Servicemember Student Loan Affordability Act of 2025

6 percent interest cap for servicemembers

If enacted, servicemembers would have a 6 percent annual interest cap on any loan taken during military service to consolidate or refinance student loans they took before joining the military. The cap would apply only to consolidation or refinancing of those pre-service student loans, not to other debts. It would apply whether the obligation is in the servicemember's name or taken jointly with a spouse. The cap would cover federal Title IV student loans and private education loans as defined in the Truth in Lending Act. The 6 percent rate would apply for the duration of military service and would be effective as of the date you incur the consolidation or refinancing obligation. The bill would also clarify that the existing 6 percent rule in the statute applies to debt incurred before service.