20 U.S.C. § 1087qq : US Code - Section 1087QQ: Family contribution for independent students with dependents other than a spouse

Search 20 U.S.C. § 1087qq : US Code - Section 1087QQ: Family contribution for independent students with dependents other than a spouse

(a) Computation of expected family contribution
For each independent student with dependents other than a spouse,
the expected family contribution is equal to the amount determined
by -
(1) computing adjusted available income by adding -
(A) the family's available income (determined in accordance
with subsection (b) of this section); and
(B) the family's contribution from assets (determined in
accordance with subsection (c) of this section);
(2) assessing such adjusted available income in accordance with
an assessment schedule set forth in subsection (d) of this
section;
(3) dividing the assessment resulting under paragraph (2) by
the number of family members who are enrolled or accepted for
enrollment, on at least a half-time basis, in a degree,
certificate, or other program leading to a recognized educational
credential at an institution of higher education that is an
eligible institution in accordance with the provisions of section
1094 of this title during the award period for which assistance
under this subchapter and part C of subchapter I of chapter 34 of
title 42 is requested; and
(4) for periods of enrollment of less than 9 months, for
purposes other than subpart 2 of part A of this subchapter -
(A) dividing the quotient resulting under paragraph (3) by 9;
and
(B) multiplying the result by the number of months in the
period of enrollment;
except that the amount determined under this subsection shall not
be less than zero.
(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 State and other taxes, determined in
accordance with paragraph (2);
(C) an allowance for social security taxes, determined in
accordance with paragraph (3);
(D) an income protection allowance, determined in accordance
with paragraph (4);
(E) an employment expense allowance, determined in accordance
with paragraph (5); and
(F) the amount of any tax credit taken under section 25A of
title 26.
(2) Allowance for State and other taxes
The allowance for State and other taxes is equal to an amount
determined by multiplying total income (as defined in section
1087vv of this title) by a percentage determined according to the
following table (or a successor table prescribed by the Secretary
under section 1087rr of this title):
PERCENTAGES FOR COMPUTATION OF STATE AND OTHER TAX ALLOWANCE
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If student's State or territory And family's total income is -
of residence is -
less than $15,000 or
$15,000 more
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then the percentage is -

