Parent PLUS Loan Fairness and Responsibility Act of 2026

Transfer Parent Loans to Child

If enacted, a parent-held covered parent loan would be transferable to that parent’s child, and the child would become the borrower. The parent would be released from any remaining principal, interest, or fees. To transfer, the loan must be in good standing, used for the child’s education, and the child must be at least 18. The child must have been not pursuing at least half-time study (or an approved fellowship or rehabilitation training) for 180 days and must sign a written agreement with the parent and lender. The Secretary of Education would have to find the child can repay the loan by looking at employment, income, credit history, loan size, and debt-to-income before and after transfer. The loan would keep its original origination date, would not count toward the child’s annual or aggregate federal loan limits, and any qualifying Public Service Loan Forgiveness payments made before transfer would count for the child. At the child’s election, the loan could be treated as a Federal Direct PLUS Loan for repayment-plan eligibility.