I 
116TH CONGRESS 
2D SESSION 
H. R. 8400 
To amend the Higher Education Act of 1965 to allow certain Federal student 
loans to be transferred from a parent to a child, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 25, 2020 
Mr. FOSTER introduced the following bill; which was referred to the 
Committee on Education and Labor 
A BILL 
To amend the Higher Education Act of 1965 to allow certain 
Federal student loans to be transferred from a parent 
to a child, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Parent PLUS Loan 
Fairness and Responsibility Act’’. 
SEC. 2. TRANSFER OF FEDERAL STUDENT LOANS FROM 
PARENT TO CHILD. 
Part G of title IV of the Higher Education Act of 
1965 (20 U.S.C. 1088 et seq.) is amended by inserting 
after section 493D the following: 
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‘‘SEC. 493E. TRANSFER OF FEDERAL STUDENT LOANS FROM 
PARENT TO CHILD. 
‘‘(a) IN GENERAL.—A covered parent loan may be 
transferred from the original borrower of the loan to a 
child of such borrower in accordance with this section. 
‘‘(b) TRANSFER REQUIREMENTS.—A covered parent 
loan may be transferred to a child under subsection (a) 
only if— 
‘‘(1) the loan is in good standing, as determined 
by the Secretary; 
‘‘(2) the loan was used to pay the educational 
expenses of the child to whom the loan is to be 
transferred; 
‘‘(3) the child to whom the loan is to be trans-
ferred— 
‘‘(A) has attained the age of 18 years; and 
‘‘(B) demonstrates the ability to repay the 
loan, as determined by the Secretary in accord-
ance with subsection (c); 
‘‘(4) the child, the parent, and the lender agree, 
in writing, to the transfer of the loan; 
‘‘(5) the agreement described in paragraph (4) 
notifies the child to whom the loan is transferred of 
the effect of the transfer on the eligibility of the loan 
for forgiveness under section 455(m); and 
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‘‘(6) a period of 180 days has elapsed during 
which the child was not pursuing— 
‘‘(A) at least a half-time course of study as 
determined by an institution of higher edu-
cation; or 
‘‘(B) a course of study pursuant to a grad-
uate fellowship program approved by the Sec-
retary, or pursuant to a rehabilitation training 
program for disabled individuals approved by 
the Secretary. 
‘‘(c) DETERMINATION
OF
ABILITY
TO
REPAY 
LOAN.—In determining the ability of a child to repay a 
covered parent loan under subsection (b)(3)(B), the Sec-
retary shall consider the following: 
‘‘(1) The child’s employment status, income 
level, and credit history. 
‘‘(2) The total dollar amount of the loans pro-
posed to be transferred to the child. 
‘‘(3) The debt-to-income ratio of the child be-
fore such transfer. 
‘‘(4) The projected debt-to-income ratio of the 
child after such transfer. 
‘‘(5) Any other factors the Secretary determines 
to be relevant to the ability of the child to repay the 
loan. 
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‘‘(d) TREATMENT OF TRANSFERRED LOAN.—A cov-
ered parent loan transferred to a child under subsection 
(a) shall have the same terms, conditions, and benefits ap-
plicable to the loan before the date of such transfer except 
that— 
‘‘(1) the child to whom the loan is transferred 
shall be treated as the original borrower of the loan; 
and 
‘‘(2) the parent who transferred the loan to the 
child shall not be responsible for paying— 
‘‘(A) the outstanding balance of principal 
or interest on the loan; or 
‘‘(B) any other costs associated with the 
loan, including fees. 
‘‘(e) EFFECT ON LOAN LIMITS.—Notwithstanding 
any other provision of this Act, a covered parent loan 
transferred to a child under subsection (a) shall not be 
counted toward the child’s annual or aggregate maximum 
loan limits under this title. 
‘‘(f) COVERED PARENT LOAN DEFINED.—In this 
section, the term ‘covered parent loan’ means— 
‘‘(1) a loan made to a parent on behalf of a de-
pendent student under section 428B; 
‘‘(2) a Federal Direct PLUS Loan made to the 
parent of a dependent student; or 
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‘‘(3) a loan made under section 428C or 
455(g), to the extent that such loan was used to 
repay— 
‘‘(A) a loan made to the parent of a de-
pendent student under section 428B; or 
‘‘(B) a Federal Direct PLUS Loan made 
to the parent of a dependent student.’’. 
Æ 
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