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S 3253

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.

119th Congress Introduced by Tammy Duckworth and 2 co-sponsors

Bill S 3253 extends the Servicemembers Civil Relief Act's 6% interest cap to student loans refinanced during active duty, easing financial burdens for servicemembers.

Introduced in Senate
0
WeVote Research Nonpartisan
Bill Summary · S 3253

Summary of Bill S 3253

Title

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.

Purpose and Intent

Bill S 3253 aims to provide financial relief to servicemembers by extending the existing interest rate limitations under the Servicemembers Civil Relief Act (SCRA). Specifically, the bill seeks to apply these protections to student loans that servicemembers consolidate or refinance while on active duty, even if those loans were originally incurred before their military service.

Key Provisions

  • Interest Rate Limitation: The bill extends the SCRA's interest rate cap of 6% to include student loans that servicemembers consolidate or refinance during their military service.
  • Eligibility: This provision applies to servicemembers who have taken on student loans prior to their military service and are looking to consolidate or refinance those loans while serving.
  • Protection Duration: The interest rate limitation would remain in effect for the duration of the servicemember's active duty service.

Who Would Be Affected

  • Servicemembers: Active duty military personnel who have student loans incurred before their service and are seeking to consolidate or refinance those loans.
  • Lenders: Financial institutions that provide student loans and may be required to adjust interest rates for qualifying servicemembers under the new provisions.

Procedural Aspects

  • Introduced: The bill was introduced in the Senate on November 20, 2025.
  • Committee Referral: Following its introduction, the bill was read twice and referred to the Committee on Veterans' Affairs for further consideration.

Conclusion

Bill S 3253 represents an effort to enhance the financial protections available to servicemembers, particularly in relation to managing student loan debt. By extending the interest rate limitations of the SCRA to include refinancing and consolidation of pre-service student loans, the bill aims to alleviate some of the financial burdens faced by those serving in the military. The bill is currently under review by the Senate Committee on Veterans' Affairs.

Compiled from official sources — confirm details with the bill’s official record.

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