I 
113TH CONGRESS 
1ST SESSION H. R. 2859 
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 HOUSE OF REPRESENTATIVES 
JULY 30, 2013 
Ms. DUCKWORTH introduced the following bill; which was 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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. INTEREST RATE LIMITATION ON DEBT EN-
TERED INTO DURING MILITARY SERVICE TO 
CONSOLIDATE 
OR 
REFINANCE 
STUDENT 
LOANS INCURRED BEFORE MILITARY SERV-
ICE. 
(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 fol-
lowing new paragraph (2): 
‘‘(2) LIMITATION TO 6 PERCENT ON DEBT IN-
CURRED DURING SERVICE TO CONSOLIDATE OR RE-
FINANCE STUDENT LOANS INCURRED BEFORE SERV-
ICE.—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 serv-
ice 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 
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in excess of 6 percent during the period of military 
service.’’; 
(4) in paragraph (3), as redesignated by para-
graph (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 
‘‘AS OF DATE OF ORDER TO ACTIVE DUTY’’; 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 li-
ability concerned under subsection (a)(2)’’. 
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(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, in-
sured, 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 Lend-
ing Act (15 U.S.C. 1650(a)).’’. 
Æ 
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