Definitions

In this part: The term “total income” means the amount equal to adjusted gross income for the second preceding tax year plus untaxed income and benefits for the second preceding tax year minus excludable income for the second preceding tax year. The factors used to determine total income shall be derived from the Federal income tax return, if available, except for the applicant’s ability to indicate a qualified rollover in the second preceding tax year as outlined in section 1090 of this title or foreign income described in subsection (b)(5). The term “untaxed income and benefits” means— The term “veterans’ education benefits” means veterans’ benefits under the following provisions of law: The term “independent”, when used with respect to a student, means any individual who— is, or was at any time when the individual was 13 years of age or older— is a student for whom a financial aid administrator makes a documented determination of independence by reason of other unusual circumstances pursuant to section 1087tt(c) of this title in which the student is unable to contact a parent or where contact with parents poses a risk to such student, which includes circumstances of— The term “excludable income” means— The term “assets” means the amount in checking and savings accounts, time deposits, money market funds, investments, trusts, stocks, bonds, derivatives, securities, mutual funds, tax shelters, qualified education benefits (except as provided in paragraph (3)), the annual amount of child support received and the net value of real estate, vacation homes, income producing property, and business and farm assets, determined in accordance with section 1087rr(c) of this title. With respect to determinations of need under this subchapter, the term “assets” shall not include the net value of the family’s principal place of residence. A qualified education benefit shall be considered an asset of— In this subsection, the term “qualified education benefit” means— The term “net value” means the market value at the time of application of the assets (as defined in subsection (f)), minus the outstanding liabilities or indebtedness against the assets. Except as provided in paragraph (3), in determining family size in the case of a dependent student— Except as provided in paragraph (3), in determining family size in the case of an independent student— The Secretary shall provide procedures for determining family size in cases in which information for the taxable year used in determining the amount of need of the student for financial assistance under this subchapter has changed or does not accurately reflect the applicant’s current household size, including when a divorce settlement only allows a parent to file for the Earned Income Tax Credit available under section 32 of title 26. 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 “homeless youth” has the meaning given the term “homeless children and youths” in section 11434a of title 42. The terms “unaccompanied”, “unaccompanied youth”, or “unaccompanied homeless youth” have the meaning given the term “unaccompanied youth” in section 11434a of title 42.