# Plain Language Summary: Servicemember Student Loan Affordability Act of 2025

## What This Bill Does

This bill extends financial protections to military service members who refinance or consolidate student loans they took out before joining the military. Specifically, it caps the interest rate at 6% on new consolidation or refinancing loans taken out **during** military service, matching protections that already exist for other debts incurred during service. Currently, the 6% interest rate cap only applies to debts taken on before military service—this bill extends that same protection to new loans used to pay off or combine old student loans.

## Who Benefits

The primary beneficiaries are active-duty service members and their spouses who want to refinance or consolidate student loans from before they enlisted. By capping interest rates at 6%, this bill could save military families significant money on monthly payments and total interest paid over the life of the loan. This is particularly helpful for service members who may face financial strain while serving.

## Key Changes

The bill modifies the Servicemembers Civil Relief Act by:
- **Adding a new 6% interest rate cap** specifically for consolidation or refinancing of pre-service student loans when done during military service
- **Defining "student loans"** to include both federal student loans and private education loans
- **Setting the effective date** for the interest rate reduction as the date the service member takes out the new consolidation/refinancing loan

The bill was introduced by Senator Dick Durbin and referred to the Senate Committee on Veterans' Affairs.