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federal register

Thursday
May 29, 1997

Part V

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; Revision of the Need Analysis
Methodology for the 1998–99 Award Year;
Notice

29271
29272 Federal Register / Vol. 62, No. 103 / Thursday, May 29, 1997 / Notices

DEPARTMENT OF EDUCATION 5444, telephone (202) 708–8242. Deaf Consumers for the period December
and hearing impaired individuals may 1996 through December 1997 will be 2.4
Federal Pell Grant, Federal Perkins call the Federal Information Relay percent. The updated tables for the
Loan, Federal Work-Study, Federal Service at 1–800–877–8339 between 8 1998–99 award year are set forth in
Supplemental Educational Opportunity a.m. and 8 p.m., Eastern time, Monday sections 1, 2, and 4.
Grant, Federal Family Education Loan, through Friday. The Secretary must also revise, for
and William D. Ford Federal Direct SUPPLEMENTARY INFORMATION: Part F of each award year, the table on asset
Loan Programs; Revision of the Need Title IV of the Higher Education Act of protection allowance as provided for in
Analysis Methodology for the 1998–99 1965, as amended (HEA), specifies the section 478(d). The Education Savings
Award Year criteria, data elements, calculations and and Asset Protection Allowance table
AGENCY: Department of Education. tables used in the Federal Needs for the award year 1998–99 has been
ACTION: Notice. Analysis Methodology EFC calculations. updated below in section 3.
Section 478 in Part F requires the Section 477(b)(5) of Part F also
SUMMARY: The Secretary of Education Secretary to adjust four of the tables— requires the Secretary to increase the
announces the annual updates to the the Income Protection Allowance, the amount specified for the Employment
tables that will be used in the statutory Adjusted Net Worth of a Business or Expense Allowance to account for
‘‘Federal Needs Analysis Methodology’’ Farm, the Education Savings and Asset inflation based upon increases in the
to determine a student’s expected family Protection Allowance, and the Bureau of Labor Statistics budget of the
contribution (EFC) for award year 1998– Assessment Schedules and Rates—each marginal costs for a two-earner
99 for the Title IV, HEA student award year to take into account compared to a one-earner family for
financial assistance programs (Title IV, inflation. The changes are based, in meals away from home, apparel and
HEA Programs). An EFC is the amount general, upon increases in the Consumer upkeep, transportation, and
a student and his or her family may Price Index. housekeeping services. Therefore, the
reasonably be expected to contribute For the award year 1998–99, the
Secretary is increasing this allowance as
toward the student’s postsecondary Secretary is charged with updating the
described in section 5.
educational costs. The Title IV, HEA income protection allowances, adjusted
Programs include the Federal Pell Grant, net worth of a business or farm, and the The HEA provides for the following
campus-based (Federal Perkins Loan, assessment schedules and rates to annual updates:
Federal Work Study, and Federal account for inflation that took place 1. Income Protection Allowance. This
Supplemental Educational Opportunity between December 1996 and December allowance is the amount of reasonable
Grant Programs), Federal Family 1997. However, since the Secretary must living expenses that would be
Education Loan, and William D. Ford publish these tables before December associated with the maintenance of an
Federal Direct Loan Programs. 1997, the increases in the tables must be individual or family. The allowance is
FOR FURTHER INFORMATION CONTACT: Ms. based upon a percentage equal to the offset against the family’s income and
Edith Bell, Program Specialist, General estimated percentage increase in the varies by family size. The income
Provisions Branch, Policy Development Consumer Price Index for all Urban protection allowances for parents of
Division, U.S. Department of Education, Consumers for 1996. The Secretary dependent students and independent
600 Independence Avenue, S.W. (Room estimates that the increase in the students with dependents other than a
3053, ROB–3), Washington, D.C. 20202– Consumer Price Index for all Urban spouse for the award year 1998–99 are:

Number in college
Family size (including student)
1 2 3 4 5

2 ............................................................................................ $12,030 $9,980 ........................ ........................ ........................


