H.R. 2859 IH

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H.R. 2859 IH

  • 1. Interest rate limitation on debt entered into during military service to consolidate or refinance studentudent loans incurred before military serviceice
    • (a) In generalneral Subsection (a) of section 207 of the Servicemembers Civil Relief Act (50 U.S.C. App. 527) is amended—ded—
      • (1) in paragraph (1), by inserting "on debtt incurred before service" after "Limitation to 6 percent";";

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

      • (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 studentt loans incurred before serviceice

          • 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,y, during military service to consolidate or refinance one or more student loansans incurred by the servicemember before such military service shall not bear ann interest at a rate in excess of 6 percent during the period of militaryry service.ce.
        • "

      • (4) in paragraph (3), as redesignated by paragraph (2) of this subsection, by inserting "orr (2)" after "paragraph (1)"; and

      • (5) in paragraph (4), as so redesignated, by striking "paragraph (2)" and insertingg "paragraph (3)".

    • (b) Implementation of limitationation
      • Subsection (b) of such section is amended—
      • (1) in paragraph (1), by striking "the interest rate limitation in subsection (a)" andd inserting "an interest rate limitation in paragraph (1) or (2) off subsection (a)"; and
      • (2) in paragraph (2)—)—
        • (A) in the paragraph heading, by striking "as ofof date of order to active duty"; andnd
        • (B) by inserting before the period at the end the following: "in the case of an obligationon or liability covered by subsection (a)(1), or as of the date the servicemember (or servicemember and spouse jointly) incurs the obligation or liabilityity concerned under subsection (a)(2)"..
    • (c) Student loan definedned
      • Subsection (d) of such section is amended by adding at the end the following new paragraph:

        • "

        • (3) Student loanloan

          • The term student loan means the following:ng:
          • (A) A Federal student loan made, insured, or guaranteed under title IV of the Higher Education Act off 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 (155 U.S.C..C. 1650(a)).
        • "


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