Vindman, DeLauro, Casar Introduce Legislation to Support Student Loan Borrowers

Washington, D.C. - Today, U.S. Representatives Eugene Vindman (Va.-07), Rosa DeLauro (Conn.-03), and Greg Casar (Texas-35) introduced the Savings Opportunity and Affordable Repayment (SOAR) Act, legislation that would expand income-driven repayment (IDR) plans to protect student loan borrowers from unaffordable payment schedules and provide a clearer path to debt relief.

"The student debt crisis is squeezing tens of millions of Americans and holding back an entire generation. When people are forced to choose between paying student loans and covering groceries or gas, the system is clearly broken," said Vindman. "The SOAR Act takes a commonsense approach by tying payments to what borrowers can actually afford, stopping runaway interest, and creating a faster path to relief."

"Americans are living paycheck to paycheck," said DeLauro. "In the midst of a cost-of-living crisis, President Trump is making it harder for working Americans to get by. They are already struggling to afford basics like food and gas. Now, many have been put on student repayment plans they cannot afford. The SOAR Act fixes that, putting borrowers first and providing much needed relief on an already strained wallet. That means affordable payments, protection from runaway interest, and a clear path to get out of debt. Americans should not have to choose between paying their student loans or putting food on the table - this bill eliminates that choice."

"No American should have to go without groceries, gas, or rent in order to afford their student loans," said Casar. "The SOAR Act protects student loan borrowers from unaffordable payments. Congress should pass it without delay."

The SOAR Act comes in direct response to the Trump administration's decision to eliminate the Saving on a Valuable Education (SAVE) plan, which had provided over 7 million borrowers with $0 monthly payments and accelerated loan forgiveness. Following legal challenges from Republican attorneys general and a subsequent administration settlement, those borrowers must now find alternative repayment options, which has dramatically raised monthly costs.

The SOAR Act would:

• Allow borrowers earning at or below 250% of the federal poverty line to pay $0 per month. Those earning above that threshold pay 5% of discretionary income on undergraduate loans and 10% on graduate loans;
• Cancel remaining balances after 10 years for borrowers who attended school for 2 years or less, and after 15 years for all other borrowers;
• and Protect borrowers from ballooning interest.

Identical legislation was previously introduced in the Senate by U.S. Senators Jeff Merkley (D-Ore.) and Tim Kaine (D-Va.).

The SOAR Act is endorsed by the American Federation of Teachers (AFT), National Education Association (NEA), The Institute of College Access & Success (TICAS), Student Borrower Protection Center, National Consumer Law Center, AFSCME, Center for Law and Social Policy (CLASP), Consumer Action, National Urban League, Student Debt Crisis Center, The Education Trust, UnidosUS, and Young Invincibles.

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