Democrats propose the SOAR Act to protect income-driven repayment benefits after the SAVE Plan was … More
SOAR Act Tries To Save The SAVE Plan For Student Loan Borrowers
A new bill introduced by Senate Democrats aims to rescue key provisions of the Biden administration’s student loan repayment strategy after the centerpiece of that plan—the SAVE income-driven repayment program—was blocked by the courts earlier this year. The proposed SOAR Act would codify critical borrower protections into law, effectively trying to save the SAVE Plan.
The stakes are high: With student loan repayment resuming after a three-year pause and delinquency rates soaring, millions of student loan borrowers are struggling to afford payments. The SOAR Act, short for Savings Opportunity and Affordable Repayment Plan Act, is a legislative effort to protect low-income borrowers from unaffordable payments and interest accrual—goals previously at the core of the now-stalled SAVE Plan.
SOAR Act Would Codify SAVE Plan Benefits For Student Loan Borrowers
According to a summary from lead sponsors Senators Jeff Merkley (D-Ore.) and Tim Kaine (D-Va.), the SOAR Act would enshrine many of the SAVE Plan’s most generous features into federal law. The bill is co-sponsored by several Senate Democrats, including Senators Elizabeth Warren (D-Mass.), Bernie Sanders (D-Vt.), and Cory Booker (D-N.J.).
The SOAR Act would provide student loan borrowers with:
- More affordable monthly payments: Borrowers whose incomes are at or below 250% of the federal poverty line would have $0 monthly payments. Meanwhile, it would cap monthly student loan payments at 5% of discretionary income above 250% of the federal poverty line for undergraduate loans and 10% for graduate loans.
- Ensure unpaid interest does not accrue: It would prevent balances from ballooning when payments are too small to cover interest.
- Accelerate loan forgiveness timelines, particularly for those with smaller original balances. Under the SOAR Act, the maximum timeline for forgiveness would be 15 years, after which “the SOAR plan cancels any remaining loan balances,” according to the bill summary. This is a shorter time for cancellation than the SAVE Plan, which requires 20 to 25 years of payments.
- Provide full IDR benefits to borrowers with consolidated loans currently excluded from SAVE forgiveness benefits.
- Lock these benefits through legislation rather than executive action, making them more resistant to legal challenges or policy reversals.
The SOAR Act aims to secure key features of the SAVE Plan implemented through the regulatory process, but it remains vulnerable to court challenges and political shifts.
Merkley stated in a press release that the bill would “provide affordable monthly payments, prevent ballooning balances, and give borrowers a clear pathway out of debt.” Kaine added that the goal is to provide “certainty and relief” to Americans navigating the complex student loan system.
The SAVE Plan And Student Loan Forgiveness
The SAVE Plan — short for Saving on a Valuable Education — was introduced by the Biden administration as the most generous student loan forgiveness IDR plan. It promised lower monthly payments, faster forgiveness, and interest subsidies that helped keep balances from growing. More than 8 million borrowers enrolled, and 4.5 million qualified for $0 monthly payments based on income.
However, in early 2025, a federal appeals court ruled that the administration had overstepped its authority by implementing SAVE without congressional approval. The ruling blocked key SAVE provisions, forcing the Education Department to suspend enrollments and resume older, less generous IDR plans. While existing SAVE enrollees remain temporarily protected, new borrowers cannot sign up, and the plan’s future is unclear.
In response, Democratic lawmakers introduced the SOAR Act as a legislative workaround—an attempt to codify the core benefits of the SAVE Plan into law, insulating them from future legal or administrative reversals.
Can The SOAR Act Pass And Help Student Loan Borrowers?
Despite the urgency, the SOAR Act faces steep odds in the current political climate. Democrats introduced the bill in a Republican-controlled Senate, and there is no indication of GOP support. Many Republican lawmakers have criticized SAVE as overly generous and an example of executive overreach. With no bipartisan momentum, the SOAR Act is unlikely to advance beyond a messaging bill in this session of Congress.
Supporters see the bill as an important symbolic step — laying out a legislative roadmap in case political winds shift. Even Democrats behind the bill admit it’s a long shot. “We know this bill isn’t going to pass this Congress,” a Senate Democratic aide told Yahoo News. “But we want it out there as a marker for where we want to go on income-driven repayment,” he added. The SOAR Act is thus best seen as a policy statement and a legislative placeholder, not a bill with immediate prospects of becoming law. But barring a dramatic reversal, student loan borrowers should not expect the SOAR Act to become law anytime soon. For now, existing IDR plans remain available, but with fewer benefits than SAVE. And without legislative action, any future attempt to revive SAVE will likely face the same legal headwinds.
The Upshot For Student Loan Borrowers
For now, the features of the SAVE Plan remain unavailable to new enrollees, and the Education Department has paused any new enrollment into the program. Borrowers already enrolled in SAVE may continue with their current payments, but uncertainty looms as legal challenges continue. Borrowers in IDR plans may now face higher monthly payments, interest accrual, and longer forgiveness timelines.
If passed, the SOAR Act would permanently make many of SAVE’s best features and shield them from future rollbacks. But unless Congress flips or bipartisan support emerges, it’s unlikely to advance this year. That leaves millions of student loan borrowers in a holding pattern—unable to enroll in SAVE, confused about the status of their repayment plan options, and facing rising delinquency and interest.