§1087ss. Eligible applicants exempt from asset reporting

(a) In general

Notwithstanding any other provision of law, this section shall be effective for each individual seeking to apply for Federal financial aid under this subchapter, as part of the simplified application for Federal student financial aid under section 1090 of this title, on or after July 1, 2024.

(b) Applicants exempt from asset reporting

(1) In general

Except as provided in paragraph (3), in carrying out section 1090 of this title, the Secretary shall not use asset information from an eligible applicant or, as applicable, the parent or spouse of an eligible applicant.

(2) Eligible applicants

In this subsection, the term "eligible applicant" means an applicant who meets at least one of the following criteria:

(A) Is an applicant who qualifies for an automatic zero student aid index or negative student aid index under subsection (b) or (c) of section 1087mm of this title.

(B) Is an applicant who is a dependent student and the student's parents have a total adjusted gross income (excluding any income of the dependent student) that is less than $60,000 and do not file a Schedule A, B, D, E, F, or H (or equivalent successor schedules) with the Federal income tax return for the second preceding tax year, and-

(i) do not file a Schedule C (or the equivalent successor schedule) with the Federal income tax return for the second preceding tax year; or

(ii) file a Schedule C (or the equivalent successor schedule) with net business income of not more than a $10,000 loss or gain with the Federal income tax return for the second preceding tax year.

(C) Is an applicant who is an independent student and the student (including the student's spouse, if any) has a total adjusted gross income that is less than $60,000 and does not file a Schedule A, B, D, E, F, or H (or equivalent successor schedules), with the Federal income tax return for the second preceding tax year, and-

(i) does not file a Schedule C (or the equivalent successor schedule) with the Federal income tax return for the second preceding tax year; or

(ii) files a Schedule C (or the equivalent successor schedule) with net business income of not more than a $10,000 loss or gain with the Federal income tax return for the second preceding tax year.

(D) Is an applicant who, at any time during the previous 24-month period, received a benefit under a means-tested Federal benefit program (or whose parent or spouse received such a benefit, as applicable).

(3) Special rule

An eligible applicant shall not be exempt from asset reporting under this section if the applicant is a dependent student and the students' parents do not-

(A) reside in the United States or a United States territory; or

(B) file taxes in the United States or a United States territory, except if such nonfiling is due to not being required to file a Federal tax return for the applicable tax year due to a low income.

(4) Definitions

In this section:

(A) Schedule A

The term "Schedule A" means a form or information by a taxpayer to report itemized deductions.

(B) Schedule B

The term "Schedule B" means a form or information filed by a taxpayer to report interest and ordinary dividend income.

(C) Schedule C

The term "Schedule C" means a form or information filed by a taxpayer to report income or loss from a business operated or a profession practiced as a sole proprietor.

(D) Schedule D

The term "Schedule D" means a form or information filed by a taxpayer to report sales, exchanges or some involuntary conversions of capital assets, certain capital gain distributions, and nonbusiness bad debts.

(E) Schedule E

The term "Schedule E" means a form or information filed by a taxpayer to report income from rental properties, royalties, partnerships, S corporations, estates, trusts, and residual interests in real estate mortgage investment conduits.

(F) Schedule F

The term "Schedule F" means a form or information filed by a taxpayer to report farm income and expenses.

(G) Schedule H

The term "Schedule H" means a form or information filed by a taxpayer to report household employment taxes.

(H) Means-tested Federal benefit program

The term "means-tested Federal benefit program" means any of the following:

(i) The supplemental security income program under title XVI of the Social Security Act (42 U.S.C. 1381 et seq.).

(ii) The supplemental nutrition assistance program under the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.), a nutrition assistance program carried out under section 19 of such Act (7 U.S.C. 2028), and a supplemental nutrition assistance program carried out under section 1841(c) of title 48.

(iii) The program of block grants for States for temporary assistance for needy families established under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.).

(iv) The special supplemental nutrition program for women, infants, and children established by section 1786 of title 42.

(v) The Medicaid program under title XIX of the Social Security Act (42 U.S.C. 1396 et seq.).

