82_FR_20404 82 FR 20322 - Federal Need Analysis Methodology for the 2018-19 Award Year-Federal Pell Grant, Federal Perkins Loan, Federal Work-Study, Federal Supplemental Educational Opportunity Grant, William D. Ford Federal Direct Loan, Iraq and Afghanistan Service Grant and TEACH Grant Programs

82 FR 20322 - Federal Need Analysis Methodology for the 2018-19 Award Year-Federal Pell Grant, Federal Perkins Loan, Federal Work-Study, Federal Supplemental Educational Opportunity Grant, William D. Ford Federal Direct Loan, Iraq and Afghanistan Service Grant and TEACH Grant Programs

DEPARTMENT OF EDUCATION

Federal Register Volume 82, Issue 82 (May 1, 2017)

Page Range20322-20327
FR Document2017-08779

The Secretary announces the annual updates to the tables used in the statutory Federal Need Analysis Methodology that determines a student's expected family contribution (EFC) for award year (AY) 2018- 19 for these student financial aid programs. The intent of this notice is to alert the financial aid community and the broader public to these required annual updates used in the determination of student aid eligibility.

Federal Register, Volume 82 Issue 82 (Monday, May 1, 2017)
[Federal Register Volume 82, Number 82 (Monday, May 1, 2017)]
[Notices]
[Pages 20322-20327]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-08779]


-----------------------------------------------------------------------

DEPARTMENT OF EDUCATION


Federal Need Analysis Methodology for the 2018-19 Award Year--
Federal Pell Grant, Federal Perkins Loan, Federal Work-Study, Federal 
Supplemental Educational Opportunity Grant, William D. Ford Federal 
Direct Loan, Iraq and Afghanistan Service Grant and TEACH Grant 
Programs

AGENCY: Federal Student Aid, Department of Education.

ACTION: Notice.

-----------------------------------------------------------------------

Catalog of Federal Domestic Assistance (CFDA) Numbers: 84.063; 84.038; 
84.033; 84.007; 84.268; 84.408; 84.379.

SUMMARY: The Secretary announces the annual updates to the tables used 
in the statutory Federal Need Analysis Methodology that determines a 
student's expected family contribution (EFC) for award year (AY) 2018-
19 for these student financial aid programs. The intent of this notice 
is to alert the financial aid community and the broader public to these 
required annual updates used in the determination of student aid 
eligibility.

FOR FURTHER INFORMATION CONTACT: Marya Dennis, U.S. Department of 
Education, Room 63G2, Union Center Plaza, 830 First Street NE., 
Washington, DC 20202-5454. Telephone: (202) 377-3385.
    If you use a telecommunications device for the deaf (TDD) or a text 
telephone (TTY), call the Federal Relay Service (FRS), toll free, at 1-
800-877-8339.

SUPPLEMENTARY INFORMATION: Part F of title IV of the Higher Education 
Act of 1965, as amended (HEA), specifies the criteria, data elements, 
calculations, and tables the Department of Education (Department) uses 
in the Federal Need Analysis Methodology to determine the EFC.
    Section 478 of the HEA requires the Secretary to annually update 
the following four tables for price inflation--the Income Protection 
Allowance (IPA), the Adjusted Net Worth (NW) of a Business or Farm, the 
Education Savings and Asset Protection Allowance, and the Assessment 
Schedules and Rates. The updates are based, in general, upon increases 
in the Consumer Price Index (CPI).
    For AY 2018-19, the Secretary is charged with updating the IPA for 
parents of dependent students, adjusted NW of a business or farm, the 
education savings and asset protection allowance, and the assessment 
schedules and rates to account for inflation that took place between 
December 2016 and December 2017. However, because the Secretary must 
publish these tables before December 2017, the increases in the tables 
must be based on a percentage equal to the estimated percentage 
increase in the Consumer Price Index for All Urban Consumers (CPI-U) 
for 2017. The Secretary must also account for any under- or over-
estimation of inflation for the preceding year.
    In developing the table values for the 2017-18 AY, the Secretary's 
assumed 2.1 percent increase in the CPI-U for the period December 2015 
through December 2016 was the actual inflation for this time period. 
The Secretary estimates that the increase in the CPI-U for the period 
December 2016 through December 2017 will be 2.3 percent.
    Additionally, section 601 of the College Cost Reduction and Access 
Act of 2007 (CCRAA, Pub. L. 110-84) amended sections 475 through 478 of 
the HEA affecting the IPA tables for the 2009-10 through 2012-13 AYs 
and required the Department to use a percentage of the estimated CPI to 
update the table in subsequent years. These changes to the IPA impact 
dependent students, as well as independent students with dependents 
other than a spouse and independent students without dependents other 
than a spouse. This notice includes the new 2018-19 AY values for the 
IPA tables, which reflect the CCRAA amendments. The updated tables are 
in sections 1 (Income Protection Allowance), 2 (Adjusted Net Worth of a 
Business or Farm), and 4 (Assessment Schedules and Rates) of this 
notice.
    As provided for in section 478(d) of the HEA, the Secretary must 
also revise the education savings and asset protection allowances for 
each AY. The Education Savings and Asset Protection Allowance table for 
AY 2018-19 has been updated in section 3 of this notice.
    Section 478(h) of the HEA also requires the Secretary to increase 
the amount specified for the employment expense allowance, adjusted for 
inflation. This calculation is based on increases in the Bureau of 
Labor Statistics' marginal costs budget for a two-worker family 
compared to a one-worker family. The items covered by this calculation 
are: Food away from home, apparel, transportation, and household 
furnishings and operations. The Employment Expense Allowance table for 
AY 2018-19 has been updated in section 5 of this notice.
    The HEA requires the following annual updates:
    1. Income Protection Allowance. This allowance is the amount of 
living expenses associated with the maintenance of an individual or 
family that may be offset against the family's income. The allowance 
varies by family size. The IPA for the dependent student is $6,570. The 
IPAs for parents of dependent students for AY 2018-19 are as follows:

