20 USC 1087 - Amount of need

Collapse to view only § 1087kk. Amount of need

§ 1087kk. Amount of need
§ 1087ll. Cost of attendance
§ 1087mm. Special rules for student aid index
§ 1087nn. Determination of student aid index
§ 1087oo. Student aid index for dependent students
§ 1087pp. Student aid index for independent students without dependents other than a spouse
§ 1087qq. Student aid index for independent students with dependents other than a spouse
§ 1087rr. Regulations; updated tables
§ 1087ss. Eligible applicants exempt from asset reporting
§ 1087tt. Discretion of student financial aid administrators
§ 1087uu. Disregard of student aid in other programs
§ 1087uu-1. Native American students
§ 1087uu-2. Special rules for independent students
§ 1087vv. Definitions

§ 1087kk. Amount of need

Except as otherwise provided therein, for award year 2024–2025 and each subsequent award year, the amount of need of any student for financial assistance under this subchapter (except subpart 1 or 2 of part A) is equal to—

(1) the cost of attendance of such student, minus

(2) the student aid index (as defined in section 1087mm of this title) for such student, minus

(3) other financial assistance not received under this subchapter (as defined in section 1087vv(i) of this title).

(Pub. L. 89–329, title IV, § 471, as added Pub. L. 99–498, title IV, § 406(a), Oct. 17, 1986, 100 Stat. 1454; amended Pub. L. 102–325, title IV, § 471(a), July 23, 1992, 106 Stat. 585; Pub. L. 105–244, title IV, § 480(a), Oct. 7, 1998, 112 Stat. 1732; Pub. L. 116–260, div. FF, title VII, § 702(a)(1), Dec. 27, 2020, 134 Stat. 3138; Pub. L. 117–103, div. R, § 102(b)(2), Mar. 15, 2022, 136 Stat. 819.)

§ 1087ll. Cost of attendance

(a) In generalFor the purpose of this subchapter, the term “cost of attendance” means—

(1) tuition and fees normally assessed a student carrying the same academic workload as determined by the institution;

(2) an allowance for books, course materials, supplies, and equipment, which shall include all such costs required of all such students in the same course of study, including a reasonable allowance for the documented rental or upfront purchase of a personal computer, as determined by the institution;

(3) an allowance for transportation, which may include transportation between campus, residences, and place of work, as determined by the institution;

(4) an allowance for miscellaneous personal expenses, for a student attending the institution on at least a half-time basis, as determined by the institution;

(5) an allowance for living expenses, including food and housing costs, to be incurred by the student attending the institution on at least a half-time basis, as determined by the institution, which shall include—

(A) for a student electing institutionally owned or operated food services, such as board or meal plans, a standard allowance for such services that provides the equivalent of three meals each day;

(B) for a student not electing institutionally owned or operated food services, such as board or meal plans, a standard allowance for purchasing food off campus that provides the equivalent of three meals each day;

(C) for a student without dependents residing in institutionally owned or operated housing, a standard allowance determined by the institution based on the average or median amount assessed to such residents for housing charges, whichever is greater;

(D) for a student with dependents residing in institutionally owned or operated housing, a standard allowance determined by the institution based on the average or median amount assessed to such residents for housing charges, whichever is greater;

(E) for a student living off campus, and not in institutionally owned or operated housing, a standard allowance for rent or other housing costs;

(F) for a dependent student residing at home with parents, a standard allowance that shall not be zero determined by the institution;

(G) for a student living in housing located on a military base or for which a basic allowance is provided under section 403(b) of title 37, a standard allowance for food based upon such student’s choice of purchasing food on-campus or off-campus (determined respectively in accordance with subparagraph (A) or (B)), but not for housing costs; and

(H) for all other students, an allowance based on the expenses reasonably incurred by such students for housing and food;

(6) for a student engaged in a program of study by correspondence, only tuition and fees and, if required, books and supplies, travel, and housing and food costs incurred specifically in fulfilling a required period of residential training;

(7) for a confined or incarcerated student, only tuition, fees, books, course materials, supplies, equipment, and the cost of obtaining a license, certification, or a first professional credential in accordance with paragraph (14);

(8) for a student enrolled in an academic program in a program of study abroad approved for credit by the student’s home institution, reasonable costs associated with such study (as determined by the institution at which such student is enrolled);

(9) for a student with one or more dependents, an allowance based on the estimated actual expenses incurred for such dependent care, based on the number and age of such dependents, except that—

(A) such allowance shall not exceed the reasonable cost in the community in which such student resides for the kind of care provided; and

(B) the period for which dependent care is required includes, but is not limited to, class-time, study-time, field work, internships, and commuting time;

(10) for a student with a disability, an allowance (as determined by the institution) for those expenses related to the student’s disability, including special services, personal assistance, transportation, equipment, and supplies that are reasonably incurred and not provided for by other assisting agencies;

(11) for a student receiving all or part of the student’s instruction by means of telecommunications technology, no distinction shall be made with respect to the mode of instruction in determining costs;

(12) for a student engaged in a work experience under a cooperative education program, an allowance for reasonable costs associated with such employment (as determined by the institution);

(13) for a student who receives a Federal student loan made under this subchapter or any other Federal law, to cover a student’s cost of attendance at the institution, an allowance for the actual cost of any loan fee, origination fee, or insurance premium charged to such student or the parent of such student on such loan, or the average cost of any such fee or premium, as applicable; and

(14) for a student in a program requiring professional licensure, certification, or a first professional credential, the cost of obtaining the license, certification, or a first professional credential.

(b) Special rule for living expenses for less-than-half-time students

(Pub. L. 89–329, title IV, § 472, as added Pub. L. 99–498, title IV, § 406(a), Oct. 17, 1986, 100 Stat. 1454; amended Pub. L. 102–325, title IV, § 471(a), July 23, 1992, 106 Stat. 585; Pub. L. 103–208, § 2(g)(1), Dec. 20, 1993, 107 Stat. 2471; Pub. L. 105–244, title IV, § 471, Oct. 7, 1998, 112 Stat. 1729; Pub. L. 109–171, title VIII, § 8016, Feb. 8, 2006, 120 Stat. 172; Pub. L. 110–315, title IV, § 471(a), Aug. 14, 2008, 122 Stat. 3269; Pub. L. 116–260, div. FF, title VII, § 702(b), Dec. 27, 2020, 134 Stat. 3138; Pub. L. 117–103, div. R, § 103(a), Mar. 15, 2022, 136 Stat. 820.)