3 ............................................................................................ 14,990 12,940 $10,880 ........................ ........................
4 ............................................................................................ 18,510 16,450 14,400 $12,340 ........................
5 ............................................................................................ 21,840 19,780 17,730 15,670 $13,630
6 ............................................................................................ 25,550 23,490 21,440 19,380 17,330
For each additional family member add $2,880.
For each additional college student subtract $2,050.

2. Adjusted Net Worth (NW) of a already assessed in another part of the This schedule is used for parents of
Business or Farm. A portion of the full formula; and (2) the formula protects a dependent students, independent
net value of a farm or business is portion of the value of the assets. The students without dependents other than
excluded from the calculation of an portion of these assets included in the a spouse, and independent students
expected contribution since: (1) the contribution calculation is computed with dependents other than a spouse.
income produced from such assets is according to the following schedule.

If the net worth of a business or farm is— Then the adjusted net worth is:

Less than $1 ............................................................................................................................................. $0.


$1 to $85,000 ........................................................................................................................................... 40% of NW.
$85,001 to $255,000 ................................................................................................................................ $34,000+50% of NW over $85,000.
$255,001 to $430,000 .............................................................................................................................. $119,000+60% of NW over $255,000.
$430,001 or more ..................................................................................................................................... $224,000+100% of NW over $430,000.
Federal Register / Vol. 62, No. 103 / Thursday, May 29, 1997 / Notices 29273

