20 U.S.C. § 1087kk — Amount of need

Page 602 TITLE 20—EDUCATION § 1087hh Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2009 AMENDMENT Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title. EFFECTIVE DATE OF 1998 AMENDMENT Amendment by Pub. L. 105–244 effective Oct. 1, 1998, except as otherwise provided in Pub. L. 105–244, see sec- tion 3 of Pub. L. 105–244, set out as a note under section 1001 of this title. EFFECTIVE DATE OF 1992 AMENDMENT Amendment by Pub. L. 102–325 to this section, relat- ing to creation of Perkins Loan Revolving Fund, effec- tive Sept. 15, 1997, see section 468(4) of Pub. L. 102–325, set out as a note under section 1087dd of this title. TRANSFER OF BALANCE Pub. L. 105–244, title IV, § 467(b), Oct. 7, 1998, 112 Stat. 1728, provided that: ‘‘Any funds in the Perkins Loan Re- volving Fund on the date of enactment of this Act [Oct. 7, 1998] shall be transferred to and deposited in the Treasury.’’ § 1087hh. General authority of Secretary In carrying out the provisions of this part, the Secretary is authorized— (1) to consent to modification, with respect to rate of interest, time of payment of any in- stallment of principal and interest or any por- tion thereof, or any other provision of any note evidencing a loan which has been made under this part; (2) to enforce, pay, compromise, waive, or re- lease any right, title, claim, lien, or demand, however acquired, including any equity or any right of redemption; (3) to conduct litigation in accordance with the provisions of section 1082(a)(2) of this title; and (4) to enter into a contract or other arrange- ment with State or nonprofit agencies and, on a competitive basis, with collection agencies for servicing and collection of loans under this part. (Pub. L. 89–329, title IV, § 468, as added Pub. L. 99–498, title IV, § 405(a), Oct. 17, 1986, 100 Stat. 1454.) Editorial Notes PRIOR PROVISIONS A prior section 1087hh, Pub. L. 89–329, title IV, § 468, as added Pub. L. 96–374, title IV, § 442(a), Oct. 3, 1980, 94 Stat. 1437, related to alternative source of funds, prior to the general revision of this part by Pub. L. 99–498. A prior section 1087ii, Pub. L. 89–329, title IV, § 469, as added Pub. L. 96–374, title IV, § 442(a), Oct. 3, 1980, 94 Stat. 1439, related to recapture of current balance of student loan funds, prior to the general revision of this part by Pub. L. 99–498. § 1087ii. Definitions (a) Low-income communities For the purpose of this part, the term ‘‘low-in- come communities’’ means communities in which there is a high concentration of children eligible to be counted under section 6333(c) of this title. (b) High-risk children For the purposes of this part, the term ‘‘high- risk children’’ means individuals under the age of 21 who are low-income or at risk of abuse or neglect, have been abused or neglected, have se- rious emotional, mental, or behavioral disturb- ances, reside in placements outside their homes, or are involved in the juvenile justice system. (c) Infants, toddlers, children, and youth with disabilities For purposes of this part, the term ‘‘infants, toddlers, children, and youth with disabilities’’ means children with disabilities and infants and toddlers with disabilities as defined in sections 1401 and 1432 of this title, respectively, and the term ‘‘early intervention services’’ has the meaning given the term in section 1432 of this title. (Pub. L. 89–329, title IV, § 469, as added Pub. L. 102–325, title IV, § 465(d), July 23, 1992, 106 Stat. 583; amended Pub. L. 103–382, title III, § 391(e)(4), Oct. 20, 1994, 108 Stat. 4022; Pub. L. 108–446, title III, § 305(c)(2), Dec. 3, 2004, 118 Stat. 2805; Pub. L. 111–39, title IV, § 405(7), July 1, 2009, 123 Stat. 1947; Pub. L. 114–95, title IX, § 9215(oo)(9), Dec. 10, 2015, 129 Stat. 2180.) Editorial Notes AMENDMENTS 2015—Subsec. (a). Pub. L. 114–95 substituted ‘‘eligible to be counted under section 6333(c) of this title’’ for ‘‘el- igible to be counted under title I of the Elementary and Secondary Education Act of 1965’’. 2009—Subsec. (c). Pub. L. 111–39 substituted ‘‘and the term ‘early intervention services’ has the meaning given the term in section 1432 of this title.’’ for ‘‘and the term ‘qualified professional provider of early inter- vention services’ has the meaning specified in section 1472(2) of this title.’’ 2004—Subsec. (c). Pub. L. 108–446 substituted ‘‘sec- tions 1401 and 1432’’ for ‘‘sections 1401(a)(1) and 1472(1)’’. 