§ 1087mm. Special rules for student aid index

(a) In general

(b) Special rule for students eligible for the total maximum Pell Grant

(Pub. L. 89–329, title IV, § 473, as added Pub. L. 99–498, title IV, § 406(a), Oct. 17, 1986, 100 Stat. 1455; amended Pub. L. 102–325, title IV, § 471(a), July 23, 1992, 106 Stat. 586; Pub. L. 105–244, title IV, § 480(b),

§ 1087nn. Determination of student aid index

The student aid index—

(1) for a dependent student shall be determined in accordance with section 1087oo of this title;

(2) for a single independent student or a married independent student without dependents (other than a spouse) shall be determined in accordance with section 1087pp of this title; and

(3) for an independent student with dependents other than a spouse shall be determined in accordance with section 1087qq of this title.

(Pub. L. 89–329, title IV, § 474, as added Pub. L. 99–498, title IV, § 406(a), Oct. 17, 1986, 100 Stat. 1456; amended Pub. L. 100–369, § 7(c), July 18, 1988, 102 Stat. 837; Pub. L. 102–325, title IV, § 471(a), July 23, 1992, 106 Stat. 587; Pub. L. 105–244, title IV, § 472, Oct. 7, 1998, 112 Stat. 1729; Pub. L. 116–260, div. FF, title VII, § 702(c), Dec. 27, 2020, 134 Stat. 3141.)

§ 1087oo. Student aid index for dependent students

(a) Computation of student aid index

(1) In generalExcept 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

(2) Exception

(b) Assessment of parents’ adjusted available incomeThe 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.

(1) In generalThe 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);

(D) an employment expense allowance, determined in accordance with paragraph (4).

(2) Allowance for payroll taxesThe 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

(4) Employment expense allowance

(d) Parents’ available assets

(1) In general

(A) DeterminationExcept 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

(2) Asset protection allowance

(e) Assessment schedule

(f) Consideration of parental income

(1) Parents who live together

(2) Divorced or separated parents

(3) Death of a parentParental 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

(5) Single parent who is not divorced or separated

(g) Student’s available income

(1) In generalThe 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 incomeThe 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);

(D) an allowance for parents’ negative available income, determined in accordance with paragraph (4).

(3) Allowance for payroll taxesThe 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

(h) Student’s assets

(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),

§ 1087pp. Student aid index for independent students without dependents other than a spouse

(a) Computation of student aid index

(1) In generalFor each independent student without dependents other than a spouse, the student aid index is equal to (except as provided in paragraph (2)) the sum of—

(A) the family’s available income (determined in accordance with subsection (b)); and

(B) the family’s available assets (determined in accordance with subsection (c)).

(2) Exception

(b) Family’s available income

(1) In generalThe family’s available income is determined by—

(A) deducting from total income (as defined in section 1087vv of this title)—

(i) Federal income taxes;

(ii) an allowance for payroll taxes, determined in accordance with paragraph (2);

(iii) an income protection allowance that is equal to—(I) in the case of a single independent student without dependents, $14,630, as adjusted pursuant to section 1078rr(b) of this title; and(II) in the case of a married independent student without dependents, $23,460, as adjusted pursuant to section 1078rr(b) of this title; and

(iv) in the case of a married independent student, an employment expense allowance, as determined in accordance with paragraph (3); and

(B) multiplying the amount determined under subparagraph (A) by 50 percent.

(2) Allowance for payroll taxesThe allowance for payroll taxes is equal to the sum of—

(A) the total amount earned by the student (and spouse, if appropriate), multiplied by the rate of tax under section 3101(b) of title 26; and

(B) the amount earned by the student (and spouse, if appropriate) 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) Employment expense allowanceThe employment expense allowance is equal to the following:

(A) If the student is married, such allowance is equal to the lesser of $4,000 or 35 percent of the couple’s combined earned income (as adjusted by the Secretary pursuant to section 1087rr(g) of this title).

(B) If the student is not married, the employment expense allowance is zero.

(1) In general

(A) DeterminationExcept as provided in subparagraph (B), the family’s available assets are equal to—

(i) the difference between the family’s assets (as defined in section 1087vv(f) of this title) and the asset protection allowance (determined in accordance with paragraph (2)); multiplied by

(ii) 20 percent.

(B) Not less than zero

(2) Asset protection allowance

(d) Computations in case of separation, divorce, or death

(Pub. L. 89–329, title IV, § 476, as added Pub. L. 99–498, title IV, § 406(a), Oct. 17, 1986, 100 Stat. 1463; amended Pub. L. 100–50, § 14(1), (3), (4), (13)–(17), June 3, 1987, 101 Stat. 349, 351; Pub. L. 102–325, title IV, § 471(a), July 23, 1992, 106 Stat. 594; Pub. L. 103–208, § 2(g)(6), Dec. 20, 1993, 107 Stat. 2472; Pub. L. 105–78, title VI, § 609(h), Nov. 13, 1997, 111 Stat. 1524; Pub. L. 105–244, title IV, § 474, Oct. 7, 1998, 112 Stat. 1730; Pub. L. 109–171, title VIII, § 8017(b)(1), Feb. 8, 2006, 120 Stat. 173; Pub. L. 110–84, title VI, § 601(b), Sept. 27, 2007, 121 Stat. 801; Pub. L. 116–260, div. FF, title VII, § 702(e), Dec. 27, 2020, 134 Stat. 3145.)

§ 1087qq. Student aid index for independent students with dependents other than a spouse

(a) Computation of student aid index

(1) In generalFor each independent student with dependents other than a spouse, the student aid index is equal to the amount determined by—

(A) computing adjusted available income by adding—

(i) the family’s available income (determined in accordance with subsection (b)); and

(ii) the family’s available assets (determined in accordance with subsection (c));

(B) assessing such adjusted available income in accordance with an assessment schedule set forth in subsection (d); and

(2) Exception

(b) Family’s available income

(1) In generalThe 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 payroll taxes, determined in accordance with paragraph (2);

(D) an employment expense allowance, determined in accordance with paragraph (4).

