H.R.1759 - Affordable PLUS Repayment Options for Parents Act of 2025 (119th Congress)
Summary
H.R.1759, the Affordable PLUS Repayment Options for Parents Act of 2025, aims to amend the Higher Education Act of 1965. The bill seeks to allow borrowers of Parent PLUS loans to repay their loans through income-contingent or income-based repayment plans. This would extend repayment options currently unavailable to parents who have taken out PLUS loans for their children's education.
The bill modifies sections 455 and 493C of the Higher Education Act to include Parent PLUS loans in income-driven repayment plans. It redefines 'partial financial hardship' to determine eligibility for income-based repayment.
The effective date of the amendments is set for the date of enactment, applying to borrowers with outstanding Parent PLUS loans who are repaying or will repay under income-contingent or income-based plans.
Expected Effects
The primary effect of H.R.1759 would be to expand the availability of income-driven repayment plans to parents who have borrowed through the Parent PLUS loan program. This could lower monthly payments for eligible borrowers.
By allowing parents to repay based on their income, the bill could alleviate financial strain and reduce the risk of loan default. This change could also influence future borrowing decisions for higher education.
The bill's impact is contingent on the specific terms of the income-driven repayment plans and the financial circumstances of the borrowers.
Potential Benefits
- Reduced Financial Burden: Parents with PLUS loans could experience lower monthly payments, freeing up income for other needs.
- Decreased Risk of Default: Income-driven repayment plans can help prevent loan defaults by aligning payments with a borrower's ability to pay.
- Increased Access to Education: The availability of more manageable repayment options might encourage more families to invest in higher education.
- Simplified Repayment Process: Consolidating repayment options could make the process easier to understand and navigate.
- Economic Stimulus: Reduced loan payments could lead to increased spending and investment in the economy.
Potential Disadvantages
- Potential for Increased Loan Duration: Income-driven repayment plans can extend the repayment period, leading to higher overall interest paid.
- Complexity of Income Verification: Borrowers may face administrative burdens in verifying their income and family size annually.
- Tax Implications: Loan forgiveness under income-driven repayment plans may be considered taxable income.
- Impact on Loan Servicers: Loan servicers may need to adjust their systems and processes to accommodate the new repayment options.
- Potential for Increased Government Spending: Increased enrollment in income-driven repayment plans could increase the cost to the government.
Constitutional Alignment
The bill appears to align with the Constitution's general welfare clause (Preamble). By aiming to make higher education more accessible and affordable, it can be argued that the bill promotes the general welfare of the populace.
Congress has the power to legislate on matters related to interstate commerce, which includes student loans. The Higher Education Act of 1965, which this bill amends, is based on this power (Article I, Section 8, Clause 3).
There are no apparent conflicts with individual liberties or rights protected by the Bill of Rights.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).