3. Education Savings and Asset INDEPENDENT STUDENTS WITHOUT INDEPENDENT STUDENTS WITH DE-
Protection Allowance. This allowance DEPENDENTS OTHER THAN A SPOUSE PENDENTS OTHER THAN A
protects a portion of net worth (assets SPOUSE—Continued
less debts) from being considered And the student is
If the age of the
available for postsecondary educational student is And the student is
Married Single If the age of the
expenses. There are three asset student is
protection allowance tables—one for Married Single
Then the education sav-
parents of dependent students, one for ings and asset protec- 29 ...................... 9,700 6,600
independent students without tion allowance is— 30 ...................... 12,100 8,200
dependents other than a spouse, and 31 ...................... 14,500 9,800
one for independent students with 25 or less .......... 0 0 32 ...................... 16,900 11,500
dependents other than a spouse. 26 ...................... 2,400 1,600 33 ...................... 19,400 13,100
27 ...................... 4,800 3,300 34 ...................... 21,800 14,800
28 ...................... 7,300 4,900 35 ...................... 24,200 16,400
DEPENDENT STUDENTS 29 ...................... 9,700 6,600 36 ...................... 26,600 18,000
30 ...................... 12,100 8,200 37 ...................... 29,000 19,700
And there are 31 ...................... 14,500 9,800
If the age of the 38 ...................... 31,500 21,300
older parent is 32 ...................... 16,900 11,500 39 ...................... 33,900 23,000
Two parents One parent 33 ...................... 19,400 13,100 40 ...................... 36,300 24,600
34 ...................... 21,800 14,800 41 ...................... 37,300 25,200
Then the education sav-
35 ...................... 24,200 16,400 42 ...................... 38,200 26,700
ings and asset protec-
36 ...................... 26,600 18,000 43 ...................... 39,200 26,300
tion allowance is—
37 ...................... 29,000 19,700 44 ...................... 40,200 26,900
38 ...................... 31,500 21,300 45 ...................... 41,200 27,400
25 or less .......... 0 0
39 ...................... 33,900 23,000 46 ...................... 42,300 28,100
26 ...................... 2,400 1,600 40 ...................... 36,300 24,600
27 ...................... 4,800 3,300 47 ...................... 43,300 28,800
41 ...................... 37,300 25,200 48 ...................... 44,400 29,300
28 ...................... 7,300 4,900 42 ...................... 38,200 26,700
29 ...................... 9,700 6,600 49 ...................... 45,500 30,000
43 ...................... 39,200 26,300 50 ...................... 46,700 30,700
30 ...................... 12,100 8,200 44 ...................... 40,200 26,900 51 ...................... 48,100 31,500
31 ...................... 14,500 9,800 45 ...................... 41,200 27,400 52 ...................... 49,400 32,200
32 ...................... 16,900 11,500 46 ...................... 42,300 28,100 53 ...................... 50,900 33,000
33 ...................... 19,400 13,100 47 ...................... 43,300 28,800 54 ...................... 52,100 33,800
34 ...................... 21,800 14,800 48 ...................... 44,400 29,300 55 ...................... 53,700 34,700
35 ...................... 24,200 16,400 49 ...................... 45,500 30,000 56 ...................... 55,400 35,600
36 ...................... 26,600 18,000 50 ...................... 46,700 30,700 57 ...................... 57,100 36,400
37 ...................... 29,000 19,700 51 ...................... 48,100 31,500 58 ...................... 58,800 37,500
38 ...................... 31,500 21,300 52 ...................... 49,400 32,200 59 ...................... 60,600 38,500
39 ...................... 33,900 23,000 53 ...................... 50,900 33,000 60 ...................... 62,400 39,400
54 ...................... 52,100 33,800 61 ...................... 64,500 40,500
40 ...................... 36,300 24,600
55 ...................... 53,700 34,700 62 ...................... 66,800 41,700
41 ...................... 37,300 25,200 56 ...................... 55,400 35,600
42 ...................... 38,200 26,700 63 ...................... 68,700 42,900
57 ...................... 57,100 36,400 64 ...................... 71,100 44,000
43 ...................... 39,200 26,300 58 ...................... 58,800 37,500
44 ...................... 40,200 26,900 65 and over ....... 73,500 45,500
59 ...................... 60,600 38,500
45 ...................... 41,200 27,400 60 ...................... 62,400 39,400
46 ...................... 42,300 28,100 61 ...................... 64,500 4. Assessment Schedules and Rates.
40,500
47 ...................... 43,300 28,800 62 ...................... 66,800 Two separate assessment schedules—
41,700
48 ...................... 44,400 29,300 63 ...................... 68,700 one for dependent students, and one for
42,900
49 ...................... 45,500 30,000 64 ...................... 71,100 independent students with dependents
44,000
50 ...................... 46,700 30,700 65 and over ....... 73,500 other than a spouse—are used in
45,500
51 ...................... 48,100 31,500 determining the expected family
52 ...................... 49,400 32,200 contribution toward educational
INDEPENDENT STUDENTS WITH
53 ...................... 50,900 33,000 expenses from family financial
54 ...................... 52,100 33,800 DEPENDENTS OTHER THAN A SPOUSE resources.
55 ...................... 53,700 34,700 For dependent students, the expected
56 ...................... 55,400 35,600 And the student is
If the age of the parental contribution is derived from an
57 ...................... 57,100 36,400 student is assessment of the parents’ adjusted
Married Single
58 ...................... 58,800 37,500 available income (AAI). For
59 ...................... 60,600 38,500 Then the education sav- independent students with dependents
60 ...................... 62,400 39,400 ings and asset protec- other than a spouse, the expected
61 ...................... 64,500 40,500 tion allowance is—
contribution is derived from an
62 ...................... 66,800 41,700
63 ...................... 68,700 42,900 25 or less .......... 0 0 assessment of the family’s AAI. The AAI
64 ...................... 71,100 44,000 26 ...................... 2,400 1,600 represents a measure of financial
65 and over ....... 73,500 45,500 27 ...................... 4,800 3,300 strength which considers both income
28 ...................... 7,300 4,900 and assets.

If AAI is— Then the contribution is—

Less than ¥$3,409 .................................................................................................................................. ¥$750.