(2) Allowance for payroll taxesThe allowance for payroll taxes is equal to the sum of—

(A) the total amount earned by the student (and spouse, if appropriate), multiplied by the rate of tax under section 3101(b) of title 26; and

(3) Income protection allowanceThe income protection allowance shall equal the amount determined in the following table, as adjusted by the Secretary pursuant to section 1078rr(b) of this title:

(A) In the case of a married independent student with dependents:

Income Protection Allowance (to be adjusted for 2023–2024 and succeeding years)
Family Size (including student)	Amount
3	$46,140
4	$56,970
5	$67,230
6	$78,620
For each additional add	$8,880.

(B) In the case of a single independent student with dependents:

Income Protection Allowance (to be adjusted for 2023–2024 and succeeding years)
Family Size (including student)	Amount
2	$43,920
3	$54,690
4	$67,520
5	$79,680
6	$93,180
For each additional add	$10,530.

(4) Employment expense allowance

(1) In general

(A) DeterminationExcept as provided in subparagraph (B), the family’s available assets are equal to—

(i) the difference between the family’s assets (as defined in 1087vv(f) of this title) and the asset protection allowance (determined in accordance with paragraph (2)); multiplied by

(ii) 7 percent.

(B) Not less than zero

(2) Asset protection allowance

(d) Assessment schedule

(e) Computations in case of separation, divorce, or death

(Pub. L. 89–329, title IV, § 477, as added Pub. L. 99–498, title IV, § 406(a), Oct. 17, 1986, 100 Stat. 1465; amended Pub. L. 100–50, § 14(1)–(6), (8), (18), (19), June 3, 1987, 101 Stat. 349–351; Pub. L. 102–325, title IV, § 471(a), July 23, 1992, 106 Stat. 597; Pub. L. 103–208, § 2(g)(2), (7), Dec. 20, 1993, 107 Stat. 2472; Pub. L. 105–78, title VI, § 609(i), Nov. 13, 1997, 111 Stat. 1524; Pub. L. 105–244, title IV, § 475, Oct. 7, 1998, 112 Stat. 1730; Pub. L. 109–171, title VIII, § 8017(c)(1), Feb. 8, 2006, 120 Stat. 173; Pub. L. 110–84, title VI, § 601(c), Sept. 27, 2007, 121 Stat. 802; Pub. L. 111–39, title IV, § 406(a)(3), July 1, 2009, 123 Stat. 1948; Pub. L. 116–260, div. FF, title VII, § 702(f), Dec. 27, 2020, 134 Stat. 3147.)

§ 1087rr. Regulations; updated tables

(a) Authority to prescribe regulations restricted

Notwithstanding any other provision of law, the Secretary shall not have the authority to prescribe regulations to carry out this part except—

(1) to prescribe updated tables in accordance with subsections (b) through (g); and

(2) with respect to the definition of cost of attendance under section 1087ll of this title, excluding section 1087ll(a)(1) of this title.

(b) Income protection allowance adjustments

(1) Table

(2) Revised tables

For award year 2023–2024 and each subsequent award year, the Secretary shall publish in the Federal Register a revised table of the adjusted net worth of a farm or business for purposes of section 1087vv(f) of this title. Such revised table shall be developed—

(A) by increasing each dollar amount that refers to net worth of a farm or business by a percentage equal to the percentage increase in the Consumer Price Index between April 2020 and the April in the year prior to the beginning of such award year, and rounding the result to the nearest $5,000; and

(B) by adjusting the dollar amounts in the column referring to the adjusted net worth to reflect the changes made pursuant to subparagraph (A).

(d) Asset protection allowance

For award year 2023–2024 and each subsequent award year, the Secretary shall publish in the Federal Register a revised table of allowances for the purpose of sections 1087oo(d)(2), 1087pp(c)(2), and 1087qq(c)(2) of this title. Such revised table shall be developed by determining the present value cost, rounded to the nearest $100, of an annuity that would provide, for each age cohort of 40 and above, a supplemental income at age 65 (adjusted for inflation) equal to the difference between the moderate family income (as most recently determined by the Bureau of Labor Statistics), and the current average social security retirement benefits. For each age cohort below 40, the allowance shall be computed by decreasing the allowance for age 40, as updated, by one-fifteenth for each year of age below age 40 and rounding the result to the nearest $100. In making such determinations—

(1) the tables of allowances specified in sections 1087oo(d)(2), 1087pp(c)(2), and 1087qq(c)(2) of this title shall be considered to be for award year 2021–2022 for the purposes of calculating inflation;

(2) inflation shall be presumed to be 6 percent per year;

(3) the rate of return of an annuity shall be presumed to be 8 percent; and

(4) the sales commission on an annuity shall be presumed to be 6 percent.

(e) Assessment schedules and rates

For award year 2023–2024 and each subsequent award year, the Secretary shall publish in the Federal Register a revised table of assessments from adjusted available income for the purpose of sections 1087oo(e) and 1087qq(d) of this title. Such revised table shall be developed—

(1) by increasing each dollar amount that refers to adjusted available income by a percentage equal to the percentage increase in the Consumer Price Index between April 2020 and the April in the year prior to the beginning of such academic year, rounded to the nearest $100; and

(2) by adjusting the other dollar amounts to reflect the changes made pursuant to paragraph (1).

(f) Consumer price index defined

(g) Employment expense allowance

(h) Clarification for award year 2023–2024

(Pub. L. 89–329, title IV, § 478, as added Pub. L. 99–498, title IV, § 406(a), Oct. 17, 1986, 100 Stat. 1470; amended Pub. L. 100–50, § 14(20)–(22), June 3, 1987, 101 Stat. 351, 352; Pub. L. 102–325, title IV, § 471(a), July 23, 1992, 106 Stat. 602; Pub. L. 103–208, § 2(g)(8), (9), Dec. 20, 1993, 107 Stat. 2472; Pub. L. 105–244, title IV, § 476, Oct. 7, 1998, 112 Stat. 1730; Pub. L. 109–171, title VIII, § 8017(d), (e), Feb. 8, 2006, 120 Stat. 173, 174; Pub. L. 110–84, title VI, § 601(d), Sept. 27, 2007, 121 Stat. 803; Pub. L. 116–260, div. FF, title VII, § 702(g), Dec. 27, 2020, 134 Stat. 3150.)

§ 1087ss. Eligible applicants exempt from asset reporting

(a) In general

(b) Applicants exempt from asset reporting

(1) In general

(2) Eligible applicantsIn this subsection, the term “eligible applicant” means an applicant who meets at least one of the following criteria:

(A) Is an applicant who qualifies for an automatic zero student aid index or negative student aid index under subsection (b) or (c) of section 1087mm of this title.

