II 

113TH CONGRESS 

1ST SESSION S. 1399 

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. 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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•S 1399 IS

1 SECTION 1. INTEREST RATE LIMITATION ON DEBT EN2 TERED INTO DURING MILITARY SERVICE TO 

3 CONSOLIDATE OR REFINANCE STUDENT 

4 LOANS INCURRED BEFORE MILITARY SERV5 ICE. 

6 (a) IN GENERAL.—Subsection (a) of section 207 of 

7 the Servicemembers Civil Relief Act (50 U.S.C. App. 527) 

8 is amended— 

9 (1) in paragraph (1), by inserting ‘‘ON DEBT

10 INCURRED BEFORE SERVICE’’ after ‘‘LIMITATION TO

11 6 PERCENT’’; 

12 (2) by redesignating paragraphs (2) and (3) as 

13 paragraphs (3) and (4), respectively; 

14 (3) by inserting after paragraph (1) the fol15 lowing new paragraph (2): 

16 ‘‘(2) LIMITATION TO 6 PERCENT ON DEBT IN17 CURRED DURING SERVICE TO CONSOLIDATE OR RE18 FINANCE STUDENT LOANS INCURRED BEFORE SERV19 ICE.—An obligation or liability bearing interest at a 

20 rate in excess of 6 percent per year that is incurred 

21 by a servicemember, or the servicemember and the 

22 servicemember’s spouse jointly, during military serv23 ice to consolidate or refinance one or more student 

24 loans incurred by the servicemember before such 

25 military service shall not bear an interest at a rate 


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•S 1399 IS

1 in excess of 6 percent during the period of military 

2 service.’’; 

3 (4) in paragraph (3), as redesignated by para4 graph (2) of this subsection, by inserting ‘‘or (2)’’ 

5 after ‘‘paragraph (1)’’; and 

6 (5) in paragraph (4), as so redesignated, by 

7 striking ‘‘paragraph (2)’’ and inserting ‘‘paragraph 

8 (3)’’. 

9 (b) IMPLEMENTATION OF LIMITATION.—Subsection 

10 (b) of such section is amended— 

11 (1) in paragraph (1), by striking ‘‘the interest 

12 rate limitation in subsection (a)’’ and inserting ‘‘an 

13 interest rate limitation in paragraph (1) or (2) of 

14 subsection (a)’’; and 

15 (2) in paragraph (2)— 

16 (A) in the paragraph heading, by striking 

17 ‘‘AS OF DATE OF ORDER TO ACTIVE DUTY’’; and 

18 (B) by inserting before the period at the 

19 end the following: ‘‘in the case of an obligation 

20 or liability covered by subsection (a)(1), or as of 

21 the date the servicemember (or servicemember 

22 and spouse jointly) incurs the obligation or li23 ability concerned under subsection (a)(2)’’. 


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•S 1399 IS

1 (c) STUDENT LOAN DEFINED.—Subsection (d) of 

2 such section is amended by adding at the end the following 

3 new paragraph: 

4 ‘‘(3) STUDENT LOAN.—The term ‘student loan’ 

5 means the following: 

6 ‘‘(A) A Federal student loan made, in7 sured, or guaranteed under title IV of the 

8 Higher Education Act of 1965 (20 U.S.C. 1070 

9 et seq.). 

10 ‘‘(B) A private student loan as that term 

11 is defined in section 140(a) of the Truth in 

12 Lending Act (15 U.S.C. 1650(a)).’’. 

Æ 


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