Bill · S. 1220· Senate(119-S-1220)
Savings Opportunity and Affordable Repayment Act
- Introduced
- 4/1/2025
- Last activity
- 4/1/2025 — Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
- Sponsored by
- Jeff Merkley
- Cosponsors
- - 16 - 0
- Introduced
- In Committee
What this bill would do
This bill, titled the "Savings Opportunity and Affordable Repayment Act," seeks to amend the Higher Education Act of 1965. It introduces a new income-contingent repayment plan called the Savings Opportunity and Affordable Repayment plan. This new plan is designed to provide specific monthly payment obligations based on a borrower's adjusted gross income and family size. The bill also establishes rules for how payments are applied to principal and interest. Additionally, it outlines specific timelines for loan cancellation based on the type of study and the number of payments made. Finally, it includes provisions for phase-outs of existing repayment plans like Pay As You Earn and ICR.
Yes· 3 of 6
Would households on low incomes be better off under this?+8
The bill reduces monthly payments to $0 for households at or below 250 percent of the poverty line.
Would students be better off under this?+7
The bill provides significant relief through income-contingent payments and loan cancellation timelines.
Does this reduce what student borrowers owe or repay?+7
The bill provides for the cancellation of remaining loan balances after a set period of payments and protects borrowers from interest not covered by payments.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Reduced Monthly Payments: Under the new plan, a borrower's monthly payment obligation is $0 if their adjusted gross income is less than or equal to 250 percent of the poverty line for their family size (Section 493E(a)(1)(i)).
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Loan Cancellation: The bill provides for the cancellation of remaining loan balances after a set period of time. For those repaying loans received for undergraduate study of no more than 2 years, the balance is canceled after 120 monthly payments over at least 10 years (Section 493E(b)(5)(A)). For other eligible loans, the balance is canceled after 180 monthly payments over at least 15 years (Section 493E(b)(5)(B)).
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Interest Protection: During the repayment period, the Secretary is prohibited from charging the borrower's account any accrued interest that is not covered by the monthly payment obligation (Section 493E(b)(3)).
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Flexible Payment Options: Borrowers have the option to pay in multiple installments that equal their full scheduled monthly payment obligation, or they can pay a lump sum in advance (Section 493E(b)(8)).
Potential Negative Impacts for People
-
Restrictions on Existing Plans: The bill includes "Phase outs" that limit when borrowers can choose the Pay As You Earn (PAYE) or Income Contingent Repayment (ICR) plans. For example, after 2 years from the date of enactment, borrowers who change to a different plan are prohibited from re-enrolling in the PAYE or ICR plans (Section 2, Section 455(d)(6)).
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Penalty for Failing to Certify Information: If a borrower fails to provide necessary documentation required by the Secretary to recalculate their monthly payment, they will be removed from the Savings Opportunity and Affordable Repayment plan and placed on an alternative plan with a monthly payment based on a 10-year standard repayment plan (Section 493E(c)(3)).
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Exclusion from Plan: The Savings Opportunity and Affordable Repayment plan is not available to borrowers of a Federal Direct PLUS loan made on behalf of a dependent student (Section 2, Section 455(d)(3)(A)(i)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Low Income Households+8Good For Students+7Good For Young Adults+5Good For Middle Class Households+4
- Education And Technology
- Improves Student Loan Relief+7Improves College Affordability+6
- 11/6/2025
- 1 Cosponsor added.
- 10/29/2025
- 1 Cosponsor added.
- 6/18/2025
- 1 Cosponsor added.
- 4/1/2025
- Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
- 14 Cosponsors added.
- Introduced in Senate
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Richard BlumenthalDemocrat · Connecticut
Cory BookerDemocrat · New Jersey
Tammy DuckworthDemocrat · Illinois
Kirsten GillibrandDemocrat · New York
Mazie HironoDemocrat · Hawaii
Timothy KaineDemocrat · Virginia
Andy KimDemocrat · New Jersey
Ben LujánDemocrat · New Mexico
Edward MarkeyDemocrat · Massachusetts
Alex PadillaDemocrat · California
Bernie SandersIndependent · Vermont
Charles SchumerDemocrat · New York
Tina SmithDemocrat · Minnesota
Chris Van HollenDemocrat · Maryland
Ron WydenDemocrat · Oregon
Peter WelchDemocrat · Vermont
Elizabeth WarrenDemocrat · Massachusetts