Mon Sep 23 18:17:12 UTC 2024: ## Parent PLUS Loan Relief Bill Proposed by Democrats

**WASHINGTON, DC -** A new bill introduced by Democratic lawmakers aims to offer significant relief to parents struggling with Parent PLUS loans, a type of federal loan used to fund their children’s undergraduate education. The proposed “Parent PLUS Parity Act” would allow these loans to access existing federal repayment and forgiveness programs currently limited to student borrowers only.

Parent PLUS loans often carry higher interest rates and larger monthly payments than standard student loans, leaving many borrowers in a precarious financial position. The bill addresses this by granting Parent PLUS loans access to income-driven repayment (IDR) plans, which calculate monthly payments based on income and family size. This would significantly reduce monthly payments and potentially lead to loan forgiveness after 20 or 25 years.

Currently, Parent PLUS loans are only eligible for the Income-Contingent Repayment (ICR) plan, which is the oldest and most expensive IDR option. The bill would expand access to more favorable plans like Income-Based Repayment (IBR), Pay As You Earn (PAYE), and the SAVE plan.

“Millions of parents who struggled to help their kids pay for college are now trapped in unsustainable debt,” stated Senator Chris Van Hollen, a sponsor of the bill. “Our legislation will help those families chart a path to clear their debt and regain their financial footing.”

The bill also directs the Education Department to establish a new student loan forgiveness pathway for Parent PLUS borrowers based on hardship factors like low income, age, and other relevant circumstances.

While the bill’s prospects in the current Congress, dominated by Republicans, are uncertain, advocates remain hopeful. They believe the bill could gain momentum if Democrats maintain control of the White House and Senate in the upcoming national elections.

“This bill will help millions of parents who took out student loans to support their children in college and who now find themselves struggling to meet their monthly payments,” said Natalia Abrams, President & Founder of the Student Debt Crisis Center. “This is one step towards a more fair and just student loan system, and brings us one step closer to achieving our goal of ending the student debt crisis.”

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