WASHINGTON, D.C. – Senator Peter Welch (D-Vt.) joined Senators Chris Van Hollen (D-Md.) and Alex Padilla (D-Calif.), and Representative Alma Adams (D-NC-12) in introducing the Parent PLUS Parity Act, bicameral legislation to ease the burden of student loan debt for parent borrowers who have helped their children pay for their higher education. Among other provisions, the Parent PLUS Parity Act makes parent borrowers eligible for repayment plans created by the U.S. Department of Education under the Biden-Harris Administration. 

Nationwide, approximately 3.9 million borrowers have outstanding Parent PLUS loan balances, totaling $112 billion. While these loans allow parents of dependent undergraduate students to borrow money to pay costs not already covered by the student’s financial aid package, current law excludes borrowers from the Parent PLUS and Federal Family Education Loan programs from most income-based repayment plans. 

“Parent PLUS loans have failed families. Instead of helping families pay for their child’s education, Parent PLUS loans have left many with crippling repayment obligations and reduced debt relief options. These loans have been especially brutal to people of color and marginalized communities, causing them to default on their loans. It’s not sustainable,” said Senator Welch. “This bill is an important step in reforming our federal student loan program.”  

“Millions of parents who struggled to help their kids pay for college are now trapped in unsustainable debt – and it’s not just hurting them, it’s holding back our entire economy. While the Biden-Harris Administration has taken important steps to expand income-based repayment options so students can pay off their loans, parent borrowers have been excluded from these programs, offering them little to no recourse. Our legislation will help those families chart a path to clear their debt and regain their financial footing,” said Senator Van Hollen.  

“Parents taking out loans to help their kids pay for higher education deserve the same loan forgiveness and relief options as other borrowers,” said Senator Padilla. “More and more low-income families, especially Black and Latino parents, rely on the Parent PLUS program every year but have limited loan repayment options. By expanding parents’ access to the same repayment benefits their kids would receive, we can help close the racial wealth gap and expand debt relief for underserved families.”  

“This legislation is about fairness for families, so that more parents can help their children through college without worrying about how to make ends meet at their current salary level. If we can amend the law to allow income-based repayments then we should, especially for payees who are disabled or retired. It’s unconscionable that disabled and retired individuals on limited incomes are having their incomes garnished to cover student loan debt. This is a way for us to do better by the American people. I thank Mr. Van Hollen for introducing the companion bill in the Senate and working with me to get this bill passed,” said Congresswoman Adams. 

Established in 1980, Parent PLUS loans were initially intended to assist higher-asset families, but as tuition has skyrocketed and the purchasing power of the Pell Grant has fallen, families with limited resources, particularly families of color, have increasingly turned to Parent PLUS loans to make up the shortfall. The consequences of this have been enormous, trapping thousands of low-income American families under a crushing financial burden.  

In 2020, the average Parent PLUS loan debt held was $37,970, a 40% increase since 2000. In 2015, 40,000 disabled or retired Parent PLUS borrowers had their Social Security benefits garnished after defaulting on their loans. Additionally, Black parents are struggling disproportionately; the share of Black Parent PLUS borrowers with incomes below $30,000 nearly tripled from 2008 to 2018. 

Currently, Parent PLUS borrowers are excluded from most income-based repayment plans, including the SAVE Plan, the PAYE Repayment Plan, and the IBR Plan. Parent PLUS borrowers are also not eligible to discharge their loans in cases where their child becomes disabled and face additional barriers to obtaining Public Student Loan Forgiveness. 

This legislation will help families tackle intergenerational debt, ensure equal access to programs available to other borrowers, and provide urgently-needed assistance to millions of forgotten Parent PLUS borrowers by: 

• Expanding the income-driven repayment plan options for Parent PLUS and all Federal Family Education Loan borrowers to all income-driven repayment plans and any forthcoming plans issued by the Department of Education, including the new SAVE program, PAYE, and IBR.  
• Making Parent PLUS borrowers eligible for discharge if their child on whose behalf they’ve taken out loans becomes eligible for Total and Permanent Disability discharge.  
• Making Parent PLUS borrowers eligible for automatic discharge if their child on whose behalf they’ve taken out loans has their own loans discharged under Borrower Defense. 
• Making Parent PLUS borrowers eligible for Public Student Loan Forgiveness if their child on whose behalf they’ve taken out loans serves the standard amount of time (120 months) in qualifying public service employment.  
• Directing the Secretary of Education to create a new hardship category program that will permit Parent PLUS borrowers to apply for loan discharge if they meet certain requirements based on income, borrower age, and other factors. 

In addition to Senators Welch, Van Hollen, and Padilla, the legislation is cosponsored by Senators Bernie Sanders (I-Vt.), Cory Booker (D-N.J.), Tim Kaine (D-Va.), Tina Smith (D-Minn.), and Elizabeth Warren (D-Mass.). 

In addition to Representative Adams, the bill is cosponsored in the House by Representatives Bonnie Watson Coleman (D-NJ-12) and Maxine Waters (D-CA-43). 

The Parent PLUS Parity Act is endorsed by NAACP, National Education Association, Student Borrower Protection Center, The Institute for College Access & Success (TICAS), Student Debt Crisis Center, Project on Predatory Student Lending, Education Trust, Justice in Aging, and the Century Foundation Higher Education Team. 

Learn more about the Parent PLUS Parity Act. 

Read the full text of the bill. 

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