Affordable PLUS Repayment Options for Parents Act of 2025

Bill: 119-hr-1759
Sponsor: full_name: Rep. Waters, Maxine [D-CA-43]
Introduced: 2025-02-27
Policy area: Education
Latest action: action_date: 2025-02-27
text: Referred to the House Committee on Education and Workforce.

Summaries:
action_date: 2025-02-27
action_desc: Introduced in House
text: <p><strong>Affordable PLUS Repayment Options for Parents Act of 2025</strong></p><p>This bill allows borrowers of Parent PLUS Loans to repay their loans under an income-contingent repayment (ICR) plan or an income-based repayment (IBR) plan.</p><p>Under current law, borrowers of Parent PLUS Loans are only eligible for the following repayment plans: the standard repayment plan, the graduated repayment plan, and the extended repayment plan. These borrowers are generally prohibited from repaying their loans under ICR or IBR plans. However, borrowers may become eligible for the ICR plan upon consolidation of their loans into a Direct Consolidation Loan. This bill removes these restrictions to allow a borrower of a Parent PLUS Loan to repay the loan under an&nbsp;ICR plan (even without consolidation) or an&nbsp;IBR plan.</p><p>The bill allows these expanded repayment options to be available to new and existing borrowers of Parent PLUS Loans.</p>

tv_txt: I 119th CONGRESS 1st Session H. R. 1759 IN THE HOUSE OF REPRESENTATIVES February 27, 2025 Ms. Waters (for herself, Ms. Adams , Ms. Bynum , Mr. Carson , Mr. Davis of Illinois , Mr. Doggett , Ms. Jayapal , Ms. Johnson of Texas , Ms. McClellan , Mrs. McIver , Ms. Norton , Mr. Olszewski , Mrs. Ramirez , Ms. Schakowsky , Ms. Sewell , Ms. Stansbury , Mr. Swalwell , Mr. Thanedar , Mr. Thompson of Mississippi , and Ms. Tlaib ) introduced the following bill; which was referred to the Committee on Education and Workforce A BILL To amend the Higher Education Act of 1965 to allow borrowers of Parent PLUS loans or loans under section 428B made on behalf of a dependent student to repay such loans pursuant to an income-contingent repayment plan or income-based repayment plan, and for other purposes.

1. Short title This Act may be cited as the Affordable PLUS Repayment Options for Parents Act of 2025 . 2. Income-contingent repayment plan Section 455 of the Higher Education Act of 1965 ( 20 U.S.C. 1087e ) is amended— (1) in subsection (d)(1)(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 (2) in subsection (e)(1), by inserting at the end the following: An income contingent repayment plan under this subsection shall be available to a borrower of a Federal Direct PLUS loan made on behalf of a dependent student or a Federal Direct Consolidation Loan the proceeds of which were used to discharge the liability on such a Federal Direct PLUS loan. . 3. Income-based repayment plan (a) Clarification of IBR Section 455(d)(1)(E) of such Act ( 20 U.S.C. 1087e(d)(1)(E) ) 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 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 . (b) IBR Section 493C of the Higher Education Act of 1965 ( 20 U.S.C. 1098e ) is amended— (1) by amending subsection (a) to read as follows: (a) Definition 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) ). ; (2) in subsection (b)— (A) in paragraph (1), by striking (other than an excepted PLUS loan or excepted consolidation loan) ; (B) in paragraph (6)(A), by striking (other than an excepted PLUS loan or excepted consolidation loan) ; and (C) in paragraph (7), by striking (other than a loan under section 428B or a Federal Direct PLUS Loan) ; and (3) in subsection (c)— (A) in paragraph (1), by striking (other than an excepted PLUS loan or excepted consolidation loan), ; and (B) in paragraph (2)(B), by striking (other than an excepted PLUS loan or excepted consolidation loan) . 4. Effective date and application The amendments made by this Act shall take effect on the date of enactment of this Act, and shall apply with respect to each borrower who, on or after such date— (1) has an outstanding balance on a Federal Direct PLUS Loan (or a loan under section 428B) made on behalf of a dependent student or a Federal Direct Consolidation Loan the proceeds of which were used to discharge the liability on such a Federal Direct PLUS loan (or on such a loan under section 428B); and (2) is repaying or will repay such loan pursuant to an income-contingent repayment plan under section 455(e) of the Higher Education Act of 1965 ( 20 U.S.C. 1087e(e) ) or an income-based repayment plan under section 493C of such Act ( 20 U.S.C. 1098e ).