[Congressional Record Volume 166, Number 117 (Thursday, June 25, 2020)]
[Senate]
[Page S3548]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 2116. Mr. DURBIN submitted an amendment intended to be proposed by 
him to the bill S. 4049, to authorize appropriations for fiscal year 
2021 for military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe military personnel strengths for such fiscal year, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the appropriate place in title X, insert the following:

     SEC. ___. 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 
     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.'';
       (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 the 
     following:
       ``(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.).
       ``(B) A private student loan as that term is defined 
     section 140(a) of the Truth in Lending Act (15 U.S.C. 
     1650(a)).''.
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