                                          Parents of Dependent Students
----------------------------------------------------------------------------------------------------------------
                                                                 Number in college
           Family size           -------------------------------------------------------------------------------
                                         1               2               3               4               5
----------------------------------------------------------------------------------------------------------------
2...............................         $18,320         $15,180
3...............................          22,810          19,690         $16,560
4...............................          28,170          25,040          21,920         $18,790
5...............................          33,240          30,100          26,990          23,850         $20,740
6...............................          38,880          35,740          32,630          29,490          26,380
----------------------------------------------------------------------------------------------------------------


[[Page 20323]]

    For each additional family member add $4,390. For each additional 
college student subtract $3,120.
    The IPAs for independent students with dependents other than a 
spouse for AY 2018-19 are as follows:

                            Independent Students With Dependents Other Than a Spouse
----------------------------------------------------------------------------------------------------------------
                                                                 Number in college
           Family size           -------------------------------------------------------------------------------
                                         1               2               3               4               5
----------------------------------------------------------------------------------------------------------------
2...............................         $25,870         $21,450
3...............................          32,210          27,810         $23,390
4...............................          39,780          35,370          30,960         $26,530
5...............................          46,940          42,500          38,100          33,690         $29,290
6...............................          54,890          50,480          46,080          41,640          37,250
----------------------------------------------------------------------------------------------------------------

    For each additional family member add $6,200. For each additional 
college student subtract $4,400.
    The IPAs for single independent students and independent students 
without dependents other than a spouse for AY 2018-19 are as follows:

------------------------------------------------------------------------
                                             Number in
             Marital  status                  college           IPA
------------------------------------------------------------------------
Single..................................               1         $10,220
Married.................................               2          10,220
Married.................................               1          16,380
------------------------------------------------------------------------

    2. Adjusted Net Worth of a Business or Farm. A portion of the full 
NW (assets less debts) of a business or farm is excluded from the 
calculation of an EFC because (1) the income produced from these assets 
is already assessed in another part of the formula; and (2) the formula 
protects a portion of the value of the assets.
    The portion of these assets included in the contribution 
calculation is computed according to the following schedule. This 
schedule is used for parents of dependent students, independent 
students without dependents other than a spouse, and independent 
students with dependents other than a spouse.

------------------------------------------------------------------------
   If the NW of a business or farm is        Then the adjusted NW is
------------------------------------------------------------------------
Less than $1...........................  $0.
$1 to $130,000.........................  $0 + 40% of NW.
$130,001 to $390,000...................  $52,000 + 50% of NW over
                                          $130,000.
$390,001 to $655,000...................  $182,000 + 60% of NW over
                                          $390,000.
$655,001 or more.......................  $341,000 + 100% of NW over
                                          $655,000.
------------------------------------------------------------------------

    3. Education Savings and Asset Protection Allowance. This allowance 
protects a portion of NW (assets less debts) from being considered 
available for postsecondary educational expenses. There are three asset 
protection allowance tables: One for parents of dependent students, one 
for independent students without dependents other than a spouse, and 
one for independent students with dependents other than a spouse.

                      Parents of Dependent Students
------------------------------------------------------------------------
                                                And they are
 If the age of the older parent is -------------------------------------
                                         Married             Single
------------------------------------------------------------------------
                                    Then the education savings and asset
                                           protection allowance is
------------------------------------------------------------------------
25 or less........................                  0                  0
26................................              1,200                700
27................................              2,400              1,400
28................................              3,500              2,200
29................................              4,700              2,900
30................................              5,900              3,600
31................................              7,100              4,300
32................................              8,300              5,000
33................................              9,400              5,800
34................................             10,600              6,500
35................................             11,800              7,200
36................................             13,000              7,900
37................................             14,200              8,600
38................................             15,300              9,400
39................................             16,500             10,100
40................................             17,700             10,800
41................................             18,100             11,000
42................................             18,500             11,300
43................................             18,900             11,500
44................................             19,300             11,800
45................................             19,800             12,000

[[Page 20324]]

 
46................................             20,300             12,300
47................................             20,700             12,600
48................................             21,300             12,900
49................................             21,800             13,200
50................................             22,300             13,500
51................................             22,900             13,800
52................................             23,500             14,100
53................................             24,100             14,400
54................................             24,800             14,800
55................................             25,400             15,200
56................................             26,100             15,500
57................................             26,800             15,900
58................................             27,600             16,300
59................................             28,300             16,700
60................................             29,100             17,100
61................................             30,000             17,600
62................................             30,800             18,000
63................................             31,700             18,500
64................................             32,600             19,000
65 or older.......................             33,600             19,500
------------------------------------------------------------------------


        Independent Students With Dependents Other Than a Spouse
------------------------------------------------------------------------
                                                And they are
   If the age of the student is    -------------------------------------
                                         Married             Single
------------------------------------------------------------------------
                                    Then the education savings and asset
                                           protection allowance is
------------------------------------------------------------------------
25 or less........................                  0                  0
26................................              1,200                700
27................................              2,400              1,400
28................................              3,500              2,200
29................................              4,700              2,900
30................................              5,900              3,600
31................................              7,100              4,300
32................................              8,300              5,000
33................................              9,400              5,800
34................................             10,600              6,500
35................................             11,800              7,200
36................................             13,000              7,900
37................................             14,200              8,600
38................................             15,300              9,400
39................................             16,500             10,100
40................................             17,700             10,800
41................................             18,100             11,000
42................................             18,500             11,300
43................................             18,900             11,500
44................................             19,300             11,800
45................................             19,800             12,000
46................................             20,300             12,300
47................................             20,700             12,600
48................................             21,300             12,900
49................................             21,800             13,200
50................................             22,300             13,500
51................................             22,900             13,800
52................................             23,500             14,100
53................................             24,100             14,400
54................................             24,800             14,800
55................................             25,400             15,200
56................................             26,100             15,500
57................................             26,800             15,900
58................................             27,600             16,300
59................................             28,300             16,700
60................................             29,100             17,100
61................................             30,000             17,600

[[Page 20325]]

 
62................................             30,800             18,000
63................................             31,700             18,500
64................................             32,600             19,000
65 or older.......................             33,600             19,500
------------------------------------------------------------------------


