20 USC 1087oo: Family contribution for dependent students

20 USC 1087oo: Family contribution for dependent students Text contains those laws in effect on April 17, 2024

From Title 20-EDUCATIONCHAPTER 28-HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCESUBCHAPTER IV-STUDENT ASSISTANCEPart F-Need Analysis

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§1087oo. Family contribution for dependent students

(a) Computation of expected family contribution

For each dependent student, the expected family contribution is equal to the sum of-

(1) the parents' contribution from adjusted available income (determined in accordance with subsection (b));

(2) the student contribution from available income (determined in accordance with subsection (g)); and

(3) the student contribution from assets (determined in accordance with subsection (h)).

(b) Parents' contribution from adjusted available income

The parents' contribution from 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' contribution from 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) dividing the assessment resulting under paragraph (2) by the number of the family members, excluding the student's parents, 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 is requested;

except that the amount determined under this subsection shall not be less than zero.

(c) Parents' available income

(1) In general

The parents' 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);

(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 by the parents 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
If parents' State or territory of residence is-	And parents' total income is-
If parents' State or territory of residence is-	less than $15,000 or	$15,000 or more

(1)then the percentage is-

Alaska, Puerto Rico, Wyoming	3	2
American Samoa, Guam, Louisiana, Nevada, Texas, Trust Territory, Virgin Islands	4	3
Florida, South Dakota, Tennessee, New Mexico	5	4
North Dakota, Washington	6	5
Alabama, Arizona, Arkansas, Indiana, Mississippi, Missouri, Montana, New Hampshire, Oklahoma, West Virginia	7	6
Colorado, Connecticut, Georgia, Illinois, Kansas, Kentucky	8	7
California, Delaware, Idaho, Iowa, Nebraska, North Carolina, Ohio, Pennsylvania, South Carolina, Utah, Vermont, Virginia, Canada, Mexico	9	8
Maine, New Jersey	10	9
District of Columbia, Hawaii, Maryland, Massachusetts, Oregon, Rhode Island	11	10
Michigan, Minnesota	12	11
Wisconsin	13	12
New York	14	13
Other	9	8

(3) Allowance for social security taxes

The allowance for social security taxes is equal to the amount earned by each parent multiplied by the social security withholding rate appropriate to the tax year of the earnings, 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
Family Size	Number in College
(including student)	1	2	3	4	5	For each additional subtract:
2	$10,520	$8,720				$1,790
3	13,100	11,310	$9,510
4	16,180	14,380	12,590	$10,790
5	19,090	17,290	15,500	13,700	$11,910
6	22,330	20,530	18,740	16,940	15,150
For each additional add:	2,520	2,520	2,520	2,520	2,520

(5) Employment expense allowance

The employment expense allowance is determined as follows (or using a successor provision prescribed by the Secretary under section 1087rr of this title):

(A) If both parents were employed in the year for which their income is reported and both have their incomes reported in determining the expected family contribution, such allowance is equal to the lesser of $2,500 or 35 percent of the earned income of the parent with the lesser earned income.

(B) If a parent 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 such parent's earned income.

(d) Parents' contribution from assets

(1) In general

The parents' contribution from assets is equal to-

(A) the parental net worth (determined in accordance with paragraph (2)); minus

(B) the education savings and 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) Parental net worth

The parental 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 of 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 in this subsection 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
If the net worth of a business or farm is-	Then the adjusted net worth is:
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

(3) Education savings and asset protection allowance

The education savings and asset protection allowance is calculated according to the following table (or a successor table prescribed by the Secretary under section 1087rr of this title):

Education Savings and Asset Protection Allowances for Families and Students
If the age of the oldest parent is-	And there are
If the age of the oldest parent is-	two parents	one parent

(1)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

(4) Asset conversion rate

The asset conversion rate is 12 percent.

(e) Assessment schedule

The adjusted available income (as determined under subsection (b)(1) and hereafter in this subsection 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):

Parents' Assessment From Adjusted Available Income (AAI)
If AAI is-	Then the assessment is-
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

(f) Computations in case of separation, divorce, remarriage, or death

(1) Divorced or separated parents

Parental income and assets for a student whose parents are divorced or separated is determined under the following procedures:

(A) Include only the income and assets of the parent with whom the student resided for the greater portion of the 12-month period preceding the date of the application.

