Haley Stevens looks to help parents with student loans

U.S. Rep. Haley Stevens, D-Birmingham, is introducing legislation Thursday intended to help parents carrying their own student loan debt when it comes to determining how much they may have to contribute toward their children's financial aid for college.

Stevens is introducing what she is calling the Alleviating Intergenerational Debt (or AID) Act.

In a nutshell, beginning with the 2025-26 school year, it would allow parents to include a portion of their own student loan debt in determining how much they may be expected to contribute toward their children's education.

A student's eligibility for federal financial aid is calculated, in part, by parents providing information about their finances. But the new, simplified Student Aid Index — which goes into full effect next year — doesn't take into account the parents' own student loan burdens when determining what a family could be expected to contribute.

Stevens' bill would allow for $4,000 or 15% of the parents' outstanding loan amount, whichever is less, to be subtracted from their income in determining the index level. Only single-parent families with adjusted gross income of under $75,000 and two-parent families with income of under $150,000 would be eligible for the allowance.