[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3353 Introduced in House (IH)]
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116th CONGRESS
1st Session
H. R. 3353
To amend the Higher Education Act of 1965 to include Parent PLUS loans
in income-contingent and income-based repayment plans, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 19, 2019
Ms. Fudge introduced the following bill; which was referred to the
Committee on Education and Labor
_______________________________________________________________________
A BILL
To amend the Higher Education Act of 1965 to include Parent PLUS loans
in income-contingent and income-based repayment plans, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Parent PLUS Loan Improvement Act of
2019''.
SEC. 2. APPLICABLE RATE OF INTEREST FOR PLUS LOANS.
Section 455(b)(8) of the Higher Education Act of 1965 (20 U.S.C.
1087e(b)(8)) is amended--
(1) in subparagraph (C), by inserting ``and before July 1,
2019,'' after ``, 2013,''; and
(2) by adding at the end the following:
``(G) Reduced rate for parent plus loans.--
Notwithstanding the preceding paragraphs of this
subsection, for Federal Direct PLUS Loans made on
behalf of a dependent student for which the first
disbursement is made on or after July 1, 2019, the
applicable rate of interest shall be determined under
subparagraph (C) of this paragraph--
``(i) by substituting `3.6 percent' for
`4.6 percent'; and
``(ii) by substituting `9.5 percent' for
`10.5 percent'.''.
SEC. 3. ELIMINATION OF ORIGINATION FEE FOR PARENT PLUS LOANS.
Section 455(c) of the Higher Education Act of 1965 (20 U.S.C.
1087e(c)) is amended by adding at the end the following new paragraph:
``(3) PLUS loans.--With respect to Federal Direct PLUS
loans made on behalf of a dependent student for which the first
disbursement of principal is made on or after July 1, 2019,
paragraph (1) shall be applied by substituting `0.0 percent'
for `4.0 percent'.''.
SEC. 4. COUNSELING FOR PARENT PLUS BORROWERS.
Section 485 of the Higher Education Act of 1965 (20 U.S.C. 1092) is
amended by adding at the end the following:
``(n) Counseling for Parent PLUS Borrowers.--
``(1) In general.--The Secretary, prior to disbursement of
a Federal Direct PLUS loan made on behalf of a dependent
student, shall ensure that the borrower receives comprehensive
information on the terms and conditions of the loan and the
responsibilities the borrower has with respect to such loan.
Such information--
``(A) shall be provided through the use of
interactive programs that use mechanisms to check the
borrower's understanding of the terms and conditions of
the borrower's loan, using simple and understandable
language and clear formatting; and
``(B) shall be provided--
``(i) during a counseling session conducted
in person; or
``(ii) online.
``(2) Information to be provided.--The information to be
provided to the borrower under paragraph (1) shall include the
following:
``(A) Information on how interest accrues and is
capitalized during periods when the interest is not
paid by the borrower.
``(B) An explanation of when loan repayment begins,
of the options available for a borrower who may need a
deferment, and that interest accrues during a
deferment.
``(C) The repayment plans that are available to the
borrower, including personalized information showing--
``(i) estimates of the borrower's
anticipated monthly payments under each
repayment plan that is available; and
``(ii) the difference in interest paid and
total payments under each repayment plan.
``(D) The obligation of the borrower to repay the
full amount of the loan, regardless of whether the
student on whose behalf the loan was made completes the
program in which the student is enrolled.
``(E) The likely consequences of default on the
loan, including adverse credit reports, delinquent debt
collection procedures under Federal law, and
litigation.
``(F) The name and contact information of the
individual the borrower may contact if the borrower has
any questions about the borrower's rights and
responsibilities or the terms and conditions of the
loan.''.
SEC. 5. INCLUSION OF PARENT PLUS LOANS IN INCOME-CONTINGENT AND INCOME-
BASED REPAYMENT PLANS.
(a) Income-Contingent Repayment Plan.--Section 455(d)(1)(D) of the
Higher Education Act of 1965 (20 U.S.C. 1087e(d)(1)(D)) is amended by
striking ``, except that the plan described in this subparagraph shall
not be available to the borrower of a Federal Direct PLUS loan made on
behalf of a dependent student;''.
(b) Income-Based Repayment.--
(1) Section 493C.--Section 493C of the Higher Education Act
of 1965 (20 U.S.C. 1098e) is amended--
(A) in subsection (a)--
(i) by striking ``this section'' and all
that follows through ``hardship'' and inserting
``In this section, the term `partial financial
hardship'''; and
(ii) by striking, ``(other than an excepted
PLUS loan or excepted consolidation loan)'';
(B) in subsection (b)--
(i) in paragraph (1), by striking ``(other
than an excepted PLUS loan or excepted
consolidation loan)'';
(ii) in paragraph (6)(A), by striking
``(other than an excepted PLUS loan or excepted
consolidation loan)''; and
(iii) in paragraph (7), by striking
``(other than a loan under section 428B or a
Federal Direct PLUS Loan)''; and
(C) in subsection (c), by striking ``(other than an
excepted PLUS loan or excepted consolidation loan),''.
(2) Section 455(d)(1)(E).--Section 455(d)(1)(E) of such Act
(20 U.S.C. 1087e(d)(1)(D)) is amended by striking ``, except
that the plan described in this subparagraph shall not be
available to the borrower of a Federal Direct PLUS Loan made on
behalf of a dependent student or a Federal Direct Consolidation
Loan, if the proceeds of such loan were used to discharge the
liability on such Federal Direct PLUS Loan or a loan under
section 428B made on behalf of a dependent student''.
(c) Application to Regulations.--The Secretary shall ensure that
any Federal Direct PLUS Loan and any loan under section 428B of the
Higher Education Act of 1965 (20 U.S.C. 1078-2) made on behalf of a
dependent student are eligible for any repayment plan available under
the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) or
regulations authorized under such Act (20 U.S.C. 1001 et seq.).
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