Servicemember Student Loan Affordability Act of 2025

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 3253 Introduced in Senate (IS)]

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119th CONGRESS
  1st Session
                                S. 3253

  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.


_______________________________________________________________________


                   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.

    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)).''.
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