Democratic Lawmakers Advocate for Parent PLUS Borrower Relief

A group of Democratic lawmakers is urging the Biden administration to provide more support for parents who have taken on debt to finance their children’s education.

Background

Led by Sen. Chris Van Hollen, nine Democratic senators, including Sens. Elizabeth Warren and Bernie Sanders, penned a letter to Education Secretary Miguel Cardona addressing concerns related to parent PLUS borrowers. Parent PLUS loans enable parents to borrow in their own names to assist with their child’s educational expenses, covering up to the full cost of attendance.

Challenges Faced by Parent PLUS Borrowers

Parent PLUS loans carry the highest interest rates among federal loans, posing significant financial burdens, especially for borrowers with limited means. Despite the substantial debt incurred by parents, federal relief options for PLUS loans are “extremely limited,” according to the lawmakers.

Call for Action

Expressing deep concern, the lawmakers emphasized the exclusion of Parent PLUS borrowers from recent student loan relief initiatives introduced by the Education Department. They highlighted the SAVE income-driven repayment plan, which offers reduced payments and quicker loan forgiveness for most federal borrowers but is inaccessible to Parent PLUS borrowers.

Proposed Solutions

The lawmakers urged the Education Department to consider amending regulations to extend eligibility for relief programs, such as the SAVE plan, to Parent PLUS borrowers. Additionally, they advocated for the inclusion of Parent PLUS borrowers in the department’s ongoing discussions regarding loan forgiveness provisions under the Higher Education Act of 1965, particularly for those experiencing financial hardship.

Importance of Addressing Intergenerational Debt

Highlighting the significance of alleviating intergenerational debt, the lawmakers underscored the administration’s commitment to reforming the student loan system and promoting equitable access to higher education. They emphasized that without addressing the challenges faced by families with Parent PLUS loans, the administration would fall short of its objectives.

Advocacy Efforts

Advocates, including NAACP President Derrick Johnson and National Youth Director Wisdom Cole, have previously called for expanding relief programs to include Parent PLUS loans. However, the administration has cited legal constraints under the Higher Education Act regarding income-driven repayment plans for Parent PLUS loans.

Conclusion

The lawmakers’ letter underscores the pressing need to provide relief and support to Parent PLUS borrowers, highlighting the importance of inclusive policies to address the challenges faced by families navigating the complexities of student loan debt.