US Code

Public Law 119-73 (01/23/2026)

20 U.S.C. § 1087oo

Student aid index for dependent students

(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

section 1087vv of this titleThe parents’ available income is determined by subtracting from total income (as defined in )—
(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)
section 3101(b) of title 26 the total amount earned by the parents, multiplied by the rate of tax under ; and
(B)
section 3101(a) of title 26 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 .
(3)

Income protection allowance

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.
The income protection allowance shall equal the amount determined in the following table, as adjusted by the Secretary pursuant to :

(4)

Employment expense allowance

section 1087rr(g) of this titleThe 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 ).

(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

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.
The asset protection allowance is calculated based on the following table (as revised by the Secretary pursuant to ):

(e)

Assessment schedule

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.
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 ):

(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)
section 1087rr(b) of this title an income protection allowance that is equal to $9,410, as adjusted pursuant to ; 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)
section 3101(b) of title 26 the total amount earned by the student, multiplied by the rate of tax under ; and
(B)
section 3101(a) of title 26 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 .
(4)

Allowance for parents’ negative available income

section 1087vv of this titleThe 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 ) 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.

Pub. L. 89–329, title IV, § 475Pub. L. 99–498, title IV, § 406(a)100 Stat. 1456Pub. L. 100–50, § 14(1)101 Stat. 349Pub. L. 102–325, title IV, § 471(a)106 Stat. 587Pub. L. 103–208, § 2(g)(2)107 Stat. 2472Pub. L. 105–78, title VI, § 609(g)111 Stat. 1523Pub. L. 105–244, title IV, § 473112 Stat. 1729Pub. L. 109–171, title VIII, § 8017(a)(1)120 Stat. 173Pub. L. 110–84, title VI, § 601(a)121 Stat. 801Pub. L. 111–39, title IV, § 406(a)(2)123 Stat. 1948Pub. L. 116–260, div. FF, title VII, § 702(d)134 Stat. 3141Pub. L. 118–40, div. B, § 101(a)138 Stat. 18(, as added , , ; amended –(12), , , 350; , , ; –(5), , ; , , ; , , ; , , ; , , ; , , ; , , ; , , .)

Editorial Notes

Amendments

Pub. L. 118–402024—Subsec. (g)(1). amended par. (1) generally. Prior to amendment, text read as follows: “The student’s available income is equal to—

section 1087vv of this title“(A) the difference between the student’s total income (determined in accordance with ) and the adjustment to student income (determined in accordance with paragraph (2)); multiplied by

“(B) 50 percent.”

Pub. L. 116–2602020— amended section generally. Prior to amendment, section related to family contribution for dependent students.

Pub. L. 111–39section 2 of title 262009—Subsec. (c)(5)(B). made technical amendment to reference in original act which appears in text as reference to .

Pub. L. 110–84section 1087rr of this title2007—Subsec. (g)(2)(D). amended subpar. (D) generally. Prior to amendment, subpar. (D) read as follows: “an income protection allowance of $3,000 (or a successor amount prescribed by the Secretary under );”.

Pub. L. 109–171, § 8017(a)(1)(A)2006—Subsec. (g)(2)(D). , substituted “$3,000” for “$2,200”.

Pub. L. 109–171, § 8017(a)(1)(B)Subsec. (h). , substituted “20” for “35”.

Pub. L. 105–244, § 473(a)1998—Subsec. (b)(3). , which directed insertion of “, excluding the student’s parents,” after “number of family members”, was executed by making the insertion after “number of the family members” to reflect the probable intent of Congress.

Pub. L. 105–244, § 473(b)(1)(A)section 1087rr of this titleSubsec. (g)(2)(D). , substituted “$2,200 (or a successor amount prescribed by the Secretary under );” for “$1,750; and”.

Pub. L. 105–244, § 473(b)(1)(B)Subsec. (g)(2)(F). , (C), added subpar. (F).

Pub. L. 105–244, § 473(b)(2)Subsec. (g)(6). , added par. (6).

Pub. L. 105–244, § 473(c)Subsec. (j). , added subsec. (j).

Pub. L. 105–78, § 609(g)(1)1997—Subsec. (c)(1)(F). , added subpar. (F).

Pub. L. 105–78, § 609(g)(2)Subsec. (g)(2)(E). , added subpar. (E).

Pub. L. 103–208, § 2(g)(2)1993—Subsec. (c)(4). , substituted “$9,510” for “9,510” in table.

Pub. L. 103–208, § 2(g)(3)Subsec. (f)(3). , in introductory provisions, substituted “If a parent” for “Income in the case of a parent”, “(1) of this subsection, or if a parent” for “(1) of this subsection, or a parent”, and “the income” for “is determined as follows: The income”.

Pub. L. 103–208, § 2(g)(4)Subsec. (g)(1)(B). , inserted closing parenthesis after “paragraph (2)”.

Pub. L. 103–208, § 2(g)(5)Subsec. (g)(3). , in table added last item relating to Other.

Pub. L. 102–3251992— amended section generally, making minor changes in subsecs. (a) to (c) and (e) to (g), in subsec. (d) substituting provisions relating to parents’ contribution from assets for provisions relating to parents’ income supplemental amount from assets, in subsec. (h) substituting provisions relating to student contribution from assets for provisions relating to student and spouse income supplemental amount from assets, and in subsec. (i) substituting provisions relating to adjustments to parents’ contribution for enrollment periods other than 9 months for purposes other than subpart 2 of part A of this subchapter for provisions relating to adjustments for enrollment periods other than 9 months.

