II 

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. 

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 Parity 

5 Act’’. 

6 SEC. 2. RELIEF FOR BORROWERS OF FEDERAL DIRECT 

7 PLUS LOANS MADE ON BEHALF OF STU8 DENTS. 

9 (a) EXPANSION OF REPAYMENT PLAN OPTIONS.— 


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1 (1) IN GENERAL.—The Higher Education Act 

2 of 1965 (20 U.S.C. 1001 et seq.) is amended— 

3 (A) in section 428(b)(9)(A)— 

4 (i) in clause (iv), by striking ‘‘and’’ 

5 after the semicolon; 

6 (ii) in clause (v), by striking ‘‘, except 

7 that the plan described in this clause shall 

8 not be available to a borrower for a loan 

9 under section 428B made on behalf of a 

10 dependent student or for a consolidation 

11 loan under section 428C, if the proceeds of 

12 such loan were used to discharge the liabil13 ity of a loan under section 428B made on 

14 behalf of a dependent student.’’ and insert15 ing ‘‘; and’’; and 

16 (iii) by adding at the end the fol17 lowing: 

18 ‘‘(vi) beginning July 1, 2024, an in19 come contingent repayment plan (as de20 scribed in section 455(d)(1)(D), which plan 

21 shall include a Pay as You Earn Repay22 ment plan and a Saving on a Valuable 

23 Education plan as described in section 

24 685.209 of title 34, Code of Federal Regu25 lations (or any similar successor regulaVerDate Sep 11 2014 23:06 Sep 27, 2024 Jkt 049200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S5108.IS S5108

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1 tion), except such plans shall be available 

2 to the borrower of any loan made, insured, 

3 or guaranteed under this part).’’; 

4 (B) in section 428C(c)— 

5 (i) in paragraph (2)(A)— 

6 (I) in the first sentence by strik7 ing ‘‘, or income-based repayment 

8 schedules’’ and inserting ‘‘, income9 based, or, beginning July 1, 2024, in10 come contingent (as described in sec11 tion 455(d)(1)(D)), repayment sched12 ules’’; and 

13 (II) in the second sentence, by 

14 striking ‘‘or income-based’’ and insert15 ing ‘‘, income-based, or income contin16 gent’’; and 

17 (ii) in paragraph (3)— 

18 (I) in subparagraph (A)— 

19 (aa) by inserting ‘‘, or, be20 ginning July 1, 2024, an income 

21 contingent (as described in sec22 tion 455(d)(1)(D)) repayment 

23 schedule’’ after ‘‘an income-based 

24 repayment schedule under section 

25 493C’’; and 


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1 (bb) by inserting ‘‘and’’ 

2 after the semicolon; 

3 (II) in subparagraph (B), by 

4 striking ‘‘; and’’ and inserting a pe5 riod; and 

6 (III) by striking subparagraph 

7 (C); 

8 (C) in section 455(d)(1)— 

9 (i) in subparagraph (D), by striking 

10 ‘‘, except that the plan described in this 

11 subparagraph shall not be available to the 

12 borrower of a Federal Direct PLUS loan 

13 made on behalf of a dependent student’’ 

14 and inserting ‘‘, which plan shall include, 

15 beginning July 1, 2024, a Pay as You 

16 Earn Repayment plan and a Saving on a 

17 Valuable Education plan as described in 

18 section 685.209 of title 34, Code of Fed19 eral Regulations (or any similar successor 

20 regulation), except that such plans shall be 

21 available to the borrower of any loan made 

22 under this part’’; and 

23 (ii) in subparagraph (E), by striking 

24 ‘‘, except that the plan described in this 

25 subparagraph shall not be available to the 


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1 borrower of a Federal Direct PLUS Loan 

2 made on behalf of a dependent student or 

3 a Federal Direct Consolidation Loan, if the 

4 proceeds of such loan were used to dis5 charge the liability on such Federal Direct 

6 PLUS Loan or a loan under section 428B 

7 made on behalf of a dependent student’’; 

8 and 

9 (D) in section 493C— 

10 (i) by striking subsection (a) and in11 serting the following: 

12 ‘‘(a) DEFINITION OF PARTIAL FINANCIAL HARD13 SHIP.—In this section, the term ‘partial financial hard14 ship’, when used with respect to a borrower, means that 

15 for such borrower— 

16 ‘‘(1) the annual amount due on the total 

17 amount of loans made, insured, or guaranteed under 

18 part B or D to a borrower as calculated under the 

19 standard repayment plan under section 

20 428(b)(9)(A)(i) or 455(d)(1)(A), based on a 10-year 

21 repayment period; exceeds 

22 ‘‘(2) 15 percent of the result obtained by calcu23 lating, on at least an annual basis, the amount by 

