20 U.S.C. § 1087pp — Student aid index for independent stu-

Page 611 TITLE 20—EDUCATION § 1087pp award years beginning on or after July 1, 1993, see sec- tion 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. § 1087pp. Student aid index for independent stu- dents without dependents other than a spouse (a) Computation of student aid index (1) In general For each independent student without de- pendents other than a spouse, the student aid index is equal to (except as provided in para- graph (2)) the sum of— (A) the family’s available income (deter- mined in accordance with subsection (b)); and (B) the family’s available assets (deter- mined in accordance with subsection (c)). (2) Exception If the sum determined under paragraph (1) with respect to an independent student with- out dependents other than a spouse is less than ¥ $1,500, the student aid index for the independent student shall be ¥ $1,500. (b) Family’s available income (1) In general The family’s available income is determined by— (A) deducting from total income (as de- fined in section 1087vv of this title)— (i) Federal income taxes; (ii) an allowance for payroll taxes, deter- mined 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 inde- pendent 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 allow- ance, as determined in accordance with paragraph (3); and (B) multiplying the amount determined under subparagraph (A) by 50 percent. (2) Allowance for payroll taxes The allowance for payroll taxes is equal to the sum of— (A) the total amount earned by the stu- dent (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 appli- cable to such earnings under section 3101(a) of title 26. (3) Employment expense allowance The employment expense allowance is equal to the following: (A) If the student is married, such allow- ance is equal to the lesser of $4,000 or 35 per- cent 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 em- ployment expense allowance is zero. (c) Family’s available assets (1) In general (A) Determination Except 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 allow- ance (determined in accordance with para- graph (2)); multiplied by (ii) 20 percent. (B) Not less than zero The family’s 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 1087rr(d) of this title): Asset Protection Allowances for Families and Students If the age of the student is— And the student is married single 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 Page 612 TITLE 20—EDUCATION § 1087pp Asset Protection Allowances for Families and Students—Continued If the age of the student is— And the student is married single then the allowance is— 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. (d) Computations in case of separation, divorce, or death In the case of a student who is divorced or sep- arated, or whose spouse has died, the spouse’s income and assets shall not be considered in de- termining the family’s available income or as- sets. (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.) Editorial Notes AMENDMENTS 2020—Pub. L. 116–260 amended section generally. Prior to amendment, section related to family contribution for independent students without dependents other than a spouse. 2007—Subsec. (b)(1)(A)(iv). Pub. L. 110–84 amended cl. (iv) generally. Prior to amendment, cl. (iv) read as fol- lows: ‘‘an income protection allowance of the following amount (or a successor amount prescribed by the Sec- retary under section 1087rr of this title)— ‘‘(I) $6,050 for single students; ‘‘(II) $6,050 for married students where both are en- rolled pursuant to subsection (a)(2) of this section; and ‘‘(III) $9,700 for married students where one is en- rolled pursuant to subsection (a)(2) of this section;’’. 2006—Subsec. (b)(1)(A)(iv). Pub. L. 109–171, § 8017(b)(1)(A), substituted ‘‘$6,050’’ for ‘‘$5,000’’ in subcls. (I) and (II) and ‘‘$9,700’’ for ‘‘$8,000’’ in subcl. (III). Subsec. (c)(4). Pub. L. 109–171, § 8017(b)(1)(B), sub- stituted ‘‘20’’ for ‘‘35’’. 1998—Subsec. (a)(3). Pub. L. 105–244, § 474(a), added par. (3). Subsec. (b)(1)(A)(iv). Pub. L. 105–244, § 474(b)(1), in in- troductory provisions, substituted ‘‘allowance of the following amount (or a successor amount prescribed by the Secretary under section 1087rr of this title)—’’ for ‘‘allowance of—’’. Subsec. (b)(1)(A)(iv)(I), (II). Pub. L. 105–244, § 474(b)(2), substituted ‘‘$5,000’’ for ‘‘$3,000’’. Subsec. (b)(1)(A)(iv)(III). Pub. L. 105–244, § 474(b)(3), substituted ‘‘$8,000’’ for ‘‘$6,000’’. 1997—Subsec. (b)(1)(A)(vi). Pub. L. 105–78 added cl. (vi). 1993—Subsec. (d). Pub. L. 103–208 added subsec. (d). 1992—Pub. L. 102–325 amended section generally, sub- stituting provisions relating to family contribution for independent students without dependents other than a spouse for provisions relating to family contribution for independent students without dependents (including a spouse). 