1463, and amended Pub. L. 100-50, § 14(1), (3), (4), (13)-(17), June 3, 1987, 101 Stat. 349, 351.)

REFERENCES IN TEXT

The Job Training Partnership Act, referred to in subsec. (c)(2)(B), is Pub. L. 97-300, Oct. 13, 1982, 96 Stat. 1322, as amended. Title III of that Act is classified generally to subchapter III (§ 1651 et seq.) of chapter 19 of Title 29, Labor. For complete classification of this Act to the Code, see Short Title note set out under section 1501 of Title 29 and Tables.

1987-Subsec.

AMENDMENTS

as

(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 subpar. (A) which read follows: "computing the student'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), redesignated subpar. (B) as (C). Former subpar. (C) redesignated (D).

Subsec. (b)(1)(D). Pub. L. 100-50, § 14(15), which directed 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 intent 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 "subparagraph (B)".

Subsec. (b)(2). Pub. L. 100-50, § 14(1), (14), substituted "total income" for "total taxable income" and "section 1087rr of this title" for "section 1087ss of this title".

Subsec. (b)(4)(A). Pub. L. 100-50, § 14(16)(A), substituted "$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 inserted, 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

§ 1087qq. Family contribution for independent students with dependents

(a) Computation of expected family contribution

For each independent student with dependents (including a spouse) the expected family contribution is equal to the amount determined by

(1) computing adjusted available income by adding

(A) the family's available income (determined in accordance with subsection (b) of this section);

(B) the family's income supplemental amount from assets (determined in accordance with subsection (c) of this section); and

(C) the amount of veterans' benefits to be paid during the award period under chapters 32, 34, and 35 of title 38;

(2) assessing such adjusted available income in accordance with an assessment schedule set forth in subsection (d) of this section; and

(3) dividing the assessment resulting under paragraph (2) by the number of family members who will be attending, on at least a halftime basis, a program of postsecondary education during the award period for which assistance under this subchapter and part C of subchapter I of chapter 34 of title 42 is requested;

except that the amount determined under this subsection shall not be less than zero.

(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 State and other taxes, determined in accordance with paragraph (2);

(C) an allowance for social security taxes, determined in accordance with paragraph

(3);

(D) a standard maintenance allowance, determined in accordance with paragraph (4);

(E) an employment expense allowance, determined in accordance with paragraph (5); (F) a medical-dental expense allowance, determined in accordance with paragraph (6); and

(G) an educational expense offset, determined in accordance with paragraph (7); except that the family's available income shall not be less than $700 for a first year undergraduate student or $900 for any other student.

(2) Allowance for State and other taxes

The allowance for State and other taxes is equal to an amount determined by multiplying total income (as defined in section 1087vv of this title) by a percentage determined according to the following table (or a successor table prescribed by the Secretary under section 1087rr of this title):

(3) Allowance for social security taxes

The allowance for social security taxes is equal to the amount earned by the student and the student's spouse multiplied by the social security withholding rate appropriate to the tax year of the earnings, up to the maximum statutory social security tax withholding amount for that same tax year.

(4) Standard maintenance allowance

The standard maintenance allowance is the amount of reasonable living expenses that would be associated with the maintenance of an individual or family. The standard maintenance allowance is determined by the following table (or a successor table prescribed by the Secretary under section 1087ss of this title):

(5) Employment expense allowance The employment expense allowance is determined as follows:

(A) If both the student and a spouse were employed in the year for which their income is reported and both have their incomes reported in determining the expected family contribution, such allowance is equal to the lesser of $2,100 or 35 percent of the earned income of the student or spouse with the lesser earned income.

(B) If a student qualifies as a head of household as defined in section 2 of title 26, such allowance is equal to the lesser of $2,100 or 35 percent of his or her earned income.

paragraphs (A) and (B) to reflect increases in the amount and percent of the Bureau of Labor Standards budget of the marginal costs for meals away from home, apparel and upkeep, transportation, and housekeeping services for a two-worker versus one-worker family.

(6) Medical-dental expense allowance

The medical-dental expense allowance is equal to the amount by which the sum of unreimbursed medical and dental expenses, including medical insurance premiums, exceeds 5 percent of the total income of the family. (7) Educational expense allowance

The educational expense allowance is equal to the unreimbursed tuition and fees paid by

* So in original. Probably should be "section 1087rr".

(4) Asset conversion rate

The asset conversion rate is determined as follows:

(A) if the family's net worth (determined in accordance with paragraph (2)) minus the asset protection allowance (determined in accordance with paragraph (3)) is equal to or greater than zero, the conversion rate is 12 percent;

(B) if such family's net worth minus such asset protection allowance is less than zero and the family's available income (determined in accordance with subsection (c) of this section) is greater than $15,999, the conversion rate is zero percent;

(C) if such family's net worth minus such asset protection allowance is less than zero and such family's available income is equal to or greater than zero but less than $16,000, the conversion rate is equal to 6 percent multiplied by a fraction

(i) the numerator of which is equal to $16,000 minus such family's available income; and

1987-Subsec. (a)(1)(C). Pub. L. 100-50, § 14(18), added subpar. (C).

Subsec. (b)(2). Pub. L. 100-50, § 14(1), substituted "section 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 "National" 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:

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.

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.

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 1087rr, 1087ss of this title.

§ 1087rr. Regulations; updated tables

(a) Authority to prescribe regulations restricted

(1) Notwithstanding any other provision of law, the Secretary shall not have the authority to prescribe regulations to carry out this part except

(A) to prescribe updated tables in accordance with subsections (b) through (e) of this section; or

(B) to propose modifications in the need analysis methodology required by this part.

