Text of Senate Amendment 4723

Text of Senate Amendment 4723

Congressional Record, Volume 172 Issue 51 (Friday, March 20, 2026) [Congressional Record Volume 172, Number 51 (Friday, March 20, 2026)] [Senate] [Pages S1448-S1450] From the Congressional Record Online through the Government Publishing Office [ www.gpo.gov ] SA 4723. Mr. MERKLEY submitted an amendment intended to be proposed by him to the bill S. 1383, to establish the Veterans Advisory Committee on Equal Access, and for other purposes; which was ordered to lie on the table; as follows: Strike all after the enacting clause and insert the following: SECTION 1. SHORT TITLE. This Act may be cited as the ``Savings Opportunity and Affordable Repayment Act''. SEC. 2. AMENDMENTS TO THE OBBBA. (a) In General.--Section 82001 of the Act titled ``An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14'' (Public Law 119-21; 139 Stat. 72) is amended by striking subsections (a) and (c). (b) Higher Education Act of 1965.--The Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) is amended-- (1) in section 428(b)(9)(A)(v), by inserting ``who has a partial financial hardship'' after ``enables a borrower''; (2) in section 455-- (A) in subsection (d)-- (i) in paragraph (1)-- (I) in the matter preceding subparagraph (A), by striking ``before July 1, 2026, who has not received a loan made under this part on or after July 1, 2026,''; (II) in subparagraph (D)-- (aa) by striking ``before June 30, 2028,''; and (bb) by inserting ``and'' after the semicolon; (III) in subparagraph (E)-- (aa) by inserting ``that enables borrowers who have a partial financial hardship to make a lower monthly payment'' after ``an income-based repayment plan''; and (bb) by striking ``an excepted Consolidation Loan (as defined in section 493C(a)(2)); and'' and inserting ``a Federal Direct Consolidation Loan, if the proceeds of such loan were used to discharge the liability on such Federal Direct PLUS Loan or a loan under section 428B made on behalf of a dependent student.''; and (IV) by striking subparagraph (F); (ii) in paragraph (5), by striking subparagraph (B) and inserting the following: ``(B) repay the loan pursuant to an income contingent repayment plan.''; and (iii) by striking paragraphs (6) and (7); (B) in subsection (g), by striking paragraph (3); (C) by striking subsection (q); and (3) in section 493C-- (A) in subsection (a)-- (i) by striking paragraph (2) and inserting the following: ``(2) Excepted consolidation loan.--The term `excepted consolidation loan' means a consolidation loan under section 428C, or a Federal Direct Consolidation Loan, if the proceeds of such loan were used to the discharge the liability on an excepted PLUS loan.''; and (ii) by striking paragraph (3) and inserting the following: ``(3) Partial financial hardship.--The term `partial financial hardship', when used with respect to a borrower, means that for such borrower-- ``(A) the annual amount due on the total amount of loans made, insured, or guaranteed under part B or D (other than an excepted PLUS loan or excepted consolidation loan) to a borrower as calculated under the standard repayment plan under section 428(b)(9)(A)(i) or 455(d)(1)(A), based on a 10- year repayment period; exceeds ``(B) 15 percent of the result obtained by calculating, on at least an annual basis, the amount by which-- ``(i) the borrower's, and the borrower's spouse's (if applicable), adjusted gross income; exceeds ``(ii) 150 percent of the poverty line applicable to the borrower's family size as determined under section 673(2) of the Community Services Block Grant Act (42 U.S.C. 9902(2)).''; (B) in subsection (b)-- (i) by striking paragraph (1) and inserting the following: ``(1) a borrower of any loan made, insured, or guaranteed under part B or D (other than an excepted PLUS loan or excepted consolidation loan) who has a partial financial hardship (whether or not the borrower's loan has been submitted to a guaranty agency for default aversion or had been in default) may elect, during any period the borrower has the partial financial hardship, to have the borrower's aggregate monthly payment for all such loans not exceed the result described in subsection (a)(3)(B) divided by 12;''; and (ii) by striking paragraph (6) and inserting the following: ``(6) if the borrower no longer has a partial financial hardship or no longer wishes to continue the election under this subsection, then-- ``(A) the maximum monthly payment required to be paid for all loans made to the borrower under part B or D (other than an excepted PLUS loan or excepted consolidation loan) shall not exceed the monthly amount calculated under section 428(b)(9)(A)(i) or 455(d)(1)(A), based on a 10-year repayment period, when the borrower first made the election described in this subsection; and ``(B) the amount of time the borrower is permitted to repay such loans may exceed 10 years;''; (C) by striking subsection (c) and inserting the following: ``(c) Eligibility Determinations.-- ``(1) In general.