[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 5108 Introduced in Senate (IS)]
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118th CONGRESS
2d Session
S. 5108
To amend the Higher Education Act of 1965 to provide relief for
borrowers of Federal Direct PLUS loans made on behalf of students.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 19, 2024
Mr. Van Hollen (for himself, Mr. Padilla, Mr. Kaine, Mr. Welch, Ms.
Smith, Ms. Warren, Mr. Booker, and Mr. Sanders) introduced the
following bill; which was read twice and referred to the Committee on
Health, Education, Labor, and Pensions
_______________________________________________________________________
A BILL
To amend the Higher Education Act of 1965 to provide relief for
borrowers of Federal Direct PLUS loans made on behalf of students.
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 Parity Act''.
SEC. 2. RELIEF FOR BORROWERS OF FEDERAL DIRECT PLUS LOANS MADE ON
BEHALF OF STUDENTS.
(a) Expansion of Repayment Plan Options.--
(1) In general.--The Higher Education Act of 1965 (20
U.S.C. 1001 et seq.) is amended--
(A) in section 428(b)(9)(A)--
(i) in clause (iv), by striking ``and''
after the semicolon;
(ii) in clause (v), by striking ``, except
that the plan described in this clause shall
not be available to a borrower for a loan under
section 428B made on behalf of a dependent
student or for a consolidation loan under
section 428C, if the proceeds of such loan were
used to discharge the liability of a loan under
section 428B made on behalf of a dependent
student.'' and inserting ``; and''; and
(iii) by adding at the end the following:
``(vi) beginning July 1, 2024, an income
contingent repayment plan (as described in
section 455(d)(1)(D), which plan shall include
a Pay as You Earn Repayment plan and a Saving
on a Valuable Education plan as described in
section 685.209 of title 34, Code of Federal
Regulations (or any similar successor
regulation), except such plans shall be
available to the borrower of any loan made,
insured, or guaranteed under this part).'';
(B) in section 428C(c)--
(i) in paragraph (2)(A)--
(I) in the first sentence by
striking ``, or income-based repayment
schedules'' and inserting ``, income-
based, or, beginning July 1, 2024,
income contingent (as described in
section 455(d)(1)(D)), repayment
schedules''; and
(II) in the second sentence, by
striking ``or income-based'' and
inserting ``, income-based, or income
contingent''; and
(ii) in paragraph (3)--
(I) in subparagraph (A)--
(aa) by inserting ``, or,
beginning July 1, 2024, an
income contingent (as described
in section 455(d)(1)(D))
repayment schedule'' after ``an
income-based repayment schedule
under section 493C''; and
(bb) by inserting ``and''
after the semicolon;
(II) in subparagraph (B), by
striking ``; and'' and inserting a
period; and
(III) by striking subparagraph (C);
(C) in section 455(d)(1)--
(i) in subparagraph (D), by striking ``,
except that the plan described in this
subparagraph shall not be available to the
borrower of a Federal Direct PLUS loan made on
behalf of a dependent student'' and inserting
``, which plan shall include, beginning July 1,
2024, a Pay as You Earn Repayment plan and a
Saving on a Valuable Education plan as
described in section 685.209 of title 34, Code
of Federal Regulations (or any similar
successor regulation), except that such plans
shall be available to the borrower of any loan
made under this part''; and
(ii) in subparagraph (E), by striking ``,
except that the plan described in this
subparagraph shall not be available to the
borrower of a Federal Direct PLUS Loan made on
behalf of a dependent student or a Federal
Direct Consolidation Loan, if the proceeds of
such loan were used to discharge the liability
on such Federal Direct PLUS Loan or a loan
under section 428B made on behalf of a
dependent student''; and
(D) in section 493C--
(i) by striking subsection (a) and
inserting the following:
``(a) Definition of Partial Financial Hardship.--In this section,
the term `partial financial hardship', when used with respect to a
borrower, means that for such borrower--
``(1) the annual amount due on the total amount of loans
made, insured, or guaranteed under part B or D to a borrower as
calculated under the standard repayment plan under section
428(b)(9)(A)(i) or 455(d)(1)(A), based on a 10-year repayment
period; exceeds
``(2) 15 percent of the result obtained by calculating, on
at least an annual basis, the amount by which--
``(A) the borrower's, and the borrower's spouse's
(if applicable), adjusted gross income; exceeds
``(B) 150 percent of the poverty line applicable to
the borrower's family size as determined under section
673(2) of the Community Services Block Grant Act (42
U.S.C. 9902(2)).'';
(ii) in subsection (b)--
(I) in paragraph (1), by striking
``(other than an excepted PLUS loan or
excepted consolidation loan)'';
(II) in paragraph (6)(A), by
striking ``(other than an excepted PLUS
loan or excepted consolidation loan)'';
and
(III) in paragraph (7), by striking
``(other than a loan under section 428B
or a Federal Direct PLUS Loan)'';
(iii) in subsection (c)--
(I) in paragraph (1), by striking
``(other than an excepted PLUS loan or
excepted consolidation loan)''; and
(II) in paragraph (2)(B), by
striking ``(other than an excepted PLUS
loan or excepted consolidation loan)'';
and
(iv) in subsection (e), by striking
``2014--'' and all that follows through the
period at the end and inserting ``2014,
subsection (a)(3)(B) shall be applied by
substituting `10 percent' for `15 percent'.''.
(2) Rule of construction.--Nothing in the amendments made
under paragraph (1) shall be construed to authorize any
refunding of any repayment of a loan.
