[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2981 Introduced in House (IH)]
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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 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 2025-2026 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 2025-2026, 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 $200,000 (as adjusted under
section 478(i)), or married parents with a combined
adjusted gross income of more than $400,000 (as so
adjusted), may not receive a student loan allowance
under this paragraph.
``(C) Definitions.--In this paragraph:
``(i) Federal student loan.--The term
`Federal student loan' means any loan made,
insured, or guaranteed under this title.
``(ii) Outstanding student loan debt.--The
term `outstanding student loan debt', used with
respect to a parent, means the total amount of
principal, interest, and fees owed by such
parent, as of the date of determination of the
allowance under this paragraph, on Federal
student loans.''.
(b) Adjustment.--Section 478 of the Higher Education Act of 1965
(20 U.S.C. 1087rr), as amended by title VII of division FF of the FAFSA
Simplification Act (Public Law 116-260), is further amended by adding
at the end the following:
``(i) Student Loan Expense Allowance.--For award year 2026-2027 and
each succeeding award year, the Secretary shall publish in the Federal
Register a revised table of student loan allowances for the purpose of
section 475(c)(5). Such revised table shall be developed by increasing
the dollar amounts specified in subparagraphs (A) and (B) of section
475(c)(5) by a percentage equal to the percentage increase in the
Consumer Price Index, as defined in subsection (f), between April 2020
and the April in the year prior to the beginning of the award year and
rounding the result to the nearest $10.''.
SEC. 3. REPORT TO CONGRESS.
(a) In General.--Not later than July 1, 2026, and on an annual
basis thereafter, the Secretary of Education shall prepare and submit
to Congress a report on the impacts of the amendments made by this Act,
which shall include the following information with respect to the most
recent award year for which information is available:
(1) The number and percentage of dependent students whose
student aid index computations under subsection (a) of section
475 of the Higher Education Act of 1965 (20 U.S.C. 1087oo)
include the subtraction under subsection (c) of such section
475 of a student loan allowance determined under paragraph (5)
of such subsection (c), as added by section 2, from the
parents' total income, disaggregated--
(A) by students who are eligible for a Federal Pell
Grant under section 401 of the Higher Education Act of
1965 (20 U.S.C. 1070a) for such award year; and
(B) by students who are not eligible for such a
Federal Pell Grant.
(2) The average amount of the student loan allowance
described in paragraph (1).
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