(B) Is an applicant who is a dependent student and the student’s parents have a total adjusted gross income (excluding any income of the dependent student) that is less than $60,000 and do not file a Schedule A, B, D, E, F, or H (or equivalent successor schedules) with the Federal income tax return for the second preceding tax year, and—

(i) do not file a Schedule C (or the equivalent successor schedule) with the Federal income tax return for the second preceding tax year; or

(ii) file a Schedule C (or the equivalent successor schedule) with net business income of not more than a $10,000 loss or gain with the Federal income tax return for the second preceding tax year.

(C) Is an applicant who is an independent student and the student (including the student’s spouse, if any) has a total adjusted gross income that is less than $60,000 and does not file a Schedule A, B, D, E, F, or H (or equivalent successor schedules), with the Federal income tax return for the second preceding tax year, and—

(i) does not file a Schedule C (or the equivalent successor schedule) with the Federal income tax return for the second preceding tax year; or

(ii) files a Schedule C (or the equivalent successor schedule) with net business income of not more than a $10,000 loss or gain with the Federal income tax return for the second preceding tax year.

(D) Is an applicant who, at any time during the previous 24-month period, received a benefit under a means-tested Federal benefit program (or whose parent or spouse received such a benefit, as applicable).

(3) Special ruleAn eligible applicant shall not be exempt from asset reporting under this section if the applicant is a dependent student and the students’ parents do not—

(A) reside in the United States or a United States territory; or

(B) file taxes in the United States or a United States territory, except if such nonfiling is due to not being required to file a Federal tax return for the applicable tax year due to a low income.

(4) DefinitionsIn this section:

(A) Schedule A

(B) Schedule B

(D) Schedule D

(E) Schedule E

(F) Schedule F

(G) Schedule H

(H) Means-tested Federal benefit programThe term “means-tested Federal benefit program” means any of the following:

(i) The supplemental security income program under title XVI of the Social Security Act (42 U.S.C. 1381 et seq.).

(ii) The supplemental nutrition assistance program under the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.), a nutrition assistance program carried out under section 19 of such Act (7 U.S.C. 2028), and a supplemental nutrition assistance program carried out under section 1841(c) of title 48.

(iii) The program of block grants for States for temporary assistance for needy families established under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.).

(iv) The special supplemental nutrition program for women, infants, and children established by section 1786 of title 42.

(v) The Medicaid program under title XIX of the Social Security Act (42 U.S.C. 1396 et seq.).

(vi) Federal housing assistance programs, including tenant-based assistance under section 1437f(o) of title 42, and public housing, as defined in section 1437a(b)(1) of title 42.

(vii) Other means-tested programs determined by the Secretary to be approximately consistent with the income eligibility requirements of the means-tested programs under clauses (i) through (vi).

(Pub. L. 89–329, title IV, § 479, as added Pub. L. 99–498, title IV, § 406(a), Oct. 17, 1986, 100 Stat. 1472; amended Pub. L. 100–50, § 14(23)–(25), June 3, 1987, 101 Stat. 352; Pub. L. 100–369, § 7(c), July 18, 1988, 102 Stat. 837; Pub. L. 102–26, § 11, Apr. 9, 1991, 105 Stat. 129; Pub. L. 102–325, title IV, § 471(a), July 23, 1992, 106 Stat. 604; Pub. L. 103–208, § 2(g)(10)–(15), Dec. 20, 1993, 107 Stat. 2472; Pub. L. 105–244, title IV, § 477, Oct. 7, 1998, 112 Stat. 1731; Pub. L. 109–171, title VIII, § 8018(a), Feb. 8, 2006, 120 Stat. 174; Pub. L. 110–84, title VI, § 602(a), Sept. 27, 2007, 121 Stat. 804; Pub. L. 110–234, title IV, § 4002(b)(1)(A), (B), (2)(N), May 22, 2008, 122 Stat. 1095–1097; Pub. L. 110–246, § 4(a), title IV, § 4002(b)(1)(A), (B), (2)(N), June 18, 2008, 122 Stat. 1664, 1857, 1858; Pub. L. 111–39, title IV, § 406(a)(4), July 1, 2009, 123 Stat. 1948; Pub. L. 112–74, div. F, title III, § 309(b), Dec. 23, 2011, 125 Stat. 1100; Pub. L. 113–128, title V, § 512(n)(2), July 22, 2014, 128 Stat. 1710; Pub. L. 116–260, div. FF, title VII, § 702(h), Dec. 27, 2020, 134 Stat. 3152; Pub. L. 117–103, div. R, § 102(b)(3), Mar. 15, 2022, 136 Stat. 819.)

§ 1087tt. Discretion of student financial aid administrators

(a) In general

(1) Authority of financial aid administratorsA financial aid administrator shall have the authority to, on the basis of adequate documentation, make adjustments to any or all of the following on a case-by-case basis:

(A) For an applicant with special circumstances under subsection (b) to—

(i) the cost of attendance;

(ii) the values of the data used to calculate the student aid index; or

(iii) the values of the data used to calculate the Federal Pell Grant award.

(B) For an applicant with unusual circumstances under subsection (c), to the dependency status of such applicant.

(2) Limitations on authority

(A) Use of authority

(B) No additional fee

(3) Adequate documentationAdequate documentation for adjustments under this section must substantiate the special circumstances or unusual circumstances of an individual student, and may include, to the extent relevant and appropriate—

(A) a documented interview between the student and the financial aid administrator;

(B) for the purposes of determining that a student qualifies for an adjustment under paragraph (1)(B)—

(i) submission of a court order or official Federal or State documentation that the student or the student’s parents or legal guardians are incarcerated in any Federal or State penal institution;

(ii) a documented phone call or a written statement, which confirms the specific unusual circumstances with—(I) a child welfare agency authorized by a State or county;(II) a Tribal welfare authority or agency;(III) an independent living case worker, such as a case worker who supports current and former foster youth with the transition to adulthood; or(IV) a public or private agency, facility, or program servicing the victims of abuse, neglect, assault, or violence, which may include domestic violence;

(iii) a documented phone call or a written statement from an attorney, a guardian ad litem, or a court-appointed special advocate, or a person serving in a similar capacity which confirms the specific unusual circumstances and documents the person’s relationship to the student;

(iv) a documented phone call or written statement from a representative under division 1 or 2 of subpart 2 of part A, which confirms the specific unusual circumstances and documents the representative’s relationship to the student;

(v) documents, such as utility bills or health insurance documentation, that demonstrate a separation from parents or legal guardians; and

(vi) in the absence of documentation described in this subparagraph, other documentation the financial aid administrator determines is adequate to confirm the unusual circumstances, pursuant to section 1087vv(d)(9) of this title; and

(C) supplementary information, as necessary, about the financial status or personal circumstances of eligible applicants as it relates to the special circumstances or unusual circumstances based on which the applicant is requesting an adjustment.

