§ 1087oo. Student aid index for dependent students

(1)

In general

Except as provided in paragraph (2), for each dependent student, the student aid index is equal to the sum of—

(2)

Exception

If the sum determined under paragraph (1) with respect to a dependent student is less than − $1,500, the student aid index for the dependent student shall be − $1,500.

(1)

computing adjusted available income by adding—

(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 general

The parents’ available income is determined by subtracting from total income (as defined in section 1087vv of this title)—

(2)

Allowance for payroll taxes

The allowance for payroll taxes is equal to the sum of—

(3)

Income protection allowance

The income protection allowance shall equal the amount determined in the following table, as adjusted by the Secretary pursuant to section 1087rr(b) of this title:

Income Protection Allowance (to be adjusted for 2023–2024 and succeeding years)

Family Size (including

student)

Amount

2

$23,330

3

$29,040

4

$35,870

5

$42,320

6

$49,500

For each additional add

$5,590.

(4)

Employment expense allowance

The employment expense allowance is equal to the lesser of $4,000 or 35 percent of the single parent’s earned income or married parents’ combined earned income (as adjusted by the Secretary pursuant to section 1087rr(g) of this title).

(1)

In general

(2)

Asset protection allowance

The asset protection allowance is calculated based on the following table (as revised by the Secretary pursuant to section 10877rr(d) of this title):

Asset Protection Allowances for Parents of Dependent Students

If the age of the oldest parent is—

And there are

two parents

one parent

 

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.

(1)

Parents who live together

Parental income and assets in the case of student whose parents are married and not separated, or who are unmarried but live together, shall include the income and assets of both parents.

(2)

Divorced or separated parents

Parental income and assets for a student whose parents are divorced or separated, but not remarried, is determined by including only the income and assets of the parent who provides the greater portion of the student’s financial support.

(3)

Death of a parent

Parental income and assets in the case of the death of any parent is determined as follows:

(4)

Remarried parents

If a parent whose income and assets are taken into account under paragraph (2), or if a parent who is a widow or widower and whose income is taken into account under paragraph (3), has remarried, the income of that parent’s spouse shall be included in determining the parent’s assessment of adjusted available income if the student’s parent and the stepparent are married as of the date of application for the award year concerned.

(5)

Single parent who is not divorced or separated

Parental income and assets in the case of a student whose parent is not described in paragraph (1) and is a single parent who is not divorced, separated, or remarried, shall include the income and assets of such single parent.

(1)

In general

The student’s available income is equal to—

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 income

The adjustment to student income is equal to the sum of—

(3)

Allowance for payroll taxes

The allowance for payroll taxes is equal to the sum of—

(4)

Allowance for parents’ negative available income

The allowance for parents’ negative available income is the amount, if any, by which the sum of the amounts deducted under subsection (c)(1) exceeds the sum of the parents’ total income (as defined in section 1087vv of this title) and the parents’ available assets (as determined in accordance with subsection (d)).