1994—Subsec. (a). Pub. L. 103–382 substituted ‘‘title I’’ for ‘‘chapter 1 of title I’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2015 AMENDMENT Amendment by Pub. L. 114–95 effective Dec. 10, 2015, except with respect to certain noncompetitive pro- grams and competitive programs, see section 5 of Pub. L. 114–95, set out as a note under section 6301 of this title. EFFECTIVE DATE OF 2009 AMENDMENT Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title. PART F—NEED ANALYSIS Editorial Notes CODIFICATION Part F of title IV of the Higher Education Act of 1965, Pub. L. 89–329, which comprises this part, was formerly classified to part E of this subchapter. See Codification note preceding section 1087a of this title. PRIOR PROVISIONS A prior part F, consisting of part G of title IV of Pub. L. 89–329, was redesignated part G of this subchapter. § 1087kk. Amount of need Except as otherwise provided therein, for award year 2024–2025 and each subsequent award Page 603 TITLE 20—EDUCATION § 1087kk year, the amount of need of any student for fi- nancial assistance under this subchapter (except subpart 1 or 2 of part A) is equal to— (1) the cost of attendance of such student, minus (2) the student aid index (as defined in sec- tion 1087mm of this title) for such student, minus (3) other financial assistance not received under this subchapter (as defined in section 1087vv(i) of this title). (Pub. L. 89–329, title IV, § 471, as added Pub. L. 99–498, title IV, § 406(a), Oct. 17, 1986, 100 Stat. 1454; amended Pub. L. 102–325, title IV, § 471(a), July 23, 1992, 106 Stat. 585; Pub. L. 105–244, title IV, § 480(a), Oct. 7, 1998, 112 Stat. 1732; Pub. L. 116–260, div. FF, title VII, § 702(a)(1), Dec. 27, 2020, 134 Stat. 3138; Pub. L. 117–103, div. R, § 102(b)(2), Mar. 15, 2022, 136 Stat. 819.) Editorial Notes AMENDMENTS 2022—Pub. L. 117–103 substituted ‘‘award year 2024–2025’’ for ‘‘award year 2023–2024’’ in introductory provisions. 2020—Pub. L. 116–260 amended section generally. Prior to amendment, text read as follows: ‘‘Except as other- wise provided therein, the amount of need of any stu- dent for financial assistance under this subchapter (ex- cept subparts 1 or 2 of part A of this subchapter) is equal to— ‘‘(1) the cost of attendance of such student, minus ‘‘(2) the expected family contribution for such stu- dent, minus ‘‘(3) estimated financial assistance not received under this subchapter (as defined in section 1087vv(j) of this title).’’ 1998—Pub. L. 105–244 substituted ‘‘or 2’’ for ‘‘or 4’’ in introductory provisions. 1992—Pub. L. 102–325 amended section generally. Prior to amendment, section read as follows: ‘‘Except as oth- erwise provided therein, the amount of need of any stu- dent for financial assistance under this subchapter (ex- cept subparts 1 and 3 of part A of this subchapter) is equal to the cost of attendance of such student minus the expected family contribution for such student.’’ Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2020 AMENDMENT Amendment by Pub. L. 116–260 effective July 1, 2024, except as otherwise expressly provided, and applicable with respect to award year 2024–2025 and each subse- quent award year, as determined under this chapter, see section 701(b) of Pub. L. 116–260, set out as a note under section 1001 of this title. EFFECTIVE DATE OF 1998 AMENDMENT Pub. L. 105–244, title IV, § 480A, Oct. 7, 1998, 112 Stat. 1732, provided that: ‘‘(a) IN GENERAL.—Except as provided in subsection (b), the amendments made by this part [part F (§§ 471–480A) of title IV of Pub. L. 105–244, amending this section and sections 1087ll to 1087tt and 1087vv of this title] are effective on the date of enactment of this Act [Oct. 7, 1998]. ‘‘(b) PROVISIONS EFFECTIVE FOR ACADEMIC YEAR 2000–2001, AND THEREAFTER.—The amendments made by sections 472, 473, 474, and 475 [amending sections 1087nn to 1087qq of this title] shall apply with respect to deter- minations of need under part F of title IV of the Higher Education Act of 1965 [this part] for academic years be- ginning on or after July 1, 2000.’’ EFFECTIVE DATE OF 1992 AMENDMENT Pub. L. 102–325, title IV, § 471(b), July 23, 1992, 106 Stat. 609, provided that: ‘‘The changes made in part F of title IV of the Act [this part] by the amendment made by this section [amending sections 1087kk to 1087vv of this title] shall apply with respect to deter- minations of need under such part F for award years beginning on or after July 1, 1993.’’ EFFECTIVE DATE Pub. L. 99–498, title IV, § 406(b)(1)–(3), Oct. 17, 1986, 100 Stat. 1475, as amended by Pub. L. 100–50, § 22(e)(1), (3), June 3, 1987, 101 Stat. 361, provided that: ‘‘(1) Except as provided in paragraphs (2) through (4)— ‘‘(A) part F of title IV of the Act [this part] shall apply with respect to determinations of need under such title for academic years beginning with aca- demic year 1988–1989 and succeeding academic years; and ‘‘(B) for any preceding academic year, determina- tions of need shall be made in accordance with regu- lations prescribed by the Secretary of Education in accordance with the Student Financial Assistance Technical Amendments Act of 1982 [Pub. L. 97–301, see Short Title of 1982 Amendment note set out under section 1001 of this title]. ‘‘(2) With respect to an application filed after the date of enactment of this Act [Oct. 17, 1986] for a loan under part B of such title [part B of this subchapter] for