(4) Special rule

(5) Public disclosure

(b) Adjustments for students with special circumstances

(1) Special circumstances for adjustments related to Pell GrantsSpecial circumstances for adjustments to calculate a Federal Pell Grant award—

(A) shall be conditions that differentiate an individual student from a group of students rather than conditions that exist across a group of students; and

(B) may include—

(i) recent unemployment of a family member or student;

(ii) a student or family member who is a dislocated worker (as defined in section 3102 of title 29);

(iii) a change in housing status that results in an individual being a homeless youth;

(iv) an unusual amount of claimed losses against income on the Federal tax return that substantially lower adjusted gross income, such as business, investment, or real estate losses;

(v) receipt of foreign income of permanent residents or United States citizens exempt from Federal taxation, or the foreign income for which a permanent resident or citizen received a foreign tax credit;

(vi) in the case of an applicant who does not qualify for the exemption from asset reporting under section 1087ss of this title, assets as defined in section 1087vv(f) of this title; or

(vii) other changes or adjustments in the income, assets, or size of a family, or a student’s dependency status.

(2) Special circumstances for adjustments related to cost of attendance and student aid indexSpecial circumstances for adjustments to the cost of attendance or the values of the data used to calculate the student aid index—

(A) shall be conditions that differentiate an individual student from a group of students rather than conditions that exist across a group of students, except as provided in sections 1087uu and 1087uu–1 of this title; and

(B) may include—

(i) tuition expenses at an elementary school or secondary school;

(ii) medical, dental, or nursing home expenses not covered by insurance;

(iii) child care or dependent care costs not covered by the dependent care cost allowance calculated in accordance with section 1087ll of this title;

(iv) recent unemployment of a family member or student;

(v) a student or family member who is a dislocated worker (as defined in section 3102 of title 29);

(vi) the existence of additional family members enrolled in a degree, certificate, or other program leading to a recognized educational credential at an institution with a program participation agreement under section 1094 of this title;

(vii) a change in housing status that results in an individual being a homeless youth;

(viii) a condition of severe disability of the student, or in the case of a dependent student, the dependent student’s parent or guardian, or in the case of an independent student, the independent student’s dependent or spouse;

(ix) unusual amount of claimed losses against income on the Federal tax return that substantially lower adjusted gross income, such as business, investment, or real estate losses; or

(x) other changes or adjustments in the income, assets, or size of a family, or a student’s dependency status.

(1) In generalUnusual circumstances for adjustments to the dependency status of an applicant shall be—

(A) conditions that differentiate an individual student from a group of students; and

(B) based on unusual circumstances, pursuant to section 1087vv(d)(9) of this title.

(2) Provisional independent students

(A) Requirements for the SecretaryThe Secretary shall—

(i) enable each student who, based on an unusual circumstance described in section 1087vv(d)(9) of this title, may qualify for an adjustment under subsection (a)(1)(B) that will result in a determination of independence under this section or section 1087uu–2 of this title to complete the Free Application for Federal Student Aid as an independent student for the purpose of a provisional determination of the student’s Federal financial aid award, with the final determination of the award subject to the documentation requirements of subsection (a)(3);

(ii) upon completion of the Free Application for Federal Student Aid provide an estimate of the student’s Federal Pell Grant award, and other information as specified in section 1090(a)(3)(A) of this title, based on the assumption that the student is determined to be an independent student; and

(iii) specify, on the Free Application for Federal Student Aid, the consequences under section 1097(a) of this title of knowingly and willfully completing the Free Application for Federal Student Aid as an independent student under clause (i) without meeting the unusual circumstances to qualify for such a determination.

(B) Requirements for financial aid administratorsWith respect to a student accepted for admission who completes the Free Application for Federal Student Aid as an independent student under subparagraph (A), a financial aid administrator shall—

(i) notify the student of the institutional process, requirements, and timeline for an adjustment under this section and section 1087vv(d)(9) of this title that will result in a review of the student’s request for an adjustment and a determination of the student’s dependency status under such sections within a reasonable time after the student completes the Free Application for Federal Student Aid;

(ii) provide the student a final determination of the student’s dependency status and Federal financial aid award as soon as practicable after all requested documentation is provided;

(iii) retain all documents related to the adjustment under this section and section 1087vv(d)(9) of this title, including documented interviews, for at least the duration of the student’s enrollment, and shall abide by all other record keeping requirements of this chapter; and

(iv) presume that any student who has obtained an adjustment under this section and section 1087vv(d)(9) of this title and a final determination of independence for any preceding award year at an institution of higher education to be independent for each subsequent award year at the same institution unless—(I) the student informs the institution that circumstances have changed; or(II) the institution has specific conflicting information about the student’s independence.

(d) Adjustments to assets or income taken into accountA financial aid administrator shall be considered to be making a necessary adjustment in accordance with this section if—

(1) the administrator makes adjustments excluding from family income or assets any proceeds or losses from a sale of farm or business assets of a family if such sale results from a voluntary or involuntary foreclosure, forfeiture, or bankruptcy or a voluntary or involuntary liquidation; or

(2) the administrator makes adjustments for a condition of disability of a student, or in the case of a dependent student, the dependent student’s parent or guardian, or in the case of an independent student, the independent student’s dependent or spouse, so as to take into consideration the additional costs incurred as a result of such disability.

(e) Refusal or adjustment of loan certifications

(f) Special rule regarding professional judgment during a disaster, emergency, or economic downturn

(1) In generalFor the purposes of making a professional judgment under this section, financial aid administrators may, during a qualifying emergency—

(A) determine that the income earned from work for an applicant is zero, if the applicant can provide paper or electronic documentation of receipt of unemployment benefits or confirmation that an application for unemployment benefits was submitted; and

(B) make additional appropriate adjustments to the income earned from work for a student, parent, or spouse, as applicable, based on the totality of the family’s situation, including consideration of unemployment benefits.

