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Letter to Secretary Duncan on Streamlining Servicemembers' Student Loan Interest Rate Benefits

Dear Secretary Duncan:

In preparation for the upcoming reauthorization of the Higher Education Act, the House Committee on Education and the Workforce has been collecting feedback from the higher education community, students, and their families on ways to strengthen the nation’s postsecondary education system. The responses received have led to several hearings in the Subcommittee on Higher Education and Workforce Training, including a recent hearing on supporting higher education opportunities for servicemembers and veterans and an upcoming hearing on simplifying the federal student loan system.

As part of this effort, I seek your thoughts on how Congress might streamline the processing of interest rate benefits for active duty servicemembers. As you know, under the Servicemembers Civil Relief Act (SCRA), the interest rate on federal and private student loans taken out by active duty servicemembers prior to military service are capped at 6 percent. However, recent reports indicate federal requirements under the law may be making it more difficult for servicemembers to access these important benefits.

To read the full letter, click here.

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