S. 3253

119 S3253 IS: Servicemember Student Loan Affordability Act of 2025
 U.S. Senate
 2025-11-20
 text/xml
 EN
 Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
 II  119th CONGRESS  1st Session  S. 3253  IN THE SENATE OF THE UNITED STATES   November 20, 2025   Mr. Durbin  (for himself,  Ms. Duckworth , and  Mrs. Gillibrand ) introduced the following bill; which was read twice and referred to the  Committee on Veterans' Affairs    A BILL
To amend the Servicemembers Civil Relief Act to extend the interest rate limitation on debt entered into during military service to debt incurred during military service to consolidate or refinance student loans incurred before military service, and for other purposes.
1.
Short title
This Act may be cited as the   Servicemember Student Loan Affordability Act of 2025  .
2.
Interest rate limitation on debt entered into during military service to consolidate or refinance student loans incurred before military service
(a)
In general
Subsection (a) of section 207 of the Servicemembers Civil Relief Act ( 50 U.S.C. 3937 ) is amended—
(1)
in paragraph (1), by inserting
on debt incurred before service   after
Limitation to 6 percent  ;
(2)
by redesignating paragraphs (2) and (3) as paragraphs (3) and (4), respectively;
(3)
by inserting after paragraph (1) the following new paragraph (2):
(2)
Limitation to 6 percent on debt incurred during military service to consolidate or refinance student loans incurred before military service
(A)
In general
Subject to subparagraph (B), an obligation or liability bearing interest at a rate in excess of 6 percent per year that is incurred by a servicemember, or the servicemember and the servicemember's spouse jointly, during military service to consolidate or refinance one or more student loans incurred by the servicemember before such military service shall not bear an interest at a rate in excess of 6 percent during the period of military service.
(B)
Limitation
Subparagraph (A) shall apply only to the consolidation or refinancing of student loans described in such subparagraph and shall not apply to the consolidation or refinancing of any other obligation or liability.
 ;
(4)
in paragraph (3), as redesignated by paragraph (2) of this subsection, by inserting  or (2)  after  paragraph (1) ; and
(5)
in paragraph (4), as so redesignated, by striking  paragraph (2)  and inserting  paragraph (3) .
(b)
Implementation of limitation
Subsection (b) of such section is amended—
(1)
in paragraph (1)(A), by striking  the interest rate limitation in subsection (a)  and inserting  an interest rate limitation in paragraph (1) or (2) of subsection (a) ; and
(2)
in paragraph (2)—
(A)
in the paragraph heading, by striking
effective as of date of order to active duty   and inserting
effective date  ; and
(B)
by inserting before the period at the end the following:  in the case of an obligation or liability covered by subsection (a)(1), or as of the date the servicemember (or servicemember and spouse jointly) incurs the obligation or liability concerned under subsection (a)(2) .
(c)
Student loan defined
Subsection (d) of such section is amended by adding at the end the following new paragraph:
(3)
Student loan
The term  student loan  means—
(A)
a Federal student loan made, insured, or guaranteed under title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1070 et seq. ); or
(B)
a private education loan as that term is defined in section 140(a) of the Truth in Lending Act ( 15 U.S.C. 1650(a) ).
 .