HR 2521 — American Family FAFSA Opportunity Act of 2025

(a) Computation of student aid index (1) In general Except as provided in paragraph (2), for each dependent student, the student aid index is equal to the sum of— (A) the assessment of the parents’ adjusted available income (determined in accordance with subsection (b)); (B) the assessment of the student’s available income (determined in accordance with subsection (g)); and (C) the student’s available assets (determined in accordance with subsection (h)). (2) Exception If the sum determined under paragraph (1) with respect to a dependent student is less than − $1,500, the student aid index for the dependent student shall be − $1,500. (b) Assessment of parents’ adjusted available income The assessment of parents’ adjusted available income is equal to the amount determined by— (1) computing adjusted available income by adding— (A) the parents’ available income (determined in accordance with subsection (c)); and (B) the parents’ available assets (determined in accordance with subsection (d)); (2) assessing such adjusted available income in accordance with the assessment schedule set forth in subsection (e); and (3) considering such assessment resulting under paragraph (2) as the amount determined under this subsection. (c) Parents’ available income (1) In general The parents’ available income is determined by subtracting from total income (as defined in section 1087vv of this title)— (A) Federal income taxes; (B) an allowance for payroll taxes, determined in accordance with paragraph (2); (C) an income protection allowance, determined in accordance with paragraph (3); and (D) an employment expense allowance, determined in accordance with paragraph (4). (2) Allowance for payroll taxes The allowance for payroll taxes is equal to the sum of— (A) the total amount earned by the parents, multiplied by the rate of tax under section 3101(b) of title 26; and (B) the amount earned by the parents that does not exceed such contribution and benefit base (twice such contribution and benefit base, in the case of a joint return) for the year of the earnings, multiplied by the rate of tax applicable to such earnings under section 3101(a) of title 26. (3) Income protection allowance The income protection allowance shall equal the amount determined in the following table, as adjusted by the Secretary pursuant to section 1087rr(b) of this title: Income Protection Allowance (to be adjusted for 2023–2024 and succeeding years) Family Size (including student) Amount 2 $23,330 3 $29,040 4 $35,870 5 $42,320 6 $49,500 For each additional add $5,590. (4) Employment expense allowance The employment expense allowance is equal to the lesser of $4,000 or 35 percent of the single parent’s earned income or married parents’ combined earned income (as adjusted by the Secretary pursuant to section 1087rr(g) of this title). (d) Parents’ available assets (1) In general (A) Determination Except as provided in subparagraph (B), the parents’ available assets are equal to— (i) the difference between the parents’ assets and the asset protection allowance (determined in accordance with paragraph (2)); multiplied by (ii) 12 percent. (B) Not less than zero The parents’ available assets under this subsection shall not be less than zero. (2) Asset protection allowance The asset protection allowance is calculated based on the following table (as revised by the Secretary pursuant to section 10877rr(d) of this title): Asset Protection Allowances for Parents of Dependent Students If the age of the oldest parent is— And there are two parents one parent   then the allowance is— 25 or less  $  0    $0 26  $400  $100 27  $700  $300 28  $1,100  $400 29  $1,500  $600 30  $1,800  $700 31  $2,200  $800 32  $2,600  $1,000 33  $2,900  $1,100 34  $3,300  $1,300 35  $3,700  $1,400 36  $4,000  $1,500 37  $4,400  $1,700 38  $4,800  $1,800 39  $5,100  $2,000 40  $5,500  $2,100 41  $5,600  $2,200 42  $5,700  $2,200 43  $5,900  $2,300 44  $6,000  $2,300 45  $6,200  $2,400 46  $6,300  $2,400 47  ...