US HB7232

Amends the Higher Education Act of 1965 to create a student loan allowance that reduces parents' income when calculating a dependent student's Student Aid Index (SAI) for financial aid eligibility, beginning with award year 2027-2028

Sets the allowance at the lesser of $4,000 or 15% of the parent's outstanding federal student loan debt (principal, interest, and fees combined for married parents)

Excludes single parents with adjusted gross income above $200,000 and married parents with combined income above $400,000 from receiving the allowance

Requires annual inflation adjustments to the allowance amounts starting in award year 2028-2029, based on Consumer Price Index changes since April 2022

Mandates the Secretary of Education to submit annual reports to Congress beginning July 1, 2028, detailing the number of students benefiting from the allowance and average allowance amounts, disaggregated by Pell Grant eligibility