Savings Opportunity and Affordable Repayment Act

This bill creates a new student loan repayment plan called the SOAR plan, which would apply to all types of federal student loans, including Parent PLUS Loans. Under the plan, borrowers earning at or below 250% of the federal poverty level would have $0 monthly payments, 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 also sets rules for how payments are split between the loan's principal and other costs like interest and fees. Any remaining loan balance would be forgiven after a set number of years, such as 10 or 15 years depending on the loan.

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