24 which— 


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1 ‘‘(A) the borrower’s, and the borrower’s 

2 spouse’s (if applicable), adjusted gross income; 

3 exceeds 

4 ‘‘(B) 150 percent of the poverty line appli5 cable to the borrower’s family size as deter6 mined under section 673(2) of the Community 

7 Services Block Grant Act (42 U.S.C. 

8 9902(2)).’’; 

9 (ii) in subsection (b)— 

10 (I) in paragraph (1), by striking 

11 ‘‘(other than an excepted PLUS loan 

12 or excepted consolidation loan)’’; 

13 (II) in paragraph (6)(A), by 

14 striking ‘‘(other than an excepted 

15 PLUS loan or excepted consolidation 

16 loan)’’; and 

17 (III) in paragraph (7), by strik18 ing ‘‘(other than a loan under section 

19 428B or a Federal Direct PLUS 

20 Loan)’’; 

21 (iii) in subsection (c)— 

22 (I) in paragraph (1), by striking 

23 ‘‘(other than an excepted PLUS loan 

24 or excepted consolidation loan)’’; and 


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1 (II) in paragraph (2)(B), by 

2 striking ‘‘(other than an excepted 

3 PLUS loan or excepted consolidation 

4 loan)’’; and 

5 (iv) in subsection (e), by striking 

6 ‘‘2014—’’ and all that follows through the 

7 period at the end and inserting ‘‘2014, 

8 subsection (a)(3)(B) shall be applied by 

9 substituting ‘10 percent’ for ‘15 percent’.’’. 

10 (2) RULE OF CONSTRUCTION.—Nothing in the 

11 amendments made under paragraph (1) shall be con12 strued to authorize any refunding of any repayment 

13 of a loan. 

14 (b) DISCHARGE FOR TOTAL AND PERMANENT DIS15 ABILITY.— 

16 (1) IN GENERAL.— 

17 (A) PART B.—Section 437(a) of the High18 er Education Act of 1965 (20 U.S.C. 1087(a)) 

19 is amended by adding at the end the following: 

20 ‘‘(4) DISCHARGE OF PARENT PLUS LOANS FOR

21 TOTAL AND PERMANENT DISABILITY OF STU22 DENT.—Notwithstanding any other provision of this 

23 Act, the Secretary shall discharge the liability on a 

24 loan made under section 428B on behalf of a stu25 dent by repaying the amount owed on the loan, if 


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1 the student becomes permanently and totally dis2 abled (as determined in accordance with regulations 

3 of the Secretary).’’. 

4 (B) PART D.—Section 455 of the Higher 

5 Education Act of 1965 (20 U.S.C. 1087e) is 

6 amended by adding at the end the following: 

7 ‘‘(q) DISCHARGE OF PARENT PLUS LOANS FOR

8 TOTAL AND PERMANENT DISABILITY OF STUDENT.— 

9 Notwithstanding any other provision of this Act, the Sec10 retary shall discharge the liability on a Federal Direct 

11 PLUS loan made on behalf of a student, if the student 

12 becomes permanently and totally disabled (as determined 

13 in accordance with regulations of the Secretary).’’. 

14 (2) RULE OF CONSTRUCTION.—Nothing in the 

15 amendments made under paragraph (1) shall be con16 strued to authorize any refunding of any repayment 

17 of a loan. 

18 (c) ELIGIBILITY FOR PUBLIC SERVICE LOAN FOR19 GIVENESS FOR PARENT PLUS LOANS.—Section 455(m) of 

20 the Higher Education Act of 1965 (20 U.S.C. 1087e(m)) 

21 is amended by adding at the end the following: 

22 ‘‘(5) PARENT PLUS LOAN.—The Secretary shall 

23 cancel the balance of interest and principal due on 

24 a Federal Direct PLUS loan made on behalf of a 

25 student after the date of enactment of the Parent 


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1 Plus Parity Act, if the student is a borrower for 

2 whom the Secretary has cancelled the obligation to 

3 repay the balance of principal and interest due on an 

4 eligible Federal Direct Loan under this subsection.’’. 

5 (d) AUTOMATIC DISCHARGE.— 

6 (1) IN GENERAL.— 

7 (A) PART B.—Section 437(c) of the High8 er Education Act of 1965 (20 U.S.C. 1087(c)) 

9 is amended by adding at the end the following: 

10 ‘‘(6) AUTOMATIC DISCHARGE FOR PARENT

11 PLUS LOANS.—If a student on whose behalf a parent 

12 has received a loan described in section 428B is a 

13 borrower for whom a loan has been discharged pur14 suant to this subsection, then the Secretary shall 

15 automatically discharge the parent borrower’s liabil16 ity on the loan described in section 428B by repay17 ing the amount owed on the loan.’’. 

