Servicemember Student Loan Affordability Act of 2025

Senate Bill

S. 3253

119th Congress

Servicemember Student Loan Affordability Act of 2025

In Committee

Introduced:Nov 20, 2025

Primary Sponsor

Richard Durbin

D - IL

Cosponsors

5

Quick Stats

Policy Area

Armed Forces and National Security

Summary

Extends the Servicemembers Civil Relief Act's 6% interest rate cap to cover student loans that servicemembers consolidate or refinance during military service if those original loans were taken out before service. Currently, the SCRA only caps interest on pre-service debt, leaving servicemembers paying higher rates on consolidation loans even when consolidating eligible pre-service student loans.

Latest Action

Read twice and referred to the Committee on Veterans' Affairs. (text: CR S8278)

AI Summary

Plain-English explanation of this bill

Extends the Servicemembers Civil Relief Act's 6% interest rate cap to cover student loans that servicemembers consolidate or refinance during military service if those original loans were taken out before service. Currently, the SCRA only caps interest on pre-service debt, leaving servicemembers paying higher rates on consolidation loans even when consolidating eligible pre-service student loans.

Last updated: 12/27/2025

Key Points

Main provisions of the bill

Extends 6% interest rate cap to student loan consolidation/refinancing done during active duty
Only applies when consolidating loans that were originally incurred before military service
Covers both federal Title IV loans and private education loans
Protection lasts for duration of military service
Applies to loans taken jointly with spouse as well
Sponsored by Senator Durbin with bipartisan cosponsors

How This Impacts Americans

Potential effects on citizens and communities

Directly benefits active-duty servicemembers carrying student loan debt. Servicemembers who refinance pre-service student loans during deployment would save money through capped interest rates. Reduces financial burden on military families and addresses a loophole where consolidation loans weren't covered by existing SCRA protections.

Policy Areas

Primary Policy Area

Armed Forces and National Security

Scope & Jurisdiction

Jurisdiction Level

federal

Congressional Session

119th Congress

Citation Reference

3253, 119th Congress (2025). "Servicemember Student Loan Affordability Act of 2025". Source: Voter's Right Platform. https://votersright.org/bills/119-s-3253