I 
115TH CONGRESS 
2D SESSION 
H. R. 6280 
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 
JUNE 28, 2018 
Ms. FUDGE (for herself, Ms. NORTON, Mr. MEEKS, Mr. RUSH, Mr. SABLAN, 
Mr. THOMPSON of Mississippi, Mr. VEASEY, Ms. WILSON of Florida, Mr. 
DANNY K. DAVIS of Illinois, Ms. JACKSON LEE, and Ms. LEE) intro-
duced the following bill; which was referred to the Committee on Edu-
cation and the Workforce 
A BILL 
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. 
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 
Improvement Act of 2018’’. 
SEC. 2. APPLICABLE RATE OF INTEREST FOR PLUS LOANS. 
Section 455(b)(8) of the Higher Education Act of 
1965 (20 U.S.C. 1087e(b)(8)) is amended— 
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(1) in subparagraph (C), by inserting ‘‘and be-
fore July 1, 2018,’’ after ‘‘, 2013,’’; and 
(2) by adding at the end the following: 
‘‘(G) REDUCED RATE FOR PARENT PLUS 
LOANS.—Notwithstanding the preceding para-
graphs of this subsection, for Federal Direct 
PLUS Loans made on behalf of a dependent 
student for which the first disbursement is 
made on or after July 1, 2018, the applicable 
rate of interest shall be determined under sub-
paragraph (C) of this paragraph— 
‘‘(i) by substituting ‘3.6 percent’ for 
‘4.6 percent’; and 
‘‘(ii) by substituting ‘9.5 percent’ for 
‘10.5 percent’.’’. 
SEC. 3. ELIMINATION OF ORIGINATION FEE FOR PARENT 
PLUS LOANS. 
Section 455(c) of the Higher Education Act of 1965 
(20 U.S.C. 1087e(c)) is amended by adding at the end 
the following new paragraph: 
‘‘(3) PLUS LOANS.—With respect to Federal 
Direct PLUS loans made on behalf of a dependent 
student for which the first disbursement of principal 
is made on or after July 1, 2018, paragraph (1) 
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shall be applied by substituting ‘0.0 percent’ for ‘4.0 
percent’.’’. 
SEC. 4. COUNSELING FOR PARENT PLUS BORROWERS. 
Section 485 of the Higher Education Act of 1965 (20 
U.S.C. 1092) is amended by adding at the end the fol-
lowing: 
‘‘(n) COUNSELING
FOR
PARENT
PLUS BOR-
ROWERS.— 
‘‘(1) IN GENERAL.—The Secretary, prior to dis-
bursement of a Federal Direct PLUS loan made on 
behalf of a dependent student, shall ensure that the 
borrower receives comprehensive information on the 
terms and conditions of the loan and the responsibil-
ities the borrower has with respect to such loan. 
Such information— 
‘‘(A) shall be provided through the use of 
interactive programs that use mechanisms to 
check the borrower’s understanding of the 
terms and conditions of the borrower’s loan, 
using simple and understandable language and 
clear formatting; and 
‘‘(B) shall be provided— 
‘‘(i) during a counseling session con-
ducted in person; or 
‘‘(ii) online. 
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‘‘(2) INFORMATION TO BE PROVIDED.—The in-
formation to be provided to the borrower under 
paragraph (1) shall include the following: 
‘‘(A) Information on how interest accrues 
and is capitalized during periods when the in-
terest is not paid by the borrower. 
‘‘(B) An explanation of when loan repay-
ment begins, of the options available for a bor-
rower who may need a deferment, and that in-
terest accrues during a deferment. 
‘‘(C) The repayment plans that are avail-
able to the borrower, including personalized in-
formation showing— 
‘‘(i) estimates of the borrower’s antici-
pated monthly payments under each repay-
ment plan that is available; and 
‘‘(ii) the difference in interest paid 
and total payments under each repayment 
plan. 
‘‘(D) The obligation of the borrower to 
repay the full amount of the loan, regardless of 
whether the student on whose behalf the loan 
was made completes the program in which the 
student is enrolled. 
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‘‘(E) The likely consequences of default on 
the loan, including adverse credit reports, delin-
quent debt collection procedures under Federal 
law, and litigation. 
‘‘(F) The name and contact information of 
the individual the borrower may contact if the 
borrower has any questions about the bor-
rower’s rights and responsibilities or the terms 
and conditions of the loan.’’. 
SEC. 5. INCLUSION OF PARENT PLUS LOANS IN INCOME- 
CONTINGENT AND INCOME-BASED REPAY-
MENT PLANS. 
(a) INCOME-CONTINGENT REPAYMENT PLAN.—Sec-
tion 455(d)(1)(D) of the Higher Education Act of 1965 
(20 U.S.C. 1087e(d)(1)(D)) is amended by striking ‘‘, ex-
cept 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;’’. 
(b) INCOME-BASED REPAYMENT.— 
(1) SECTION 493C.—Section 493C of the High-
er Education Act of 1965 (20 U.S.C. 1098e) is 
amended— 
(A) in subsection (a)— 
(i) by striking ‘‘this section’’ and all 
that follows through ‘‘hardship’’ and in-
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serting ‘‘In this section, the term ‘partial 
financial hardship’ ’’; and 
(ii) by striking, ‘‘(other than an ex-
cepted PLUS loan or excepted consolida-
tion loan)’’; 
(B) 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)’’; and 
(C) in subsection (c), by striking ‘‘(other 
than an excepted PLUS loan or excepted con-
solidation loan),’’. 
(2) 
SECTION
455(d)(1)(E).—Section 
455(d)(1)(E) 
of 
such 
Act 
(20 
U.S.C. 
1087e(d)(1)(D)) is amended 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 pro-
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ceeds of such loan were used to discharge the liabil-
ity on such Federal Direct PLUS Loan or a loan 
under section 428B made on behalf of a dependent 
student’’. 
(c) APPLICATION TO REGULATIONS.—The Secretary 
shall ensure that any Federal Direct PLUS Loan and any 
loan under section 428B of the Higher Education Act of 
1965 (20 U.S.C. 1078–2) made on behalf of a dependent 
student are eligible for any repayment plan available 
under the Higher Education Act of 1965 (20 U.S.C. 1001 
et seq.) or regulations authorized under such Act (20 
U.S.C. 1001 et seq.). 
Æ 
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