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

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. Page 614 TITLE 20—EDUCATION § 1087qq (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 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) Assessment schedule The assessment of adjusted available income (as determined under subsection (a)(1) and here- after in this subsection referred to as ‘‘AAI’’) is calculated based on the following table (as re- vised by the Secretary pursuant to section 1087rr(e) of this title): Assessment From Adjusted Available Income If AAI is— Then the assessment is— Less than ¥ $6,820 .... ¥ $1,500 ¥ $6,820 to $17,400 ..... 22% of AAI $17,401 to $21,800 ...... $3,828 + 25% of AAI over $17,400 $21,801 to $26,200 ...... $4,928 + 29% of AAI over $21,800 $26,201 to $30,700 ...... $6,204 + 34% of AAI over $26,200 $30,701 to $35,100 ...... $7,734 + 40% of AAI over $30,700 $35,101 or more ........ $9,494 + 47% of AAI over $35,100. (e) 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, § 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.) Editorial Notes AMENDMENTS 2020—Pub. L. 116–260 amended section generally. Prior to amendment, section related to family contribution for independent students with dependents other than a spouse. 2009—Subsec. (b)(5)(B). Pub. L. 111–39 made technical amendment to reference in original act which appears in text as reference to section 2 of title 26. 2007—Subsec. (b)(4). Pub. L. 110–84 amended par. (4) generally. Prior to amendment, par. (4) consisted of a single table to be used to determine income protection allowances. 2006—Subsec. (c)(4). Pub. L. 109–171 substituted ‘‘7’’ for ‘‘12’’. 1998—Subsec. (a)(4). Pub. L. 105–244 added par. (4). 1997—Subsec. (b)(1)(F). Pub. L. 105–78 added subpar. (F). 1993—Subsec. (b)(4). Pub. L. 103–208, § 2(g)(2), sub- stituted ‘‘$9,510’’ for ‘‘9,510’’ in table. Subsec. (e). Pub. L. 103–208, § 2(g)(7), added subsec. (e). 1992—Pub. L. 102–325 amended section generally, sub- stituting provisions relating to family contribution for independent students with dependents other than a spouse for provisions relating to family contribution for independent students with dependents (including a spouse). 1987—Subsec. (a)(1)(C). Pub. L. 100–50, § 14(18), added subpar. (C). Subsec. (b)(2). Pub. L. 100–50, § 14(1), substituted ‘‘sec- tion 1087rr of this title’’ for ‘‘section 1087ss of this title’’. Subsec. (b)(5)(A). Pub. L. 100–50, § 14(19), substituted ‘‘$2,100’’ for ‘‘$2,000’’. Subsec. (b)(7). Pub. L. 100–50, § 14(2), struck out ‘‘Na- tional’’ before ‘‘Center’’. 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(1), (4), substituted ‘‘section 1087rr of this title’’ for ‘‘section 1087ss of this title’’ in text, 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’’. Page 615 TITLE 20—EDUCATION § 1087rr Subsec. (c)(4)(B). Pub. L. 100–50, § 14(5), substituted ‘‘$15,999’’ for ‘‘$15,000’’. Subsec. (c)(4)(C). Pub. L. 100–50, § 14(6), substituted ‘‘$16,000’’ for ‘‘$15,000’’ in three places. Subsec. (d). Pub. L. 100–50, § 14(1), (8), substituted ‘‘section 1087rr of this title’’ for ‘‘section 1087ss of this title’’ in text and inserted a minus sign before ‘‘$3,409’’ in two places in table. 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 2009 AMENDMENT Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title. EFFECTIVE DATE OF 2007 AMENDMENT 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. L. 109–171, set out as a note under section 1002 of this title. Pub. L. 109–171, title VIII, § 8017(c)(2), Feb. 8, 2006, 120 Stat. 173, provided that: ‘‘The amendment 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. § 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 ex- cept— (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 For award year 2023–2024 and each subsequent award year, the Secretary shall publish in the Federal Register revised income protection al- lowances for the purposes of subsections (c)(3) and (g)(2)(C) of section 1087oo of this title, sub- clauses (I) and (II) of section 1087pp(b)(1)(A)(iii) of this title, and section 1087qq(b)(3) of this title, by increasing the income protection allowances in each of such provisions, by a percentage equal to the percentage increase in the Consumer Price Index, as defined in subsection (f), between April 2020 and the April in the year prior to the beginning of the award year and rounding the result to the nearest $10. (c) Adjusted net worth of a farm or business (1) Table The table of the net worth of a farm or busi- ness for purposes of making determinations of assets as defined under section 1087vv(f) of this title is the following: Farm/Business Net Worth Adjustment If the net worth of a farm or business is— Then the adjusted net worth is— Less than $1 ...................... $0 $1 to $140,000 .................... 40% of net worth of farm/ business $140,001 to $415,000 ............ $56,000 + 50% of net worth over $140,000 $415,001 to $695,000 ............ $193,500 + 60% of net worth over $415,000 $695,001 or more ............... $361,500 + 100% of net worth over $695,000. (2) Revised tables For award year 2023–2024 and each subse- quent 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 in- crease in the Consumer Price Index between April 2020 and the April in the year prior to the beginning of such award year, and round- ing 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 sub- paragraph (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 in- come at age 65 (adjusted for inflation) equal to the difference between the moderate family in- come (as most recently determined by the Bu-