Senate bill · S. 1220 (119th Congress)
Savings Opportunity and Affordable Repayment Act
U.S. Senate
Sponsor: Jeff Merkley (U.S. Senator for Oregon, Democratic)
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From Congress.gov and official rosters. This record was last updated Jul 30, 2026. About our data
Summary
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).
Summary from the Congressional Research Service. How we handle summaries
Where it stands
Assigned to a committee for review.
- Introduced
- In committee
- Up for a vote
- Passed one chamber
- Passed
- Enacted
Committee
Senate Committee on Health, Education, Labor, and Pensions · U.S. Senate
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Cosponsors
17
Cosponsors listed on Congress.gov, shown A to Z.
- Democratic16
- Other1
This bill has cosponsors from more than one party.
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Related bills
As identified by Congress.gov.
Full history
- Apr 1, 2025
Introduced
Introduced in U.S. Senate
U.S. Senate
- Apr 1, 2025
Referred to committee
Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
- Apr 1, 2025
Referred to committee
Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
- Apr 1, 2025
Referred to committee
Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
Read the record
- Read on Congress.gov (opens in a new tab) The official record on Congress.gov.