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S 1220119th CongressIntroduced
Savings Opportunity and Affordable Repayment Act
Introduced: Oct 30, 2025
Economy & TaxesEducation
Standard Summary
Comprehensive overview in 1-2 paragraphs
The Savings Opportunity and Affordable Repayment Act establishes a new income-contingent repayment plan (SOAR) for federal student loans, setting monthly payments based on income and family size, offering loan forgiveness after 10 or 15 years, and phasing out existing repayment options.
Key Points
- 1Creates the SOAR plan with monthly payments capped at 5% or 10% of income above 250% of the poverty line, depending on loan type.
- 2Provides loan forgiveness after 120 payments (10 years) for undergraduate loans or 180 payments (15 years) for mixed/graduate loans.
- 3Phases out the Pay As You Earn (PAYE) and Income Contingent Repayment (ICR) plans, prohibiting re-enrollment after two years post-enactment.
Impact Areas
Federal student loan borrowersDepartment of Education loan administrationExisting income-driven repayment plan participants
Generated by legislative-analysis-v3 on Nov 1, 2025