Parent PLUS Loan Fairness and Responsibility Act of 2026

Bill Number

H.R. 9272

Origin Chamber

House

Congress

119th Congress, Session 2

Policy Area

Education

Status

Introduced

Latest Action

2026-06-11: Referred to the House Committee on Education and Workforce.

Last Updated

2026-07-01T20:04:16Z

AI-Generated Summary

Purpose

This legislation amends the Higher Education Act of 1965 to permit the transfer of certain federal parent student loans from a parent borrower to their child. The goal is to shift loan responsibility to the individual who benefited from the education funding.

Key Provisions

• Transfer Eligibility: A covered parent loan (including loans under section 428B, Federal Direct PLUS Loans to parents, or related consolidation loans) may be transferred only if the loan is in good standing, was used for the child's education, the child is at least 18 years old and shows repayment ability, all parties agree in writing, the agreement notes impacts on loan forgiveness, and the child has not been enrolled in school for at least 180 days.
• Repayment Ability Assessment: The Secretary of Education evaluates factors such as the child's employment, income, credit history, total loan amount, current and projected debt-to-income ratios, and other relevant details.
• Post-Transfer Treatment: The child becomes the primary borrower, the parent is released from all payment obligations, and the loan retains its original terms except that it may qualify for certain repayment plans. The loan's original origination date remains unchanged, and prior qualifying payments under public service loan forgiveness count toward the child's eligibility.
• Loan Limits: Transferred loans do not count against the child's annual or aggregate federal loan limits.

Significant Changes to Existing Law

This bill introduces a new section (493E) to the Higher Education Act, creating a formal process for transferring Parent PLUS loan liability that does not currently exist. It modifies borrower status rules, allows treatment as a Direct PLUS Loan for repayment options, and ensures continuity for forgiveness programs without resetting loan terms.

Potential Impacts

• Government Agencies: The Department of Education would handle transfer approvals, repayment assessments, and updates to loan records, potentially increasing administrative workload.
• Citizens: Parents gain relief from debt obligations, while adult children assume responsibility, which could affect their credit and financial planning; this may encourage earlier independence in loan management.
• International Relations: No direct effects identified.

Main Stakeholders Affected

• Parents who borrowed Parent PLUS loans.
• Adult children who received the education funded by those loans.
• The Department of Education as the loan administrator.
• Institutions of higher education that originated the loans.

Notable Legal, Constitutional, or Political Implications

The bill alters borrower rights and obligations under federal student aid programs, potentially affecting eligibility for forgiveness under existing statutes like section 455(m), while maintaining the loan's original terms to avoid creating new loans. No constitutional issues are raised in the text, though it could influence debates on student debt fairness.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Foster, Bill [D-IL-11]

Cosponsors (3)

Rep. García, Jesús G. "Chuy" [D-IL-4], Rep. Krishnamoorthi, Raja [D-IL-8], Del. Norton, Eleanor Holmes [D-DC-At Large]

Recent Actions

• 2026-06-11: Referred to the House Committee on Education and Workforce.
• 2026-06-11: Introduced in House
• 2026-06-11: Introduced in House

Bill Versions

• Parent PLUS Loan Fairness and Responsibility Act of 2026 — issued 2026-06-11 — PDF (6 pages)