,i  #aafth ,,congress  #b;d ,session    
,h4 ,r4 #hdjj  ,,in ,,the ,,house ,,of  
,,representatives  ,september #be1      
#bjbj,mr4 ,foster introduced the        
following bill2 which was referred to   
the ,committee on ,education and ,labor 
,a ,,bill  ,to amend the ,higher        
,education ,act of #aife to allow       
certain ,federal student loans to be    
transferred from a parent to a child1   
and for other purposes4  #a4 ,short     
title ,this ,act may be cited as the    
,parent ,,plus ,loan ,fairness and      
,responsibility ,act4  #b4 ,transfer of 
,federal student loans from parent to   
child ,part ,g of title ,,iv of the     
,higher ,education ,act of #aife 7#bj   
,u4,s4,c4 #ajhh et seq47 is amended by  
inserting after section #dic;,d the     
following3  #dic;,e4 ,transfer of       
,federal student loans from parent to   
child  7a7 ,in general ,a covered parent
 loan may be transferred from the       
original borrower of the loan to a child
 of such borrower in accordance with    

this section4  7b7 ,transfer            
requirements ,a covered parent loan may 
be transferred to a child under         
subsection 7a7 only if-- 7#a7 the loan  
is in good standing1 as determined by   
the ,secretary2  7#b7 the loan was used 
to pay the educational expenses of the  
child to whom the loan is to be         
transferred2  7#c7 the child to whom the
 loan is to be transferred-- 7,a7 has   
attained the age of #ah years2 and  7,b7
 demonstrates the ability to repay the  
loan1 as determined by the ,secretary in
 accordance with subsection 7c72  7#d7  
the child1 the parent1 and the lender   
agree1 in writing1 to the transfer of   
the loan2  7#e7 the agreement described 
in paragraph 7#d7 notifies the child to 
whom the loan is transferred of the     
effect of the transfer on the           
eligibility of the loan for forgiveness 
under section #dee7m72 and  7#f7 a      
period of #ahj days has elapsed during  
which the child was not pursuing-- 7,a7 
at least a half-time course of study as 

determined by an institution of higher  
education2 or  7,b7 a course of study   
pursuant to a graduate fellowship       
program approved by the ,secretary1 or  
pursuant to a rehabilitation training   
program for disabled individuals        
approved by the ,secretary4  7c7        
,determination of ability ,to repay loan
 ,in determining the ability of a child 
to repay a covered parent loan under    
subsection 7b77#c77;,b71 the ,secretary 
shall consider the following3 7#a7 ,the 
child's employment status1 income level1
 and credit history4  7#b7 ,the total   
dollar amount of the loans proposed to  
be transferred to the child4  7#c7 ,the 
debt-to-income ratio of the child before
 such transfer4  7#d7 ,the projected    
debt-to-income ratio of the child after 
such transfer4  7#e7 ,any other factors 
the ,secretary determines to be relevant
 to the ability of the child to repay   
the loan4  7d7 ,treatment of transferred
 loan ,a covered parent loan transferred
 to a child under subsection 7a7 shall  

have the same terms1 conditions1 and    
benefits applicable to the loan before  
the date of such transfer except that-- 
7#a7 the child to whom the loan is      
transferred shall be treated as the     
original borrower of the loan2 and  7#b7
 the parent who transferred the loan to 
the child shall not be responsible for  
paying-- 7,a7 the outstanding balance of
 principal or interest on the loan2 or  
7,b7 any other costs associated with the
 loan1 including fees4  7e7 ,effect on  
loan limits ,notwithstanding any other  
provision of this ,act1 a covered parent
 loan transferred to a child under      
subsection 7a7 shall not be counted     
toward the child's annual or aggregate  
maximum loan limits under this title4   
7f7 ,covered parent loan defined ,in    
this section1 the term covered parent   
loan means-- 7#a7 a loan made to a      
parent on behalf of a dependent student 
under section #dbh;,b2  7#b7 a ,federal 
,direct ,,plus ,loan made to the parent 
of a dependent student2 or  7#c7 a loan 

made under section #dbh;,c or #dee7;g71 
to the extent that such loan was used to
 repay-- 7,a7 a loan made to the parent 
of a dependent student under section    
#dbh;,b2 or  7,b7 a ,federal ,direct    
,,plus ,loan made to the parent of a    
dependent student4  4