II
113th CONGRESS
1st Session
S. 1399
IN THE SENATE OF THE UNITED STATES
July 30, 2013
Mr. Durbin introduced the following bill; which was read twice and referred to the Committee on Veterans' Affairs
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.
Interest rate limitation on debt entered into during military service to consolidate or refinance student loans incurred before military service
In general
Subsection (a) of section 207 of the Servicemembers Civil Relief Act (50 U.S.C. App. 527) is amended—
in paragraph (1),
by inserting on debt
incurred before service
after Limitation to 6
percent
;
by redesignating paragraphs (2) and (3) as paragraphs (3) and (4), respectively;
by inserting after paragraph (1) the following new paragraph (2):
Limitation to 6 percent on debt incurred during service to consolidate or refinance student loans incurred before service
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.
;
in paragraph (3),
as redesignated by paragraph (2) of this subsection, by inserting or
(2)
after paragraph (1)
; and
in paragraph (4),
as so redesignated, by striking paragraph (2)
and inserting
paragraph (3)
.
Implementation of limitation
Subsection (b) of such section is amended—
in paragraph (1),
by striking the interest rate limitation in subsection (a)
and
inserting an interest rate limitation in paragraph (1) or (2) of
subsection (a)
; and
in paragraph (2)—
in the paragraph
heading, by striking as of
date of order to active duty
; and
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)
.
Student loan defined
Subsection (d) of such section is amended by adding at the end the following new paragraph:
Student loan
The term student loan means the following:
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.).
A private student loan as that term is defined in section 140(a) of the Truth in Lending Act (15 U.S.C. 1650(a)).
.