(vi) Federal housing assistance programs, including tenant-based assistance under section 1437f(o) of title 42, and public housing, as defined in section 1437a(b)(1) of title 42.

(vii) Other means-tested programs determined by the Secretary to be approximately consistent with the income eligibility requirements of the means-tested programs under clauses (i) through (vi).

(Pub. L. 89–329, title IV, §479, as added Pub. L. 99–498, title IV, §406(a), Oct. 17, 1986, 100 Stat. 1472 ; amended Pub. L. 100–50, §14(23)–(25), June 3, 1987, 101 Stat. 352 ; Pub. L. 100–369, §7(c), July 18, 1988, 102 Stat. 837 ; Pub. L. 102–26, §11, Apr. 9, 1991, 105 Stat. 129 ; Pub. L. 102–325, title IV, §471(a), July 23, 1992, 106 Stat. 604 ; Pub. L. 103–208, §2(g)(10)–(15), Dec. 20, 1993, 107 Stat. 2472 ; Pub. L. 105–244, title IV, §477, Oct. 7, 1998, 112 Stat. 1731 ; Pub. L. 109–171, title VIII, §8018(a), Feb. 8, 2006, 120 Stat. 174 ; Pub. L. 110–84, title VI, §602(a), Sept. 27, 2007, 121 Stat. 804 ; Pub. L. 110–234, title IV, §4002(b)(1)(A), (B), (2)(N), May 22, 2008, 122 Stat. 1095–1097 ; Pub. L. 110–246, §4(a), title IV, §4002(b)(1)(A), (B), (2)(N), June 18, 2008, 122 Stat. 1664 , 1857, 1858; Pub. L. 111–39, title IV, §406(a)(4), July 1, 2009, 123 Stat. 1948 ; Pub. L. 112–74, div. F, title III, §309(b), Dec. 23, 2011, 125 Stat. 1100 ; Pub. L. 113–128, title V, §512(n)(2), July 22, 2014, 128 Stat. 1710 ; Pub. L. 116–260, div. FF, title VII, §702(h), Dec. 27, 2020, 134 Stat. 3152 ; Pub. L. 117–103, div. R, §102(b)(3), Mar. 15, 2022, 136 Stat. 819 .)

Editorial Notes

References in Text

The Social Security Act, referred to in subsec. (b)(4)(H)(i), (iii), (v), is act Aug. 14, 1935, ch. 531, 49 Stat. 620 . Part A of title IV of the Act is classified generally to part A (§601 et seq.) of subchapter IV of chapter 7 of Title 42, The Public Health and Welfare. Title XVI of the Act is classified generally to subchapter XVI (§1381 et seq.) of chapter 7 of Title 42. For complete classification of this Act to the Code, see section 1305 of Title 42 and Tables.

The Food and Nutrition Act of 2008, referred to in subsec. (b)(4)(H)(ii), is Pub. L. 88–525, Aug. 31, 1964, 78 Stat. 703 , which is classified generally to chapter 51 (§2011 et seq.) of Title 7, Agriculture. For complete classification of this Act to the Code, see Short Title note set out under section 2011 of Title 7 and Tables.

Codification

Pub. L. 110–234 and Pub. L. 110–246 made identical amendments to this section. The amendments by Pub. L. 110–234 were repealed by section 4(a) of Pub. L. 110–246.

Amendments

2022-Subsec. (a). Pub. L. 117–103 substituted "July 1, 2024" for "July 1, 2023".

2020-Pub. L. 116–260 amended section generally. Prior to amendment, section related to simplified needs test.

2014-Subsec. (d)(1). Pub. L. 113–128 substituted "The term 'dislocated worker' has the meaning given the term in section 3102 of title 29" for "The term 'dislocated worker' has the meaning given the term in section 2801 of title 29".

2011-Subsec. (c)(1)(B). Pub. L. 112–74, §309(b)(1), substituted "$23,000" for "$30,000".

Subsec. (c)(2)(B). Pub. L. 112–74, §309(b)(2), substituted "$23,000" for "$30,000".

2009-Subsec. (b)(1)(A)(i)(III). Pub. L. 111–39, §406(a)(4)(A)(i), amended subcl. (III) generally. Prior to amendment, subcl. (III) read as follows: "1 of whom is a dislocated worker; or".