Alaska, Puerto Rico, Wyoming 3 2
American Samoa, Guam, Louisiana, 4 3
Nevada, Texas, Trust Territory,
Virgin Islands
Florida, South Dakota, 5 4
Tennessee, New Mexico
North Dakota, Washington 6 5
Alabama, Arizona, Arkansas, 7 6
Indiana, Mississippi, Missouri,
Montana, New Hampshire,
Oklahoma, West Virginia
Colorado, Connecticut, Georgia, 8 7
Illinois, Kansas, Kentucky
California, Delaware, Idaho, 9 8
Iowa, Nebraska, North Carolina,
Ohio, Pennsylvania, South
Carolina, Utah, Vermont,
Virginia, Canada, Mexico
Maine, New Jersey 10 9
District of Columbia, Hawaii, 11 10
Maryland, Massachusetts, Oregon,
Rhode Island
Michigan, Minnesota 12 11
Wisconsin 13 12
New York 14 13
Other 9 8
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(3) Allowance for social security taxes
The allowance for social security taxes is equal to the amount
estimated to be earned by the student (and spouse, if
appropriate) multiplied by the social security withholding rate
appropriate to the tax year preceding the award year, up to the
maximum statutory social security tax withholding amount for that
same tax year.
(4) Income protection allowance
The income protection allowance is determined by the following
table (or a successor table prescribed by the Secretary under
section 1087rr of this title):
INCOME PROTECTION ALLOWANCE
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Family Size (including student): 2
Number in College 1: $10,520
Number in College 2: $8,720
Number in College 3:
Number in College 4:
Number in College 5:
Number in College For each , additional , subtract:: $1,790
Family Size (including student): 3
Number in College 1: 13,100
Number in College 2: 11,310
Number in College 3: $9,510
Family Size (including student): 4
Number in College 1: 16,180
Number in College 2: 14,380
Number in College 3: 12,590
Number in College 4: $10,790
Family Size (including student): 5
Number in College 1: 19,090
Number in College 2: 17,290
Number in College 3: 15,500
Number in College 4: 13,700
Number in College 5: $11,910
Family Size (including student): 6
Number in College 1: 22,330
Number in College 2: 20,530
Number in College 3: 18,740
Number in College 4: 16,940
Number in College 5: 15,150
Family Size (including student): For each additional add:
Number in College 1: 2,520
Number in College 2: 2,520
Number in College 3: 2,520
Number in College 4: 2,520
Number in College 5: 2,520
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(5) Employment expense allowance
The employment expense allowance is determined as follows (or a
successor table prescribed by the Secretary under section 1087rr
of this title):
(A) If the student is married and the student's spouse is
employed in the year for which their income is reported, such
allowance is equal to the lesser of $2,500 or 35 percent of the
earned income of the student or spouse with the lesser earned
income.
(B) If a student qualifies as a surviving spouse or as a head
of household as defined in section 2 of title 26, such
allowance is equal to the lesser of $2,500 or 35 percent of the
student's earned income.
(c) Family's contribution from assets
(1) In general
The family's contribution from assets is equal to -
(A) the family net worth (determined in accordance with
paragraph (2)); minus
(B) the asset protection allowance (determined in accordance
with paragraph (3)); multiplied by
(C) the asset conversion rate (determined in accordance with
paragraph (4)), except that the result shall not be less than
zero.
(2) Family net worth
The family net worth is calculated by adding -
(A) the current balance of checking and savings accounts and
cash on hand;
(B) the net value of investments and real estate, excluding
the net value in the principal place of residence; and
(C) the adjusted net worth of a business or farm, computed on
the basis of the net worth of such business or farm (hereafter
referred to as "NW"), determined in accordance with the
following table (or a successor table prescribed by the
Secretary under section 1087rr of this title), except as
provided under section 1087vv(f) of this title:
ADJUSTED NET WORTH OF A BUSINESS OR FARM
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If the net worth of a business Then the adjusted net worth is
or farm is - -
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Less than $1 $0
$1-$75,000 40 percent of NW
$75,001-$225,000 $30,000 plus 50 percent of NW
over $75,000
$225,001-$375,000 $105,000 plus 60 percent of NW
over $225,000
$375,001 or more $195,000 plus 100 percent of NW
over $375,000
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(3) Asset protection allowance
The asset protection allowance is calculated according to the
following table (or a successor table prescribed by the Secretary
under section 1087rr of this title):
ASSET PROTECTION ALLOWANCES FOR FAMILIES AND STUDENTS
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If the age of the student is - And the student is
married single
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then the allowance is -

25 or less $ 0 $0
26 2,200 1,600
27 4,300 3,200
28 6,500 4,700
29 8,600 6,300
30 10,800 7,900
31 13,000 9,500
32 15,100 11,100
33 17,300 12,600
34 19,400 14,200
35 21,600 15,800
36 23,800 17,400
37 25,900 19,000
38 28,100 20,500
39 30,200 22,100
40 32,400 23,700
41 33,300 24,100
42 34,100 24,700
43 35,000 25,200
44 35,700 25,800
45 36,600 26,300
46 37,600 26,900
47 38,800 27,600
48 39,800 28,200
49 40,800 28,800
50 41,800 29,500
51 43,200 30,200
52 44,300 31,100
53 45,700 31,800
54 47,100 32,600
55 48,300 33,400
56 49,800 34,400
57 51,300 35,200
58 52,900 36,200
59 54,800 37,200
60 56,500 38,100
61 58,500 39,200
62 60,300 40,300
63 62,400 41,500
64 64,600 42,800
65 or more 66,800 44,000
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(4) Asset conversion rate
The asset conversion rate is 12 percent.
(d) Assessment schedule
The adjusted available income (as determined under subsection
(a)(1) of this section and hereafter referred to as "AAI") is
assessed according to the following table (or a successor table
prescribed by the Secretary under section 1087rr of this title):
ASSESSMENT FROM ADJUSTED AVAILABLE INCOME (AAI)
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If AAI is - Then the assessment is -
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Less than -$3,409 -$750
-$3,409 to $9,400 22% of AAI
$9,401 to $11,800 $2,068 + 25% of AAI over $9,400
$11,801 to $14,200 $2,668 + 29% of AAI over $11,800
$14,201 to $16,600 $3,364 + 34% of AAI over $14,200
$16,601 to $19,000 $4,180 + 40% of AAI over $16,600
$19,001 or more $5,140 + 47% of AAI over $19,000
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(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.