[Congressional Record (Bound Edition), Volume 163 (2017), Part 9]
[Senate]
[Page 12088]
[From the U.S. Government Publishing Office, www.gpo.gov]




              SERVICEMEMBER STUDENT LOAN AFFORDABILITY ACT

  Mr. DURBIN. Mr. President, student loan borrowers currently carry 
about $1.4 trillion in student loan debt. This breaks down to about 44 
million borrowers holding student loan debt with an average balance of 
$30,000. This crushing debt has pushed many borrowers to delay 
important life decisions, including marriage, having children, or 
buying homes. Despite that, some still choose careers in public service 
to give back to their community and support our country.
  However, the immense burden of student loan debt is not put on pause 
while individuals choose to forgo other work opportunities to serve our 
Nation in the military or public service. Recognizing this, the Federal 
Government established two ways to alleviate some of this burden for 
those who serve our country.
  The Servicemember Civil Relief Act protects our servicemembers from 
interest rates above 6 percent on all loans while they are on Active 
Duty. This protection extends to both public and private student loans 
taken out preservice.
  Public service loan forgiveness encourages people to become public 
servants by forgiving student loan debt after 10 years of public 
service, including military service. Under this program; borrowers must 
enroll in a qualifying repayment plan and make 10 years of payments 
while working in public service before the loan is forgiven. 
Additionally, borrowers with Perkins or Federal Family Education Loans 
must consolidate their loans into a Direct Consolidation Loan.
  However, the act of consolidating these loans carries an unintended 
consequence for servicemembers. Currently, if a servicemember chooses 
to consolidate his or her preservice loans to qualify for public 
service loan forgiveness, those loans are no longer eligible for the 6 
percent interest rate cap provided under the Servicemember Civil Relief 
Act. The act of consolidating old debt for the purpose of enrolling 
public service loan forgiveness is treated as creating a new loan under 
current law, effectively forcing servicemembers to choose between the 6 
percent interest rate cap while they are on Active Duty and enrolling 
in a program that will forgive their loans after 10 years of service 
and steady payments.
  Requiring servicemembers to give up the interest rate cap while on 
Active Duty for a chance to earn loan forgiveness in the future was 
never the intention of Congress. Rather, in enacting the Public Service 
Loan Forgiveness Program and the Servicemember Civil Relief Act, 
Congress intended to support servicemembers burdened with student loan 
debt. We owe it to our servicemen to fix this unintended consequence.
  This week, Senator Duckworth and I reintroduced the Servicemember 
Student Loan Affordability Act. This bill would allow preservice 
private or Federal student loan debt to be consolidated or refinanced 
while retaining the 6 percent interest rate cap. This minor change to 
the law will have a significant impact on servicemembers with student 
loan debt by allowing them to get the benefits Congress intended for 
them.
  The bill is supported by the American Legion, the Association of 
United States Navy, the National Guard Association of the United 
States, the Retired Enlisted Association, the Paralyzed Veterans of 
America, Veteran Education Success, The Institute of College Access and 
Success, and the National Education Association.
  I urge my colleagues to consider this simple solution to help 
servicemembers. I hope they will join Senator Duckworth and myself and 
support the Servicemember Student Loan Affordability Act.

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