[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