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
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.
Section 1. Short title
This Act may be cited as the Affordable PLUS Repayment Options for Parents Act of 2025
.
Sec. 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.
.
Sec. 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)
.
Sec. 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).