       Independent Students Without Dependents Other Than a Spouse
------------------------------------------------------------------------
                                                And they are
   If the age of the student is    -------------------------------------
                                         Married             Single
------------------------------------------------------------------------
                                    Then the education savings and asset
                                           protection allowance is
------------------------------------------------------------------------
25 or less........................                  0                  0
26................................              1,200                700
27................................              2,400              1,400
28................................              3,500              2,200
29................................              4,700              2,900
30................................              5,900              3,600
31................................              7,100              4,300
32................................              8,300              5,000
33................................              9,400              5,800
34................................             10,600              6,500
35................................             11,800              7,200
36................................             13,000              7,900
37................................             14,200              8,600
38................................             15,300              9,400
39................................             16,500             10,100
40................................             17,700             10,800
41................................             18,100             11,000
42................................             18,500             11,300
43................................             18,900             11,500
44................................             19,300             11,800
45................................             19,800             12,000
46................................             20,300             12,300
47................................             20,700             12,600
48................................             21,300             12,900
49................................             21,800             13,200
50................................             22,300             13,500
51................................             22,900             13,800
52................................             23,500             14,100
53................................             24,100             14,400
54................................             24,800             14,800
55................................             25,400             15,200
56................................             26,100             15,500
57................................             26,800             15,900
58................................             27,600             16,300
59................................             28,300             16,700
60................................             29,100             17,100
61................................             30,000             17,600
62................................             30,800             18,000
63................................             31,700             18,500
64................................             32,600             19,000
65 or older.......................             33,600             19,500
------------------------------------------------------------------------

    4. Assessment Schedules and Rates. Two schedules that are subject 
to updates--one for parents of dependent students and one for 
independent students with dependents other than a spouse--are used to 
determine the EFC from family financial resources toward educational 
expenses. For dependent students, the EFC is derived from an assessment 
of the parents' adjusted available income (AAI). For independent 
students with dependents other than a spouse, the EFC is derived from 
an assessment of the family's AAI. The AAI represents a measure of a 
family's financial strength, which considers both income and assets.
    The parents' contribution for a dependent student is computed 
according to the following schedule:


[[Page 20326]]



------------------------------------------------------------------------
               If AAI is                     Then the contribution is
------------------------------------------------------------------------
Less than -$3,409......................  -$750.
($3,409) to $16,400....................  22% of AAI.
$16,401 to $20,500.....................  $3,608 + 25% of AAI over
                                          $16,400.
$20,501 to $24,700.....................  $4,633 + 29% of AAI over
                                          $20,500.
$24,701 to $28,900.....................  $5,851 + 34% of AAI over
                                          $24,700.
$28,901 to $33,100.....................  $7,279 + 40% of AAI over
                                          $28,900.
$33,101 or more........................  $8,959 + 47% of AAI over
                                          $33,100.
------------------------------------------------------------------------

    The contribution for an independent student with dependents other 
than a spouse is computed according to the following schedule:

------------------------------------------------------------------------
               If AAI is                     Then the contribution is
------------------------------------------------------------------------
Less than -$3,409......................  -$750.
($3,409) to $16,400....................  22% of AAI.
$16,401 to $20,500.....................  $3,608 + 25% of AAI over
                                          $16,400.
$20,501 to $24,700.....................  $4,633 + 29% of AAI over
                                          $20,500.
$24,701 to $28,900.....................  $5,851 + 34% of AAI over
                                          $24,700.
$28,901 to $33,100.....................  $7,279 + 40% of AAI over
                                          $28,900.
$33,101 or more........................  $8,959 + 47% of AAI over
                                          $33,100.
------------------------------------------------------------------------

    5. Employment Expense Allowance. This allowance for employment-
related expenses--which is used for the parents of dependent students 
and for married independent students--recognizes additional expenses 
incurred by working spouses and single-parent households. The allowance 
is based on the marginal differences in costs for a two-worker family 
compared to a one-worker family. The items covered by these additional 
expenses are: Food away from home, apparel, transportation, and 
household furnishings and operations.
    The employment expense allowance for parents of dependent students, 
married independent students without dependents other than a spouse, 
and independent students with dependents other than a spouse is the 
lesser of $4,000 or 35 percent of earned income.
    6. Allowance for State and Other Taxes. The allowance for State and 
other taxes protects a portion of parents' and students' incomes from 
being considered available for postsecondary educational expenses. 
There are four categories 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. Section 478(g) of the HEA 
directs the Secretary to update the tables for State and other taxes 
after reviewing the Statistics of Income file data maintained by the 
Internal Revenue Service.

  Percent of Income Paid in State Taxes, by Status of Having Dependents Other Than a Spouse, Income Level, and
                                                      State
----------------------------------------------------------------------------------------------------------------
                                                               Parents of dependents and        Dependents  and
                                                             independents with dependents        independents
                                                                  other than a spouse               without
                          State                          ------------------------------------  dependents  other
                                                                Percent of total income          than a spouse
                                                         -------------------------------------------------------
                                                            Under $15,000     $15,000 & Up            All
----------------------------------------------------------------------------------------------------------------
Alabama.................................................                 3                 2                   2
Alaska..................................................                 2                 1                   0
Arizona.................................................                 3                 2                   2
Arkansas................................................                 4                 3                   3
California..............................................                 8                 7                   6
Colorado................................................                 4                 3                   3
Connecticut.............................................                 8                 7                   5
Delaware................................................                 4                 3                   3
District of Columbia....................................                 7                 6                   6
Florida.................................................                 3                 2                   1
Georgia.................................................                 5                 4                   3
Hawaii..................................................                 5                 4                   4
Idaho...................................................                 4                 3                   3
Illinois................................................                 6                 5                   3
Indiana.................................................                 4                 3                   3
Iowa....................................................                 5                 4                   3
Kansas..................................................                 4                 3                   2
Kentucky................................................                 5                 4                   3
Louisiana...............................................                 3                 2                   2
Maine...................................................                 6                 5                   3
Maryland................................................                 8                 7                   5

[[Page 20327]]

