IN THE SENATE OF THE UNITED STATES
June 11, 2015
Mr. Durbin (for himself, Mr. Blumenthal, Mr. Brown, Mr. Markey, Mrs. Murray, Mr. Tester, and Mr. Whitehouse) 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.
This Act may be cited as the
Servicemember Student Loan Affordability Act of 2015.
Interest rate limitation on debt entered into during military service to consolidate or refinance student loans incurred before military service
Subsection (a) of section 207 of the Servicemembers Civil Relief Act (50 U.S.C. App. 527) is amended—
in paragraph (1), by inserting
on debt incurred before service after
Limitation to 6 percent;
by redesignating paragraphs (2) and (3) as paragraphs (3) and (4), respectively;
by inserting after paragraph (1) the following new paragraph (2):
Limitation to 6 percent on debt incurred during service to consolidate or refinance student loans incurred before service
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.
in paragraph (3), as redesignated by paragraph (2) of this subsection, by inserting
or (2) after
paragraph (1); and
in paragraph (4), as so redesignated, by striking
paragraph (2) and inserting
Implementation of limitation
Subsection (b) of such section is amended—
in paragraph (1), by striking
the interest rate limitation in subsection (a) and inserting
an interest rate limitation in paragraph (1) or (2) of subsection (a); and
in paragraph (2)—
in the paragraph heading, by striking
as of date of order to active duty; and
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).
Student loan defined
Subsection (d) of such section is amended by adding at the end the following new paragraph:
The term student loan means the following:
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.).
A private student loan as that term is defined in section 140(a) of the Truth in Lending Act (15 U.S.C. 1650(a)).