Bills · S 1220
IN COMMITTEE· 119TH CONGRESS
Senate BillS 1220Family relationshipsStudent aid and college costs
Savings Opportunity and Affordable Repayment Act
INTRO APR 1· LAST ACTION APR 1
READING
17MIN
COSPONSORS
17
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
- Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8Introduced
In Committee
Reported
Passed Senate
Passed House
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenVoters should care about this bill because it significantly changes how federal student loans can be repaid, directly impacting the financial stability of millions of Americans. If this bill becomes law, many borrowers could see lower monthly payments due to the new SOAR plan's generous income exemption and payment rate, freeing up money for other essential needs or savings. This could help alleviate the widespread burden of student loan debt, making higher education more financially sustainable for future generations.
Conversely, the phasing out of popular existing repayment plans like PAYE and ICR means borrowers will have fewer choices in the long run. While SOAR aims to be more beneficial for many, it might not be the ideal solution for everyone, and removing options could lead to some borrowers feeling less flexibility. The bill represents a major shift in the federal government's approach to student loan repayment, influencing personal budgets, economic activity, and access to higher education for years to come.
KEY PROVISIONS
4AI-extractedPROVISION 01
Establishes the "Savings Opportunity and Affordable Repayment plan" (SOAR) as a new income-contingent repayment option for federal student loans.
This creates a new, potentially more affordable, repayment pathway for borrowers, especially those with lower incomes.
PROVISION 02
Sets the SOAR plan's monthly payment obligation at $0 for income below 250% of the poverty line, and 5% of income above that threshold.
This defines the core affordability mechanism of the new plan, offering significant relief to many low- and middle-income borrowers.
PROVISION 03
Phases out new enrollment in the Pay As You Earn (PAYE) repayment plan and the existing Income Contingent Repayment (ICR) plan after two years from the bill's enactment.
This streamlines the number of income-driven repayment options but removes choices that some borrowers might prefer.
PROVISION 04
Specifies that borrowers already on PAYE or ICR before the two-year phase-out can generally continue on those plans, but cannot re-enroll if they switch.
This manages the transition for existing borrowers, preventing immediate disruption but locking them into their current choice or forcing them to new options if they change plans.
SPONSORSHIP
1 + 17
D· Oregon
YRS IN OFFICE
17
BILLS LED
128
COSPONSOR BREAKDOWNBIPARTISAN · 0%
DEM 16 REP 0 IND 1
ACTION TIMELINE
2 EVENTSAPR 1
Introduced in Senate
APR 1
Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
BILL INFO
TypeSenate Bill
NumberS 1220
Congress119th
StatusIn Committee
IntroducedApr 1, 2025
Last actionApr 1, 2025
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IN COMMITTEE· 119TH CONGRESS · HEALTH, EDUCATION, LABOR, AND PENSIONS COMMITTEE · INTRODUCED APR 1, 2025
Senate BillS 1220Family relationshipsStudent aid and college costs
Savings Opportunity and Affordable Repayment Act
INTRODUCED APR 1, 2025· LAST ACTION APR 1, 2025
PASSAGE CHANCES
—%
READING
17 min
COSPONSORS
17
COMPLEXITY
Moderate
