H.R. 2521 — American Family FAFSA Opportunity Act of 2025

This section revises the assessment of parents' adjusted available income in the Student Aid Index (SAI) formula for dependent students by requiring division of the income assessment by the number of family members (excluding parents) enrolled or accepted for enrollment at least half-time in a degree, certificate, or credential program at an eligible institution of higher education, with the result not less than zero (previously, no such division occurred). (As background, the SAI determines expected family contribution for federal need-based student aid eligibility, such as Pell Grants; thus, this change eliminates the "sibling penalty" by apportioning parents' contribution across college-attending siblings.)

This section provides that the amendments made by this Act take effect on the date of enactment and apply with respect to award year 2025–2026 and each subsequent award year, as determined under the Higher Education Act of 1965.