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U.S. Rep. Bill Foster (D-IL) introduced legislation last week in the U.S. House of Representatives that would allow students to take over the student debt that was incurred on their behalf.
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Foster’s Parents PLUS Loan Fairness and Responsibility Act seeks to provide a sensible solution for parents facing multiple financial burdens.
“As college costs and economic burdens continue to rise, federal law should allow families to determine financial liability for PLUS loans in a way that accommodates their financial situation,” Foster said. “This legislation would provide a common-sense solution by allowing a child, if they’re willing, to take financial responsibility for the loans that allowed them to go to college.”
Specifically, the legislation would allow parents to transfer Parents PLUS loans to the student with the consent of the parent, student, and lender. PLUS loans – which are part of the Federal Direct Student Loan Program – are offered to parents of students of undergraduate students enrolled at least half-time or graduate and professional students.
However, to qualify for this transfer, the student must meet the credit requirements for the PLUS loan program, and they must be at least six months removed from leaving school. Further, after the transfer is complete, the loan would be eligible for Public Service Loan Forgiveness.
The National Education Association endorses the Parents PLUS Loan Fairness and Responsibility Act.
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