Parent Plus Parity Act

The Parent Plus Parity Act (S 5108) expands repayment and discharge options for parents who borrowed Federal Direct PLUS loans to pay for their dependent children's education. It removes previous restrictions that barred these borrowers from income-driven repayment plans (like Pay as You Earn and Saving on a Valuable Education), making these available starting July 2024. The bill also adds new discharge options, including for the student's total and permanent disability, eligibility for public service loan forgiveness, automatic discharge if the student's loan is discharged, and a hardship discharge based on factors like income, debt-to-income ratio, and other financial indicators. These changes directly affect Parent PLUS borrowers who previously faced limited relief options.