined in accordance with subsection (g)); and

(C)

the student’s available assets (determined in accordance with subsection (h)).

(2) Exception

If the sum determined under paragraph (1) with respect to a dependent student is less than − $1,500, the student aid index for the dependent student shall be − $1,500.

(b) Assessment of parents’ adjusted available income

The assessment of parents’ adjusted available income is equal to the amount determined by—

(1)

computing adjusted available income by adding—

(A)

the parents’ available income (determined in accordance with subsection (c)); and

(B)

the parents’ available assets (determined in accordance with subsection (d));

(2)

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

(3)

considering such assessment resulting under paragraph (2) as the amount determined under this subsection.

(c) Parents’ available income
(1) In general

The parents’ available income is determined by subtracting 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 parents, multiplied by the rate of tax under section 3101(b) of title 26; and

(B)

the amount earned by the parents 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 1087rr(b) of this title:

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

Family Size (including

student)

Amount

2

$23,330

3

$29,040

4

$35,870

5

$42,320

6

$49,500

For each additional add

$5,590.

(4) Employment expense allowance

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

(d) Parents’ available assets
(1) In general
(A) Determination

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

(i)

the difference between the parents’ assets and the asset protection allowance (determined in accordance with paragraph (2)); multiplied by

(ii)

12 percent.

(B) Not less than zero

The parents’ 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 10877rr(d) of this title):

Asset Protection Allowances for Parents of Dependent Students

If the age of the oldest parent is—

And there are

two parents

one parent

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.

(e) Assessment schedule

The assessment of the parents’ adjusted available income (as determined under subsection (b)(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):

Parents’ Contribution From AAI

If the parents’ AAI is—

Then the parents’ contribution from AAI 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.

(f) Consideration of parental income
(1) Parents who live together

Parental income and assets in the case of student whose parents are married and not separated, or who are unmarried but live together, shall include the income and assets of both parents.

(2) Divorced or separated parents

Parental income and assets for a student whose parents are divorced or separated, but not remarried, is determined by including only the income and assets of the parent who provides the greater portion of the student’s financial support.

(3) Death of a parent

Parental income and assets in the case of the death of any parent is determined as follows:

(A)

If either of the parents has died, the surviving parent shall be considered a single parent, until that parent has remarried.

(B)

If both parents have died, the student shall not report any parental income or assets.

(4) Remarried parents

If a parent whose income and assets are taken into account under paragraph (2), or if a parent who is a widow or widower and whose income is taken into account under paragraph (3), has remarried, the income of that parent’s spouse shall be included in determining the parent’s assessment of adjusted available income if the student’s parent and the stepparent are married as of the date of application for the award year concerned.

(5) Single parent who is not divorced or separated

Parental income and assets in the case of a student whose parent is not described in paragraph (1) and is a single parent who is not divorced, separated, or remarried, shall include the income and assets of such single parent.

(g) Student’s available income
(1) In general

The student’s available income is equal to—

(A)

the difference between the student’s total income (determined in accordance with section 480) and the adjustment to student income (determined in accordance with paragraph (2)); multiplied by

(B)

50 percent,

except that the amount determined under this paragraph shall not be less than − $1,500 for award year 2024–2025 and not less than zero for award year 2025–2026 and each award year thereafter.

(2) Adjustment to student income

The adjustment to student income is equal to the sum of—

(A)

Federal income taxes;

(B)

an allowance for payroll taxes determined in accordance with paragraph (3);

(C)

an income protection allowance that is equal to $9,410, as adjusted pursuant to section 1087rr(b) of this title; and

(D)

an allowance for parents’ negative available income, determined in accordance with paragraph (4).

(3) Allowance for payroll taxes

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

(A)

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

(B)

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

(4) Allowance for parents’ negative available income

The allowance for parents’ negative available income is the amount, if any, by which the sum of the amounts deducted under subsection (c)(1) exceeds the sum of the parents’ total income (as defined in section 1087vv of this title) and the parents’ available assets (as determined in accordance with subsection (d)).

(h) Student’s assets

The student’s assets are determined by calculating the assets of the student and multiplying such amount by 20 percent, except that the result shall not be less than zero.

Source credit: (Pub. L. 89–329, title IV, § 475, as added Pub. L. 99–498, title IV, § 406(a), Oct. 17, 1986, 100 Stat. 1456; amended Pub. L. 100–50, § 14(1)–(12), June 3, 1987, 101 Stat. 349, 350; Pub. L. 102–325, title IV, § 471(a), July 23, 1992, 106 Stat. 587; Pub. L. 103–208, § 2(g)(2)–(5), Dec. 20, 1993, 107 Stat. 2472; Pub. L. 105–78, title VI, § 609(g), Nov. 13, 1997, 111 Stat. 1523; Pub. L. 105–244, title IV, § 473, Oct. 7, 1998, 112 Stat. 1729; Pub. L. 109–171, title VIII, § 8017(a)(1), Feb. 8, 2006, 120 Stat. 173; Pub. L. 110–84, title VI, § 601(a), Sept. 27, 2007, 121 Stat. 801; Pub. L. 111–39, title IV, § 406(a)(2), July 1, 2009, 123 Stat. 1948; Pub. L. 116–260, div. FF, title VII, § 702(d), Dec. 27, 2020, 134 Stat. 3141; Pub. L. 118–40, div. B, § 101(a), Mar. 1, 2024, 138 Stat. 18.)

history & why it existsrecord from the source credit
  • 1986Enacted · Pub. L. 89-329 · 100 Stat. 1456
  • 1987Amended · Pub. L. 100-50 · 101 Stat. 349, 350
  • 1992Amended · Pub. L. 102-325 · 106 Stat. 587
  • 1993Amended · Pub. L. 103-208 · 107 Stat. 2472
  • 1997Amended · Pub. L. 105-78 · 111 Stat. 1523
  • 1998Amended · Pub. L. 105-244 · 112 Stat. 1729
  • 2006Amended · Pub. L. 109-171 · 120 Stat. 173
  • 2007Amended · Pub. L. 110-84 · 121 Stat. 801
  • 2009Amended · Pub. L. 111-39 · 123 Stat. 1948
  • 2020Amended · Pub. L. 116-260 · 134 Stat. 3141
  • 2024Amended · Pub. L. 118-40 · 138 Stat. 18

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

all 0 arguments · sorted by: best

0/280

no arguments yet — make the first case