[Congressional Record Volume 170, Number 113 (Tuesday, July 9, 2024)]
[Senate]
[Page S4269]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
By Mr. DURBIN (for himself, Ms. Duckworth, and Mr. Bennet):
S. 4645. 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; to the Committee on Veterans' Affairs.
Mr. DURBIN. Madam President, I ask unanimous consent that the text of
the bill be printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 4645
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Servicemember Student Loan
Affordability Act of 2024''.
SEC. 2. 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.--
``(A) In general.--Subject to subparagraph (B), 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.
``(B) Limitation.--Subparagraph (A) shall apply only to the
consolidation or refinancing of student loans described in
such subparagraph and shall not apply to the consolidation or
refinancing of any other obligation or liability.'';
(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 education loan as that term is defined in
section 140(a) of the Truth in Lending Act (15 U.S.C.
1650(a)).''.
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