FR Doc E4-3779
[Federal Register: December 23, 2004 (Volume 69, Number 246)]
[Notices]               
[Page 76926-76927]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr23de04-45]                         

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DEPARTMENT OF EDUCATION

 
Federal Pell Grant, Federal Perkins Loan, Federal Work-Study, 
Federal Supplemental Educational Opportunity Grant, Federal Family 
Education Loan, and William D. Ford Federal Direct Loan Programs

AGENCY: Federal Student Aid, Department of Education.

ACTION: Notice of revision of the Federal Need Analysis Methodology for 
the 2005-2006 award year.

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SUMMARY: The Secretary of Education announces the updates to the state 
tax tables that will be used in the statutory ``Federal Need Analysis 
Methodology'' to determine a student's expected family contribution 
(EFC) for award year 2005-2006 under part F of title IV of the Higher 
Education Act of 1965 (HEA), as amended (Title IV, HEA Programs). An 
EFC is the amount a student and his or her family may reasonably be 
expected to contribute toward the student's postsecondary educational 
costs for purposes of determining financial aid eligibility. The Title 
IV, HEA Programs include the Federal Pell Grant, campus-based (Federal 
Perkins Loan, Federal Work-Study, and Federal Supplemental Educational 
Opportunity Grant Programs), Federal Family Education Loan, and William 
D. Ford Federal Direct Loan Programs.

FOR FURTHER INFORMATION CONTACT: Ms. Marya Dennis, Management and 
Program Analyst, U.S. Department of Education, Union Center Plaza, 830 
First Street, NE., Washington, DC 20202. Telephone: (202) 377-3385. If 
you use a telecommunications device for the deaf (TDD), you may call 
the Federal Information Relay Service (FIRS) at 1-800-877-8339.
    Individuals with disabilities may obtain this document in an 
alternative format (e.g., Braille, large print, audiotape or computer 
diskette) on request to the contact person listed in the preceding 
paragraph.

SUPPLEMENTARY INFORMATION: Part F of title IV of the HEA specifies the 
criteria, data elements, calculations, and tables used in the Federal 
Need Analysis Methodology EFC calculations.
    Section 478 of part F of the HEA requires the Secretary to adjust 
four of the tables--the Income Protection Allowance, the Adjusted Net 
Worth of a Business or Farm, the Education Savings and Asset Protection 
Allowance, and the Assessment Schedules and Rates--each award year to 
take into account inflation. The changes are based, in general, upon 
increases in the Consumer Price Index. The Secretary published these 
adjusted tables in the Federal Register on June 17, 2004. See 69 FR 
33890.
    Section 478(g) of part F of the HEA further directs the Secretary 
to update the tables for State and other taxes after reviewing the 
Department of Treasury's Statistics of Income file data maintained by 
the Internal Revenue Service. The Secretary delayed publication of 
these tables in order to complete a thorough review of the available 
information from the Statistics of Income file data maintained by the 
Internal Revenue Service. Also, a provision in the Consolidated 
Appropriations Act, 2004 (Pub. L. 108-199), directed the Advisory 
Committee on Student Financial Assistance to examine the efficiency, 
effectiveness and fairness of the current procedures to update formula 
offsets and allowances. The Secretary considered the preliminary 
findings of the Advisory Committee's analysis as he reviewed the 
Statistics of Income file data.
    Finally, section 482 of part F of the HEA requires the Secretary to 
publish the annual Federal Need Analysis Methodology updates by June 1. 
On June 16, 2004, also as required by section 482 of part F of the HEA, 
the Secretary informed the Chairmen and Ranking Members of the House 
Education and Workforce and Senate Health, Education, Labor, and 
Pensions Committees that the Department did not meet this deadline.
    The State tax table information for 2005-2006 is as follows:
    Allowance for State and Other Taxes. The allowance for State and 
other taxes protects a portion of the parents' and students' income 
from being considered available for postsecondary educational expenses. 
There are four tables for State and other taxes, one each for parents 
of dependent students, independent students with dependents other than 
a spouse, dependent students, and independent students without 
dependents other than a spouse.

                                                  [In percent]
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                                                                     Parents of dependents and    Dependents and
                                                                   independents with dependents    independents
                                                                        other than a spouse           without
                              State                              --------------------------------   dependents
                                                                                                   other than a
                                                                   Under $15,000  $15,000 and up    spouse--all
                                                                   (in percent)     (in percent)   (in percent)
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Alabama.........................................................               3               2               2
Alaska..........................................................               2               1               0
Arizona.........................................................               4               3               2
Arkansas........................................................               3               2               3

[[Page 76927]]


California......................................................               7               6               5
Colorado........................................................               4               3               3
Connecticut.....................................................               7               6               4
Delaware........................................................               4               3               3
District of Columbia............................................               7               6               6
Florida.........................................................               2               1               0
Georgia.........................................................               5               4               3
Hawaii..........................................................               4               3               4
Idaho...........................................................               5               4               3
Illinois........................................................               5               4               2
Indiana.........................................................               4               3               3
Iowa............................................................               5               4               3
Kansas..........................................................               5               4               3
Kentucky........................................................               5               4               4
Louisiana.......................................................               2               1               2
Maine...........................................................               6               5               4
Maryland........................................................               7               6               5
Massachusetts...................................................               6               5               4
Michigan........................................................               5               4               3
Minnesota.......................................................               6               5               4
Mississippi.....................................................               3               2               2
Missouri........................................................               4               3               3
Montana.........................................................               5               4               3
Nebraska........................................................               5               4               3
Nevada..........................................................               2               1               1
New Hampshire...................................................               4               3               1
New Jersey......................................................               8               7               4
New Mexico......................................................               4               3               3
New York........................................................               8               7               5
North Carolina..................................................               6               5               4
North Dakota....................................................               2               1               1
Ohio............................................................               6               5               4
Oklahoma........................................................               4               3               3
Oregon..........................................................               7               6               5
Pennsylvania....................................................               5               4               3
Rhode Island....................................................               7               6               4
South Carolina..................................................               5               4               3
South Dakota....................................................               1               0               0
Tennessee.......................................................               1               0               0
Texas...........................................................               2               1               0
Utah............................................................               5               4               4
Vermont.........................................................               6               5               3
Virginia........................................................               5               4               3
Washington......................................................               2               1               0
West Virginia...................................................               3               2               2
Wisconsin.......................................................               7               6               4
Wyoming.........................................................               1               0               0
Other...........................................................               3               2               2
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(Catalog of Federal Domestic Assistance Numbers: 84.007 Federal 
Supplemental Educational Opportunity Grant; 84.032 Federal Family 
Education Loan Program; 84.033 Federal Work-Study Program; 84.038 
Federal Perkins Loan Program; 84.063 Federal Pell Grant Program; 
84.268 William D. Ford Federal Direct Loan Program)
    Dated: December 17, 2004.
Theresa S. Shaw,
Chief Operating Officer, Federal Student Aid.
 [FR Doc. E4-3779 Filed 12-22-04; 8:45 am]

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