by Herbert L. White
U.S. Rep. Alma Adams introduced a bill that would ease loan debt for borrowers who pay for their children’s college education.
Adams, a Charlotte Democrat and U.S. Sen. Chris Van Hollen (D-Md.) introduced the Parent PLUS Parity Act, for parents who help their children pay for school. An estimated 3.9 million borrowers have outstanding Parent PLUS loan balances totaling $112 billion.
While Parent PLUS loans allow parents of dependent undergraduate students to borrow to cover costs not included in a student’s financial aid package, federal law excludes Parent PLUS and Federal Family Education Loan borrowers from most income-based repayment plans.
“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,” Adams said in a statement. “If we can amend the law to allow income-based repayments then we should, especially for payees who are disabled or retired, be abled to help. It’s unconscionable that disabled and retired individuals on limited incomes are having their incomes garnished to cover student loan debt.”
The Parent PLUS Parity Act makes parent borrowers eligible for repayment plans created by the U.S. Department of Education. The bill was introduced after Van Hollen encouraged his Senate colleagues in 2022 and earlier this year to provide financial relief to parent borrowers as part of Democratic efforts to address the student debt crisis.
“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,” Van Hollen said. “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.”
In addition to Adams, the House bill is cosponsored by Reps. Bonnie Watson Coleman of New Jersey and Maxine Waters of California. In addition to Van Hollen, the Senate bill legislation is co-sponsored by Democrat Alex Padilla (D-Calif.) and colleagues Cory Booker (New Jersey), Tim Kaine (Virginia), Peter Welch (Vermont), Tina Smith (Minnesota), Elizabeth Warren (Massachusetts). Independent Bernie Sanders of Vermont (who typically caucuses with Democrats) is also a sponsor.
“Parents taking out loans to help their kids pay for higher education deserve the same loan forgiveness and relief options as other borrowers,” Padilla said. “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.”
Parent PLUS loans, introduced in 1980, were initially intended to help more affluent families with college costs, but as tuition spiked and Pell Grant awards have fallen, lower-income families have increasingly turned to Parent PLUS to make up the shortfall. As a result, more borrowers have become burdened by the student loan debt, with the number of Parent PLUS recipients under the federal poverty rising by 350% between 1996 and 2018.
In 2020, the average Parent PLUS debt was $37,970, a 40% increase since 2000.
“If we fail to address intergenerational debt experienced by families with Parent PLUS loans, we will fall short of fixing our broken student loan system,” Booker said. “The Parent PLUS Parity Act will bring parents much needed relief by expanding access to income-based repayment plans. No one should have to choose between supporting their child’s future and their family’s financial security.”
