AID Act

I 118TH CONGRESS 1ST SESSION H. R. 2981 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 APRIL 27, 2023 Ms. STEVENS introduced the following bill; which was referred to the Committee on Education and the Workforce A BILL To amend the Higher Education Act of 1965 to provide a student loan allowance calculation for purposes of de- termining the student aid index. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Alleviating Intergen- 4 erational Debt Act’’ or the ‘‘AID Act’’. 5 SEC. 2. STUDENT LOAN ALLOWANCE CALCULATION FOR 6 AWARD YEAR 2025–2026 AND EACH SUC- 7 CEEDING AWARD YEAR. 8 (a) IN GENERAL.—Section 475(c) of the Higher 9 Education Act of 1965 (20 U.S.C. 1087oo(c)), as amend- 10 VerDate Sep 11 2014 06:48 May 09, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2981.IH H2981 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 2981 IH ed by title VII of division FF of the FAFSA Simplification 1 Act (Public Law 116–260), is further amended— 2 (1) in paragraph (1)— 3 (A) by striking ‘‘and’’ at the end of sub- 4 paragraph (C); 5 (B) by striking the period at the end of 6 subparagraph (D) and inserting ‘‘; and’’; and 7 (C) by adding at the end the following: 8 ‘‘(E) beginning with award year 2025– 9 2026, a student loan allowance, determined in 10 accordance with paragraph (5).’’; and 11 (2) by adding at the end the following: 12 ‘‘(5) STUDENT LOAN ALLOWANCE.— 13 ‘‘(A) IN GENERAL.—The student loan al- 14 lowance is equal to the lesser of $4,000 or 15 15 percent of the single parent’s outstanding stu- 16 dent loan debt or married parents’ combined 17 outstanding student loan debt (as adjusted 18 under section 478(i)). 19 ‘‘(B) EXCEPTIONS.—A single parent with 20 an adjusted gross income of more than 21 $200,000 (as adjusted under section 478(i)), or 22 married parents with a combined adjusted gross 23 income of more than $400,000 (as so adjusted), 24 VerDate Sep 11 2014 06:48 May 09, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2981.IH H2981 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 2981 IH may not receive a student loan allowance under 1 this paragraph. 2 ‘‘(C) DEFINITIONS.—In this paragraph: 3 ‘‘(i) FEDERAL STUDENT LOAN.—The 4 term ‘Federal student loan’ means any 5 loan made, insured, or guaranteed under 6 this title. 7 ‘‘(ii) OUTSTANDING STUDENT LOAN 8 DEBT.—The term ‘outstanding student 9 loan debt’, used with respect to a parent, 10 means the total amount of principal, inter- 11 est, and fees owed by such parent, as of 12 the date of determination of the allowance 13 under this paragraph, on Federal student 14 loans.’’. 15 (b) ADJUSTMENT.—Section 478 of the Higher Edu- 16 cation Act of 1965 (20 U.S.C. 1087rr), as amended by 17 title VII of division FF of the FAFSA Simplification Act 18 (Public Law 116–260), is further amended by adding at 19 the end the following: 20 ‘‘(i) STUDENT LOAN EXPENSE ALLOWANCE.—For 21 award year 2026–2027 and each succeeding award year, 22 the Secretary shall publish in the Federal Register a re- 23 vised table of student loan allowances for the purpose of 24 section 475(c)(5). Such revised table shall be developed 25 VerDate Sep 11 2014 06:48 May 09, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2981.IH H2981 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 2981 IH by increasing the dollar amounts specified in subpara- 1 graphs (A) and (B) of section 475(c)(5) by a percentage 2 equal to the percentage increase in the Consumer Price 3 Index, as defined in subsection (f), between April 2020 4 and the April in the year prior to the beginning of the 5 award year and rounding the result to the nearest $10.’’. 6 SEC. 3. REPORT TO CONGRESS. 7 (a) IN GENERAL.—Not later than July 1, 2026, and 8 on an annual basis thereafter, the Secretary of Education 9 shall prepare and submit to Congress a report on the im- 10 pacts of the amendments made by this Act, which shall 11 include the following information with respect to the most 12 recent award year for which information is available: 13 (1) The number and percentage of dependent 14 students whose student aid index computations 15 under subsection (a) of section 475 of the Higher 16 Education Act of 1965 (20 U.S.C. 1087oo) include 17 the subtraction under subsection (c) of such section 18 475 of a student loan allowance determined under 19 paragraph (5) of such subsection (c), as added by 20 section 2, from the parents’ total income, 21 disaggregated— 22 (A) by students who are eligible for a Fed- 23 eral Pell Grant under section 401 of the Higher 24 VerDate Sep 11 2014 06:48 May 09, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H2981.IH H2981 kjohnson on DSK79L0C42PROD with BILLS 5 •HR 2981 IH Education Act of 1965 (20 U.S.C. 1070a) for 1 such award year; and 2 (B) by students who are not eligible for 3 such a Federal Pell Grant. 4 (2) The average amount of the student loan al- 5 lowance described in paragraph (1). 6 Æ VerDate Sep 11 2014 06:48 May 09, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\H2981.IH H2981 kjohnson on DSK79L0C42PROD with BILLS