18 (B) PART D.—Section 455(h) of the High19 er Education Act of 1965 (20 U.S.C. 1087e(h)) 

20 is amended— 

21 (i) by striking ‘‘Notwithstanding’’ and 

22 inserting the following: 

23 ‘‘(1) IN GENERAL.—Notwithstanding’’; and 

24 (ii) by adding at the end the fol25 lowing: 


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1 ‘‘(2) AUTOMATIC DISCHARGE FOR PARENT

2 PLUS LOANS.—If a student on whose behalf a parent 

3 has received a Federal Direct PLUS Loan is a bor4 rower for whom a loan made under this part has 

5 been discharged pursuant to a defense to repayment, 

6 then the Secretary shall automatically discharge the 

7 parent borrower’s liability on the Federal Direct 

8 PLUS Loan.’’. 

9 (2) RULE OF CONSTRUCTION.—Nothing in the 

10 amendments made under paragraph (1) shall be con11 strued to authorize any refunding of any repayment 

12 of a loan. 

13 (e) DISCHARGE FOR HARDSHIP.— 

14 (1) PART B.—Section 437 of the Higher Edu15 cation Act of 1965 (20 U.S.C. 1087) is amended by 

16 adding at the end the following: 

17 ‘‘(e) DISCHARGE OF PARENT PLUS LOANS FOR

18 HARDSHIP.— 

19 ‘‘(1) IN GENERAL.—Notwithstanding any other 

20 provision of this Act, the Secretary shall discharge 

21 the liability on a loan made under section 428B on 

22 behalf of a student by repaying the amount owed on 

23 the loan, if the Secretary determines that the parent 

24 borrower has experienced hardship or may experi25 ence future hardship as a result of such a loan. 


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1 ‘‘(2) FACTORS THAT SUBSTANTIATE HARD2 SHIP.—The Secretary shall establish factors that 

3 demonstrate hardship for the purpose of a discharge 

4 under paragraph (1), including any of the following: 

5 ‘‘(A) Income. 

6 ‘‘(B) Borrower-loan-debt-to-income ratio. 

7 ‘‘(C) Potential future earnings. 

8 ‘‘(D) Age of a borrower. 

9 ‘‘(E) Age of a loan. 

10 ‘‘(F) Receipt of public benefits. 

11 ‘‘(G) Receipt of Social Security. 

12 ‘‘(H) Borrower disability. 

13 ‘‘(I) Any other indicators of hardship iden14 tified by the Secretary. 

15 ‘‘(3) APPLICATION.—The Secretary shall create 

16 guidelines and an application through which a bor17 rower may submit records or other evidence of hard18 ship or a statement that attests to present or future 

19 hardship.’’. 

20 (2) PART D.—Section 455 of the Higher Edu21 cation Act of 1965 (20 U.S.C. 1087e), as amended 

22 by subsection (b), is further amended by adding at 

23 the end the following: 

24 ‘‘(r) DISCHARGE OF PARENT PLUS LOANS FOR

25 HARDSHIP.— 


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1 ‘‘(1) IN GENERAL.—Notwithstanding any other 

2 provision of this Act, the Secretary shall discharge 

3 the liability on a Federal Direct PLUS loan made on 

4 behalf of a student, if the Secretary determines that 

5 the parent borrower has experienced hardship or 

6 may experience future hardship as a result of such 

7 a loan. 

8 ‘‘(2) FACTORS THAT SUBSTANTIATE HARD9 SHIP.—The Secretary shall establish factors that 

10 demonstrate hardship for the purpose of a discharge 

11 under paragraph (1), including any of the following: 

12 ‘‘(A) Income. 

13 ‘‘(B) Borrower-loan-debt-to-income ratio. 

14 ‘‘(C) Potential future earnings. 

15 ‘‘(D) Age of a borrower. 

16 ‘‘(E) Age of a loan. 

17 ‘‘(F) Receipt of public benefits. 

18 ‘‘(G) Receipt of Social Security. 

19 ‘‘(H) Borrower disability. 

20 ‘‘(I) Any other indicators of hardship iden21 tified by the Secretary. 

22 ‘‘(3) APPLICATION.—The Secretary shall create 

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1 ship or a statement that attests to present or future 

2 hardship.’’. 

3 (f) DELEGATION TO THE SECRETARY.—Congress 

4 delegates to the Secretary of Education the authority, in 

5 issuing regulations to carry out the amendments made by 

6 this section, to interpret the provisions of the amendments 

7 made by this section, taking into consideration cost and 

8 public health. A court engaged in judicial review of those 

9 provisions, including judicial review under section 706 of 

10 title 5, United States Code, shall determine whether the 

11 agency’s interpretation is based on a permissible construc12 tion of the amendments made by this section. 

Æ 


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