Servicemember Student Loan Affordability Act of 2024

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) in paragraph (2), by inserting or (2) after paragraph (1);

(3) in paragraph (3), by striking paragraph (2) and inserting paragraph (3);

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

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

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 a student loan 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.

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.

Subsection (b) of such section is amended—

(1) in paragraph (1)(A), by striking the interest rate limitation and inserting an interest rate limitation; and

(2) in paragraph (2)—

(A) by striking the heading and inserting Effective date of limitation; and

(B) by inserting before the period at the end the following: in the case of an obligation or liability described in paragraph (1) of such subsection, or as of the date on which the servicemember incurs (or the servicemember and spouse jointly incur) the obligation or liability described in paragraph (2) of such subsection.

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

The term student loan means any of 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 education loan, as such term is defined in section 140(a) of the Truth in Lending Act (15 U.S.C. 1650(a)).