(B) If the preceding criterion does not apply, include only the income and assets of the parent who provided the greater portion of the student's support for the 12-month period preceding the date of application.

(C) If neither of the preceding criteria apply, include only the income and assets of the parent who provided the greater support during the most recent calendar year for which parental support was provided.

(2) 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 student shall include only the income and assets of the surviving parent.

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

(3) Remarried parents

If a parent whose income and assets are taken into account under paragraph (1) of this subsection, or if a parent who is a widow or widower and whose income is taken into account under paragraph (2) of this subsection, has remarried, the income of that parent's spouse shall be included in determining the parent's adjusted available income only if-

(A) the student's parent and the stepparent are married as of the date of application for the award year concerned; and

(B) the student is not an independent student.

(g) Student contribution from available income

(1) In general

The student contribution from available income is equal to-

(A) the student's total income (determined in accordance with section 1087vv of this title); minus

(B) the adjustment to student income (determined in accordance with paragraph (2)); multiplied by

except that the amount determined under this subsection shall not be less than zero.

(2) Adjustment to student income

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

(A) Federal income taxes of the student;

(B) an allowance for State and other income taxes (determined in accordance with paragraph (3));

(D) an income protection allowance of the following amount (or a successor amount prescribed by the Secretary under section 1087rr of this title)-

(i) for academic year 2009–2010, $3,750;

(ii) for academic year 2010–2011, $4,500;

(iii) for academic year 2011–2012, $5,250; and

(iv) for academic year 2012–2013, $6,000;

(E) the amount of any tax credit taken by the student under section 25A of title 26; and

(F) an allowance for parents' negative available income, determined in accordance with paragraph (6).

(3) Allowance for State and other income taxes

The allowance for State and other income 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
If the students' State or territory of residence is-	The percentage is-
Alaska, American Samoa, Florida, Guam, Nevada, South Dakota, Tennessee, Texas, Trust Territory, Virgin Islands, Washington, Wyoming	0
Connecticut, Louisiana, Puerto Rico	1
Arizona, New Hampshire, New Mexico, North Dakota	2
Alabama, Colorado, Illinois, Indiana, Kansas, Mississippi, Missouri, Montana, Nebraska, New Jersey, Oklahoma	3
Arkansas, Georgia, Iowa, Kentucky, Maine, Pennsylvania, Utah, Vermont, Virginia, West Virginia, Canada, Mexico	4
California, Idaho, Massachusetts, North Carolina, Ohio, Rhode Island, South Carolina	5
Hawaii, Maryland, Michigan, Wisconsin	6
Delaware, District of Columbia, Minnesota, Oregon	7
New York	8
Other	4

(4) Allowance for social security taxes

The allowance for social security taxes is equal to the amount earned by the student multiplied by the social security withholding rate appropriate to the tax year of the earnings, up to the maximum statutory social security tax withholding amount for that same tax year.

(5) Assessment of available income

The student's available income (determined in accordance with paragraph (1) of this subsection) is assessed at 50 percent.

(6) 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 subparagraphs (A) through (F) of subsection (c)(1) exceeds the sum of the parents' total income (as defined in section 1087vv of this title) and the parents' contribution from assets (as determined in accordance with subsection (d)).

(h) Student contribution from assets

The student contribution from assets is determined by calculating the net assets of the student and multiplying such amount by 20 percent, except that the result shall not be less than zero.

(i) Adjustments to parents' contribution for enrollment periods other than 9 months for purposes other than subpart 2 of part A of this subchapter

For periods of enrollment other than 9 months, the parents' contribution from adjusted available income (as determined under subsection (b)) is determined as follows for purposes other than subpart 2 of part A of this subchapter:

(1) For periods of enrollment less than 9 months, the parents' contribution from adjusted available income is divided by 9 and the result multiplied by the number of months enrolled.

(2) For periods of enrollment greater than 9 months-

(A) the parents' adjusted available income (determined in accordance with subsection (b)(1)) is increased by the difference between the income protection allowance (determined in accordance with subsection (c)(4)) for a family of four and a family of five, each with one child in college;

(B) the resulting revised parents' adjusted available income is assessed according to subsection (e) and adjusted according to subsection (b)(3) to determine a revised parents' contribution from adjusted available income;

(C) the original parents' contribution from adjusted available income is subtracted from the revised parents' contribution from adjusted available income, and the result is divided by 12 to determine the monthly adjustment amount; and

(D) the original parents' contribution from adjusted available income is increased by the product of the monthly adjustment amount multiplied by the number of months greater than 9 for which the student will be enrolled.