(b) Discharge for Total and Permanent Disability.--
(1) In general.--
(A) Part b.--Section 437(a) of the Higher Education
Act of 1965 (20 U.S.C. 1087(a)) is amended by adding at
the end the following:
``(4) Discharge of parent plus loans for total and
permanent disability of student.--Notwithstanding any other
provision of this Act, the Secretary shall discharge the
liability on a loan made under section 428B on behalf of a
student by repaying the amount owed on the loan, if the student
becomes permanently and totally disabled (as determined in
accordance with regulations of the Secretary).''.
(B) Part d.--Section 455 of the Higher Education
Act of 1965 (20 U.S.C. 1087e) is amended by adding at
the end the following:
``(q) Discharge of Parent Plus Loans for Total and Permanent
Disability of Student.--Notwithstanding any other provision of this
Act, the Secretary shall discharge the liability on a Federal Direct
PLUS loan made on behalf of a student, if the student becomes
permanently and totally disabled (as determined in accordance with
regulations of the Secretary).''.
(2) Rule of construction.--Nothing in the amendments made
under paragraph (1) shall be construed to authorize any
refunding of any repayment of a loan.
(c) Eligibility for Public Service Loan Forgiveness for Parent Plus
Loans.--Section 455(m) of the Higher Education Act of 1965 (20 U.S.C.
1087e(m)) is amended by adding at the end the following:
``(5) Parent plus loan.--The Secretary shall cancel the
balance of interest and principal due on a Federal Direct PLUS
loan made on behalf of a student after the date of enactment of
the Parent Plus Parity Act, if the student is a borrower for
whom the Secretary has cancelled the obligation to repay the
balance of principal and interest due on an eligible Federal
Direct Loan under this subsection.''.
(d) Automatic Discharge.--
(1) In general.--
(A) Part b.--Section 437(c) of the Higher Education
Act of 1965 (20 U.S.C. 1087(c)) is amended by adding at
the end the following:
``(6) Automatic discharge for parent plus loans.--If a
student on whose behalf a parent has received a loan described
in section 428B is a borrower for whom a loan has been
discharged pursuant to this subsection, then the Secretary
shall automatically discharge the parent borrower's liability
on the loan described in section 428B by repaying the amount
owed on the loan.''.
(B) Part d.--Section 455(h) of the Higher Education
Act of 1965 (20 U.S.C. 1087e(h)) is amended--
(i) by striking ``Notwithstanding'' and
inserting the following:
``(1) In general.--Notwithstanding''; and
(ii) by adding at the end the following:
``(2) Automatic discharge for parent plus loans.--If a
student on whose behalf a parent has received a Federal Direct
PLUS Loan is a borrower for whom a loan made under this part
has been discharged pursuant to a defense to repayment, then
the Secretary shall automatically discharge the parent
borrower's liability on the Federal Direct PLUS Loan.''.
(2) Rule of construction.--Nothing in the amendments made
under paragraph (1) shall be construed to authorize any
refunding of any repayment of a loan.
(e) Discharge for Hardship.--
(1) Part b.--Section 437 of the Higher Education Act of
1965 (20 U.S.C. 1087) is amended by adding at the end the
following:
``(e) Discharge of Parent Plus Loans for Hardship.--
``(1) In general.--Notwithstanding any other provision of
this Act, the Secretary shall discharge the liability on a loan
made under section 428B on behalf of a student by repaying the
amount owed on the loan, if the Secretary determines that the
parent borrower has experienced hardship or may experience
future hardship as a result of such a loan.
``(2) Factors that substantiate hardship.--The Secretary
shall establish factors that demonstrate hardship for the
purpose of a discharge under paragraph (1), including any of
the following:
``(A) Income.
``(B) Borrower-loan-debt-to-income ratio.
``(C) Potential future earnings.
``(D) Age of a borrower.
``(E) Age of a loan.
``(F) Receipt of public benefits.
``(G) Receipt of Social Security.
``(H) Borrower disability.
``(I) Any other indicators of hardship identified
by the Secretary.
``(3) Application.--The Secretary shall create guidelines
and an application through which a borrower may submit records
or other evidence of hardship or a statement that attests to
present or future hardship.''.
(2) Part d.--Section 455 of the Higher Education Act of
1965 (20 U.S.C. 1087e), as amended by subsection (b), is
further amended by adding at the end the following:
``(r) Discharge of Parent Plus Loans for Hardship.--
``(1) In general.--Notwithstanding any other provision of
this Act, the Secretary shall discharge the liability on a
Federal Direct PLUS loan made on behalf of a student, if the
Secretary determines that the parent borrower has experienced
hardship or may experience future hardship as a result of such
a loan.
``(2) Factors that substantiate hardship.--The Secretary
shall establish factors that demonstrate hardship for the
purpose of a discharge under paragraph (1), including any of
the following:
``(A) Income.
``(B) Borrower-loan-debt-to-income ratio.
``(C) Potential future earnings.
``(D) Age of a borrower.
``(E) Age of a loan.
``(F) Receipt of public benefits.
``(G) Receipt of Social Security.
``(H) Borrower disability.
``(I) Any other indicators of hardship identified
by the Secretary.
``(3) Application.--The Secretary shall create guidelines
and an application through which a borrower may submit records
or other evidence of hardship or a statement that attests to
present or future hardship.''.
(f) Delegation to the Secretary.--Congress delegates to the
Secretary of Education the authority, in issuing regulations to carry
out the amendments made by this section, to interpret the provisions of
the amendments made by this section, taking into consideration cost and
public health. A court engaged in judicial review of those provisions,
including judicial review under section 706 of title 5, United States
Code, shall determine whether the agency's interpretation is based on a
permissible construction of the amendments made by this section.
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