A financial aid administrator may make a determination of independence under paragraph (1)(I) based upon a documented determination of independence that was previously made by another financial aid administrator under such paragraph in the same award year.
The term “net assets” means the current market value at the time of application of the assets (as defined in subsection (f)), minus the outstanding liabilities or indebtedness against the assets.
The term “current balance of checking and savings accounts” does not include any funds over which an individual is barred from exercising discretion and control because of the actions of any State in declaring a bank emergency due to the insolvency of a private deposit insurance fund.
The term “business assets” means property that is used in the operation of a trade or business, including real estate, inventories, buildings, machinery, and other equipment, patents, franchise rights, and copyrights.
The term “special combat pay” means pay received by a member of the Armed Forces because of exposure to a hazardous situation.
The National and Community Service Act of 1990, referred to in subsecs. (a)(2), (e)(3), and (j)(1), is Pub. L. 101–610,
The Workforce Innovation and Opportunity Act, referred to in subsec. (b)(1)(I), is Pub. L. 113–128,
The Social Security Act, referred to in subsecs. (b)(2)(B) and (e)(5), is act Aug. 14, 1935, ch. 531, 49 Stat. 620. Parts A and E of title IV of the Act are classified generally to parts A (§ 601 et seq.) and E (§ 670 et seq.) of subchapter IV of chapter 7 of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see section 1305 of Title 42 and Tables.
Section 903 of the Department of Defense Authorization Act, 1981, referred to in subsec. (c)(2)(J), is section 903 of Pub. L. 96–342, which is set out as a note under section 2141 of Title 10, Armed Forces.
Section 156(b) of the “Joint Resolution making further continuing appropriations and providing for productive employment for the fiscal year 1983, and for other purposes”, referred to in subsec. (c)(2)(K), is section 156(b) of Pub. L. 97–377, which is set out as a note under section 402 of Title 42, The Public Health and Welfare.
The Runaway and Homeless Youth Act, referred to in subsec. (d)(1)(H)(ii), is title III of Pub. L. 93–415,
The McKinney-Vento Homeless Assistance Act, referred to in subsec. (d)(1)(H)(iii), is Pub. L. 100–77,
Amendment by section 2(g)(19) of Pub. L. 103–208 (which was effective as if included in Pub. L. 102–325) was executed to this section as amended by Pub. L. 102–325 and Pub. L. 103–82, to reflect the probable intent of Congress.
2014—Subsec. (b)(1)(I). Pub. L. 113–128 substituted “benefits received through participation in employment and training activities under title I of the Workforce Innovation and Opportunity Act” for “benefits received through participation in employment and training activities under title I of the Workforce Investment Act of 1998 (29 U.S.C. 2801 et seq.)”.
2009—Subsec. (a)(2). Pub. L. 111–39, § 406(a)(6), substituted “12511” for “12571”.
Subsec. (c)(2). Pub. L. 111–39, § 406(a)(7), substituted “benefits under the following provisions of law” for “the following” in introductory provisions, added subpars. (A) to (L), and struck out former subpars. (A) to (J) which listed, respectively, the following provisions of law: title 10, chapter 2; title 10, chapter 106; title 10, chapter 107; title 37, chapter 2; title 38, chapter 30; title 38, chapter 31; title 38, chapter 32; title 38, chapter 35; Public Law 97–376, section 156; and Public Law 96–342, section 903.
Subsec. (j)(1). Pub. L. 111–39, § 406(a)(8), substituted “12511” for “12571”.
2008—Subsec. (a)(1). Pub. L. 110–315, § 473(a)(1), designated existing provisions as subpar. (A), inserted “subparagraph (B) and” after “provided in”, and added subpar. (B).
Subsec. (a)(2). Pub. L. 110–315, § 473(a)(2), inserted “no portion of veterans’ education benefits received by an individual,” after “any program by an individual,”.
Subsec. (b)(1)(E). Pub. L. 110–315, § 473(b), inserted “, except that the value of on-base military housing or the value of basic allowance for housing determined under section 403(b) of title 37 received by the parents, in the case of a dependent student, or the student or student’s spouse, in the case of an independent student, shall be excluded” before semicolon.
Subsec. (d)(1)(B), (C). Pub. L. 110–315, § 473(c), added subpars. (B) and (C) and struck out former subpars. (B) and (C) which read as follows:
“(B) is an orphan, in foster care, or a ward of the court, at any time when the individual is 13 years of age or older;
“(C) is an emancipated minor or is in legal guardianship as determined by a court of competent jurisdiction in the individual’s State of legal residence;”.
Subsec. (e)(2) to (6). Pub. L. 110–315, § 473(d), added par. (2) and redesignated former pars. (2) to (5) as (3) to (6), respectively.
