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
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.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
Section 1. Short title
This Act may be cited as the Servicemember Student Loan Affordability Act of 2025
.
Sec. 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)).