Senator Chris Dodd (D.Conn.) introduced a bill yesterday that would modify the federal student loan program for parent/borrowers (PLUS). The current program rules provide that a borrower can be ineligible for a PLUS loan if he or she has been delinquent on a mortgage for more than 90 days or experienced a foreclosure within the past five years. Dodd's bill would eliminate mortgage delinquency or foreclosure from the list of disqualifying credit problems, provided the defaults are on home loans and occur between January 1, 2007 and December 31, 2012.
Dodd said: "Students should not be denied access to PLUS loans simply because our housing market was mismanaged . . . ."
Co-sponsors of Dodds' bill: Senators Edward Kennedy (D. Mass.); Sherrod Brown (D-Ohio); Patty Murray (D. Wash.); Bernie Sanders (I-Vt.) and Hillary Rodham Clinton (D. N.Y.)
AP Photo: Dennis Cook