(2) Documentation

(3) Program reviews

(4) Qualifying emergencyIn this subsection, the term “qualifying emergency” means—

(A) an event for which the President declared a major disaster or an emergency under section 5170 or 5191, respectively, of title 42;

(B) a national emergency related to the coronavirus declared by the President under section 1621 of title 50; or

(C) a period of recession or economic downturn as determined by the Secretary, in consultation with the Secretary of Labor.

(Pub. L. 89–329, title IV, § 479A, as added Pub. L. 100–50, § 14(26), June 3, 1987, 101 Stat. 352; amended Pub. L. 101–239, title II, § 2009, Dec. 19, 1989, 103 Stat. 2122; Pub. L. 102–325, title IV, § 471(a), July 23, 1992, 106 Stat. 605; Pub. L. 103–208, § 2(g)(16), Dec. 20, 1993, 107 Stat. 2473; Pub. L. 105–244, title IV, § 478, Oct. 7, 1998, 112 Stat. 1731; Pub. L. 110–84, title VI, § 603(a), Sept. 27, 2007, 121 Stat. 805; Pub. L. 110–315, title IV, § 472(a), Aug. 14, 2008, 122 Stat. 3269; Pub. L. 113–128, title V, § 512(n)(3), July 22, 2014, 128 Stat. 1710; Pub. L. 116–260, div. FF, title VII, § 702(i), Dec. 27, 2020, 134 Stat. 3155.)

§ 1087uu. Disregard of student aid in other programs

Notwithstanding any other provision of law, student financial assistance received under this subchapter, Bureau of Indian Education student assistance programs, and employment and training programs under section 3174 of title 29 shall not be taken into account in determining the need or eligibility of any person for benefits or assistance, or the amount of such benefits or assistance, under any Federal, State, or local program financed in whole or in part with Federal funds.

(Pub. L. 89–329, title IV, § 479B, as added Pub. L. 100–50, § 14(27), June 3, 1987, 101 Stat. 353; amended Pub. L. 102–325, title IV, § 471(a), July 23, 1992, 106 Stat. 606; Pub. L. 116–260, div. FF, title VII, § 702(j), Dec. 27, 2020, 134 Stat. 3160.)

§ 1087uu–1. Native American students

(a) In general

In determining the student aid index for Native American students, computations performed pursuant to this part shall exclude—

(1) any income and assets of $2,000 or less per individual payment received by the student (and spouse) and student’s parents under Public Law 98–64 (25 U.S.C. 117a et seq.; 97 Stat. 365) (commonly known as the “Per Capita Act”) or the Indian Tribal Judgment Funds Use or Distribution Act (25 U.S.C. 1401 et seq.); and

(2) any income received by the student (and spouse) and student’s parents under the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.) or the Maine Indian Claims Settlement Act of 1980 (25 U.S.C. 1721 et seq.).1

1 See References in Text note below.

(b) Guidance

(Pub. L. 89–329, title IV, § 479C, as added Pub. L. 100–50, § 14(27), June 3, 1987, 101 Stat. 353; amended Pub. L. 102–325, title IV, § 471(a), July 23, 1992, 106 Stat. 606; Pub. L. 111–39, title IV, § 406(a)(5), July 1, 2009, 123 Stat. 1949; Pub. L. 116–260, div. FF, title VII, § 702(k), Dec. 27, 2020, 134 Stat. 3160.)

§ 1087uu–2. Special rules for independent students

(a) Determination process for unaccompanied homeless youthIn making a determination of independence under section 1087vv(d)(8) of this title, a financial aid administrator shall comply with the following:

(1) Consider documentation of the student’s circumstance to be adequate in the absence of documented conflicting information, if such documentation is provided through a documented phone call, written statement, or verifiable electronic data match by—

(A) a local educational agency homeless liaison, designated pursuant to section 11432(g)(1)(J)(ii) of title 42 or a designee of the liaison;

(B) the director of an emergency or transitional shelter, street outreach program, homeless youth drop-in center, or other program serving individuals who are experiencing homelessness, or a designee of the director;

(C) the director of a project supported by a Federal TRIO program or a Gaining Early Awareness and Readiness for Undergraduate program grant under division 1 or 2 of subpart 2 of part A, or a designee of the director; or

(D) a financial aid administrator at another institution who documented the student’s circumstance in the same or a prior award year.

(2) If a student is unable to provide documentation from any individual described in paragraph (1), make a case-by-case determination, which shall be—

(A) based on a written statement from, or a documented interview with, the student that confirms that the student is an unaccompanied homeless youth, or unaccompanied, at risk of homelessness, and self-supporting; and

(B) made without regard to the reasons that the student is an unaccompanied homeless youth, or unaccompanied, at risk of homelessness, and self-supporting.

(3) Consider a determination made under this subsection as distinct from a determination of independence under section 1087vv(d)(9) of this title.

(b) Documentation process for foster care youthIf an institution requires that a student provide documentation that the student was in foster care when the student was age 13 or older, a financial aid administrator shall consider any of the following as adequate documentation, in the absence of documented conflicting information:

(1) Submission of a court order or official State documentation that the student received Federal or State support in foster care.

(2) A documented phone call, written statement, or verifiable electronic data match, which confirms the student was in foster care at an applicable age, from—

(A) a State, county, or tribal agency administering a program under part B or E of title IV of the Social Security Act (42 U.S.C. 621 et seq. and 670 et seq.);

(B) a State Medicaid agency; or

(3) A documented phone call or a written statement from an attorney, a guardian ad litem, or a Court Appointed Special Advocate that confirms that the student was in foster care at an applicable age and documents the person’s relationship to the student.

(4) Verification of the student’s eligibility for an education and training voucher under the John H. Chafee Foster Care Program under section 477 of the Social Security Act (42 U.S.C. 677).

(5) A documented phone call or written statement from a financial aid administrator who documented the student’s circumstance in the same or a prior award year.

(c) TimingA determination of independence under paragraph (2), (8), or (9) of section 1087vv(d) of this title for a student—

(1) shall be made as quickly as practicable;

(2) may be made as early as the year before the award year for which the student initially submits an application; and

(3) shall be made not later than 60 days after the date of the student’s enrollment during the award year for which the student initially submits an application.

