Sec. 103. Improvements concerning limitations on rates of interest on debts of members of uniformed services
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Section 207(a) of the Servicemembers Civil Relief Act ( 50 U.S.C. 3937(a) ), as amended by section 102(a), is further amended— in paragraph (1), in the matter before subparagraph (A)— by striking and inserting Limitation to 6 percent ; In general by striking 6 percent per year and inserting the rate specified in paragraph
(4); and by striking 6 percent— and inserting the rate specified in paragraph (4)— ; in paragraph (2)— by striking and inserting interest in excess of 6 percent ; and excess interest by striking 6 percent per year and inserting the rate specified in paragraph
(4); and by adding at the end the following new paragraph: The rate specified in this paragraph is— except as provided in subparagraph (B), three percent per year; and in the case of a servicemember who, during a period of military service, is eligible for special pay under section 310 of title 37, United States Code, zero percent per year for the duration of such period. . Section 207(b) of the Servicemembers Civil Relief Act ( 50 U.S.C. 3937(b) ), as amended by section 102(a)(2), is further amended— in paragraph (1), by striking In order and inserting Except as provided in paragraph (3)(A), in order ; and by adding at the end the following new paragraph: A servicer of a student loan issued or guaranteed by the Federal Government shall be considered to have received written notice concerning the student loan of an individual and a copy of military orders, as applicable, under paragraph
(1)whenever the Defense Manpower Data Center, or any successor database, changes the duty status of the individual in such a manner as to indicate that debts of the individual are subject to the rate limitation in subsection (a). Whenever a servicer of a student loan of a servicemember issued or guaranteed by the Federal Government forgoes interest on the student loan pursuant to paragraph
(1)of subsection
(a)or forgives interest pursuant to paragraph
(2)of such subsection, the servicer shall notify the servicemember of— the action taken by the servicer; and such rights as the servicemember may have under this Act or any other applicable provision of law. . Such section is further amended by adding at the end the following new paragraph: If a servicemember provides a creditor written notice and a copy of military orders pursuant paragraph
(1)in order to invoke a rate reduction under subsection
(a)with respect to a particular obligation or liability, such provision of notice shall be considered provision of notice to the creditor for purposes of invoking rate reductions under subsection
(a)for all obligations and liabilities of the servicemember serviced, owned, or held by the creditor. .
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Sec. 103
Improvements concerning limitations on rates of interest on debts of members of uniformed services
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