I 
119TH CONGRESS 
2D SESSION 
H. R. 7232 
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 
JANUARY 22, 2026 
Ms. STEVENS introduced the following bill; which was referred to the 
Committee on Education and Workforce 
A BILL 
To amend the Higher Education Act of 1965 to provide 
a student loan allowance calculation for purposes of de-
termining the student aid index. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Alleviating Intergen-
erational Debt Act’’ or the ‘‘AID Act’’. 
SEC. 2. STUDENT LOAN ALLOWANCE CALCULATION FOR 
AWARD 
YEAR 
2027–2028 
AND 
EACH 
SUC-
CEEDING AWARD YEAR. 
(a) IN GENERAL.—Section 475(c) of the Higher 
Education Act of 1965 (20 U.S.C. 1087oo(c)), as amend-
VerDate Sep 11 2014 
21:13 Jan 30, 2026
Jkt 069200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H7232.IH
H7232
ssavage on LAPJG3WLY3PROD with BILLS
ed 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 sub-
paragraph (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 2027– 
2028, 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 al-
lowance is equal to the lesser of $4,000 or 15 
percent of the single parent’s outstanding stu-
dent 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), 
VerDate Sep 11 2014 
21:13 Jan 30, 2026
Jkt 069200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H7232.IH
H7232
ssavage on LAPJG3WLY3PROD with BILLS
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, inter-
est, 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 Edu-
cation 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 2028–2029 and each succeeding award year, 
the Secretary shall publish in the Federal Register a re-
vised table of student loan allowances for the purpose of 
section 475(c)(5). Such revised table shall be developed 
VerDate Sep 11 2014 
21:13 Jan 30, 2026
Jkt 069200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H7232.IH
H7232
ssavage on LAPJG3WLY3PROD with BILLS
by increasing the dollar amounts specified in subpara-
graphs (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 2022 
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, 2028, and 
on an annual basis thereafter, the Secretary of Education 
shall prepare and submit to Congress a report on the im-
pacts 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 Fed-
eral Pell Grant under section 401 of the Higher 
VerDate Sep 11 2014 
21:13 Jan 30, 2026
Jkt 069200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H7232.IH
H7232
ssavage on LAPJG3WLY3PROD with BILLS
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 al-
lowance described in paragraph (1). 
Æ 
VerDate Sep 11 2014 
21:13 Jan 30, 2026
Jkt 069200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6301
E:\BILLS\H7232.IH
H7232
ssavage on LAPJG3WLY3PROD with BILLS