(d) Use of earlier determinations

(1) Earlier determination by the institutionAny student who is determined to be independent under paragraph (2), (8), or (9) of section 1087vv(d) of this title for a preceding award year at an institution shall be presumed to be independent for each subsequent award year at the same institution unless—

(A) the student informs the institution that circumstances have changed; or

(B) the institution has specific conflicting information about the student’s independence and has informed the student of this information.

(2) Earlier determination by another institution

(e) Retention of documents

(Pub. L. 89–329, title IV, § 479D, as added Pub. L. 116–260, div. FF, title VII, § 702(l)(1), Dec. 27, 2020, 134 Stat. 3161; amended Pub. L. 117–103, div. R, § 103(b), Mar. 15, 2022, 136 Stat. 820.)

§ 1087vv. DefinitionsIn this part:

(a) Total income

(b) Untaxed income and benefitsThe term “untaxed income and benefits” means—

(1) deductions and payments to self-employed SEP, SIMPLE, Keogh, and other qualified individual retirement accounts excluded from income for Federal tax purposes, except such term shall not include payments made to tax-deferred pension and retirement plans, paid directly or withheld from earnings, that are not delineated on the Federal tax return;

(2) tax-exempt interest income;

(3) untaxed portion of individual retirement account distributions;

(4) untaxed portion of pensions; and

(5) foreign income of permanent residents of the United States or United States citizens exempt from Federal taxation, or the foreign income for which such a permanent resident or citizen receives a foreign tax credit.

(1) The term “veteran” has the meaning given the term in section 101(2) of title 38 and includes individuals who served in the United States Armed Forces as described in sections 101(21), 101(22), and 101(23) of title 38.

(2) The term “veterans’ education benefits” means veterans’ benefits under the following provisions of law:

(A) Chapter 103 of title 10 (Senior Reserve Officers’ Training Corps).

(B) Chapter 106A of title 10 (Educational Assistance for Persons Enlisting for Active Duty).

(D) Chapter 1607 of title 10 (Educational Assistance Program for Reserve Component Members Supporting Contingency Operations and Certain Other Operations).

(E) Chapter 30 of title 38 (All-Volunteer Force Educational Assistance Program, also known as the “Montgomery GI Bill—active duty”).

(F) Chapter 31 of title 38 (Training and Rehabilitation for Veterans with Service-Connected Disabilities).

(G) Chapter 32 of title 38 (Post-Vietnam Era Veterans’ Educational Assistance Program).

(H) Chapter 33 of title 38 (Post-9/11 Educational Assistance).

(I) Chapter 35 of title 38 (Survivors’ and Dependents’ Educational Assistance Program).

(J) Section 903 of the Department of Defense Authorization Act, 1981 (10 U.S.C. 2141 note) (Educational Assistance Pilot Program).

(K) Section 156(b) of the “Joint Resolution making further continuing appropriations and providing for productive employment for the fiscal year 1983, and for other purposes” (42 U.S.C. 402 note) (Restored Entitlement Program for Survivors, also known as “Quayle benefits”).

(L) The provisions of chapter 3 of title 37, related to subsistence allowances for members of the Reserve Officers Training Corps.

(d) Independent students and determinationsThe term “independent”, when used with respect to a student, means any individual who—

(1) is 24 years of age or older by December 31 of the award year;

(2) is, or was at any time when the individual was 13 years of age or older—

(A) an orphan;

(B) a ward of the court; or

(3) is, or was immediately prior to attaining the age of majority, an emancipated minor or in legal guardianship as determined by a court of competent jurisdiction in the individual’s State of legal residence;

(4) is a veteran of the Armed Forces of the United States (as defined in subsection (c)) or is currently serving on active duty in the Armed Forces for other than training purposes;

(5) is a graduate or professional student;

(6) is married and not separated;

(7) has legal dependents other than a spouse;

(8) is an unaccompanied homeless youth or is unaccompanied, at risk of homelessness, and self-supporting, without regard to such individual’s age; and

(9) is a student for whom a financial aid administrator makes a documented determination of independence by reason of other unusual circumstances pursuant to section 1087tt(c) of this title in which the student is unable to contact a parent or where contact with parents poses a risk to such student, which includes circumstances of—

(A) human trafficking, as described in the Trafficking Victims Protection Act of 2000 (22 U.S.C. 7101 et seq.);

(B) legally granted refugee or asylum status;

(D) student or parental incarceration.

(e) Excludable incomeThe term “excludable income” means—

(1) an amount equal to the education credits described in paragraphs (1) and (2) of section 25A(a) of title 26;

(2) if an applicant elects to report it, college grant and scholarship aid included in gross income on a Federal tax return, including amounts attributable to grant and scholarship portions of fellowships and assistantships and any national service educational award or post-service benefit received by an individual under title I of the National and Community Service Act of 1990 (42 U.S.C. 12511 et seq.), including awards, living allowances, and interest accrual payments; and

(3) income earned from work under part C of this subchapter.

(f) Assets

(1) In general

(2) Exclusions

(3) Consideration of qualified education benefitA qualified education benefit shall be considered an asset of—

(A) the student if the student is an independent student; or

(B) the parent if the student is a dependent student and the account is designated for the student, regardless of whether the owner of the account is the student or the parent.

(4) Definition of qualified education benefitIn this subsection, the term “qualified education benefit” means—

(A) a qualified tuition program (as defined in section 529(b)(1)(A) of title 26) or other prepaid tuition plan offered by a State; and

(B) a Coverdell education savings account (as defined in section 530(b)(1) of title 26).

(g) Net value

(h) Treatment of income taxes paid to other jurisdictions

(1) The tax on income paid to the Governments of the Commonwealth of Puerto Rico, Guam, American Samoa, the Virgin Islands, or the Commonwealth of the Northern Mariana Islands, the Republic of the Marshall Islands, the Federated States of Micronesia, or Palau under the laws applicable to those jurisdictions, or the comparable tax paid to the central government of a foreign country, shall be treated as Federal income taxes.

(2) References in this part to title 26, Federal income tax forms, and the Internal Revenue Service shall, for purposes of the tax described in paragraph (1), be treated as references to the corresponding laws, tax forms, and tax collection agencies of those jurisdictions, respectively, subject to such adjustments as the Secretary may provide by regulation.

(i) Other financial assistance

(1) For purposes of determining a student’s eligibility for funds under this subchapter, other financial assistance not received under this subchapter shall include all scholarships, grants, loans, or other assistance known to the institution at the time the determination of the student’s need is made, including national service educational awards or post-service benefits under title I of the National and Community Service Act of 1990 (42 U.S.C. 12511 et seq.), but excluding veterans’ education benefits.

