The AID Act changes how student loan allowances are calculated, helping some parents reduce their reported income for financial aid. This can make college more affordable for their children.
1. This bill creates a new calculation for student loan allowances starting in the 2027-2028 school year. 2. It allows single parents or married parents to receive up to $4,000 based on their student loan debt. 3. Parents with high incomes, over $200,000 for single parents or $400,000 for married parents, cannot receive this allowance. 4. The bill requires annual reports to Congress on how many students benefit from this allowance. 5. It adjusts the allowance amounts each year based on inflation.
Single parents and married parents with student loans who apply for financial aid.