AID Act

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [H.R. 7232 Introduced in House (IH)] <DOC> 119th CONGRESS 2d Session H. R. 7232 To amend the Higher Education Act of 1965 to provide a student loan allowance calculation for purposes of determining the student aid index. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES January 22, 2026 Ms. Stevens introduced the following bill; which was referred to the Committee on Education and Workforce _______________________________________________________________________ A BILL To amend the Higher Education Act of 1965 to provide a student loan allowance calculation for purposes of determining the student aid index. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Alleviating Intergenerational Debt Act'' or the ``AID Act''. SEC. 2. STUDENT LOAN ALLOWANCE CALCULATION FOR AWARD YEAR 2027-2028 AND EACH SUCCEEDING AWARD YEAR. (a) In General.--Section 475(c) of the Higher Education Act of 1965 (20 U.S.C. 1087oo(c)), as amended by title VII of division FF of the FAFSA Simplification Act (Public Law 116-260), is further amended-- (1) in paragraph (1)-- (A) by striking ``and'' at the end of subparagraph (C); (B) by striking the period at the end of subparagraph (D) and inserting ``; and''; and (C) by adding at the end the following: ``(E) beginning with award year 2027-2028, a student loan allowance, determined in accordance with paragraph (5).''; and (2) by adding at the end the following: ``(5) Student loan allowance.-- ``(A) In general.--The student loan allowance is equal to the lesser of $4,000 or 15 percent of the single parent's outstanding student loan debt or married parents' combined outstanding student loan debt (as adjusted under section 478(i)). ``(B) Exceptions.--A single parent with an adjusted gross income of more than