AID Act
Congress bill would lower some families’ student aid index by factoring in parents’ federal student loans
To amend the Higher Education Act of 1965 to provide a student loan allowance calculation for purposes of determining the student aid index.
Legislative Progress
Key Points
- Starting in the 2027-2028 school aid year, some families can subtract a “student loan allowance” from parents’ income when student aid is calculated.
- The allowance is the smaller of $4,000 or 15% of the parent’s federal student loan balance (combined balance for married parents).
- Higher-income families would be excluded: over $200,000 income for a single parent or over $400,000 combined income for married parents.
- This change mainly affects dependent students whose aid is based on their parents’ finances, and it could make some students look “needier” and qualify for more aid.
- The Education Department must report to Congress by July 1, 2028, and yearly after, on how many students used the allowance and the average amount.
Impact Analysis
Personal Impact
How this policy affects specific groups of people
Milestones
Referred to the House Committee on Education and Workforce.
Introduced in House
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
No votes have been recorded for this legislation yet.
News
No related news coverage found for this legislation yet.
Source Information
Document Type
Congressional Bill
Official Title
To amend the Higher Education Act of 1965 to provide a student loan allowance calculation for purposes of determining the student aid index.
Data Sources
Sponsor
Analysis generated by AI. Always verify with official sources.