Bill > S1220

This bill establishes a new student loan repayment plan called the Savings Opportunity and Affordable Repayment (SOAR) plan, which provides income-contingent repayment options for federal student loan borrowers. The plan calculates monthly payments based on the borrower's adjusted gross income, with no payments required for income up to 250% of the poverty line, and subsequent payments ranging from 5% to 10% of income above that threshold. The plan offers loan forgiveness after 10 years for borrowers with only undergraduate loans and after 15 years for those with graduate or additional loans. Borrowers can make partial or advance payments, and the plan applies 50% of each monthly payment to the principal and 50% to accrued charges, interest, and remaining principal. The bill also phases out existing income-driven repayment plans like Pay As You Earn (PAYE) and Income-Contingent Repayment (ICR), limiting new enrollments and preventing re-enrollment for borrowers who switch plans. Additionally, the bill provides flexible provisions for borrowers experiencing financial hardship, including various deferment and forbearance options that count toward loan forgiveness, and allows borrowers to adjust their payment calculations based on changes in income or family circumstances.

Health and Social Services

https://www.congress.gov/bill/119th-congress/senate-bill/1220/all-info