PRIA Logo™
119-hr-8475119th CongressWALLET

Savings Opportunity and Affordable Repayment Act

Sponsored By: Representative DeLauro, Rosa L. [D-CT-3]

Introduced

Summary

Creates a new SAV (Savings Opportunity and Affordable Repayment) income-driven plan that would tie monthly payments to poverty-level income and change how PAYE and ICR are phased out.

Show full summary
  • Low-income borrowers: Would owe $0 monthly on the portion of adjusted gross income up to 250% of the poverty line. Above that, payments would be a share of income with the undergraduate loan share capped at 5% of that excess income.
  • Loan cancellation: Remaining balances would be automatically canceled after 10 years for borrowers with only undergraduate loans and after 15 years for borrowers with other or mixed loan types.
  • Household and administration rules: Married borrowers who file separately or certify separation would have payments based only on their AGI, otherwise spouse income is included and payments are adjusted by each spouse's loan share. The bill would limit re-enrollment in PAYE and ICR after 2 years and would require annual income verification plus automatic tracking and cancellation by the Secretary.

Personalized for You

How does this bill affect your finances?

Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.

Free to download

Bill Overview

Analyzed Economic Effects

5 provisions identified: 3 benefits, 1 costs, 1 mixed.

Automatic loan cancellation rules

If enacted, the Secretary would automatically cancel your remaining SAV loan balance after you meet the payment and time rules. You would get cancellation after 120 qualifying monthly payments (at least 10 years) if you only repaid short undergraduate loans. If you have any non-undergraduate loan, cancellation would come after 180 qualifying payments (at least 15 years). The bill lists many kinds of months that count, such as months with a $0 obligation, approved medical, unemployment, military, national service, certain administrative forbearances, and some bankruptcy or other deferments.

How SAV monthly payments work

If enacted, your SAV monthly amount would be based on your (and spouse's) AGI versus 250% of the poverty line. If combined AGI is at or below that level, your payment would be $0. For income above that, 5% of the excess tied to your undergraduate loan share and 10% of the rest would be divided by 12. If the computed monthly payment is under $5 it would be $0, and if it is $5–$9.99 it would be set to $10. You could cap your total monthly payments at this amount. Each monthly payment would be applied so 50% goes to principal and 50% first to accrued charges, then to interest, then to principal, and the Secretary could not charge accrued interest beyond what the payment covers.

New SAV income-based plan

If enacted, the bill would create a new income-driven plan called SAV for loans made, insured, or guaranteed under Title IV part B or D. SAV would become available 180 days after enactment. The plan would give a new way to set monthly payments based on your income and loan mix.

Annual checks and recertification rules

If enacted, the Secretary would require yearly income and family-size verification to stay in SAV. You would need to allow IRS tax data sharing or provide documents. The Department must give forbearance while it processes alternative documentation. If you fail to provide required information on time, you could be removed from SAV and placed on a 10-year standard repayment plan.

Phase-out of PAYE and ICR access

If enacted, two years after enactment most new borrowers would no longer be able to enroll in PAYE or ICR. Before that date, PAYE would still be available for those who meet the existing partial financial hardship rules at entry. After two years, borrowers who leave PAYE or ICR generally could not re-enroll. The bill also expands ICR eligibility to include certain Direct PLUS and specific consolidation loans made for dependent students.

Sponsors & CoSponsors

Sponsor

DeLauro, Rosa L. [D-CT-3]

CT • D

Cosponsors

  • Rep. Bonamici, Suzanne [D-OR-1]

    OR • D

    Sponsored 10/26/2026

  • Rep. Simon, Lateefah [D-CA-12]

    CA • D

    Sponsored 4/23/2026

  • Del. Norton, Eleanor Holmes [D-DC-At Large]

    DC • D

    Sponsored 4/23/2026

  • Rep. Pingree, Chellie [D-ME-1]

    ME • D

    Sponsored 4/23/2026

  • Rep. Thanedar, Shri [D-MI-13]

    MI • D

    Sponsored 4/23/2026

  • Rep. Casar, Greg [D-TX-35]

    TX • D

    Sponsored 4/23/2026

  • Rep. Vindman, Eugene Simon [D-VA-7]

    VA • D

    Sponsored 4/23/2026

  • Rep. Jayapal, Pramila [D-WA-7]

    WA • D

    Sponsored 4/23/2026

  • Rep. Goldman, Daniel S. [D-NY-10]

    NY • D

    Sponsored 4/27/2026

  • Rep. Craig, Angie [D-MN-2]

    MN • D

    Sponsored 4/27/2026

  • Rep. Grijalva, Adelita S. [D-AZ-7]

    AZ • D

    Sponsored 5/20/2026

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
Back to Legislation