119th (2025–2027)
H.R. 9272
This bill would allow parents to transfer certain federal student loans to their adult children under specific conditions. Parents could transfer PLUS Loans and certain other federal education loans that were originally taken out to pay for their child's education, but only if the loan is in good standing, the child is at least 18 years old, all parties agree in writing, and the child can demonstrate an ability to repay based on factors like employment status, income, credit history, and debt-to-income ratio. Once transferred, the child becomes the sole borrower responsible for repayment, the parent is released from all obligations, and the original loan terms and origination date remain the same, though the child could potentially use different repayment plans available for Direct PLUS Loans. The transferred loans would not count against the child's federal student loan limits, and any payments the parent made toward Public Service Loan Forgiveness would carry over to the child's eligibility count.