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.
If you are a parent with student loans, you could get financial help when your child applies for college aid.
Who this affects
Single parents · Married parents with student loans
What changes is this bill making?
1This bill creates a new calculation for student loan allowances starting in the 2027-2028 school year.
2It allows single parents or married parents to receive up to $4,000 based on their student loan debt.
3Parents with high incomes, over $200,000 for single parents or $400,000 for married parents, cannot receive this allowance.
4The bill requires annual reports to Congress on how many students benefit from this allowance.
5It adjusts the allowance amounts each year based on inflation.
