1. Income Protection Allowance
A Brief Introduction

2. 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

4. 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

5. 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