(2) Any regulation proposed by the Secretary that (A) updates tables in a manner that does not comply with subsections (b) through (e) of this section, or (B) that proposes modifications under paragraph (1)(B) of this subsection, shall not be effective unless approved by joint resolution of the Congress by May 1 following the date such regulations are published in the Federal Register in accordance with section 1089 of this title. If the Congress fails to approve such regulations by such May 1, the Secretary shall publish in the Federal Register in accordance with section 1089 of this title updated tables for the applicable award year that are prescribed in accordance with subsections (b) through (e) of this section.

(b) Standard maintenance allowance

For each academic year after academic year 1987-1988, the Secretary shall publish in the Federal Register a revised table of standard maintenance allowances for the purpose of sections 108700(c)(4) and 1087qq(b)(4) of this title. Such revised table shall be developed by increasing each of the dollar amounts contained in the table in each such section by a percentage equal to the estimated percentage increase in the Consumer Price Index (as determined by the Secretary after consultation with the Advisory Committee on Student Financial Assistance) between December 1986 and the December next preceding the beginning of such aca

demic year, and rounding the result to the nearest $10.

(c) Adjusted net worth of a farm or business

For each academic year after academic year 1987-1988, the Secretary shall publish in the Federal Register a revised table of adjusted net worth of a farm or business for the purpose of sections 1087oo(d)(2)(C), 1087pp(c)(2)(C), and 1087qq(c)(2)(C) of this title. Such revised table shall be developed—

(1) by increasing each dollar amount that refers to net worth of a farm or business by a percentage equal to the estimated percentage increase in the Consumer Price Index (as determined by the Secretary after consultation with the Advisory Committee on Student Financial Assistance) between 1986 and the December next preceding the beginning of such academic year, and rounding the result to the nearest $5,000; and

(2) by adjusting the dollar amounts “$24,000", "$84,000”, and “$156,000” to reflect the changes made pursuant to paragraph (1). (d) Asset protection allowance

For each academic year after academic year 1987-1988, the Secretary shall publish in the Federal Register a revised table of asset protection allowances for purposes of sections 108700(d)(3), 1087pp(c)(3), and 1087qq(c)(3) 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 income at age 65 (adjusted for inflation) equal to the difference between the moderate family income (as most recently determined by the Bureau of Labor Statistics) and the current average social security retirement benefits. For each age cohort below 40, the asset protection allowance shall be computed by decreasing the asset protection allowance for age 40, as updated, by one-fifteenth for each year of age below age 40 and rounding the result to the nearest $100. In making such determinations

(1) inflation shall be presumed to be 6 percent per year;

(2) the rate of return of an annuity shall be presumed to be 8 percent; and

(3) the sales commission on an annuity shall be presumed to be 6 percent.

(e) Assessment schedules and rates

(1) For each academic year after academic year 1987-1988, the Secretary shall publish in the Federal Register a revised table of assessments from adjusted available income for the purpose of sections 108700(e) and 1087qq(d) of this title. Such revised table shall be developed

(A) by increasing each dollar amount that refers to adjusted available income by a percentage equal to the estimated percentage increase in the Consumer Price Index (as determined by the Secretary after consultation with the Advisory Committee on Student Financial Assistance) between December 1986 and the December next preceding the beginning of such academic year, rounded to the nearest $100; and

(B) by adjusting the other dollar amounts to reflect the changes made pursuant to subparagraph (A).

(2) For each academic year after academic year 1987-1988, the assessments made pursuant to section 1087pp(b)(4) of this title shall be made

(A) by increasing each dollar amount that refers to adjusted available income by a percentage equal to the estimated percentage increase in the Consumer Price Index (as determined by the Secretary after consultation with the Advisory Committee on Student Financial Assistance) between December 1986 and the December next preceding the beginning of such academic year, rounded to the nearest $100; and

(B) by adjusting the other dollar amount to reflect the changes made pursuant to subparagraph (A).

The Secretary shall publish in the Federal Register the adjustments required to carry out this paragraph.

(f) "Consumer Price Index" defined

As used in this section, the term "Consumer Price Index" means the Consumer Price Index for All Urban Consumers published by the Department of Labor. Each annual update of tables to reflect changes in the Consumer Price Index shall be corrected for misestimation of actual changes in such Index in previous years. (Pub. L. 89-329, title IV, § 478, as added Pub. L. 99-498, title IV, § 406(a), Oct. 17, 1986, 100 Stat. 1470, and amended Pub. L. 100-50, § 14(20)-(22), June 3, 1987, 101 Stat. 351, 352.)

AMENDMENTS

1987-Subsec. (c)(2). Pub. L. 100-50, § 14(21), substituted "'$24,000', '$84,000', and '$156,000'" for **'$26,000', '$91,000', and '$169,000' ".

Subsec. (d). Pub. L. 100-50, § 14(20), inserted ", rounded to the nearest $100," after "present value cost" and "of 40 and above" after "each age cohort" in second sentence and, after second sentence, inserted "For each age cohort below 40, the asset protection allowance shall be computed by decreasing the asset protection allowance for age 40, as updated, by one-fifteenth for each year of age below age 40 and rounding the result to the nearest $100."

Subsec. (f). Pub. L. 100-50, § 14(22), substituted "Consumer Price Index for All Urban Consumers" for "Consumer Price Index for Wage Earners and Clerical Workers".

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.

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 1087, 108700, 1087pp, 1087qq, 1089 of this title.

§ 1087ss. Simplified needs test

(a) Applicable to all title IV programs

The Secretary shall use a simplified needs analysis for any provision of this subchapter and part C of subchapter I of chapter 34 of title 42 based upon the elements set forth in subsec