Subsec. (j)(1). Pub. L. 110–315, § 473(e), struck out “veterans’ education benefits as defined in subsection (c) of this section, and” before “national service educational awards” and inserted “, but excluding veterans’ education benefits as defined in subsection (c)” before period at end.
2007—Subsec. (a)(2). Pub. L. 110–84, § 604(a)(1), substituted “no portion of any” for “and no portion of any” and inserted “and no distribution from any qualified education benefit described in subsection (f)(3) that is not subject to Federal income tax,” after “section 25A of title 26,”.
Subsec. (b). Pub. L. 110–84, § 604(a)(2), added subsec. (b) and struck out former subsec. (b) which defined “untaxed income and benefits”.
Subsec. (b)(2). Pub. L. 110–153 added par. (2) and struck out former par. (2) which read as follows: “The term ‘untaxed income and benefits’ shall not include the amount of additional child tax credit claimed for Federal income tax purposes.”
Subsec. (d). Pub. L. 110–84, § 604(a)(3)(A), (B), designated existing provisions as par. (1), inserted par. heading, redesignated former pars. (1), (2), (3) to (6), and (7) as subpars. (A), (B), (D) to (G), and (I), respectively, and realigned margins.
Subsec. (d)(1)(B), (C). Pub. L. 110–84, § 604(a)(3)(C), added subpars. (B) and (C) and struck out former subpar. (B) which read as follows: “is an orphan or ward of the court or was a ward of the court until the individual reached the age of 18;”.
Subsec. (d)(1)(H). Pub. L. 110–84, § 604(a)(3)(D), (E), added subpar. (H).
Subsec. (d)(2). Pub. L. 110–84, § 604(a)(3)(F), added par. (2).
Subsec. (e)(5). Pub. L. 110–84, § 604(a)(4), added par. (5).
Subsec. (f)(3). Pub. L. 110–84, § 604(a)(5), added par. (3) and struck out former par. (3) which read as follows: “A qualified education benefit shall not be considered an asset of a student for purposes of section 1087oo of this title.”
Subsec. (j)(2). Pub. L. 110–84, § 604(a)(6)(A), inserted “, or a distribution that is not includable in gross income under section 529 of such title, under another prepaid tuition plan offered by a State, or under a Coverdell education savings account under section 530 of such title,” after “title 26”.
Subsec. (j)(4). Pub. L. 110–84, § 604(a)(6)(B), added par. (4).
Subsec. (n). Pub. L. 110–84, § 604(a)(7), added subsec. (n).
2006—Subsec. (d)(3). Pub. L. 109–171, § 8019(a), inserted “or is currently serving on active duty in the Armed Forces for other than training purposes” before semicolon at end.
Subsec. (f)(1). Pub. L. 109–171, § 8019(b), inserted “qualified education benefits (except as provided in paragraph (3)),” after “tax shelters,”.
Subsec. (f)(2)(C). Pub. L. 109–171, § 8019(c), added subpar. (C).
Subsec. (f)(3) to (5). Pub. L. 109–171, § 8019(d), added pars. (3) to (5).
Subsec. (j). Pub. L. 109–171, § 8019(e)(1), struck out “; tuition prepayment plans” at end of heading.
Subsec. (j)(2), (3). Pub. L. 109–171, § 8019(e)(2)–(4), struck out par. (2), redesignated par. (3) as (2), and added par. (3). Prior to amendment, par. (2) read as follows:
“(2)(A) Except as provided in subparagraph (B), for purposes of determining a student’s eligibility for funds under this subchapter, tuition prepayment plans shall reduce the cost of attendance (as determined under section 1087ll of this title) by the amount of the prepayment, and shall not be considered estimated financial assistance.
“(B) If the institutional expense covered by the prepayment must be part of the student’s cost of attendance for accounting purposes, the prepayment shall be considered estimated financial assistance.”
1998—Subsec. (b)(14). Pub. L. 105–277, § 101(f) [title VIII, § 405(f)(12)(B)], struck out “Job Training Partnership Act noneducational benefits or” after “railroad retirement benefits, or”.
Pub. L. 105–277, § 101(f) [title VIII, § 405(d)(15)(B)], substituted “Job Training Partnership Act noneducational benefits or benefits received through participation in employment and training activities under title I of the Workforce Investment Act of 1998” for “Job Training Partnership Act noneducational benefits”.
Subsec. (j)(1). Pub. L. 105–244, § 479(1), inserted before period at end “, and national service educational awards or post-service benefits under title I of the National and Community Service Act of 1990”.
Subsec. (j)(3), (4). Pub. L. 105–244, § 479(2), (3), redesignated par. (4) as (3) and struck out former par. (3) which read as follows: “Notwithstanding paragraph (1), a national service educational award or post-service benefit under title I of the National and Community Service Act of 1990 shall not be treated as financial assistance for purposes of section 1087kk(3) of this title.”
