S. 1220 · 119th Congress
Savings Opportunity and Affordable Repayment Act
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MerkleySponsor17 cosponsors · 16 D, 1 I
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Blumenthal
CB
D
Booker
KG
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Gillibrand
MH
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Hirono
TK
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Kaine
AK
D
Kim
EM
D
Markey
AP
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Padilla
BS
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Sanders
CS
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Schumer
TS
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Smith
RW
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Wyden
PW
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Welch
EW
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Warren
CV
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Van Hollen
BL
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Luján
TD
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Duckworth14 signed on when it was introduced; the rest joined later. Cosponsors who withdrew aren't shown.
This bill creates a new income-driven repayment plan for student loans called the Savings Opportunity and Affordable Repayment (SOAR) plan. The SOAR plan has similar provisions to, but further expands on, the Department of Education's (ED's) final rule published on July 10, 2023, that created the Saving on a Valuable Education (SAVE) plan.
What it does: CRS summary · Introduced in Senate · Apr 1, 2025
Savings Opportunity and Affordable Repayment Act
This bill creates a new income-driven repayment plan for student loans called the Savings Opportunity and Affordable Repayment (SOAR) plan. The SOAR plan has similar provisions to, but further expands on, the Department of Education's (ED's) final rule published on July 10, 2023, that created the Saving on a Valuable Education (SAVE) plan. The SAVE plan was blocked by federal courts.
The bill directs ED to carry out a SOAR plan program that complies with specified requirements. The bill allows all federal student loan types to be eligible for repayment under the SOAR plan, including Parent PLUS Loans and Federal Family Education Loans.
Under the SOAR plan, a federal student loan borrower whose income is at or below 250% of the federal poverty level (FPL) has $0 monthly payments. A borrower whose income is over 250% of the FPL pays 5% of their discretionary income on loans obtained for undergraduate study and 10% of their discretionary income for all other outstanding loans (e.g., loans obtained for graduate study).
Additionally, under the SOAR plan, holders of eligible federal student loans (e.g., ED or private lenders) must apply 50% of the borrower's monthly payment toward outstanding principal. The other 50% must be applied in the following order: (1) accrued charges and collection costs on the loan, (2) outstanding interest, and (3) outstanding principal.
ED must forgive any loan balance that remains outstanding after a specified maximum repayment period (e.g., 10 years or 15 years).
Written by the nonpartisan Congressional Research Service. All summary versions on Congress.gov
About this bill and sources
Official title: Savings Opportunity and Affordable Repayment Act
Latest action (Apr 1, 2025): Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
Policy area: Education · Origin: Senate · Introduced: Apr 1, 2025
Official page on Congress.gov · Bill text (GovInfo) · Status record (XML)
No recorded floor vote found.