S. 3253 — Servicemember Student Loan Affordability Act of 2025

This section expands the Servicemembers Civil Relief Act's 6% interest rate cap during military service—previously limited to debts incurred before service—to also cover obligations incurred by a servicemember (or jointly with a spouse) during service solely to consolidate or refinance student loans incurred before service. (As background, the act provides financial protections to servicemembers on active duty, including the interest cap on pre-service debts.) It defines student loan as a federal loan under title IV of the Higher Education Act of 1965 or a private education loan (i.e., as defined in 15 U.S.C. 1650(a)), revises implementation procedures to specify effective dates for the cap, and makes conforming amendments.