# Parent PLUS Loan Fairness and Responsibility Act of 2023

This bill would allow parents who took out federal Parent PLUS loans to transfer those loans to their adult children. Right now, if a parent borrows money through the Parent PLUS program to pay for their child's college, the parent stays responsible for repaying that debt for life. This bill creates a new option: parents could hand off the loan responsibility to their child instead, essentially making the child the new borrower.

For this transfer to happen, several conditions must be met. The loan has to be in good standing (meaning the parent hasn't defaulted), and it must have originally been used to pay for that specific child's education. The child receiving the loan has to be at least 18 years old and demonstrate they can actually afford to repay it. The bill requires the government to look at the child's job situation, income, credit history, and how much debt they'd have compared to their earnings before and after taking on the parent's loan. All three parties—the parent, child, and lender—have to agree in writing to the transfer, and the child must be notified that taking on this loan could affect their eligibility for loan forgiveness programs.

There's also a waiting period built in: the child can't have been enrolled in school at least half-time for the previous 180 days before the transfer can happen. Once transferred, the parent is completely off the hook—they don't owe anything anymore, not the principal, interest, or any fees. The child becomes the official borrower and gets access to income-driven repayment plans, which allow them to make smaller monthly payments based on what they actually earn. Importantly, the transferred loan doesn't count against the child's borrowing limits for future federal student loans.

Parent PLUS Loan Fairness and Responsibility Act of 2023

Foster, Bill

<html><body bgcolor="#FFFFFF">Parent PLUS Loan Fairness and Responsibility Act of 2023 This bill allows parent borrowers to transfer their parent PLUS loans to their child under certain circumstances. Among other requirements for a transfer, the child must demonstrate the ability to repay the loan, as determined by the Department of Education. Additionally, the bill makes these transferred loans eligible for income-driven repayment plans.</body></html>