AID Act
Sponsored By: Representative Stevens, Haley M. [D-MI-11]
Introduced
Summary
Creates a new student loan allowance that reduces parents' reported income for calculating a dependent student's Student Aid Index.
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- Dependent students would see lower Student Aid Index calculations because parents could subtract a loan allowance equal to the lesser of $4,000 or 15% of the parents' federal student loan debt.
- Single parents with adjusted gross income above $200,000 and married parents with combined adjusted gross income above $400,000 would be ineligible for the allowance.
- The allowance would count outstanding federal student loan principal, interest, and fees when measuring debt, and starting in award year 2028-2029 the Department of Education would adjust the dollar amounts each year by the Consumer Price Index and publish a revised table.
- The Education Department would report to Congress by July 1, 2028, and annually after, showing how many dependent students used the allowance and the average allowance, broken out by Pell Grant eligibility.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
Student loan allowance for parents
This bill would create a student loan allowance used when calculating the Student Aid Index starting with award year 2027-2028. The allowance would equal the lesser of $4,000 or 15% of a single parent's outstanding federal student loan debt, or married parents' combined debt. The allowance would not apply if a single parent's adjusted gross income is over $200,000 or if married parents' combined AGI is over $400,000. "Outstanding student loan debt" would include principal, interest, and fees owed on federal student loans as of the date of determination. Beginning award year 2028-2029, the dollar amounts would be increased each year by the percentage change in the Consumer Price Index from April 2022 to the April before the award year and rounded to the nearest $10. The Secretary would publish a revised table in the Federal Register. The bill would also require a report to Congress by July 1, 2028, and annually after that showing how many dependent students received the allowance and the average allowance, disaggregated by Pell Grant eligibility.
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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