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Interest Rate Cap Extended for Servicemembers' Refinanced Student Loans

This act expands financial protection for active duty servicemembers. It ensures that if a servicemember consolidates or refinances student loans incurred before service, the new consolidated loan will also be subject to the maximum 6% interest rate cap during their period of military service. This aims to reduce the cost of debt management and provide greater flexibility in personal finance for those serving in the military.
Key points
The 6% interest rate cap on student loans is extended to new debt incurred during service specifically for consolidating or refinancing pre-service student loans.
This change applies only to the consolidation or refinancing of student loans originally taken out before military service.
Active duty servicemembers gain greater flexibility in managing student debt without losing protection against high interest rates.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_S_3253
Sponsor: Sen. Durbin, Richard J. [D-IL]
Process start date: 2025-11-20
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-2.5-flash-preview-09-2025
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Servicemember Student Loan Affordability Act of 2025

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_S_3253.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2025-11-20.

What are the main provisions?

Key points include:

  • The 6% interest rate cap on student loans is extended to new debt incurred during service specifically for consolidating or refinancing pre-service student loans.
  • This change applies only to the consolidation or refinancing of student loans originally taken out before military service.
  • Active duty servicemembers gain greater flexibility in managing student debt without losing protection against high interest rates.
What is the specific legal status?

The current status is Introduced.

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 2025-12-23.

CATEGORIES

Benefits Education