Although Congress has yet to reauthorize the Higher Education Act, the fiscal year 2006 federal budget-enacted in February 2006-included several higher education provisions that will provide additional financial aid to low-income working adults and other non-traditional students. This fact sheet examines those provisions and what they likely mean for low-income families and students.
The income protection allowance (IPA) is increased for all types of students---dependents and independents with and without dependents---which allow will students to keep more of what they earn.
This is particularly important for independent students, who typically must work to support themselves during college.
For single students or married students who are both enrolled, the IPA is increased from $5,790 to $6,050; for married students where one is enrolled, the IPA increases from $9,260 to $9,700.
Assets of independent students with dependents other than a spouse will be assessed at 7 percent rather than 12 percent, and the assets of independent students without dependents other than a spouse will be assessed at 20 percent instead of 35 percent.
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