House Democrats have introduced a bill that would let parents transfer their Parent PLUS loans to the children whose education those loans paid for. The Parent PLUS Loan Fairness and Responsibility Act of 2026 (H.R. 9272), introduced by Rep. Bill Foster (D-Ill.) with three Democratic co-sponsors, would amend the Higher Education Act so a qualifying loan could be transferred to the student, who would in turn become the sole legal borrower, while the parent would owe nothing.
The transferred loan would keep its original terms and origination date, and any qualifying payments the parent made toward Public Service Loan Forgiveness would carry over to the child's PSLF count.
The child could also elect to have the loan treated as a Federal Direct PLUS Loan when determining repayment plan eligibility.
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Why It Matters
Parent PLUS debt is one of the most challenging types of student loan debt: more than 3.5 million borrowers owe over $110 billion, according to Federal Student Aid data.
These loans are ineligible for income-driven repayment plans, and new parent PLUS loans don't have any pathway to popular programs like Public Service Loan Forgiveness (PSLF).
Parent PLUS loans also have the highest interest rate of any federal loan: 9.07% for 2026-27.
For parents nearing retirement, a legal transfer to a working adult child could mean the difference between a secure retirement and making payments into their 70s.
Side Note: While parents may find benefit here personally, it's generally bad financial planning and estate planning to transfer a Parent PLUS loan to a child, or in today's existing rules, ask a child to help repay. You're effectively taking money from your 20s child and asking them to support you - but in turn, you give them your assets when you die... Don't rob your young adult child when they need the funds the most.
This is especially true since Parent PLUS loans are forgiven on death (no estate impact) and also for total disability. The actual solution is go to a cheaper college and don't borrow so much.
How The Transfer Process Would Work
A transfer wouldn't be automatic. Under the bill text, all of the following conditions must be met:
- The child is at least 18, and the loan paid for that child's education
- The loan is in good standing
- The child demonstrates the ability to repay, based on employment, income, credit history, and debt-to-income ratio before and after the transfer
- The parent, child, and loan holder all agree in writing
- The child is notified in writing about how the transfer affects PSLF eligibility
- The child has been out of school, or enrolled less than half-time, for at least 180 days
The transferred balance would not count against the child's annual or aggregate federal borrowing limits.
How This Connects
The bill arrives as families adjust to new borrowing rules: new Parent PLUS loans are capped at $20,000 per year and $65,000 total per student as of July 1, 2026, pushing more families toward private loan alternatives.
A transfer option would tackle the back end of the problem (the debt parents already carry) rather than the front end that Congress restricted. But it could also create more problems for families financially.
H.R. 9272 sits with the House Committee on Education and Workforce, and with only Democratic sponsors it faces long odds in this Congress. Watch for a committee hearing, a Senate companion bill, or the transfer concept resurfacing in future higher education negotiations.
Until then, parents are stuck with the limited repayment and forgiveness options available today.
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Editor: Colin Graves
Robert Farrington is the founder of The College Investor and is widely recognized as one of the nation’s leading voices on student loan debt and saving for college. He holds an MBA from UC San Diego Rady School of Management and has spent over 15 years researching, writing, and advising on student loans, 529 plans, financial aid programs, and saving and investing for young professionals.
Robert has been featured in the The New York Times, The Wall Street Journal, The Washington Post, NBC News, and Forbes, where he has been a regular personal finance contributor for over a decade. His work combines both professional expertise and personal experience – he successfully navigated his own student loan repayment journey and has helped thousands of readers do the same.
He is committed to making the intersection of personal finance and education transparent and accessible. You can learn more about Robert on the About Page or on his personal site RobertFarrington.com.