--The Secretary shall establish procedures for annually determining the borrower's eligibility for income-based repayment, including verification of a borrower's annual income and the annual amount due on the total amount of loans made, insured, or guaranteed under part B or D (other than an excepted PLUS loan or excepted consolidation loan), and such other procedures as are necessary to effectively implement income-based repayment under this section. ``(2) Procedures for eligibility.--The Secretary shall-- ``(A) consider, but is not limited to, the procedures established in accordance with section 455(e)(1) or in connection with income sensitive repayment schedules under section 428(b)(9)(A)(iii) or 428C(b)(1)(E); and ``(B) carry out, with respect to borrowers of any loan made under part D (other than an excepted PLUS loan or excepted consolidation loan), procedures for income-based repayment plans that are equivalent to the procedures carried out under section 455(e)(8) with respect to income-contingent repayment plans.''; and (D) in subsection (e)-- (i) in the subsection heading, by striking ``and Before July 1, 2026''; and (ii) by striking ``and before July 1, 2026''. SEC. 3. SAVINGS OPPORTUNITY AND AFFORDABLE REPAYMENT PLAN. The Higher Education Act of 1965 (20 U.S.C. 1001 et seq.), as amended by section 2, is further amended-- (1) in section 428(b)(9)(A)-- (A) in clause (iv), by striking ``and'' after the semicolon; (B) in clause (v), by striking the period at the end and inserting ``; and''; and (C) by adding at the end the following: ``(vi) beginning on the date that is 180 days after the date of enactment of the Savings Opportunity and Affordable Repayment Act, an income contingent repayment plan known as the `Savings Opportunity and Affordable Repayment plan', consistent with section 493E.''; (2) in section 428C(c)(2)(A)-- (A) in the first sentence, by striking ``or income-based'' and inserting ``income-based, or income contingent Savings Opportunity and Affordable Repayment (consistent with section 493E)''; and (B) in the second sentence, by striking ``or income-based'' and inserting ``income-based, or income contingent Savings Opportunity and Affordable Repayment''; (3) in section 455(d)-- (A) in paragraph (1), by striking subparagraph (D) and inserting the following: ``(D) except as provided in paragraph (6), an income contingent repayment plan-- ``(i) with varying annual repayment amounts based on the income of the borrower, paid over an extended period of time prescribed by the Secretary, not to exceed 25 years, except that the plan described in this clause shall not be available to the borrower of a Federal Direct PLUS loan made on behalf of a dependent student; and ``(ii) which, beginning on the date that is 180 days after the date of enactment of the Savings Opportunity and Affordable Repayment Act, shall include the `Savings Opportunity and Affordable Repayment plan', consistent with section 493E; and''; and (B) by adding at the end the following: ``(6) Phase outs.-- ``(A) PAYE repayment plan.-- ``(i) In general.--A borrower may choose the Pay As You Earn Repayment Plan, as described in section 685.209 of title 34, Code of Federal Regulations (as in effect on January 19, 2025), as an income contingent repayment plan pursuant to paragraph (1)(D)-- ``(I) before the date that is 2 years after the date of enactment of the Savings Opportunity and Affordable Repayment Act, only if the borrower-- ``(aa) has loans eligible for repayment under such plan, as described in such section as in effect on such date; and ``(bb) has a partial financial hardship when the borrower initially enters such plan, as described in such section as in effect on such date; and ``(II) on or after the date that is 2 years after the date of enactment of the Savings Opportunity and Affordable Repayment Act, only if the borrower meets the conditions described in subclause (I) and was repaying a loan under such plan before such date that is 2 years after the date of enactment of the Savings Opportunity and Affordable Repayment Act. ``(ii) Prohibition against re-enrollment.--Beginning on the date that is 2 years after the date of enactment of the Savings Opportunity and Affordable Repayment Act, a borrower who was repaying a loan under the Pay As You Earn Repayment Plan, as described in clause (i), and changes to a different repayment plan may not re-enroll in the Pay As You Earn Repayment Plan. ``(B) Income contingent repayment plan.-- ``(i) In general.--A borrower may choose the ICR plan, as described in section 685.209 of title 34, Code of Federal Regulations (as in effect on January 19, 2025), as an income contingent repayment plan pursuant to paragraph (1)(D)-- [[Page S1449]] ``(I) before the date that is 2 years after the date of enactment of the Savings Opportunity and Affordable Repayment Act, only if the borrower has loans eligible for repayment under such plan, as described in such section as in effect on such date, except as p

Referenced legislation: HCONRES14