Subsec. (b)(1)(B)(i)(III). Pub. L. 111–39, §406(a)(4)(A)(ii), amended subcl. (III) generally. Prior to amendment, subcl. (III) read as follows: "1 of whom is a dislocated worker; or".

Subsec. (c)(1)(A)(iii). Pub. L. 111–39, §406(a)(4)(B)(i), amended cl. (iii) generally. Prior to amendment, cl. (iii) read as follows: "1 of whom is a dislocated worker; or".

Subsec. (c)(2)(A)(iii). Pub. L. 111–39, §406(a)(4)(B)(ii), amended cl. (iii) generally. Prior to amendment, cl. (iii) read as follows: "1 of whom is a dislocated worker; or".

2008-Subsec. (d)(2). Pub. L. 110–246, §4002(b)(1)(A), (B), (2)(N), substituted "supplemental nutrition assistance program" for "food stamp program" and "Food and Nutrition Act of 2008" for "Food Stamp Act of 1977".

2007-Subsec. (b)(1)(A)(i), (B)(i). Pub. L. 110–84, §602(a)(1), added subcl. (III), redesignated former subcl. (III) as (IV), and, in subcl. (IV), substituted "24-month" for "12-month".

Subsec. (c). Pub. L. 110–84, §602(a)(2)(C), inserted at end of concluding provisions "The Secretary shall annually adjust the income level necessary to qualify an applicant for the zero expected family contribution. The income level shall be adjusted according to increases in the Consumer Price Index, as defined in section 1087rr(f) of this title."

Subsec. (c)(1)(A). Pub. L. 110–84, §602(a)(2)(A)(i), added cl. (iii), redesignated former cl. (iii) as (iv), and, in cl. (iv), substituted "24-month" for "12-month".

Subsec. (c)(1)(B). Pub. L. 110–84, §602(a)(2)(A)(ii), substituted "$30,000" for "$20,000".

Subsec. (c)(2)(A). Pub. L. 110–84, §602(a)(2)(B)(i), added cl. (iii), redesignated former cl. (iii) as (iv), and, in cl. (iv), substituted "24-month" for "12-month".

Subsec. (c)(2)(B). Pub. L. 110–84, §602(a)(2)(B)(ii), substituted "$30,000" for "$20,000".

Subsec. (d). Pub. L. 110–84, §602(a)(3), substituted "Definitions" for "Definition of means-tested Federal benefit program" in heading, added par. (1), designated existing provisions as par. (2) and substituted "The term" for "In this section, the term" in introductory provisions, redesignated former pars. (1) to (6) as subpars. (A) to (F), respectively, of par. (2), and realigned margins.

2006-Subsec. (b)(1)(A)(i). Pub. L. 109–171, §8018(a)(1)(A)(i), added cl. (i) and struck out former cl. (i) which read as follows: "the student's parents file or are eligible to file a form described in paragraph (3) or certify that they are not required to file an income tax return and the student files or is eligible to file such a form or certifies that the student is not required to file an income tax return; and".

Subsec. (b)(1)(B)(i). Pub. L. 109–171, §8018(a)(1)(A)(ii), added cl. (i) and struck out former cl. (i) which read as follows: "the student (and the student's spouse, if any) files or is eligible to file a form described in paragraph (3) or certifies that the student (and the student's spouse, if any) is not required to file an income tax return; and".

Subsec. (b)(3). Pub. L. 109–171, §8018(a)(1)(B), in introductory provisions substituted "In the case of an independent student, the student, or in the case of a dependent student, the family, files a form described in this subsection, or subsection (c), as the case may be, if the student or family, as appropriate, files" for "A student or family files a form described in this subsection, or subsection (c) of this section, as the case may be, if the student or family, respectively, files".

Subsec. (c)(1)(A). Pub. L. 109–171, §8018(a)(2)(A)(i), added subpar. (A) and struck out former subpar. (A) which read as follows: "the student's parents file, or are eligible to file, a form described in subsection (b)(3) of this section, or certify that the parents are not required to file an income tax return and the student files, or is eligible to file, such a form, or certifies that the student is not required to file an income tax return; and".

