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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 5108 Introduced in Senate (IS)]

<DOC>

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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