Pub. L. 100–50, § 14(1)section 1087rr of this titlesection 1087ss of this title1987—Subsec. (c)(2), (4). , substituted “” for “”.

Pub. L. 100–50, § 14(2)Subsec. (c)(7). , struck out “National” before “Center”.

Pub. L. 100–50, § 14(3)Subsec. (d)(2)(B). , substituted “displaced homemaker” for “dislocated homemaker”.

Pub. L. 100–50, § 14(1)section 1087rr of this titlesection 1087ss of this titleSubsec. (d)(2)(C). , substituted “” for “”.

Pub. L. 100–50, § 14(4), added table after subpar. (C) and struck out former table which read as follows:

“Adjusted Net Worth of a Business or Farm

If the net worth of a business or farm is—

Then the adjusted net worth is:

Less than $1

$0

$1–$65,000

40 percent of NW

$65,001–$195,000

$26,000 plus 50 percent of NW over $65,000

$195,001–$325,000

$91,000 plus 60 percent of NW over $195,000

$325,001 or more

$169,000 plus 100 percent of NW over $325,000”.

Pub. L. 100–50, § 14(5)Subsec. (d)(4)(B). , substituted “$15,999” for “$15,000”.

Pub. L. 100–50, § 14(6)Subsec. (d)(4)(C). , substituted “$16,000” for “$15,000” in three places.

Pub. L. 100–50, § 14(7)Subsec. (d)(4)(D). , substituted “income is less than zero” for “income is equal to or less than zero”.

Pub. L. 100–50, § 14(8)Subsec. (e). , inserted a minus sign before “$3,409” in two places in table.

Pub. L. 100–50, § 14(9)Subsec. (g)(1)(C). , substituted “paragraph (2)” for “paragraph (3)”.

Pub. L. 100–50, § 14(10)section 1087rr of this titleSubsec. (g)(3). , inserted “(or a successor table prescribed by the Secretary under )” after “following table”.

Pub. L. 100–50, § 14(11)Subsec. (h). , added subsec. (h) and struck out former subsec. (h) which read as follows: “The student (and spouse) supplemental income amount from assets is determined by multiplying by 35 percent the sum of—

“(1) the current balance of checking and savings accounts and cash on hand; and

section 1087vv(e) of this title“(2) the net value of investments and real estate, including the net value in the principal place of residence except in the case of a dislocated worker (certified in accordance with title III of the Job Training Partnership Act) or a dislocated homemaker (as defined in ).”

Pub. L. 100–50, § 14(12)Subsec. (i). , added subsec. (i).

Statutory Notes and Related Subsidiaries

Effective Date of 2024 Amendment

Pub. L. 118–40Pub. L. 116–260section 101(d) of div. B of Pub. L. 118–40section 1070a of this titleAmendment by effective and applicable as if included in title VII of div. FF of , see , set out as a note under .

Effective Date of 2020 Amendment

Pub. L. 116–260section 701(b) of Pub. L. 116–260section 1001 of this titleAmendment by effective , except as otherwise expressly provided, and applicable with respect to award year 2024–2025 and each subsequent award year, as determined under this chapter, see , set out as a note under .

Effective Date of 2009 Amendment

Pub. L. 111–39Pub. L. 110–315section 3 of Pub. L. 111–39section 1001 of this titleAmendment by effective as if enacted on the date of enactment of (), see , set out as a note under .

Effective Date of 2007 Amendment

Pub. L. 110–84, title VI, § 601(e)121 Stat. 804

“The amendments made by this section [amending this section and sections 1087pp, 1087qq, and 1087rr of this title] shall be effective on .”
, , , provided that:

Effective Date of 2006 Amendment

Pub. L. 109–171section 8001(c) of Pub. L. 109–171section 1002 of this titleAmendment by effective , except as otherwise provided, see , set out as a note under .

Pub. L. 109–171, title VIII, § 8017(a)(2)120 Stat. 173

“The amendments made by paragraph (1) [amending this section] shall apply with respect to determinations of need for periods of enrollment beginning on or after .”
, , , provided that:

Effective Date of 1998 Amendment

Pub. L. 105–244section 480A of Pub. L. 105–244section 1087kk of this titleAmendment by , effective , and applicable with respect to determinations of need under this part for academic years beginning on or after , see , set out as a note under .

Effective Date of 1993 Amendment

Pub. L. 103–208Pub. L. 102–325section 5(a) of Pub. L. 103–208section 1051 of this titleAmendment by effective as if included in the Higher Education Amendments of 1992, , except as otherwise provided, see , set out as a note under .

Effective Date of 1992 Amendment

Pub. L. 102–325section 471(b) of Pub. L. 102–325section 1087kk of this titleAmendment by applicable with respect to determinations of need under this part for award years beginning on or after , see , set out as a note under .

Effective Date of 1987 Amendment

Pub. L. 100–50Pub. L. 99–498section 27 of Pub. L. 100–50section 1001 of this titleAmendment by effective as if enacted as part of the Higher Education Amendments of 1986, , see , set out as a note under .