Income Protection Allowance A Brief Introduction

Income Protection Allowance NOTE: 0 EFC does not mean IPA = 0 IPA varies, but is static across groups more info during EFC training Review ISIR tab: EFC\DB Matches\Corr

IPA IPA included in EFC calculation takes into account modest living expenses Before adjusting for an unusual expense, consider whether it is already covered by the IPA exclusion 30% = food 22% = housing 16% = clothing & personal care 12% = other family consumption 11% = medical 9% = transportation

Example In 2011, Alan’s medical expenses = $3,550 married, 2 children, he is only one in college IPA = 36,330 Because his out-of-pocket expenses are less than the amount of medical expenses already taken into account in the IPA, there is no adjustment to be made 11% of 36,330 = 3,996 3,996 is greater than $3,550