Rep. Haley Stevens Introduces Bill to Tackle Intergenerational Student Debt Crisis

Washington, D.C. – Today, Michigan Congresswoman Haley Stevens introduced the Alleviating Intergenerational Debt (AID) Act to fix a glaring financial aid issue and make the dream of college achievable for all students.

The nation’s broken financial aid system faces a growing reality: parents across the country are still paying off their own student loans while simultaneously trying to send their kids to college. Right now, federal financial aid formulas fail to account for outstanding parental student loan debt, leading to unfair denials of federal aid to students from families that are already stretched thin. The AID Act updates the Student Aid Index formula to include outstanding parental student loan debt, giving financial aid administrators a clearer, more honest picture of family finances and unlocking critical aid for students across Michigan.

“Student debt shouldn’t follow Michigan families from one generation to the next,” said Rep. Stevens. “The AID Act modernizes financial aid to match today’s economy so more students can afford college without inheriting the same debt their parents are still paying off.”

The AID Act will:

• Expand access to federal student aid by creating a new allowance in the SAI formula for parents of dependent students who are paying student loans, similar to existing allowances for taxes.
• Increase transparency and accountability by requiring the Department of Education to report annually on how many students benefit from this allowance, how much students receive on average, and how impacts differ for Pell Grant recipients.

Rep. Stevens serves on the House Education and Workforce Committee and continues to champion policies that expand opportunity and make higher education more affordable for Michiganders.

###