Savings Opportunity and Affordable Repayment Act

This bill creates a new student loan repayment plan called the SOAR plan, which is based on an earlier plan called the SAVE plan that was blocked by courts. Under the SOAR plan, borrowers earning at or below 250% of the federal poverty level would pay $0 per month, while borrowers earning more would pay 5% of their extra income for undergraduate loans and 10% for other loans like graduate school loans. The plan would cover all types of federal student loans, including Parent PLUS Loans, and requires that half of each monthly payment go toward the original loan amount. Any remaining loan balance would be forgiven after a set number of years, such as 10 or 15 years.

Your Vote