The Parent Plus Parity Act would expand repayment and forgiveness options for parents who borrowed Federal Direct PLUS loans on behalf of their dependent college students. Currently, these parent borrowers have fewer repayment choices than student borrowers and are largely excluded from popular income-based repayment plans and public service loan forgiveness programs. The bill would allow parent PLUS borrowers to access income-contingent repayment plans, including Pay as You Earn and Saving on a Valuable Education options, beginning July 1, 2024. It would also make parent PLUS loans eligible for discharge if the student becomes permanently disabled, automatically discharge parent loans when student loans are discharged, create a new hardship discharge option for parent borrowers, and allow parent PLUS loans to be forgiven through public service loan forgiveness. The legislation delegates to the Secretary of Education the authority to develop regulations and guidelines for implementing these provisions.
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