20 U.S.C. § 1087pp
Student aid index for independent students without dependents other than a spouse
(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 | |
| married | single | |
| 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 .)