¥$3,409 to $10,800 ................................................................................................................................. 22% of AAI.
$10,801 to $13,500 .................................................................................................................................. $2,376 + 25% of AAI over $10,800.
$13,501 to $16,200 .................................................................................................................................. $3,051 + 29% of AAI over $13,500.
29274 Federal Register / Vol. 62, No. 103 / Thursday, May 29, 1997 / Notices

If AAI is— Then the contribution is—

$16,201 to $19,000 .................................................................................................................................. $3,834 + 34% of AAI over $16,200.


$19,001 to $21,700 .................................................................................................................................. $4,786 + 40% of AAI over $19,000.
$21,701 or more ....................................................................................................................................... $5,866 + 47% of AAI over $21,700.

If AAI is— Then the contribution is—

Less than ¥$3,409 .................................................................................................................................. ¥$750.


¥$3,409 to $10,800 ................................................................................................................................. 22% of AAI.
$10,801 to $13,500 .................................................................................................................................. $2,376 + 25% of AAI over $10,800.
$13,501 to $16,200 .................................................................................................................................. $3,051 + 29% of AAI over $13,500.
$16,201 to $19,000 .................................................................................................................................. $3,834 + 34% of AAI over $16,200.
$19,001 to $21,700 .................................................................................................................................. $4,786 + 40% of AAI over $19,000.
$21,701 or more ....................................................................................................................................... $5,866 + 47% of AAI over $21,700.

5. Employment Expense Allowance. PARENTS OF DEPENDENT STUDENTS— INDEPENDENT STUDENTS WITH


This allowance for employment-related Continued DEPENDENTS OTHER THAN A SPOUSE
expenses, which is used for the parents
of dependent students and for married And parents’ total income And student’s total in-
independent students with dependents, If parents’ State is— If student’s State come is—
recognizes additional expenses incurred or territory of or territory of
residence is Less than $15,000 or residence is Less than $15,000 or
by working spouses and single-parent $15,000 more $15,000 more
households. The allowance is based
upon the marginal differences in costs Alabama, Mis- Then the percentage is—
for a two-earner family compared to a sissippi ........... 5 4
one-earner family for meals away from North Dakota, Il- Wyoming, Ten-
home, apparel and upkeep, linois, Con- nessee, Ne-
transportation, and housekeeping necticut, New vada, Alaska,
Mexico, Mis- Texas ............. 3 2
services.
souri, West Louisiana, Flor-
The employment expense allowance Virginia, Ari- ida, Washing-
for parents of dependent students, zona, Indiana, ton, South Da-
married independent students without Oklahoma, Ar- kota ................ 4 3
dependents other than a spouse, and kansas ........... 6 5 Alabama, Mis-
independent students with dependents New Hampshire, sissippi ........... 5 4
Pennsylvania, North Dakota, Il-
other than a spouse is the lesser of
Colorado, linois, Con-
$2,800 or 35 percent of earned income. necticut, New
Georgia, Kan-
6. Allowance for State and Other sas, Kentucky, Mexico, Mis-
Taxes. This allowance for state and Idaho .............. 7 6 souri, West
other taxes protects a portion of the North Carolina, Virginia, Ari-
parents’ and student’s income from Virginia, Dela- zona, Indiana,
ware, South Oklahoma, Ar-
being considered available for
Carolina, Ohio, kansas ........... 6 5
postsecondary education expenses. New Hampshire,
There are four tables for state and other Utah, Ne-
braska, Mon- Pennsylvania,
taxes, one each for parents of dependent tana, Califor- Colorado,
students, dependent students, nia, New Jer- Georgia, Kan-
independent students without sey, Iowa, sas, Kentucky,
dependents other than a spouse, and Vermont, Ha- Idaho .............. 7 6
independent students with dependents waii ................ 8 7 North Carolina,
other than a spouse. Massachusetts, Virginia, Dela-
Rhode Island, ware, South
Michigan, Min- Carolina, Ohio,
PARENTS OF DEPENDENT STUDENTS Utah, Ne-
nesota, Maine,
Maryland ........ 9 8 braska, Mon-
And parents’ total income tana, Califor-
If parents’ State is— District of Co-
or territory of lumbia, Wis- nia, New Jer-
residence is Less than $15,000 or consin, Or- sey, Iowa,
$15,000 more egon ............... 10 9 Vermont, Ha-
waii ................ 8 7
New York .......... 11 10
Then the percentage is— Massachusetts,
Other ................. 4 3
Rhode Island,
Wyoming, Ten- Michigan, Min-
nessee, Ne- nesota, Maine,
vada, Alaska, Maryland ........ 9 8
Texas ............. 3 2 District of Co-
Louisiana, Flor- lumbia, Wis-
ida, Washing- consin, Or-
ton, South Da- egon ............... 10 9
kota ................ 4 3 New York .......... 11 10
Federal Register / Vol. 62, No. 103 / Thursday, May 29, 1997 / Notices 29275

