Section 1. Short title
This Act may be cited as the American Family FAFSA Opportunity Act of 2025.
Section 2. Eliminating the sibling penalty
Paragraph (3) of section 475(b) of the Higher Education Act of 1965 (20 U.S.C. 1087oo(b)(3)) is amended to read as follows:
(3) dividing the assessment resulting under paragraph (2) by the number of the family members, excluding student’s parents, who are enrolled or accepted for enrollment, on at least a half-time basis, in a degree, certificate, or other program leading to a recognized educational credential at an institution of higher education that is an eligible institution in accordance with the provisions of section 487 during the award period for which assistance under the title is requested;
Section 2. Eliminating the sibling penalty
except that the amount determined under this subsection shall not be less than zero.
Section 3. Effective date
The amendment made by this Act shall take effect on the date of enactment of this Act, and shall apply with respect to award year 2025–2026 and each subsequent award year, as determined under the Higher Education Act of 1965.