Bill > HR7232

This bill, titled the "Alleviating Intergenerational Debt Act" or "AID Act," amends the Higher Education Act of 1965 to introduce a new calculation for a student loan allowance that will be used when determining a student's Student Aid Index (SAI). The SAI is a crucial number used to calculate a student's eligibility for federal student financial aid. Starting with the 2027-2028 academic year, parents will be eligible for a student loan allowance that is the lesser of $4,000 or 15% of their outstanding Federal student loan debt, which refers to the total amount owed on loans made, insured, or guaranteed under the Higher Education Act. However, this allowance is not available to parents with a single adjusted gross income over $200,000 or married parents with a combined adjusted gross income over $400,000. The bill also mandates that these dollar amounts will be adjusted annually for inflation starting with the 2028-2029 award year, and the Secretary of Education will report to Congress annually on the impact of these changes, including how many students benefit and the average allowance amount, disaggregated by Federal Pell Grant eligibility.

Education

https://www.congress.gov/bill/119th-congress/house-bill/7232/all-info