(2) Notwithstanding paragraph (1), a tax credit taken under section 25A of title 26, or a distribution that is not includable in gross income under section 529 of such title, under another prepaid tuition plan offered by a State, or under a Coverdell education savings account under section 530 of such title, shall not be treated as other financial assistance for purposes of section 1087kk(a)(3) 1

1 So in original. Probably should be “section 1087kk(3)”.

of this title.

(3) Notwithstanding paragraph (1) and section 1087ll of this title, assistance not received under this subchapter may be excluded from both other financial assistance and cost of attendance, if that assistance is provided by a State and is designated by such State to offset a specific component of the cost of attendance. If that assistance is excluded from either other financial assistance or cost of attendance, it shall be excluded from both.

(4) Notwithstanding paragraph (1), payments made and services provided under part E of title IV of the Social Security Act [42 U.S.C. 670 et seq.] to or on behalf of any child or youth over whom the State agency has responsibility for placement, care, or supervision, including the value of vouchers for education and training and amounts expended for room and board for youth who are not in foster care but are receiving services under section 477 of such Act [42 U.S.C. 677], shall not be treated as other financial assistance for purposes of section 1087kk(a)(3) 1 of this title.

(5) Notwithstanding paragraph (1), emergency financial assistance provided to the student for unexpected expenses that are a component of the student’s cost of attendance, and not otherwise considered when the determination of the student’s need is made, shall not be treated as other financial assistance for purposes of section 1087kk(a)(3) 1 of this title.

(j) Dependents

(1) Except as otherwise provided, the term “dependent of the parent” means the student who is deemed to be a dependent student when applying for aid under this subchapter, and any other person who lives with and receives more than one-half of their support from the parent (or parents) and will continue to receive more than half of their support from the parent (or parents) during the award year.

(2) Except as otherwise provided, the term “dependent of the student” means the student’s dependent children and other persons (except the student’s spouse) who live with and receive more than one-half of their support from the student and will continue to receive more than half of their support from the student during the award year.

(k) Family size

(1) Dependent studentExcept as provided in paragraph (3), in determining family size in the case of a dependent student—

(A) if the parents are not divorced or separated, family members include the student’s parents, and any dependent (within the meaning of section 152 of title 26 or an eligible individual for purposes of the credit under section 24 of title 26) of the student’s parents for the taxable year used in determining the amount of need of the student for financial assistance under this subchapter;

(B) if the parents are divorced or separated, family members include the parent whose income is included in computing available income and any dependent (within the meaning of section 152 of title 26 or an eligible individual for purposes of the credit under section 24 of title 26) of that parent for the taxable year used in determining the amount of need of the student for financial assistance under this subchapter;

(C) if the parents are divorced and the parents whose income is so included are remarried, or if the parent was a widow or widower who has remarried, family members also include, in addition to those individuals referred to in subparagraph (B), the new spouse and any dependent (within the meaning of section 152 of title 26 or an eligible individual for purposes of the credit under section 24 of title 26) of the new spouse for the taxable year used in determining the amount of need of the student for financial assistance under this subchapter, if that spouse’s income is included in determining the parent’s adjusted available income; and

(D) if the student is not considered as a dependent (within the meaning of section 152 of title 26 or an eligible individual for purposes of the credit under section 24 of title 26) of any parent, the parents’ family size shall include the student and the family members applicable to the parents’ situation under subparagraph (A), (B), or (C).

(2) Independent studentExcept as provided in paragraph (3), in determining family size in the case of an independent student—

(A) family members include the student, the student’s spouse, and any dependent (within the meaning of section 152 of title 26 or an eligible individual for purposes of the credit under section 24 of title 26) of that student for the taxable year used in determining the amount of need of the student for financial assistance under this subchapter; and

(B) if the student is divorced or separated, family members do not include the spouse (or ex-spouse), but do include the student and any dependent (within the meaning of section 152 of title 26 or an eligible individual for purposes of the credit under section 24 of title 26) of that student for the taxable year used in determining the amount of need of the student for financial assistance under this subchapter.

(3) Procedures and modification

(l) Business assets

(m) Homeless youth

(n) Unaccompanied

(Pub. L. 89–329, title IV, § 480, as added Pub. L. 99–498, title IV, § 406(a), Oct. 17, 1986, 100 Stat. 1472; amended Pub. L. 100–50, § 14(28), June 3, 1987, 101 Stat. 353; Pub. L. 100–369, § 7(b), July 18, 1988, 102 Stat. 837; Pub. L. 101–610, title I, § 185(3), (4), Nov. 16, 1990, 104 Stat. 3168; Pub. L. 102–325, title IV, § 471(a), July 23, 1992, 106 Stat. 606; Pub. L. 103–82, title I, § 102(c)(4), (5), Sept. 21, 1993, 107 Stat. 824; Pub. L. 103–208, § 2(g)(17)–(20), Dec. 20, 1993, 107 Stat. 2474; Pub. L. 104–193, title I, § 110(h)(2), Aug. 22, 1996, 110 Stat. 2172; Pub. L. 105–78, title VI, § 609(j), (k), Nov. 13, 1997, 111 Stat. 1524; Pub. L. 105–244, title IV, § 479, Oct. 7, 1998, 112 Stat. 1732; Pub. L. 105–277, div. A, § 101(f) [title VIII, § 405(d)(15)(B), (f)(12)(B)], Oct. 21, 1998, 112 Stat. 2681–337, 2681–421, 2681–431; Pub. L. 109–171, title VIII, § 8019, Feb. 8, 2006, 120 Stat. 176; Pub. L. 110–84, title VI, § 604(a), Sept. 27, 2007, 121 Stat. 806; Pub. L. 110–153, § 1(a), Dec. 21, 2007, 121 Stat. 1824; Pub. L. 110–315, title IV, § 473(a)–(e), Aug. 14, 2008, 122 Stat. 3270, 3271; Pub. L. 111–39, title IV, § 406(a)(6)–(8), July 1, 2009, 123 Stat. 1949, 1950; Pub. L. 113–128, title V, § 512(n)(4), July 22, 2014, 128 Stat. 1710; Pub. L. 116–260, div. FF, title VII, § 702(l)(2), Dec. 27, 2020, 134 Stat. 3163.)