S3253119th CongressWALLET

Servicemember Student Loan Affordability Act of 2025

Sponsored By: Senator Richard Durbin

Introduced

Summary

Creates a 6 percent interest cap for servicemembers who consolidate or refinance pre-service student loans while on active duty. It preserves the current 6 percent framework for other SCRA protections and adds a clear definition of which loans count as student loans.

Show full summary
  • Servicemembers and spouses: Debt taken during service to consolidate or refinance pre-service student loans would carry interest no higher than 6 percent during the period of service. The cap becomes effective on the date the servicemember incurs the consolidation or refinancing.
  • Borrowers with pre-service student loans: The bill defines "student loan" to include federal Title IV loans and private education loans as defined in section 140(a) of the Truth in Lending Act, clarifying which balances qualify for the cap.
  • Lenders and loan servicers: The 6 percent limit applies specifically to consolidations and refinancings made during service, so its scope is limited to those transactions.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 1 benefits, 0 costs, 0 mixed.

6% cap on military student refinances

If enacted, the bill would cap interest at 6% per year for certain consolidations or refinances. You would be covered if the refinance or consolidation is taken during your military service. It would only apply to student loans you incurred before service. Covered loans include Title IV federal loans and private education loans under Truth in Lending. The 6% limit would start on the date you (or you and your spouse) take the new loan. It would last only while you are in military service.

Sponsors & CoSponsors

Sponsor

Richard Durbin

IL • D

Cosponsors

  • Tammy Duckworth

    IL • D

    Sponsored 11/20/2025

  • Kirsten Gillibrand

    NY • D

    Sponsored 11/20/2025

  • Adam Schiff

    CA • D

    Sponsored 12/1/2025

  • Cory Booker

    NJ • D

    Sponsored 12/1/2025

  • Sen. Luján, Ben Ray [D-NM]

    NM • D

    Sponsored 12/11/2025

Roll Call Votes

No roll call votes available for this bill.

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