Subsec. (c)(1)(B). Pub. L. 109–171, §8018(a)(2)(A)(ii), added subpar. (B) and struck out former subpar. (B) which read as follows: "the sum of the adjusted gross income of the parents is less than or equal to the maximum amount of income (rounded annually to the nearest thousand dollars) that may be earned in 1992 or the current year, whichever is higher, in order to claim the maximum Federal earned income credit; or".

Subsec. (c)(2)(A). Pub. L. 109–171, §8018(a)(2)(B)(i), added subpar. (A) and struck out former subpar. (A) which read as follows: "the student (and the student's spouse, if any) files, or is eligible to file, a form described in subsection (b)(3) of this section, or certifies that the student (and the student's spouse, if any) is not required to file an income tax return; and".

Subsec. (c)(2)(B). Pub. L. 109–171, §8018(a)(2)(B)(ii), added subpar. (B) and struck out former subpar. (B) which read as follows: "the sum of the adjusted gross income of the student and spouse (if appropriate) is less than or equal to the maximum amount of income (rounded annually to the nearest thousand dollars) that may be earned in 1992 or the current year, whichever is higher, in order to claim the maximum Federal earned income credit."

Subsec. (d). Pub. L. 109–171, §8018(a)(3), added subsec. (d).

1998-Subsec. (b)(3). Pub. L. 105–244, §477(1)(A), substituted "this subsection, or subsection (c) of this section, as the case may be," for "this paragraph" in introductory provisions.

Subsec. (b)(3)(A). Pub. L. 105–244, §477(1)(B), struck out "or" at end.

Subsec. (b)(3)(B), (C). Pub. L. 105–244, §477(1)(C), (D), added subpar. (B) and redesignated former subpar. (B) as (C).

Subsec. (c)(1)(A). Pub. L. 105–244, §477(2)(A), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: "the student's parents were not required to file an income tax return under section 6012(a)(1) of title 26; and".

Subsec. (c)(2)(A). Pub. L. 105–244, §477(2)(B), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: "the student (and the student's spouse, if any) was not required to file an income tax return under section 6012(a)(1) of title 26; and".

1993-Subsec. (a)(1). Pub. L. 103–208, §2(g)(10), inserted "of" after "(c)".

Subsec. (b)(1)(B)(i). Pub. L. 103–208, §2(g)(11), inserted "(and the student's spouse, if any)" after "student" in two places and struck out "such" before "an income tax return".

Subsec. (b)(2). Pub. L. 103–208, §2(g)(12), (13), substituted "six elements" for "five elements" in introductory provisions and a comma for semicolon in subpar. (E).

Subsec. (b)(3)(A). Pub. L. 103–208, §2(g)(14)(A), inserted "(including any prepared or electronic version of such form)" before "required".

Subsec. (b)(3)(B). Pub. L. 103–208, §2(g)(14)(B), inserted "(including any prepared or electronic version of such return)" before "required".

Subsec. (c)(1)(A). Pub. L. 103–208, §2(g)(15)(A), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: "the student's parents did not file, and were not required to file, a form 1040 required pursuant to title 26; and".

Subsec. (c)(1)(B). Pub. L. 103–208, §2(g)(15)(C), inserted "in 1992 or the current year, whichever is higher," after "that may be earned".

Subsec. (c)(2)(A). Pub. L. 103–208, §2(g)(15)(B), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: "the student (and the student's spouse, if any) did not file, and was not required to file, a form 1040 required pursuant to title 26; and".

Subsec. (c)(2)(B). Pub. L. 103–208, §2(g)(15)(C), inserted "in 1992 or the current year, whichever is higher," after "that may be earned".

1992-Pub. L. 102–325 amended section generally, substituting present provisions for provisions which related to: in subsec. (a), analysis applicable to all title IV programs; in subsec. (b), elements in tests; and in subsec. (c), simplified application form.

1991-Subsec. (a). Pub. L. 102–26 inserted before period at end ", or who file an income tax return pursuant to the tax code of the Commonwealth of Puerto Rico or who are not required to file pursuant to that tax code".

