Bill > S1399

This bill amends the Servicemembers Civil Relief Act (SCRA), a law designed to protect service members from certain civil actions and financial burdens while they are in military service. Specifically, it extends the SCRA's existing 6% interest rate cap to cover new debts incurred by service members during their military service if those debts are used to consolidate or refinance student loans they took out before entering military service. This means that if a service member takes out a new loan during their military service to pay off existing student loans, the interest rate on that new consolidation or refinancing loan will also be limited to 6% per year for the duration of their military service. The bill also clarifies what constitutes a "student loan" for the purposes of this provision, including both federal student loans made under the Higher Education Act and private student loans as defined by the Truth in Lending Act.