any academic year preceding academic year 1988–1989, any determination of expected family con- tribution shall be made using the system of financial need analysis approved by the Secretary of Education for use under subpart 2 of part A and parts C and E of such title [subpart 2 of part A of this subchapter and parts C and E of this subchapter]. ‘‘(3) For purposes of sections 413D(d)(2)(B) [now 413D(c)(2)(B)], 442(d)(2)(B) and 462(d)(2)(B) [20 U.S.C. 1070b–3(c)(2)(B), 1087–52(d)(2)(B), 1087bb(d)(2)(B)] for any academic year preceding academic year 1988–1989, the Secretary shall, in lieu of average expected family con- tribution, use the procedures for sampling expected family contribution within income categories that was employed for academic year 1986–1987, adjusted to re- flect changes in data. ‘‘(4) Section 479B of the Act [20 U.S.C. 1087uu] (as so added) shall apply with respect to financial assistance provided for any academic year beginning after such date of enactment [Oct. 17, 1986].’’ [References to subpart 2 of part A of title IV of Pub. L. 89–329 deemed, after July 23, 1992, to refer to subpart 3 of such part, see section 402(b) of Pub. L. 102–325, set out as a note under section 1070a–11 of this title.] SPECIAL STUDY OF SIMPLIFICATION OF NEED ANALYSIS AND APPLICATION FOR TITLE IV AID Pub. L. 108–199, div. E, title III, § 305, Jan. 23, 2004, 118 Stat. 263, provided that: ‘‘(a) STUDY REQUIRED.—The Advisory Committee on Student Financial Assistance established by section 491 of the Higher Education Act of 1965 (20 U.S.C. 1098), hereafter in this section referred to as ‘the Advisory Committee’, shall conduct a thorough study of the fea- sibility of simplifying the need analysis methodology for all Federal student financial assistance programs and the process of applying for such assistance. ‘‘(b) REQUIRED SUBJECTS OF STUDY.—In performing the study, the Advisory Committee shall, at a min- imum, examine the following: ‘‘(1) whether the methodology used to calculate the expected family contribution can be simplified with- out significant adverse effects on program intent, costs, integrity, delivery, and distribution of awards; ‘‘(2) whether the number of data elements, and, ac- cordingly, the number and complexity of questions asked of students and families, used to calculate the expected family contribution can be reduced without such adverse effects; ‘‘(3) whether the procedures for determining such data elements, including determining and updating offsets and allowances, is the most efficient, effec- Page 604 TITLE 20—EDUCATION § 1087ll tive, and fair means to determine a family’s available income and assets; ‘‘(4) whether the methodology used to calculate the expected family contribution, specifically the consid- eration of income earned by a dependent student and its effect on Pell grant eligibility, is an effective and fair means to determine a family’s available income and a student’s need; ‘‘(5) whether the nature and timing of the applica- tion required in section 483 (a)(1) of the Higher Edu- cation Act of 1965 (20 U.S.C. 1090(a)(1)), eligibility and award determination, financial aid processing, and funds delivery can be streamlined further for stu- dents and families, institutions, and States; ‘‘(6) whether it is feasible to allow students to com- plete only those limited sections of the financial aid application that apply to their specific circumstances and the State in which they reside; ‘‘(7) whether a widely disseminated printed form, or the use of an Internet or other electronic means, can be developed to notify individuals of an estimation of their approximate eligibility for grant, work-study, and loan assistance upon completion and verification of the simplified application form; ‘‘(8) whether information provided on other Federal forms (such as the form applying for supplemental se- curity income under title XVI of the Social Security Act [42 U.S.C. 1381 et seq.], the form for applying for food stamps under the Food Stamp Act of 1977 [now the Food and Nutrition Act of 2008, 7 U.S.C. 2011 et seq.], and the schedule for applying for the earned in- come tax credit under section 32 of the Internal Rev- enue Code of 1986 [26 U.S.C. 32]) that are designed to determine eligibility for various Federal need-based assistance programs could be used to qualify poten- tial students for the simplified needs test; and ‘‘(9) whether any proposed changes to data elements collected, in addition to those used to calculate ex- pected family contribution, or any proposed changes to the form’s design or the process of applying for aid, may have adverse effects on program costs, in- tegrity, delivery, or distribution of awards, as well as, application development or application proc- essing. ‘‘(c) ADDITIONAL CONSIDERATIONS.