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6% Interest Cap on Student Loans for Servicemembers, Including Refinancing

This Act extends financial protection for servicemembers by capping the interest rate on their student loans at 6% per year. Crucially, this cap now applies to new loans taken out during military service specifically to consolidate or refinance pre-service student debt. This measure aims to alleviate financial burdens on military personnel, enhancing their financial stability while they serve.
Key points
The maximum interest rate on student loans (federal and private) for servicemembers is capped at 6% during their period of military service.
The 6% cap is extended to cover new obligations incurred by a servicemember (or jointly with a spouse) during service, provided they are used to consolidate or refinance student loans taken out before service.
This change ensures that servicemembers are protected from high interest costs on educational debt, even when actively managing their loans through consolidation while on duty.
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Additional Information
Print number: 118_S_4645
Sponsor: Sen. Durbin, Richard J. [D-IL]
Process start date: 2024-07-09
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Summarized by: gemini-flash-latest
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Servicemember Student Loan Affordability Act of 2024

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_S_4645.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2024-07-09.

What are the main provisions?

Key points include:

  • The maximum interest rate on student loans (federal and private) for servicemembers is capped at 6% during their period of military service.
  • The 6% cap is extended to cover new obligations incurred by a servicemember (or jointly with a spouse) during service, provided they are used to consolidate or refinance student loans taken out before service.
  • This change ensures that servicemembers are protected from high interest costs on educational debt, even when actively managing their loans through consolidation while on duty.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Durbin, Richard J. [D-IL].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-26.

CATEGORIES

Benefits Education Security