 
Massachusetts...........................................                 6                 5                   4
Michigan................................................                 4                 3                   2
Minnesota...............................................                 6                 5                   4
Mississippi.............................................                 3                 2                   2
Missouri................................................                 4                 3                   3
Montana.................................................                 4                 3                   3
Nebraska................................................                 5                 4                   3
Nevada..................................................                 2                 1                   1
New Hampshire...........................................                 4                 3                   1
New Jersey..............................................                 9                 8                   4
New Mexico..............................................                 3                 2                   2
New York................................................                 9                 8                   6
North Carolina..........................................                 5                 4                   3
North Dakota............................................                 2                 1                   1
Ohio....................................................                 5                 4                   3
Oklahoma................................................                 3                 2                   2
Oregon..................................................                 7                 6                   5
Pennsylvania............................................                 5                 4                   3
Rhode Island............................................                 6                 5                   3
South Carolina..........................................                 4                 3                   3
South Dakota............................................                 2                 1                   1
Tennessee...............................................                 2                 1                   1
Texas...................................................                 3                 2                   1
Utah....................................................                 5                 4                   3
Vermont.................................................                 6                 5                   3
Virginia................................................                 6                 5                   4
Washington..............................................                 3                 2                   1
West Virginia...........................................                 3                 2                   2
Wisconsin...............................................                 6                 5                   4
Wyoming.................................................                 2                 1                   1
Other...................................................                 2                 1                   1
----------------------------------------------------------------------------------------------------------------

    Accessible Format: Individuals with disabilities can obtain this 
document in an accessible format (e.g., braille, large print, 
audiotape, or compact disc) on request to the contact person listed 
under FOR FURTHER INFORMATION CONTACT in this notice.
    Electronic Access to This Document: The official version of this 
document is the document published in the Federal Register. Free 
internet access to the official edition of the Federal Register and the 
Code of Federal Regulations is available via the Federal Digital System 
at: www.thefederalregister.org/fdsys. At this site you can view this document, as well 
as all other documents of this Department published in the Federal 
Register, in text or Portable Document Format (PDF). To use PDF you 
must have Adobe Acrobat Reader, which is available free at this site.
    You may also access documents of the Department published in the 
Federal Register by using the article search feature at: 
www.federalregister.gov. Specifically, through the advanced search 
feature at this site, you can limit your search to documents published 
by the Department.
    Program Authority: 20 U.S.C. 1087rr.

    Dated: April 26, 2017.
James W. Runcie,
Chief Operating Officer Federal Student Aid.
[FR Doc. 2017-08779 Filed 4-28-17; 8:45 am]
BILLING CODE 4000-01-P



                                                20322                                          Federal Register / Vol. 82, No. 82 / Monday, May 1, 2017 / Notices

                                                choices often diverge considerably, and                                        telephone (TTY), call the Federal Relay                  the HEA affecting the IPA tables for the
                                                allow study of the paths taken by these                                        Service (FRS), toll free, at 1–800–877–                  2009–10 through 2012–13 AYs and
                                                different graduates. B&B:16/17 main                                            8339.                                                    required the Department to use a
                                                study data collection is scheduled to                                          SUPPLEMENTARY INFORMATION: Part F of                     percentage of the estimated CPI to
                                                take place from July 2017 through                                              title IV of the Higher Education Act of                  update the table in subsequent years.
                                                March 2018.                                                                    1965, as amended (HEA), specifies the                    These changes to the IPA impact
                                                  Dated: April 26, 2017.                                                       criteria, data elements, calculations, and               dependent students, as well as
                                                Stephanie Valentine,                                                           tables the Department of Education                       independent students with dependents
                                                                                                                               (Department) uses in the Federal Need                    other than a spouse and independent
                                                Acting Director, Information Collection
                                                Clearance Division, Office of the Chief Privacy                                Analysis Methodology to determine the                    students without dependents other than
                                                Officer, Office of Management.                                                 EFC.                                                     a spouse. This notice includes the new
                                                [FR Doc. 2017–08739 Filed 4–28–17; 8:45 am]                                       Section 478 of the HEA requires the                   2018–19 AY values for the IPA tables,
                                                                                                                               Secretary to annually update the                         which reflect the CCRAA amendments.
                                                BILLING CODE 4000–01–P
                                                                                                                               following four tables for price                          The updated tables are in sections 1
                                                                                                                               inflation—the Income Protection                          (Income Protection Allowance), 2
                                                DEPARTMENT OF EDUCATION                                                        Allowance (IPA), the Adjusted Net                        (Adjusted Net Worth of a Business or
                                                                                                                               Worth (NW) of a Business or Farm, the                    Farm), and 4 (Assessment Schedules
                                                Federal Need Analysis Methodology                                              Education Savings and Asset Protection                   and Rates) of this notice.
                                                for the 2018–19 Award Year—Federal                                             Allowance, and the Assessment                               As provided for in section 478(d) of
                                                Pell Grant, Federal Perkins Loan,                                              Schedules and Rates. The updates are                     the HEA, the Secretary must also revise
                                                Federal Work-Study, Federal                                                    based, in general, upon increases in the                 the education savings and asset
                                                Supplemental Educational Opportunity                                           Consumer Price Index (CPI).                              protection allowances for each AY. The
                                                Grant, William D. Ford Federal Direct                                             For AY 2018–19, the Secretary is                      Education Savings and Asset Protection
                                                Loan, Iraq and Afghanistan Service                                             charged with updating the IPA for                        Allowance table for AY 2018–19 has
                                                Grant and TEACH Grant Programs                                                 parents of dependent students, adjusted                  been updated in section 3 of this notice.
                                                                                                                               NW of a business or farm, the education                     Section 478(h) of the HEA also
                                                AGENCY: Federal Student Aid,                                                   savings and asset protection allowance,
                                                Department of Education.                                                                                                                requires the Secretary to increase the
                                                                                                                               and the assessment schedules and rates                   amount specified for the employment
                                                ACTION: Notice.                                                                to account for inflation that took place                 expense allowance, adjusted for
                                                                                                                               between December 2016 and December                       inflation. This calculation is based on
                                                Catalog of Federal Domestic Assistance                                         2017. However, because the Secretary
                                                (CFDA) Numbers: 84.063; 84.038;                                                                                                         increases in the Bureau of Labor
                                                                                                                               must publish these tables before                         Statistics’ marginal costs budget for a
                                                84.033; 84.007; 84.268; 84.408; 84.379.                                        December 2017, the increases in the
                                                SUMMARY: The Secretary announces the                                                                                                    two-worker family compared to a one-
                                                                                                                               tables must be based on a percentage                     worker family. The items covered by
                                                annual updates to the tables used in the                                       equal to the estimated percentage
                                                statutory Federal Need Analysis                                                                                                         this calculation are: Food away from
                                                                                                                               increase in the Consumer Price Index                     home, apparel, transportation, and
                                                Methodology that determines a                                                  for All Urban Consumers (CPI–U) for
                                                student’s expected family contribution                                                                                                  household furnishings and operations.
                                                                                                                               2017. The Secretary must also account                    The Employment Expense Allowance
                                                (EFC) for award year (AY) 2018–19 for                                          for any under- or over-estimation of
                                                these student financial aid programs.                                                                                                   table for AY 2018–19 has been updated
                                                                                                                               inflation for the preceding year.                        in section 5 of this notice.
                                                The intent of this notice is to alert the                                         In developing the table values for the
                                                financial aid community and the                                                2017–18 AY, the Secretary’s assumed                         The HEA requires the following
                                                broader public to these required annual                                        2.1 percent increase in the CPI–U for the                annual updates:
                                                updates used in the determination of                                           period December 2015 through                                1. Income Protection Allowance. This
                                                student aid eligibility.                                                       December 2016 was the actual inflation                   allowance is the amount of living
                                                FOR FURTHER INFORMATION CONTACT:                                               for this time period. The Secretary                      expenses associated with the
                                                Marya Dennis, U.S. Department of                                               estimates that the increase in the CPI–                  maintenance of an individual or family
                                                Education, Room 63G2, Union Center                                             U for the period December 2016 through                   that may be offset against the family’s
                                                Plaza, 830 First Street NE., Washington,                                       December 2017 will be 2.3 percent.                       income. The allowance varies by family
                                                DC 20202–5454. Telephone: (202) 377–                                              Additionally, section 601 of the                      size. The IPA for the dependent student
                                                3385.                                                                          College Cost Reduction and Access Act                    is $6,570. The IPAs for parents of
                                                   If you use a telecommunications                                             of 2007 (CCRAA, Pub. L. 110–84)                          dependent students for AY 2018–19 are
                                                device for the deaf (TDD) or a text                                            amended sections 475 through 478 of                      as follows:

                                                                                                                                  PARENTS OF DEPENDENT STUDENTS
                                                                                                                                                                                    Number in college
                                                                                      Family size
                                                                                                                                                     1                    2                 3              4              5

                                                2   ...........................................................................................      $18,320              $15,180
                                                3   ...........................................................................................       22,810               19,690           $16,560
srobinson on DSK5SPTVN1PROD with NOTICES




                                                4   ...........................................................................................       28,170               25,040            21,920        $18,790
                                                5   ...........................................................................................       33,240               30,100            26,990         23,850        $20,740
                                                6   ...........................................................................................       38,880               35,740            32,630         29,490         26,380




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                                                                                                 Federal Register / Vol. 82, No. 82 / Monday, May 1, 2017 / Notices                                                                                    20323

                                                  For each additional family member                                              The IPAs for independent students
                                                add $4,390. For each additional college                                        with dependents other than a spouse for
                                                student subtract $3,120.                                                       AY 2018–19 are as follows:

                                                                                                  INDEPENDENT STUDENTS WITH DEPENDENTS OTHER THAN A SPOUSE
                                                                                                                                                                                                      Number in college
                                                                                      Family size
                                                                                                                                                             1                           2                          3                    4              5

                                                2   ...........................................................................................              $25,870                     $21,450
                                                3   ...........................................................................................               32,210                      27,810                     $23,390
                                                4   ...........................................................................................               39,780                      35,370                      30,960             $26,530
                                                5   ...........................................................................................               46,940                      42,500                      38,100              33,690        $29,290
                                                6   ...........................................................................................               54,890                      50,480                      46,080              41,640         37,250



                                                  For each additional family member                                                 Marital                       formula protects a portion of the value
                                                                                                                                                          Number in                          IPA
                                                add $6,200. For each additional college                                             status                 collegeof the assets.
                                                student subtract $4,400.                                                                                            The portion of these assets included
                                                  The IPAs for single independent                                    Married ......             1          16,380
                                                                                                                                                                  in the contribution calculation is
                                                students and independent students
                                                                                                                        2. Adjusted Net Worth of a Business       computed according to the following
                                                without dependents other than a spouse
                                                for AY 2018–19 are as follows:                                       or Farm. A portion of the full NW            schedule. This schedule is used for
                                                                                                                     (assets less debts) of a business or farm    parents of dependent students,
                                                     Marital               Number in                                 is excluded    from the calculation of an    independent students without
                                                                                                            IPA
                                                     status                 college                                  EFC because (1) the income produced          dependents other than a spouse, and
                                                                                                                                                                  independent students with dependents
                                                Single ........                              1               $10,220 from these assets is already assessed in
                                                Married ......                               2                10,220 another part of the formula; and (2) the     other than a spouse.

                                                If the NW of a business or farm is                                                                                    Then the adjusted NW is

                                                Less than $1 .............................................................................................            $0.
                                                $1 to $130,000 .........................................................................................              $0 + 40% of NW.
                                                $130,001 to $390,000 ..............................................................................                   $52,000 + 50% of NW over $130,000.
                                                $390,001 to $655,000 ..............................................................................                   $182,000 + 60% of NW over $390,000.
                                                $655,001 or more .....................................................................................                $341,000 + 100% of NW over $655,000.



                                                  3. Education Savings and Asset                                               for postsecondary educational expenses.                                        independent students without
                                                Protection Allowance. This allowance                                           There are three asset protection                                               dependents other than a spouse, and
                                                protects a portion of NW (assets less                                          allowance tables: One for parents of                                           one for independent students with
                                                debts) from being considered available                                         dependent students, one for                                                    dependents other than a spouse.