1997—Subsec. (a)(2). Pub. L. 105–78, § 609(j), substituted “program by an individual, no” for “program by an individual, and no” and inserted “and no portion of any tax credit taken under section 25A of title 26,” before “shall be included”.
Subsec. (j)(4). Pub. L. 105–78, § 609(k), added par. (4).
1996—Subsec. (b)(2). Pub. L. 104–193 substituted “assistance under a State program funded” for “aid to families with dependent children under a State plan approved”.
1993—Subsec. (a)(2). Pub. L. 103–82, § 102(c)(4), inserted “, and no portion of a national service educational award or post-service benefit received by an individual under title I of the National and Community Service Act of 1990,” after “by an individual”.
Subsec. (c)(2). Pub. L. 103–208, § 2(g)(17), made technical amendment to references to titles of the United States Code in subpars. (A) to (H).
Subsec. (d)(2). Pub. L. 103–208, § 2(g)(18), inserted before semicolon “or was a ward of the court until the individual reached the age of 18”.
Subsec. (j)(3). Pub. L. 103–208, § 2(g)(19), realigned margin. See Codification note above.
Pub. L. 103–82, § 102(c)(5), added par. (3).
Subsecs. (k) to (m). Pub. L. 103–208, § 2(g)(20), added subsecs. (k) to (m).
1992—Pub. L. 102–325 amended section generally, substituting subsecs. (a) to (j) for former subsecs. (a) to (i).
1990—Subsec. (d)(2)(F). Pub. L. 101–610, § 185(4), inserted “and living allowances as a result of participation in a program established under the National and Community Service Act of 1990)” after “other than parents”.
Subsec. (f)(3). Pub. L. 101–610, § 185(3), added par. (3).
1988—Subsec. (i). Pub. L. 100–369 added subsec. (i).
1987—Subsec. (a)(1). Pub. L. 100–50, § 14(28)(A), (B), substituted “paragraphs (2) through (4)” for “paragraphs (2) and (3)” and inserted “minus excludable income (as defined in subsection (f) of this section)” before period at end.
Subsec. (a)(2). Pub. L. 100–50, § 14(28)(C), added par. (2) and struck out former par. (2) which read as follows: “The Secretary shall promulgate special regulations to permit, in the computation of family contributions for the programs under subpart 2 of part A and parts B, C, and E of this subchapter for any academic year the exclusion from family income of any proceeds of a sale of farm or business assets of that family if such sale results from a voluntary or involuntary foreclosure, forfeiture, liquidation, or bankruptcy.”
Subsec. (a)(4). Pub. L. 100–50, § 14(28)(D), added par. (4).
Subsecs. (b), (c). Pub. L. 100–50, § 14(28)(E), substituted subsec. (b) consisting of pars. (1) to (14) for former subsec. (b) consisting of pars. (1) to (19), and substituted subsec. (c) consisting of pars. (1) to (14) for former subsec. (c) consisting of pars. (1) to (16).
Subsec. (d)(2)(F). Pub. L. 100–50, § 14(28)(F), substituted “annual total resources (including all sources of resources other than parents)” for “an annual total income”.
Subsecs. (f) to (h). Pub. L. 100–50, § 14(28)(G), added subsecs. (f) to (h).
Amendment by Pub. L. 113–128 effective on the first day of the first full program year after
Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (
Pub. L. 110–315, title IV, § 473(f),
Pub. L. 110–153, § 1(b),
Pub. L. 110–84, title VI, § 604(b),
Amendment by Pub. L. 109–171 effective
Amendment by Pub. L. 105–244 effective
Amendment by section 101(f) [title VIII, § 405(d)(15)(B)] of Pub. L. 105–277 effective
Amendment by Pub. L. 104–193 effective
Amendment by Pub. L. 103–208 effective as if included in the Higher Education Amendments of 1992, Pub. L. 102–325, except as otherwise provided, see section 5(a) of Pub. L. 103–208, set out as a note under section 1051 of this title.
Amendment by Pub. L. 103–82 effective
Amendment by Pub. L. 102–325 applicable with respect to determinations of need under this part for award years beginning on or after
Amendment by Pub. L. 100–50 effective as if enacted as part of the Higher Education Amendments of 1986, Pub. L. 99–498, see section 27 of Pub. L. 100–50, set out as a note under section 1001 of this title.
For transfer of authorities, functions, personnel, and assets of the Coast Guard, including the authorities and functions of the Secretary of Transportation relating thereto, to the Department of Homeland Security, and for treatment of related references, see sections 468(b), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of
Pub. L. 99–498, title IV, § 406(b)(5), formerly § 406(b)(4),
[References to subpart 2 of part A of title IV of Pub. L. 89–329 deemed, after