The AID Act introduces a student loan allowance to reduce the impact of parents' student loan debt on their children's financial aid eligibility.
The Alleviating Intergenerational Debt Act, or AID Act, amends the Higher Education Act of 1965 to introduce a student loan allowance for parents starting with the 2027-2028 award year. This allowance, up to $4,000 or 15% of the parent's outstanding student loan debt, whichever is less, is subtracted from the parents' total income when calculating the student aid index. This change aims to lessen the burden of parents' student loan debt on their children's financial aid eligibility.
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- Overview
- Core Provisions
- Implementation
- Impact
- Legal Framework
- Critical Issues
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