Sec. 477. STUDENT AID INDEX FOR INDEPENDENT STUDENTS WITH DEPENDENTS OTHER THAN A SPOUSE
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## SEC. 477 STUDENT AID INDEX FOR INDEPENDENT STUDENTS WITH DEPENDENTS OTHER THAN A SPOUSE **[**[20 U.S.C. 1087qq](/us/usc/t20/s1087qq)**]** ###
(a)Computation of Student Aid Index ####
(1)In general For 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 #####
(C)considering such assessment resulting under subparagraph
(B)as the amount determined 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 independent 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 480)— #####
(A)Federal income taxes; #####
(B)an allowance for payroll taxes, determined in accordance with paragraph (2); #####
(C)an income protection allowance, determined in accordance with paragraph (3); and #####
(D)an employment expense allowance, determined 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 student (and spouse, if appropriate), multiplied by the rate of tax under section 3101(b) of the Internal Revenue Code of 1986; 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 the Internal Revenue Code of 1986. ####
(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 478(b): #####
(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)Amount3 $46,1404 $56,9705 $67,2306 $78,620For 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)Amount2 $43,9203 $54,6904 $67,5205 $79,6806 $93,180For 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 student’s earned income or the combined earned income of the student and the student’s spouse, if applicable (as adjusted by the Secretary pursuant to section 478(g)). ###
(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 480(f)) and the asset protection allowance (determined in accordance with paragraph (2)); multiplied by ######
(ii)7 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 478(d)):Asset Protection Allowances for Families and Students If the age of the student is—And the student ismarriedsinglethen the allowance is— 25 or less $0 $026 $400 $10027 $700 $30028 $1,100 $40029 $1,500 $60030 $1,800 $70031 $2,200 $80032 $2,600 $1,00033 $2,900 $1,10034 $3,300 $1,30035 $3,700 $1,40036 $4,000 $1,50037 $4,400 $1,70038 $4,800 $1,80039 $5,100 $2,00040 $5,500 $2,10041 $5,600 $2,20042 $5,700 $2,20043 $5,900 $2,30044 $6,000 $2,30045 $6,200 $2,40046 $6,300 $2,40047 $6,500 $2,50048 $6,600 $2,50049 $6,800 $2,60050 $7,000 $2,70051 $7,100 $2,70052 $7,300 $2,80053 $7,500 $2,90054 $7,700 $2,90055 $7,900 $3,00056 $8,100 $3,10057 $8,400 $3,10058 $8,600 $3,20059 $8,800 $3,30060 $9,100 $3,40061 $9,300 $3,50062 $9,600 $3,60063 $9,900 $3,70064 $10,200 $3,80065 or more $10,500 $3,900. ###
(d)Assessment Schedule The assessment of adjusted available income (as determined under subsection (a)(1) and hereafter in this subsection referred to as “AAI”) is calculated based on the following table (as revised by the Secretary pursuant to section 478(e)):Assessment From Adjusted Available IncomeIf AAI is—Then the assessment is—Less than – $6,820– $1,500– $6,820 to $17,40022% 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 separated, or whose spouse has died, the spouse’s income and assets shall not be considered in determining the family’s available income or assets.
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Sec. 477
STUDENT AID INDEX FOR INDEPENDENT STUDENTS WITH DEPENDENTS OTHER THAN A SPOUSE
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