I 

114TH CONGRESS 

2D SESSION H. R. 4661 

To amend the Higher Education Act of 1965 to include Parent PLUS 

loans in income-contingent and income-based repayment plans, and for 

other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 2, 2016 

Ms. FUDGE (for herself, Mr. HINOJOSA, Ms. BROWN of Florida, Ms. 

PLASKETT, Ms. WILSON of Florida, Mr. VEASEY, Mr. THOMPSON of California, Mr. RICHMOND, Mr. COURTNEY, and Mr. TAKANO) introduced the 

following bill; which was referred to the Committee on Education and the 

Workforce 

A BILL 

To amend the Higher Education Act of 1965 to include 

Parent PLUS loans in income-contingent and incomebased repayment plans, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Parent PLUS Loan 

5 Improvement Act of 2016’’. 

6 SEC. 2. APPLICABLE RATE OF INTEREST FOR PLUS LOANS. 

7 Section 455(b)(8) of the Higher Education Act of 

8 1965 (20 U.S.C. 1087e(b)(8)) is amended— 


emcdonald on DSK67QTVN1PROD with BILLS
2 

•HR 4661 IH

1 (1) in subparagraph (C), by inserting ‘‘and be2 fore July 1, 2016,’’ after ‘‘, 2013,’’; and 

3 (2) by adding at the end the following: 

4 ‘‘(F) REDUCED RATE FOR PARENT PLUS

5 LOANS.—Notwithstanding the preceding para6 graphs of this subsection, for Federal Direct 

7 PLUS Loans made on behalf of a dependent 

8 student for which the first disbursement is 

9 made on or after July 1, 2016, the applicable 

10 rate of interest shall be determined under sub11 paragraph (C) of this paragraph— 

12 ‘‘(i) by substituting ‘3.6 percent’ for 

13 ‘4.6 percent’; and 

14 ‘‘(ii) by substituting ‘9.5 percent’ for 

15 ‘10.5 percent’.’’. 

16 SEC. 3. ELIMINATION OF ORIGINATION FEE FOR PARENT 

17 PLUS LOANS. 

18 Section 455(c) of the Higher Education Act of 1965 

19 (20 U.S.C. 1087e(c)) is amended by adding at the end 

20 the following new paragraph: 

21 ‘‘(3) PLUS LOANS.—With respect to Federal 

22 Direct PLUS loans made on behalf of a dependent 

23 student for which the first disbursement of principal 

24 is made on or after July 1, 2016, paragraph (1) 


emcdonald on DSK67QTVN1PROD with BILLS
3 

•HR 4661 IH

1 shall be applied by substituting ‘0.0 percent’ for ‘4.0 

2 percent’.’’. 

3 SEC. 4. COUNSELING FOR PARENT PLUS BORROWERS. 

4 Section 485 of the Higher Education Act of 1965 (20 

5 U.S.C. 1092) is amended by adding at the end the fol6 lowing: 

7 ‘‘(n) COUNSELING FOR PARENT PLUS BOR8 ROWERS.— 

9 ‘‘(1) IN GENERAL.—The Secretary, prior to dis10 bursement of a Federal Direct PLUS loan made on 

11 behalf of a dependent student, shall ensure that the 

12 borrower receives comprehensive information on the 

13 terms and conditions of the loan and the responsibil14 ities the borrower has with respect to such loan. 

15 Such information— 

16 ‘‘(A) shall be provided through the use of 

17 interactive programs that use mechanisms to 

18 check the borrower’s understanding of the 

19 terms and conditions of the borrower’s loan, 

20 using simple and understandable language and 

21 clear formatting; and 

22 ‘‘(B) shall be provided— 

23 ‘‘(i) during a counseling session con24 ducted in person; or 

25 ‘‘(ii) online. 


emcdonald on DSK67QTVN1PROD with BILLS
4 

•HR 4661 IH

1 ‘‘(2) INFORMATION TO BE PROVIDED.—The in2 formation to be provided to the borrower under 

3 paragraph (1) shall include the following: 

4 ‘‘(A) Information on how interest accrues 

5 and is capitalized during periods when the in6 terest is not paid by the borrower. 

7 ‘‘(B) An explanation of when loan repay8 ment begins, of the options available for a bor9 rower who may need a deferment, and that in10 terest accrues during a deferment. 

