[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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