INDEPENDENT STUDENTS WITH DE- DEPENDENT STUDENTS—Continued INDEPENDENT STUDENTS WITHOUT DE-
PENDENTS OTHER THAN A PENDENTS OTHER THAN A
SPOUSE—Continued The per- SPOUSE—Continued
If student’s State or territory of resi- centage
dence is is—
And student’s total in- The per-
If student’s State or territory of resi-
If student’s State come is— Montana, Idaho, Utah, Kentucky, centage
dence is
or territory of Massachusetts, California, North is—
residence is Less than $15,000 or
$15,000 more Carolina, South Carolina, Ohio,
Montana, Idaho, Utah, Kentucky,
Iowa, Delaware, Maine, Wiscon-
Massachusetts, California, North
Other ................. 4 3 sin ................................................ 5
Oregon, Maryland, Minnesota, Ha- Carolina, South Carolina, Ohio,
waii .............................................. 6 Iowa, Delaware, Maine, Wiscon-
District of Columbia, New York ...... 7 sin ................................................ 5
DEPENDENT STUDENTS Oregon, Maryland, Minnesota, Ha-
Other ............................................... 2
waii .............................................. 6
The per- District of Columbia, New York ...... 7
If student’s State or territory of resi- centage INDEPENDENT STUDENTS WITHOUT
dence is Other ............................................... 2
is—
DEPENDENTS OTHER THAN A SPOUSE
Alaska, Texas, South Dakota, Wyo- Dated: May 23, 1997.
ming, Washington, Tennessee, The per- David A. Longanecker,
If student’s State or territory of resi-
Nevada ........................................ 0 centage
dence is Assistant Secretary for Postsecondary
is—
Florida, New Hampshire ................. 1 Education.
Connecticut, Louisiana, Illinois, Alaska, Texas, South Dakota, Wyo- (Catalog of Federal Domestic Assistance
North Dakota ............................... 2 ming, Washington, Tennessee, Numbers: 84.007 Federal Supplemental
Mississippi, Arizona, Alabama, Nevada ........................................ 0
Pennsylvania, New Jersey, Mis- Educational Opportunity Grant; 84.032
Florida, New Hampshire ................. 1
souri ............................................. 3 Federal Family Education Loan Program;
Connecticut, Louisiana, Illinois,
Nebraska, Indiana, Colorado, New North Dakota ............................... 2 84.033 Federal Work-Study Program; 84.038
Mexico, Oklahoma, Kansas, Mississippi, Arizona, Alabama, Federal Perkins Loan Program; 84.063
West Virginia, Rhode Island, Vir- Pennsylvania, New Jersey, Mis- Federal Pell Grant Program; William D. Ford
ginia, Georgia, Arkansas, Ver- souri ............................................. 3 Federal Direct Loan Program, 84.268)
mont, Michigan ............................ 4 Nebraska, Indiana, Colorado, New
[FR Doc. 97–14068 Filed 5–28–97; 8:45 am]
Mexico, Oklahoma, Kansas,
West Virginia, Rhode Island, Vir- BILLING CODE 4000–01–P
ginia, Georgia, Arkansas, Ver-
mont, Michigan ............................ 4