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119-hr-7232119th CongressWALLET

AID Act

Sponsored By: Representative Stevens, Haley M. [D-MI-11]

Introduced

Summary

Student Loan Allowance would create a new allowance that subtracts a capped share of parents' federal student loan debt from a dependent student's Federal student aid index to boost aid eligibility. It also ties future increases to inflation and requires annual reports to Congress on who benefits.

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  • Dependent students and families: Parental income counted for aid could fall by the lesser of $4,000 or 15 percent of parents' outstanding federal student loan debt, which can raise eligibility for need-based aid.
  • Parents with debt: Eligibility for the allowance is limited by income. Single parents must have adjusted gross income up to $200,000 and married parents up to $400,000.
  • Administration and oversight: The allowance amounts would be automatically adjusted for inflation starting in award year 2028-2029 using Consumer Price Index changes since April 2022. The Secretary must report annually to Congress on how many dependent students benefit, Pell status breakdowns, and average allowance amounts.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 1 benefits, 0 costs, 0 mixed.

Student loan allowance for parents

If enacted, dependent students' federal aid calculations would get a new student loan allowance starting with award year 2027-2028. The allowance would equal the smaller of $4,000 or 15% of the parent(s)' outstanding Federal student loan debt. Single parents with adjusted gross income over $200,000 (as adjusted) and married parents with combined AGI over $400,000 (as adjusted) would be ineligible. Outstanding student loan debt would include principal, interest, and fees owed on Federal student loans as of the determination date. For award year 2028-2029 and each later year, the Secretary would publish adjusted dollar amounts tied to the Consumer Price Index, rounded to the nearest $10. The Secretary would also report to Congress by July 1, 2028, and yearly after that, showing how many dependent students used the subtraction, their Pell Grant status, and the average allowance amount.

Sponsors & CoSponsors

Sponsor

Stevens, Haley M. [D-MI-11]

MI • D

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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