                                                                                                                                  PARENTS OF DEPENDENT STUDENTS
                                                                                                                                                                                                                                     And they are
                                                                                                          If the age of the older parent is
                                                                                                                                                                                                                               Married              Single

                                                                                                                                                                                                                         Then the education savings and asset
                                                                                                                                                                                                                                protection allowance is

                                                25   or less .....................................................................................................................................................                       0                       0
                                                26   .................................................................................................................................................................               1,200                     700
                                                27   .................................................................................................................................................................               2,400                   1,400
                                                28   .................................................................................................................................................................               3,500                   2,200
                                                29   .................................................................................................................................................................               4,700                   2,900
                                                30   .................................................................................................................................................................               5,900                   3,600
                                                31   .................................................................................................................................................................               7,100                   4,300
                                                32   .................................................................................................................................................................               8,300                   5,000
                                                33   .................................................................................................................................................................               9,400                   5,800
                                                34   .................................................................................................................................................................              10,600                   6,500
                                                35   .................................................................................................................................................................              11,800                   7,200
                                                36   .................................................................................................................................................................              13,000                   7,900
                                                37   .................................................................................................................................................................              14,200                   8,600
srobinson on DSK5SPTVN1PROD with NOTICES




                                                38   .................................................................................................................................................................              15,300                   9,400
                                                39   .................................................................................................................................................................              16,500                  10,100
                                                40   .................................................................................................................................................................              17,700                  10,800
                                                41   .................................................................................................................................................................              18,100                  11,000
                                                42   .................................................................................................................................................................              18,500                  11,300
                                                43   .................................................................................................................................................................              18,900                  11,500
                                                44   .................................................................................................................................................................              19,300                  11,800
                                                45   .................................................................................................................................................................              19,800                  12,000



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                                                20324                                          Federal Register / Vol. 82, No. 82 / Monday, May 1, 2017 / Notices

                                                                                                                     PARENTS OF DEPENDENT STUDENTS—Continued
                                                                                                                                                                                                                                    And they are
                                                                                                         If the age of the older parent is
                                                                                                                                                                                                                             Married               Single

                                                                                                                                                                                                                         Then the education savings and asset
                                                                                                                                                                                                                                protection allowance is

                                                46   .................................................................................................................................................................             20,300               12,300
                                                47   .................................................................................................................................................................             20,700               12,600
                                                48   .................................................................................................................................................................             21,300               12,900
                                                49   .................................................................................................................................................................             21,800               13,200
                                                50   .................................................................................................................................................................             22,300               13,500
                                                51   .................................................................................................................................................................             22,900               13,800
                                                52   .................................................................................................................................................................             23,500               14,100
                                                53   .................................................................................................................................................................             24,100               14,400
                                                54   .................................................................................................................................................................             24,800               14,800
                                                55   .................................................................................................................................................................             25,400               15,200
                                                56   .................................................................................................................................................................             26,100               15,500
                                                57   .................................................................................................................................................................             26,800               15,900
                                                58   .................................................................................................................................................................             27,600               16,300
                                                59   .................................................................................................................................................................             28,300               16,700
                                                60   .................................................................................................................................................................             29,100               17,100
                                                61   .................................................................................................................................................................             30,000               17,600
                                                62   .................................................................................................................................................................             30,800               18,000
                                                63   .................................................................................................................................................................             31,700               18,500
                                                64   .................................................................................................................................................................             32,600               19,000
                                                65   or older ...................................................................................................................................................                  33,600               19,500


                                                                                                  INDEPENDENT STUDENTS WITH DEPENDENTS OTHER THAN A SPOUSE
                                                                                                                                                                                                                                    And they are
                                                                                                             If the age of the student is
                                                                                                                                                                                                                             Married               Single

                                                                                                                                                                                                                         Then the education savings and asset
                                                                                                                                                                                                                                protection allowance is

                                                25   or less .....................................................................................................................................................                      0                    0
                                                26   .................................................................................................................................................................              1,200                  700
                                                27   .................................................................................................................................................................              2,400                1,400
                                                28   .................................................................................................................................................................              3,500                2,200
                                                29   .................................................................................................................................................................              4,700                2,900
                                                30   .................................................................................................................................................................              5,900                3,600
                                                31   .................................................................................................................................................................              7,100                4,300
                                                32   .................................................................................................................................................................              8,300                5,000
                                                33   .................................................................................................................................................................              9,400                5,800
                                                34   .................................................................................................................................................................             10,600                6,500
                                                35   .................................................................................................................................................................             11,800                7,200
                                                36   .................................................................................................................................................................             13,000                7,900
                                                37   .................................................................................................................................................................             14,200                8,600
                                                38   .................................................................................................................................................................             15,300                9,400
                                                39   .................................................................................................................................................................             16,500               10,100
                                                40   .................................................................................................................................................................             17,700               10,800
                                                41   .................................................................................................................................................................             18,100               11,000
                                                42   .................................................................................................................................................................             18,500               11,300
                                                43   .................................................................................................................................................................             18,900               11,500
                                                44   .................................................................................................................................................................             19,300               11,800
                                                45   .................................................................................................................................................................             19,800               12,000
                                                46   .................................................................................................................................................................             20,300               12,300
                                                47   .................................................................................................................................................................             20,700               12,600
                                                48   .................................................................................................................................................................             21,300               12,900
                                                49   .................................................................................................................................................................             21,800               13,200
                                                50   .................................................................................................................................................................             22,300               13,500
                                                51   .................................................................................................................................................................             22,900               13,800
                                                52   .................................................................................................................................................................             23,500               14,100
                                                53   .................................................................................................................................................................             24,100               14,400
srobinson on DSK5SPTVN1PROD with NOTICES




                                                54   .................................................................................................................................................................             24,800               14,800
                                                55   .................................................................................................................................................................             25,400               15,200
                                                56   .................................................................................................................................................................             26,100               15,500
                                                57   .................................................................................................................................................................             26,800               15,900
                                                58   .................................................................................................................................................................             27,600               16,300
                                                59   .................................................................................................................................................................             28,300               16,700
                                                60   .................................................................................................................................................................             29,100               17,100
                                                61   .................................................................................................................................................................             30,000               17,600



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                                                                                               Federal Register / Vol. 82, No. 82 / Monday, May 1, 2017 / Notices                                                                                     20325

                                                                                     INDEPENDENT STUDENTS WITH DEPENDENTS OTHER THAN A SPOUSE—Continued
                                                                                                                                                                                                                                    And they are
                                                                                                             If the age of the student is
                                                                                                                                                                                                                             Married               Single

                                                                                                                                                                                                                         Then the education savings and asset
                                                                                                                                                                                                                                protection allowance is