11 ‘‘(C) The repayment plans that are avail12 able to the borrower, including personalized in13 formation showing— 

14 ‘‘(i) estimates of the borrower’s antici15 pated monthly payments under each repay16 ment plan that is available; and 

17 ‘‘(ii) the difference in interest paid 

18 and total payments under each repayment 

19 plan. 

20 ‘‘(D) The obligation of the borrower to 

21 repay the full amount of the loan, regardless of 

22 whether the student on whose behalf the loan 

23 was made completes the program in which the 

24 student is enrolled. 


emcdonald on DSK67QTVN1PROD with BILLS
5 

•HR 4661 IH

1 ‘‘(E) The likely consequences of default on 

2 the loan, including adverse credit reports, delin3 quent debt collection procedures under Federal 

4 law, and litigation. 

5 ‘‘(F) The name and contact information of 

6 the individual the borrower may contact if the 

7 borrower has any questions about the bor8 rower’s rights and responsibilities or the terms 

9 and conditions of the loan.’’. 

10 SEC. 5. INCLUSION OF PARENT PLUS LOANS IN INCOME11 CONTINGENT AND INCOME-BASED REPAY12 MENT PLANS. 

13 (a) INCOME-CONTINGENT REPAYMENT PLAN.—Sec14 tion 455(d)(1)(D) of the Higher Education Act of 1965 

15 (20 U.S.C. 1087e(d)(1)(D)) is amended by striking ‘‘, ex16 cept that the plan described in this subparagraph shall 

17 not be available to the borrower of a Federal Direct PLUS 

18 loan made on behalf of a dependent student;’’. 

19 (b) INCOME-BASED REPAYMENT.— 

20 (1) SECTION 493C.—Section 493C of the High21 er Education Act of 1965 (20 U.S.C. 1098e) is 

22 amended— 

23 (A) in subsection (a)— 

24 (i) by striking ‘‘this section’’ and all 

25 that follows through ‘‘hardship’’ and inVerDate Sep 11 2014 01:10 Mar 03, 2016 Jkt 059200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H4661.IH H4661

emcdonald on DSK67QTVN1PROD with BILLS
6 

•HR 4661 IH

1 serting ‘‘In this section, the term ‘partial 

2 financial hardship’ ’’; and 

3 (ii) by striking, ‘‘(other than an ex4 cepted PLUS loan or excepted consolida5 tion loan)’’; 

6 (B) in subsection (b)— 

7 (i) in paragraph (1), by striking 

8 ‘‘(other than an excepted PLUS loan or 

9 excepted consolidation loan)’’; 

10 (ii) in paragraph (6)(A), by striking 

11 ‘‘(other than an excepted PLUS loan or 

12 excepted consolidation loan)’’; and 

13 (iii) in paragraph (7), by striking 

14 ‘‘(other than a loan under section 428B or 

15 a Federal Direct PLUS Loan)’’; and 

16 (C) in subsection (c), by striking ‘‘(other 

17 than an excepted PLUS loan or excepted con18 solidation loan),’’. 

19 (2) SECTION 455(d)(1)(E).—Section 

20 455(d)(1)(E) of such Act (20 U.S.C. 

21 1087e(d)(1)(D)) is amended by striking ‘‘, except 

22 that the plan described in this subparagraph shall 

23 not be available to the borrower of a Federal Direct 

24 PLUS Loan made on behalf of a dependent student 

25 or a Federal Direct Consolidation Loan, if the proVerDate Sep 11 2014 01:10 Mar 03, 2016 Jkt 059200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H4661.IH H4661

emcdonald on DSK67QTVN1PROD with BILLS
7 

•HR 4661 IH

1 ceeds of such loan were used to discharge the liabil2 ity on such Federal Direct PLUS Loan or a loan 

3 under section 428B made on behalf of a dependent 

4 student’’. 

5 (c) APPLICATION TO REGULATIONS.—The Secretary 

6 shall ensure that any Federal Direct PLUS Loan and any 

7 loan under section 428B of the Higher Education Act of 

8 1965 (20 U.S.C. 1078–2) made on behalf of a dependent 

9 student are eligible for any repayment plan available 

10 under the Higher Education Act of 1965 (20 U.S.C. 1001 

11 et seq.) or regulations authorized under such Act (20 

12 U.S.C. 1001 et seq.) 

Æ 


emcdonald on DSK67QTVN1PROD with BILLS