1988-Subsec. (a). Pub. L. 100–369 substituted "Internal Revenue Code of 1986" for "Internal Revenue Code of 1954", which for purposes of codification was translated as "title 26" thus requiring no change in text.

1987-Subsec. (a). Pub. L. 100–50, §14(23), substituted "subsection (b) of this section" for "paragraph (2)", "families (1) who" for "families which", and "and (2) who file a form 1040A or 1040EZ pursuant to title 26, or are not required to file pursuant to such title" for "and which file a form 1040A pursuant to title 26".

Subsec. (b)(2). Pub. L. 100–50, §14(24)(A), struck out "and State" after "Federal".

Subsec. (b)(6). Pub. L. 100–50, §14(24)(B)–(D), added par. (6).

Subsec. (c). Pub. L. 100–50, §14(25), added subsec. (c).

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 subsequent 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 2014 Amendment

Amendment by Pub. L. 113–128 effective on the first day of the first full program year after July 22, 2014 (July 1, 2015), see section 506 of Pub. L. 113–128, set out as an Effective Date note under section 3101 of Title 29, Labor.

Effective Date of 2011 Amendment

Amendment by Pub. L. 112–74 effective July 1, 2012, see section 309(g) of Pub. L. 112–74, set out as a note under section 1001 of this title.

Effective Date of 2009 Amendment

Amendment by Pub. L. 111–39 effective as if enacted as part of amendments made by section 602(a) of Pub. L. 110–84 and effective July 1, 2009, see section 406(b)(2) of Pub. L. 111–39, set out as a note under section 1087mm of this title.

Effective Date of 2008 Amendment

Amendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, except as otherwise provided, see section 4 of Pub. L. 110–246, set out as an Effective Date note under section 8701 of Title 7, Agriculture.

Amendment by section 4002(b)(1)(A), (B), (2)(N) of Pub. L. 110–246 effective Oct. 1, 2008, see section 4407 of Pub. L. 110–246, set out as a note under section 1161 of Title 2, The Congress.

Effective Date of 2007 Amendment

Pub. L. 110–84, title VI, §602(b), Sept. 27, 2007, 121 Stat. 805 , provided that: "The amendments made by this section [amending this section] shall be effective on July 1, 2009."

Effective Date of 2006 Amendment

Amendment by Pub. L. 109–171 effective July 1, 2006, except as otherwise provided, see section 8001(c) of Pub. L. 109–171, set out as a note under section 1002 of this title.

Effective Date of 1998 Amendment

Amendment by Pub. L. 105–244 effective Oct. 7, 1998, see section 480A of Pub. L. 105–244, set out as a note under section 1087kk of this title.

Effective Date of 1993 Amendment

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.

Effective Date of 1992 Amendment

Amendment by Pub. L. 102–325 applicable with respect to determinations of need under this part for award years beginning on or after July 1, 1993, see section 471(b) of Pub. L. 102–325, set out as a note under section 1087kk of this title.

Effective Date of 1987 Amendment

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.

Evaluation of Simplified Needs Test

Pub. L. 109–171, title VIII, §8018(b), Feb. 8, 2006, 120 Stat. 175 , provided that:

"(1) Eligibility guidelines.-The Secretary of Education shall regularly evaluate the impact of the eligibility guidelines in subsections (b)(1)(A)(i), (b)(1)(B)(i), (c)(1)(A), and (c)(2)(A) of section 479 of the Higher Education Act of 1965 (20 U.S.C. 1087ss(b)(1)(A)(i), (b)(1)(B)(i), (c)(1)(A), and (c)(2)(A)).

"(2) Means-tested federal benefit program.-For each 3-year period, the Secretary of Education shall evaluate the impact of including the receipt of benefits by a student or parent under a means-tested Federal benefit program (as defined in section 479(d) of the Higher Education Act of 1965 (20 U.S.C. 1087ss(d))[)] as a factor in determining eligibility under subsections (b) and (c) of section 479 of the Higher Education Act of 1965 (20 U.S.C. 1087ss(b) and (c))."