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S. 1619Senate115th Congress (2017-2019)In Committee

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.

Sponsored by Richard J. DurbinSen. Richard J. Durbin (D-IL)
Introduced July 24, 2017

AI-Generated Summary

Updated April 15, 2026 at 5:30 PM UTC

The bill changes the Servicemembers Civil Relief Act so that the existing 6% interest‑rate cap, which applies to debt taken out while on active duty, also covers debt that a servicemember (or the servicemember and spouse together) incurs during service to consolidate or refinance student loans that were taken before entering the military. It therefore protects servicemembers from high‑interest rates on refinanced student loans while they are serving.

Key Provisions

  • Adds a new provision that limits the interest rate to 6% per year on any debt incurred during military service for the purpose of consolidating or refinancing student loans that were taken before service.
  • Updates the existing language of the Act to reference the new provision alongside the original interest‑rate limitation.
  • Clarifies that the limitation applies for the entire period of military service, starting when the servicemember (or the servicemember and spouse jointly) incurs the consolidation or refinancing debt.
  • Defines “student loan” to include both federal student loans covered by the Higher Education Act and private student loans as defined in the Truth in Lending Act.

Legislative Activity

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1 earlier action
SenateIntro Referral Latest Action

Read twice and referred to the Committee on Veterans' Affairs. (text of measure as introduced: CR S4137-4138)

Veterans' Affairs Committee

July 24, 2017

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SenateIntro Referral

Introduced in Senate

July 24, 2017

SenateIntro Referral

Read twice and referred to the Committee on Veterans' Affairs. (text of measure as introduced: CR S4137-4138)

Veterans' Affairs Committee

July 24, 2017

Floor Debate

2 members

What members said about S. 1619 on the floor

1 Republican1 Democrat
John Cornyn
Sen. John CornynR-TX · Jul 24, 2017

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Record
Richard J. Durbin
Sen. Richard J. DurbinD-IL · Jul 24, 2017

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Record
Richard J. Durbin
Sen. Richard J. DurbinD-IL · Jul 24, 2017

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Record

Bill Text

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Introduced in SenateIssued July 24, 2017

II

115th CONGRESS

1st Session

S. 1619

IN THE SENATE OF THE UNITED STATES

July 24, 2017

Mr. Durbin (for himself and Ms. Duckworth) 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.

1.

Interest rate limitation on debt entered into during military service to consolidate or refinance student loans incurred before military service

(a)

In general

Subsection (a) of section 207 of the Servicemembers Civil Relief Act (50 U.S.C. App. 527) is amended—

(1)

in paragraph (1), by inserting on debt incurred before service after Limitation to 6 percent;

(2)

by redesignating paragraphs (2) and (3) as paragraphs (3) and (4), respectively;

(3)

by inserting after paragraph (1) the following new paragraph (2):

(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.

;

(4)

in paragraph (3), as redesignated by paragraph (2) of this subsection, by inserting or (2) after paragraph (1); and

(5)

in paragraph (4), as so redesignated, by striking paragraph (2) and inserting paragraph (3).

(b)

Implementation of limitation

Subsection (b) of such section is amended—

(1)

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

(2)

in paragraph (2)—

(A)

in the paragraph heading, by striking effective as of date of order to active duty and inserting effective date; and

(B)

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).

(c)

Student loan defined

Subsection (d) of such section is amended by adding at the end the following new paragraph:

(3)

Student loan

The term student loan means the following:

(A)

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.).

(B)

A private student loan as that term is defined section 140(a) of the Truth in Lending Act (15 U.S.C. 1650(a)).

.