HouseH.R. 9272119th Congress
Parent PLUS Loan Fairness and Responsibility Act of 2026
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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9272 Introduced in House (IH)]
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119th CONGRESS
2d Session
H. R. 9272
To amend the Higher Education Act of 1965 to allow certain Federal
student loans to be transferred from a parent to a child, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 11, 2026
Mr. Foster (for himself, Mr. Garcia of Illinois, Mr. Krishnamoorthi,
and Ms. Norton) introduced the following bill; which was referred to
the Committee on Education and Workforce
_______________________________________________________________________
A BILL
To amend the Higher Education Act of 1965 to allow certain Federal
student loans to be transferred from a parent to a child, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Parent PLUS Loan Fairness and
Responsibility Act of 2026''.
SEC. 2. TRANSFER OF FEDERAL STUDENT LOANS FROM PARENT TO CHILD.
Part G of title IV of the Higher Education Act of 1965 (20 U.S.C.
1088 et seq.) is amended by inserting after section 493D the following:
``SEC. 493E. TRANSFER OF FEDERAL STUDENT LOANS FROM PARENT TO CHILD.
``(a) In General.--A covered parent loan may be transferred from
the original borrower of the loan to a child of such borrower in
accordance with this section.
``(b) Transfer Requirements.--A covered parent loan may be
transferred to a child under subsection (a) only if--
``(1) the loan is in good standing, as determined by the
Secretary;
``(2) the loan was used to pay the educational expenses of
the child to whom the loan is to be transferred;
``(3) the child to whom the loan is to be transferred--
``(A) has attained the age of 18 years; and
``(B) demonstrates the ability to repay the loan,
as determined by the Secretary in accordance with
subsection (c);
``(4) the child, the parent, and the lender agree, in
writing, to the transfer of the loan;
``(5) the agreement described in paragraph (4) notifies the
child to whom the loan is transferred of the effect of the
transfer on the eligibility of the loan for forgiveness under
section 455(m); and
``(6) a period of 180 days has elapsed during which the
child was not pursuing--
``(A) at least a half-time course of study as
determined by an institution of higher education; or
``(B) a course of study pursuant to a graduate
fellowship program approved by the Secretary, or
pursuant to a rehabilitation training program for
disabled individuals approved by the Secretary.
``(c) Determination of Ability To Repay Loan.--In determining the
ability of a child to repay a covered parent loan under subsection
(b)(3)(B), the Secretary shall consider the following:
``(1) The child's employment status, income level, and
credit history.
``(2) The total dollar amount of the loans proposed to be
transferred to the child.
``(3) The debt-to-income ratio of the child before such
transfer.
``(4) The projected debt-to-income ratio of the child after
such transfer.
``(5) Any other factors the Secretary determines to be
relevant to the ability of the child to repay the loan.
``(d) Treatment of Transferred Loan.--
``(1) In general.--A covered parent loan transferred to a
child under subsection (a) shall have the same terms,
conditions, and benefits applicable to the loan before the date
of such transfer except that--
``(A) the child to whom the loan is transferred
shall be treated as the original borrower of the loan;
``(B) the parent who transferred the loan to the
child shall not be responsible for paying--
``(i) the outstanding balance of principal
or interest on the loan; or
``(ii) any other costs associated with the
loan, including fees; and
``(C) notwithstanding any other provision of law,
at the election of the child to whom the loan is
transferred such loan may be treated as a Federal
Direct PLUS Loan for purposes of determining the
eligibility of the loan for any repayment plan under
this title.
``(2) Origination date.--The origination date of a covered
parent loan transferred to a child under subsection (a) shall
be the date on which the loan was originally made to the parent
of such child and such loan may not be treated as a new loan
made after the date of such transfer.
``(3) PSLF payments.--
``(A) In general.--Any qualifying PSLF payment made
on a covered parent loan before the date of transfer to
a child under subsection (a) shall be treated as a
qualifying PSLF payment made by the child for purposes
of determining the child's eligibility for public
service loan forgiveness under section 455(m).
``(B) Qualifying pslf payment defined.--In this
paragraph, the term `qualifying PSLF payment' means a
payment eligible to be counted toward the 120 monthly
payment threshold described in section 455(m)(1).
``(e) Effect on Loan Limits.--Notwithstanding any other provision
of this Act, a covered parent loan transferred to a child under
subsection (a) shall not be counted toward the child's annual or
aggregate maximum loan limits under this title.
``(f) Covered Parent Loan Defined.--In this section, the term
`covered parent loan' means--
``(1) a loan made to a parent on behalf of a dependent
student under section 428B;
``(2) a Federal Direct PLUS Loan made to the parent of a
dependent student; or
``(3) a loan made under section 428C or 455(g), to the
extent that such loan was used to repay--
``(A) a loan made to the parent of a dependent
student under section 428B; or
``(B) a Federal Direct PLUS Loan made to the parent
of a dependent student.''.
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