§ 1087pp. Student aid index for independent students without dependents other than a spouse

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(a)Computation of student aid index

(1)In general For each independent student without dependents other than a spouse, the student aid index is equal to (except as provided in paragraph (2)) the sum of—

(A)the family’s available income (determined in accordance with subsection (b)); and

(B)the family’s available assets (determined in accordance with subsection (c)).

(2)Exception If the sum determined under paragraph

(1)with respect to an independent student without 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 defined in section 1087vv of this title)—

(i)Federal income taxes;

(ii)an allowance for payroll taxes, determined 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 independent 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 allowance, 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 student (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 applicable 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 allowance is equal to the lesser of $4,000 or 35 percent 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 employment 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 allowance (determined in accordance with paragraph (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 marriedsingle 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)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.

(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.)

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