S. 3253Senate119th Congress (2025-2027)In Committee

Servicemember Student Loan Affordability Act of 2025

Introduced November 20, 2025

AI-Generated Summary

Updated December 18, 2025 at 6:41 AM UTC

The Servicemember Student Loan Affordability Act of 2025 amends the Servicemembers Civil Relief Act to give active‑duty servicemembers a 6% interest‑rate ceiling on loans they take out to consolidate or refinance student loans they already owe. By extending the existing interest‑rate protection to these student‑loan‑related debts, the bill aims to make higher‑education borrowing more affordable for military personnel and their spouses.

Key Provisions

  • Adds a new 6% interest‑rate cap for any debt a servicemember (or the servicemember and spouse together) takes on while on active duty to consolidate or refinance student loans that were taken out before military service.
  • Expands the existing SCRA interest‑rate limitation to cover this new type of debt, making it subject to the same 6% cap as other service‑related debt.
  • Defines “student loan” to include both federal student loans covered by the Higher Education Act and private education loans defined under the Truth in Lending Act.
  • Updates implementation language and effective‑date rules so the new limitation applies from the date the servicemember incurs the consolidation or refinancing debt.

Legislative Activity

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1 earlier action
SenateIntro Referral Latest Action

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

November 20, 2025

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SenateIntro Referral

Introduced in Senate

November 20, 2025

SenateIntro Referral

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

November 20, 2025

Floor Debate

2 members

What members said about S. 3253 on the floor

1 Republican1 Democrat
Susan M. Collins
Sen. Susan M. CollinsR-ME · Nov 20, 2025

Mr. President, I rise to introduce the Alzheimer's Screening and Prevention ASAP Act. This bill would require the Centers for Medicare & Medicaid Services to cover FDA-approved blood-based biomarker…

Richard J. Durbin
Sen. Richard J. DurbinD-IL · Nov 20, 2025

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

Richard J. Durbin
Sen. Richard J. DurbinD-IL · Nov 20, 2025

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

Bill Text

Latest available legislative text

Reading Mode
Latest
Introduced in SenateIssued November 20, 2025

II

119th CONGRESS

1st Session

S. 3253

IN THE SENATE OF THE UNITED STATES

November 20, 2025

Mr. Durbin (for himself, Ms. Duckworth, and Mrs. Gillibrand) 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, and for other purposes.

1.

Short title

This Act may be cited as the Servicemember Student Loan Affordability Act of 2025.

2.

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. 3937) 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 military service to consolidate or refinance student loans incurred before military service

(A)

In general

Subject to subparagraph (B), 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.

(B)

Limitation

Subparagraph (A) shall apply only to the consolidation or refinancing of student loans described in such subparagraph and shall not apply to the consolidation or refinancing of any other obligation or liability.

;

(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)(A), 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—

(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.); or

(B)

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

.