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Bill

HR 9272

To amend the Higher Education Act of 1965 to allow certain Federal student loans to be transferred from a parent to a child, and for other purposes.

119th Congress Introduced by Bill Foster and 3 co-sponsors

The bill would allow certain federal student loans to be transferred from a parent to a child, shifting repayment responsibility and ownership under defined conditions.

Introduced in House
0
WeVote Research Nonpartisan
Bill Summary · HR 9272

Overview

HR 9272, introduced in the 119th Congress and referred to the House Committee on Education and Workforce, seeks to amend the Higher Education Act of 1965 to allow certain Federal student loans to be transferred from a parent to a child, along with other related purposes. The bill has four Cosponsors: Eleanor Holmes Norton, Bill Foster, Raja Krishnamoorthi, and Chuy García.

Purpose and Intent

  • The primary aim is to modify federal student loan policy to permit the transfer of ownership of certain federal student loans from a parent borrower to a child borrower.
  • The underlying rationale (as inferred from the title) is to provide flexibility in loan ownership and borrowing responsibility within families, potentially aligning loan obligations with the “new borrower” who will ultimately be responsible for repayment.

Key Provisions (as indicated by the bill’s title and action)

  • Amend the Higher Education Act of 1965 to authorize the transfer of certain federal student loans from a parent to a dependent or eligible child.
  • Establish the conditions under which such a transfer can occur (eligibility criteria for the transferee, types of loans eligible for transfer, and any loan program restrictions).
  • Specify process requirements for initiating, approving, and documenting a transfer (notifications, consent, and safeguards).
  • Address borrower rights and responsibilities post-transfer, including repayment terms, interest accrual, and any impact on repayment plans, deferment, forbearance, or loan forgiveness programs.
  • Include any administrative or regulatory authority to implement and enforce the transfer mechanism, potentially including reporting requirements to Congress or the Department of Education.

Affected Parties and Impacts

  • Primary Borrower: Parent borrower whose ownership and legal obligation may transfer to a child.
  • Secondary Borrower: Child or dependent student who would become the responsible borrower after transfer.
  • Federal Loan Programs: The transfer mechanism would apply to federally funded student loans under the Higher Education Act, potentially including Direct Loans and other federally supported loan types.
  • Loan Servicers and the Department of Education: Would implement, process, and track transfers; may require updates to servicing systems, loan records, and borrower communications.
  • Families: Could experience changes in who bears repayment responsibility, with potential implications for credit profiles and eligibility for income-driven repayment or forgiveness programs.

Procedural and Timeline Aspects

  • Status: Referred to the House Committee on Education and Workforce (as of 2026-06-11).
  • Next steps after committee action (not specified in the provided text): committee hearings, potential markups, and floor consideration, followed by passage/compilation into a broader appropriations or legislative package.
  • The bill’s enactment would require passage by both chambers of Congress and signature by the President to become law.

Potential Considerations

  • Policy Considerations: The bill would need to balance borrower protections, consumer rights, and program integrity to prevent abuse or unintended consequences in loan obligations and borrower eligibility.
  • Financial Impact: The transfer feature could affect loan default risk, repayment dynamics, and the distribution of loan debt across generations, with implications for credit reporting and borrower incentives.
  • Administrative Complexities: Implementing a transfer would require updates to loan servicing systems, data privacy safeguards, and clear guidelines on when a transfer is permissible.

If you’d like, I can tailor this summary further to emphasize potential consumer impacts, or compare it to existing transfer or ownership provisions in other loan programs.

Compiled from official sources — confirm details with the bill’s official record.

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