1987—Subsec. (b)(1)(A), (B). Pub. L. 100–50, § 14(13)(B), (C), substituted subpar. (A) and introductory provisions of subpar. (B) for introductory provisions of former sub- par. (A) which read as follows: ‘‘computing the stu- dent’s available taxable income by deducting from the student’s adjusted gross income—’’. Former subpar. (B) redesignated (C). Subsec. (b)(1)(C). Pub. L. 100–50, § 14(13)(B), redesig- nated subpar. (B) as (C). Former subpar. (C) redesig- nated (D). Subsec. (b)(1)(D). Pub. L. 100–50, § 14(15), which di- rected that subsec. (b)(1)(C) be amended by inserting ‘‘plus the amount of veterans’ benefits paid during the award period under chapters 32, 34, and 35 of title 28’’, was executed to subpar. (D) to reflect the probable in- tent of Congress and the intervening redesignation of subpar. (C) as (D) by section 14(13)(B) of Pub. L. 100–50. Pub. L. 100–50, § 14(13)(A), (B), redesignated subpar. (C) as (D) and substituted ‘‘subparagraph (C)’’ for ‘‘sub- paragraph (B)’’. Subsec. (b)(2). Pub. L. 100–50, § 14(1), (14), substituted ‘‘total income’’ for ‘‘total taxable income’’ and ‘‘sec- tion 1087rr of this title’’ for ‘‘section 1087ss of this title’’. Subsec. (b)(4)(A). Pub. L. 100–50, § 14(16)(A), sub- stituted ‘‘$8,600’’ for ‘‘$8,900’’. Subsec. (b)(4)(B). Pub. L. 100–50, § 14(16), substituted ‘‘$8,600’’ for ‘‘$8,900’’ in two places and ‘‘$6,020’’ for ‘‘$6,230’’. Subsec. (c)(1). Pub. L. 100–50, § 14(17), substituted a semicolon for a period at end of subpar. (C) and in- serted, after subpar. (C), provision that the student’s income supplemental amount from assets not be less than zero. Subsec. (c)(2)(B). Pub. L. 100–50, § 14(3), substituted ‘‘displaced homemaker’’ for ‘‘dislocated homemaker’’. Subsec. (c)(2)(C). Pub. L. 100–50, § 14(4), added table and struck out former table which read as follows: ‘‘Adjusted Net Worth of a Business or Farm If the net worth of a business or farm is— Then the adjusted net worth is— Less than $1 ............................. $0 $1–$65,000 .................................. 40 percent of NW $65,001–$195,000 .......................... $26,000 plus 50 percent of NW over $65,000 $195,001–$325,000 ........................ $91,000 plus 60 percent of NW over $195,000 $325,001 or more ........................ $169,000 plus 100 percent of NW over $325,000’’. Pub. L. 100–50, § 14(1), substituted ‘‘section 1087rr of this title’’ for ‘‘section 1087ss of this title’’. Statutory Notes and Related Subsidiaries 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 subse- quent 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 2007 AMENDMENT Amendment by Pub. L. 110–84 effective July 1, 2009, see section 601(e) of Pub. L. 110–84, set out as a note under section 1087oo of this title. 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. Page 613 TITLE 20—EDUCATION § 1087qq L. 109–171, set out as a note under section 1002 of this title. Pub. L. 109–171, title VIII, § 8017(b)(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 enroll- ment 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 re- spect to determinations of need under this part for award years beginning on or after July 1, 1993, see sec- tion 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. § 1087qq. Student aid index for independent stu- dents with dependents other than a spouse (a) Computation of student aid index (1) In general For each independent student with depend- ents 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 (deter- mined in accordance with subsection (b)); and (ii) the family’s available assets (deter- mined in accordance with subsection (c)); (B) assessing such adjusted available in- come in accordance with an assessment schedule set forth in subsection (d); and (C) considering such assessment resulting under subparagraph (B) as the amount deter- mined under this subsection. (2) Exception If the sum determined under paragraph (1) with respect to an independent student with dependents other than a spouse is less than ¥ $1,500, the student aid index for the inde- pendent student shall be ¥ $1,500. (b) Family’s available income (1) In general The 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, deter- mined in accordance with paragraph (2); (C) an income protection allowance, deter- mined in accordance with paragraph (3); and (D) an employment expense allowance, de- termined 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 stu- dent (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 appli- cable 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 sec- tion 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 stu- dent 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 The employment expense allowance is equal to the lesser of $4,000 or 35 percent of the stu- dent’s earned income or the combined earned income of the student and the student’s spouse, if applicable (as adjusted by the Sec- retary pursuant to section 1087rr(g) of this title). (c) Family’s available assets (1) In general (A) Determination Except 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 (deter- mined in accordance with paragraph (2)); multiplied by (ii) 7 percent.