Foster Introduces Legislation to Reduce Student Loan Financial Burden on Parents

Washington, DC — Today, Congressman Bill Foster (D-IL) introduced the Parents PLUS Loan Fairness and Responsibility Act. This legislation would allow students to take over the student debt that was incurred on their behalf, providing a sensible solution for parents facing multiple financial burdens.

Specifically, the legislation would allow parents to transfer Parents PLUS loans to the student with the consent of the parent, student and lender, provided the student meets the credit requirements for the PLUS loan program and is at least six months removed from leaving school. After transfer, the loan would be eligible for Public Service Loan Forgiveness.

"As college costs and economic burdens continue to rise, federal law should allow families to determine financial liability for PLUS loans in a way that accommodates their financial situation," said Foster. "This legislation would provide a common-sense solution by allowing a child, if they're willing, to take financial responsibility for the loans that allowed them to go to college."

A copy of the bill is available here.

The Parents PLUS Loan Fairness and Responsibility Act is endorsed by the National Education Association.