(j) Adjustments to student's contribution for enrollment periods of less than nine months

For periods of enrollment of less than 9 months, the student's contribution from adjusted available income (as determined under subsection (g)) is determined, for purposes other than subpart 2 of part A, by dividing the amount determined under such subsection by 9, and multiplying the result by the number of months in the period of enrollment.

(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 .)

Amendment of Section

Pub. L. 116–260, div. FF, title VII, §§701(b), 702(d), Dec. 27, 2020, 134 Stat. 3137 , 3141; Pub. L. 117–103, div. R, §102(a), Mar. 15, 2022, 136 Stat. 819 ; Pub. L. 118–40, div. B, §101(a), Mar. 1, 2024, 138 Stat. 18 , provided that, effective July 1, 2024, except as otherwise expressly provided, and applicable with respect to award year 2024–2025 and each subsequent award year, as determined under this chapter, this section is amended to read as follows:

§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

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
If the age of the oldest parent is-	two parents	one parent

(1)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.

See 2020 and 2024 Amendment notes below.

Editorial Notes

Amendments

2024-Subsec. (g)(1). Pub. L. 118–40 amended par. (1) generally. Prior to amendment, text read as follows: "The student's available income is equal to-

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

"(B) 50 percent."

2020-Pub. L. 116–260 amended section generally. Prior to amendment, section related to family contribution for dependent students.

2009-Subsec. (c)(5)(B). Pub. L. 111–39 made technical amendment to reference in original act which appears in text as reference to section 2 of title 26.

2007-Subsec. (g)(2)(D). Pub. L. 110–84 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 section 1087rr of this title);".

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

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

1998-Subsec. (b)(3). Pub. L. 105–244, §473(a), 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.

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

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

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

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

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

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

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

Subsec. (f)(3). Pub. L. 103–208, §2(g)(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".

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

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

1992-Pub. L. 102–325 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.

1987-Subsec. (c)(2), (4). Pub. L. 100–50, §14(1), substituted "section 1087rr of this title" for "section 1087ss of this title".

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

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

Subsec. (d)(2)(C). Pub. L. 100–50, §14(1), substituted "section 1087rr of this title" for "section 1087ss of this title".

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".

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

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

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

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

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

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

Subsec. (h). Pub. L. 100–50, §14(11), 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

"(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 section 1087vv(e) of this title)."

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

Statutory Notes and Related Subsidiaries

Effective Date of 2024 Amendment

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

Effective Date of 2020 Amendment

Amendment by Pub. L. 116–260 effective July 1, 2024, 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 section 701(b) of Pub. L. 116–260, set out as a note under section 1001 of this title.

Effective Date of 2009 Amendment

Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.

Effective Date of 2007 Amendment

Pub. L. 110–84, title VI, §601(e), Sept. 27, 2007, 121 Stat. 804 , provided that: "The amendments made by this section [amending this section and sections 1087pp, 1087qq, and 1087rr of this title] shall be effective on July 1, 2009."

Effective Date of 2006 Amendment

Amendment by Pub. L. 109–171 effective July 1, 2006, except as otherwise provided, see section 8001(c) of Pub. L. 109–171, set out as a note under section 1002 of this title.

Pub. L. 109–171, title VIII, §8017(a)(2), Feb. 8, 2006, 120 Stat. 173 , provided that: "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 July 1, 2007."

Effective Date of 1998 Amendment

Amendment by Pub. L. 105–244, effective Oct. 7, 1998, and applicable with respect to determinations of need under this part for academic years beginning on or after July 1, 2000, see section 480A of Pub. L. 105–244, set out as a note under section 1087kk of this title.

Effective Date of 1993 Amendment

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

Effective Date of 1992 Amendment

Amendment by Pub. L. 102–325 applicable with respect to determinations of need under this part for award years beginning on or after July 1, 1993, see section 471(b) of Pub. L. 102–325, set out as a note under section 1087kk of this title.

Effective Date of 1987 Amendment

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