                                                62   .................................................................................................................................................................             30,800               18,000
                                                63   .................................................................................................................................................................             31,700               18,500
                                                64   .................................................................................................................................................................             32,600               19,000
                                                65   or older ...................................................................................................................................................                  33,600               19,500


                                                                                              INDEPENDENT STUDENTS WITHOUT DEPENDENTS OTHER THAN A SPOUSE
                                                                                                                                                                                                                                    And they are
                                                If the age of the student is
                                                                                                                                                                                                                             Married               Single

                                                                                                                                                                                                                         Then the education savings and asset
                                                                                                                                                                                                                                protection allowance is

                                                25   or less .....................................................................................................................................................                      0                    0
                                                26   .................................................................................................................................................................              1,200                  700
                                                27   .................................................................................................................................................................              2,400                1,400
                                                28   .................................................................................................................................................................              3,500                2,200
                                                29   .................................................................................................................................................................              4,700                2,900
                                                30   .................................................................................................................................................................              5,900                3,600
                                                31   .................................................................................................................................................................              7,100                4,300
                                                32   .................................................................................................................................................................              8,300                5,000
                                                33   .................................................................................................................................................................              9,400                5,800
                                                34   .................................................................................................................................................................             10,600                6,500
                                                35   .................................................................................................................................................................             11,800                7,200
                                                36   .................................................................................................................................................................             13,000                7,900
                                                37   .................................................................................................................................................................             14,200                8,600
                                                38   .................................................................................................................................................................             15,300                9,400
                                                39   .................................................................................................................................................................             16,500               10,100
                                                40   .................................................................................................................................................................             17,700               10,800
                                                41   .................................................................................................................................................................             18,100               11,000
                                                42   .................................................................................................................................................................             18,500               11,300
                                                43   .................................................................................................................................................................             18,900               11,500
                                                44   .................................................................................................................................................................             19,300               11,800
                                                45   .................................................................................................................................................................             19,800               12,000
                                                46   .................................................................................................................................................................             20,300               12,300
                                                47   .................................................................................................................................................................             20,700               12,600
                                                48   .................................................................................................................................................................             21,300               12,900
                                                49   .................................................................................................................................................................             21,800               13,200
                                                50   .................................................................................................................................................................             22,300               13,500
                                                51   .................................................................................................................................................................             22,900               13,800
                                                52   .................................................................................................................................................................             23,500               14,100
                                                53   .................................................................................................................................................................             24,100               14,400
                                                54   .................................................................................................................................................................             24,800               14,800
                                                55   .................................................................................................................................................................             25,400               15,200
                                                56   .................................................................................................................................................................             26,100               15,500
                                                57   .................................................................................................................................................................             26,800               15,900
                                                58   .................................................................................................................................................................             27,600               16,300
                                                59   .................................................................................................................................................................             28,300               16,700
                                                60   .................................................................................................................................................................             29,100               17,100
                                                61   .................................................................................................................................................................             30,000               17,600
                                                62   .................................................................................................................................................................             30,800               18,000
                                                63   .................................................................................................................................................................             31,700               18,500
                                                64   .................................................................................................................................................................             32,600               19,000
                                                65   or older ...................................................................................................................................................                  33,600               19,500
srobinson on DSK5SPTVN1PROD with NOTICES




                                                   4. Assessment Schedules and Rates.                                          educational expenses. For dependent                                            The AAI represents a measure of a
                                                Two schedules that are subject to                                              students, the EFC is derived from an                                           family’s financial strength, which
                                                updates—one for parents of dependent                                           assessment of the parents’ adjusted                                            considers both income and assets.
                                                students and one for independent                                               available income (AAI). For                                                      The parents’ contribution for a
                                                students with dependents other than a                                          independent students with dependents                                           dependent student is computed
                                                spouse—are used to determine the EFC                                           other than a spouse, the EFC is derived                                        according to the following schedule:
                                                from family financial resources toward                                         from an assessment of the family’s AAI.



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                                                20326                                         Federal Register / Vol. 82, No. 82 / Monday, May 1, 2017 / Notices

                                                If AAI is                                                                                                           Then the contribution is

                                                Less than ¥$3,409 ..................................................................................                ¥$750.
                                                ($3,409) to $16,400 ..................................................................................              22% of AAI.
                                                $16,401 to $20,500 ..................................................................................               $3,608 + 25%           of   AAI   over   $16,400.
                                                $20,501 to $24,700 ..................................................................................               $4,633 + 29%           of   AAI   over   $20,500.
                                                $24,701 to $28,900 ..................................................................................               $5,851 + 34%           of   AAI   over   $24,700.
                                                $28,901 to $33,100 ..................................................................................               $7,279 + 40%           of   AAI   over   $28,900.
                                                $33,101 or more .......................................................................................             $8,959 + 47%           of   AAI   over   $33,100.



                                                  The contribution for an independent                                        spouse is computed according to the
                                                student with dependents other than a                                         following schedule:

                                                If AAI is                                                                                                           Then the contribution is

                                                Less than ¥$3,409 ..................................................................................                ¥$750.
                                                ($3,409) to $16,400 ..................................................................................              22% of AAI.
                                                $16,401 to $20,500 ..................................................................................               $3,608 + 25%           of   AAI   over   $16,400.
                                                $20,501 to $24,700 ..................................................................................               $4,633 + 29%           of   AAI   over   $20,500.
                                                $24,701 to $28,900 ..................................................................................               $5,851 + 34%           of   AAI   over   $24,700.
                                                $28,901 to $33,100 ..................................................................................               $7,279 + 40%           of   AAI   over   $28,900.
                                                $33,101 or more .......................................................................................             $8,959 + 47%           of   AAI   over   $33,100.



