AID Act

Sponsor: Haley M. Stevens (Democratic-MI)January 22, 2026

AI-generated ?

Report an error

Introduced

In Committee

Passed One Chamber

Passed Both Chambers

Signed into Law

Referred to the House Committee on Education and Workforce.

Helps dependent students get more financial aid if their parents have federal student loan debt.

This bill would help dependent students qualify for more federal financial aid starting in the 2027-2028 school year. It would do this by letting colleges consider a portion of their parents' federal student loan debt when calculating how much aid a student needs. This could lower the amount families are expected to pay for college.

What Would Change

Today, the calculation for a student's federal financial aid does not specifically account for any federal student loan debt their parents might have. After this bill, starting in the 2027-2028 school year, the calculation would include a student loan allowance of up to $4,000 or 15 percent of parents' federal student loan debt, potentially lowering the amount families are expected to pay for college.

Key Provisions

Adds a student loan allowance to the Student Aid Index (SAI) calculation for dependent students, starting in the 2027-2028 school year.
Lets parents deduct up to $4,000 or 15 percent of their federal student loan debt, whichever is less, from their income when calculating their child's financial aid.
Blocks single parents earning over $200,000 and married parents earning over $400,000 from receiving this student loan allowance.
Requires the Secretary of Education to adjust the allowance cap and income limits each year for inflation, starting in the 2028-2029 school year.
Defines "Federal student loan" and "outstanding student loan debt" for these calculations.

View on Congress.gov

HR 7232 · 119th Congress · January 22, 2026 · AI Summary by gemini-2.5-flash · 9/10

AID Act

What Would Change

Key Provisions

Lobbying Activity