20 USC 1087 - Student aid index for dependent students

View all text of Part F [§ 1087kk - § 1087vv]

§ 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),