                                                  5. Employment Expense Allowance.                                           transportation, and household                                              educational expenses. There are four
                                                This allowance for employment-related                                        furnishings and operations.                                                categories for State and other taxes, one
                                                expenses—which is used for the parents                                          The employment expense allowance                                        each for parents of dependent students,
                                                of dependent students and for married                                        for parents of dependent students,                                         independent students with dependents
                                                independent students—recognizes                                              married independent students without                                       other than a spouse, dependent
                                                additional expenses incurred by                                              dependents other than a spouse, and                                        students, and independent students
                                                working spouses and single-parent                                            independent students with dependents                                       without dependents other than a
                                                households. The allowance is based on                                        other than a spouse is the lesser of                                       spouse. Section 478(g) of the HEA
                                                the marginal differences in costs for a                                      $4,000 or 35 percent of earned income.                                     directs the Secretary to update the tables
                                                                                                                                6. Allowance for State and Other
                                                two-worker family compared to a one-                                         Taxes. The allowance for State and                                         for State and other taxes after reviewing
                                                worker family. The items covered by                                          other taxes protects a portion of parents’                                 the Statistics of Income file data
                                                these additional expenses are: Food                                          and students’ incomes from being                                           maintained by the Internal Revenue
                                                away from home, apparel,                                                     considered available for postsecondary                                     Service.

                                                      PERCENT OF INCOME PAID IN STATE TAXES, BY STATUS OF HAVING DEPENDENTS OTHER THAN A SPOUSE, INCOME
                                                                                                LEVEL, AND STATE
                                                                                                                                                                                             Parents of dependents and                  Dependents
                                                                                                                                                                                           independents with dependents               and independents
                                                                                                                                                                                                other than a spouse                        without
                                                                                                                                                                                                                                        dependents
                                                                                                             State                                                                               Percent of total income                other than a
                                                                                                                                                                                                                                           spouse
                                                                                                                                                                                         Under $15,000             $15,000 & Up             All

                                                Alabama .......................................................................................................................                               3                   2                  2
                                                Alaska ..........................................................................................................................                             2                   1                  0
                                                Arizona .........................................................................................................................                             3                   2                  2
                                                Arkansas ......................................................................................................................                               4                   3                  3
                                                California ......................................................................................................................                             8                   7                  6
                                                Colorado ......................................................................................................................                               4                   3                  3
                                                Connecticut ..................................................................................................................                                8                   7                  5
                                                Delaware ......................................................................................................................                               4                   3                  3
                                                District of Columbia .....................................................................................................                                    7                   6                  6
                                                Florida ..........................................................................................................................                            3                   2                  1
                                                Georgia ........................................................................................................................                              5                   4                  3
                                                Hawaii ..........................................................................................................................                             5                   4                  4
                                                Idaho ............................................................................................................................                            4                   3                  3
srobinson on DSK5SPTVN1PROD with NOTICES




                                                Illinois ...........................................................................................................................                          6                   5                  3
                                                Indiana .........................................................................................................................                             4                   3                  3
                                                Iowa .............................................................................................................................                            5                   4                  3
                                                Kansas .........................................................................................................................                              4                   3                  2
                                                Kentucky ......................................................................................................................                               5                   4                  3
                                                Louisiana ......................................................................................................................                              3                   2                  2
                                                Maine ...........................................................................................................................                             6                   5                  3
                                                Maryland ......................................................................................................................                               8                   7                  5



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                                                                                             Federal Register / Vol. 82, No. 82 / Monday, May 1, 2017 / Notices                                                                            20327

                                                      PERCENT OF INCOME PAID IN STATE TAXES, BY STATUS OF HAVING DEPENDENTS OTHER THAN A SPOUSE, INCOME
                                                                                          LEVEL, AND STATE—Continued
                                                                                                                                                                                           Parents of dependents and             Dependents
                                                                                                                                                                                         independents with dependents          and independents
                                                                                                                                                                                              other than a spouse                   without
                                                                                                                                                                                                                                 dependents
                                                                                                            State                                                                            Percent of total income             other than a
                                                                                                                                                                                                                                    spouse
                                                                                                                                                                                       Under $15,000        $15,000 & Up             All

                                                Massachusetts .............................................................................................................                            6                   5                   4
                                                Michigan .......................................................................................................................                       4                   3                   2
                                                Minnesota ....................................................................................................................                         6                   5                   4
                                                Mississippi ....................................................................................................................                       3                   2                   2
                                                Missouri ........................................................................................................................                      4                   3                   3
                                                Montana .......................................................................................................................                        4                   3                   3
                                                Nebraska ......................................................................................................................                        5                   4                   3
                                                Nevada .........................................................................................................................                       2                   1                   1
                                                New Hampshire ...........................................................................................................                              4                   3                   1
                                                New Jersey ..................................................................................................................                          9                   8                   4
                                                New Mexico .................................................................................................................                           3                   2                   2
                                                New York .....................................................................................................................                         9                   8                   6
                                                North Carolina ..............................................................................................................                          5                   4                   3
                                                North Dakota ................................................................................................................                          2                   1                   1
                                                Ohio .............................................................................................................................                     5                   4                   3
                                                Oklahoma .....................................................................................................................                         3                   2                   2
                                                Oregon .........................................................................................................................                       7                   6                   5
                                                Pennsylvania ................................................................................................................                          5                   4                   3
                                                Rhode Island ................................................................................................................                          6                   5                   3
                                                South Carolina .............................................................................................................                           4                   3                   3
                                                South Dakota ...............................................................................................................                           2                   1                   1
                                                Tennessee ...................................................................................................................                          2                   1                   1
                                                Texas ...........................................................................................................................                      3                   2                   1
                                                Utah .............................................................................................................................                     5                   4                   3
                                                Vermont .......................................................................................................................                        6                   5                   3
                                                Virginia .........................................................................................................................                     6                   5                   4
                                                Washington ..................................................................................................................                          3                   2                   1
                                                West Virginia ................................................................................................................                         3                   2                   2
                                                Wisconsin .....................................................................................................................                        6                   5                   4
                                                Wyoming ......................................................................................................................                         2                   1                   1
                                                Other ............................................................................................................................                     2                   1                   1



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                                           VerDate Sep<11>2014         20:35 Apr 28, 2017         Jkt 241001       PO 00000        Frm 00015        Fmt 4703       Sfmt 4703         E:\FR\FM\01MYN1.SGM   01MYN1



Document Created: 2017-04-29 03:16:10
Document Modified: 2017-04-29 03:16:10
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice.
ContactMarya Dennis, U.S. Department of Education, Room 63G2, Union Center Plaza, 830 First Street NE., Washington, DC 20202-5454. Telephone: (202) 377-3385.
FR Citation82 FR 20322 

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