H.R. 9272: Parent PLUS Loan Fairness and Responsibility Act of 2026

This bill would create a new option for some federal Parent PLUS and related parent student loans: the loan could be transferred from the parent borrower to the child whose education the loan paid for.

What loans could be transferred

The bill covers certain federal loans made to parents for a dependent student’s education, including:

• Direct PLUS Loans made to a parent
• Older federal parent loans made under the Higher Education Act
• Some loans that were used to refinance or repay those parent loans

When a transfer would be allowed

A transfer would only be allowed if several conditions are met:

• The loan must be in good standing.
• The loan must have been used for the child’s educational expenses.
• The child must be at least 18 years old.
• The child must show an ability to repay the loan, based on factors such as employment, income, credit history, and debt levels.
• The parent, child, and lender must all agree in writing.
• The child must have had a 180-day period in which they were not enrolled at least half-time, and not in certain approved graduate fellowship or rehabilitation programs.

What changes after the transfer

If the transfer happens, the child would be treated as the borrower going forward. The parent would no longer be responsible for the remaining principal, interest, or fees on the loan.

The loan would generally keep the same terms and benefits it had before the transfer. The child could also choose to have the loan treated as a Federal Direct PLUS Loan for purposes of repayment-plan eligibility.

The transfer would not be treated as a brand-new loan, so the original loan date would stay the same.

Effects on forgiveness and repayment

Any qualifying Public Service Loan Forgiveness (PSLF) payments made before the transfer would count toward the child’s PSLF total after the transfer.

The bill would also require the transfer to be explained to the child, including how it could affect eligibility for forgiveness under existing law.

Loan limit rules

Transferred parent loans would not count toward the child’s annual or overall federal student loan borrowing limits.

Relevant Companies

None found