—In conducting the feasibility study, the Advisory Committee’s primary objective under this subsection shall be simplifying the financial aid application forms and process and obtain- ing a substantial reduction in the number of required data items. In carrying out that objective, the Advi- sory Committee shall pay special attention to the needs of low-income and moderate-income students and families. ‘‘(d) CONSULTATION.— ‘‘(1) IN GENERAL.—The Advisory Committee shall consult with a broad range of interested parties in higher education, including parents and students, high school guidance counselors, financial aid and other campus administrators, appropriate State ad- ministrators, administrators of intervention and out- reach programs, and appropriate officials from the Department of Education. ‘‘(2) FORMS DESIGN EXPERT.—With the goal of mak- ing significant changes to the form to make the ques- tions more easily understandable, the Advisory Com- mittee shall consult a forms design expert to ensure that its recommendations for revision of the applica- tion form would assist in making the form easily readable and understood by parents, students, and other members of the public. ‘‘(3) CONGRESSIONAL CONSULTATION.—The Advisory Committee shall consult on a regular basis with the Committee on Education and the Workforce of the House of Representatives and the Committee on Health, Education, Labor, and Pensions of the Senate in carrying out the feasibility study required by this subsection. ‘‘(4) DEPARTMENTAL CONSULTATION.—The Secretary of Education shall provide such assistance to the Ad- visory Committee as is requested and practicable in conducting the study required by this subsection. ‘‘(e) REPORTS.— ‘‘(1) INTERIM REPORT.—The Advisory Committee shall, not later than 6 months after the date of enact- ment of this Act [Jan. 23, 2004], prepare and submit an interim report containing any such legislative changes as the Advisory Committee recommends to reform and simplify the needs analysis under part F of title IV of the Higher Education Act of 1965 (20 U.S.C. 1087kk et seq.) and forms and other require- ments under such title to the Committee on Edu- cation and the Workforce of the House of Representa- tives, the Committee on Health, Education, Labor, and Pensions of the Senate, and the Secretary of Edu- cation. ‘‘(2) FINAL REPORT.—The Advisory Committee shall, not later than 1 year after the date of enactment of this Act, prepare and submit a full final report on the study, including recommendations for regulatory and administrative changes required by this section, to the Committee on Education and the Workforce of the House of Representatives, the Committee on Health, Education, Labor, and Pensions of the Sen- ate, and the Secretary of Education. ‘‘(f) IMPLEMENTATION.—The Secretary of Education shall consult with the Committee on Education and the Workforce of the House of Representatives and the Committee on Health, Education, Labor, and Pensions of the Senate and shall subsequently initiate a redesign of the form required by section 483 of the Higher Edu- cation Act of 1965 (20 U.S.C. 1090). Such redesign shall include the testing of alternative simplified versions of the free Federal form. The Secretary shall keep the Committee on Education and the Workforce of the House of Representatives and the Committee on Health, Education, Labor, and Pensions of the Senate fully and currently informed on the progress of these efforts. ‘‘(g) POSTPONEMENT OF TAX TABLE UPDATE PENDING REPORT AND IMPLEMENTATION.—The Secretary of Edu- cation shall not implement or enforce for the award year 2004–2005 the annual update to the allowances for State and other taxes in the tables used in the Federal needs analysis methodology, as prescribed by the Sec- retary on May 30, 2003 (68 Fed. Reg. 32473).’’ § 1087ll. Cost of attendance (a) In general For the purpose of this subchapter, the term ‘‘cost of attendance’’ means— (1) tuition and fees normally assessed a stu- dent carrying the same academic workload as determined by the institution; (2) an allowance for books, course materials, supplies, and equipment, which shall include all such costs required of all such students in the same course of study, including a reason- able allowance for the documented rental or upfront purchase of a personal computer, as determined by the institution; (3) an allowance for transportation, which may include transportation between campus, residences, and place of work, as determined by the institution; (4) an allowance for miscellaneous personal expenses, for a student attending the institu- tion on at least a half-time basis, as deter- mined by the institution; (5) an allowance for living expenses, includ- ing food and housing costs, to be incurred by the student attending the institution on at least a half-time basis, as determined by the institution, which shall include— (A) for a student electing institutionally owned or operated food services, such as board or meal plans, a standard allowance