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senate Bill S. 895

Letting Soldiers Defer Student Loan Payments When They're Called to Active Duty

Argument in favor

It's only fair for members of the Armed Forces to be able to defer their student loan payments and freeze their credit reports before they’re deployed and serving their country, and increased GI Bill benefits will make education more attainable.

AndrewGVN's Opinion
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11/12/2015
The people serving our country should not have to worry about their student debts while making the ultimate sacrifice to our nation.
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William's Opinion
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11/11/2015
This shouldn't even be an issue. The fact this has to be made a law is just another example of the unmitigated greed of the banks. Only 1% of our eligible population are serving in defense of this country, if the banks can't suspend payments (and interest) during active duty there's something wrong with the entire system.
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THooper's Opinion
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11/12/2015
Due to the fact they are no longer able to receive their normal pay and that active duty pay is seldom equivalent, this should become mandatory. However I believe it falls under the soldiers and sailors act already.
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Argument opposed

Serving in the armed forces is an honorable thing, but it doesn't mean service members should get a free pass to defer student loan payments or freeze their credit reports. It's unfair to everyone else who can't defer their loans.

hrieniets's Opinion
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01/25/2016
I'm for the idea but this bill does not include deference of payments DURING service, only in the period between being called to service and actually serving. Fix this and I'm for the bill.
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Derek's Opinion
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11/12/2015
Can I defer mine until I find gainful employment? And I mean without accruing interest on them that negates everything I've paid so far?
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Marvin's Opinion
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12/17/2015
After being ill for almost 20 years, I finally got my student loans deferred. And last month, they approved forgiveness. However, that became income so guess what? IRS will be notified and I'll have to pay taxes on it. I couldn't afford to pay the Dept of Education payments. How will I be able to pay IRS? Does that make sense. I think I'll be a bag lady in a few years, with no place to rest my head or keep me warm. All I have will be taken from me. And all because I wanted to get a higher education but became disabled before I could do it. Thank!
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bill Progress


  • Not enacted
    The President has not signed this bill
  • The house has not voted
  • The senate has not voted
      senate Committees
      Committee on Veterans' Affairs
    IntroducedMarch 26th, 2015

What is Senate Bill S. 895?

This bill would allow members of the Armed Forces and National Guard to defer payments of principal on certain federal student loans for up to 180 days beginning when they receive a call or order to duty in connection to a war, military operation, or national emergency and ending on their first day of service. Current law also allows the deferment of principal payments during the period of service and for 180 days after their demobilization date.

Individuals whose call to duty is cancelled before their first day of service could defer payments of principal under the following circumstances:

  • If the cancellation is due to a service training injury, payments could be deferred for what would have been their service period;

  • If the cancellation is for any other reason, payments could be deferred for 14 days after the cancellation.

The Secretary of Defense would be directed to increase the rates of educational assistance payable to members of the selected reserve through the GI Bill. The increase will be equal or greater than the percentage by which the average cost of undergraduate tuition increased over the prior year. Current law bases this increase on the Consumer Price Index (CPI).

Upon the request of an active duty military consumer or an individual acting on their behalf, consumer reporting agencies would be required to:

  • Include an active duty freeze alert in the file of that consumer and also provide that alert with any credit score generated in using that file for at least 12 months;

  • Exclude the consumer for two years from any list of consumers prepared by the agency and provided to any third party to offer credit or insurance to the consumer as part of a transaction that wasn’t initiated by the consumer;

  • Refer the active duty freeze alert information to each of the other consumer reporting agencies that compile and maintain files on consumers on a nationwide basis.

Each active duty freeze alert would be required to notify prospective users of the consumer’s credit report that the consumer doesn’t authorize the following:

  • The establishment of any new credit plan or extension of credit in the consumer’s name;

  • The issuance of an additional credit card on an existing credit account requested by a consumer;

  • Any increase in the credit limit on an existing credit account requested by a consumer.

The Secretary of Veterans Affairs (VA) would be directed to report to Congress on the effects of using social security numbers to uniquely identify veterans on veterans’ privacy.

Impact

Servicemembers who are ordered to duty and their families, student loan servicers, credit reporting agencies and those requesting credit reports, and the VA.

Cost of Senate Bill S. 895

A CBO cost estimate is unavailable.

More Information

In-Depth: Sponsoring Sen. Jon Tester (D-MT) introduced this legislation because he believes:
“We need to fight for those who served our nation and provide a leg up for military and veteran students as they begin the next chapter in their lives. This bill provides a boost for men and women in uniform who are furthering their education so they get good-paying jobs.”


Media:

Summary by Eric Revell
(Photo Credit: Flickr user njnationalguard)

AKA

Servicemember and Veteran Protection Act of 2015

Official Title

A bill to allow members of the Armed Forces to defer principal on Federal student loans for a certain period in connection with receipt of orders for mobilization for war or national emergency, and for other purposes.

    The people serving our country should not have to worry about their student debts while making the ultimate sacrifice to our nation.
    Like (19)
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    Share
    I'm for the idea but this bill does not include deference of payments DURING service, only in the period between being called to service and actually serving. Fix this and I'm for the bill.
    Like (6)
    Follow
    Share
    This shouldn't even be an issue. The fact this has to be made a law is just another example of the unmitigated greed of the banks. Only 1% of our eligible population are serving in defense of this country, if the banks can't suspend payments (and interest) during active duty there's something wrong with the entire system.
    Like (8)
    Follow
    Share
    Due to the fact they are no longer able to receive their normal pay and that active duty pay is seldom equivalent, this should become mandatory. However I believe it falls under the soldiers and sailors act already.
    Like (6)
    Follow
    Share
    Duh. Does anyone actually oppose this? I you do raise your hand, then slap yourself.
    Like (5)
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    Can I defer mine until I find gainful employment? And I mean without accruing interest on them that negates everything I've paid so far?
    Like (3)
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    Defer? DEFER?! Why the hell aren't those who serve with an honorable discharge getting their student loans expunged? Yes, start with deferment, then expunge it altogether when/if they are honorably discharged.
    Like (3)
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    The last thing any active duty soldier should have to see while serving in the field is a past due credit statement.
    Like (3)
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    Federal student loans? Yes. Private student loans? No.
    Like (2)
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    We owe this to those who serve our country. I'll go a step further and advocate we forgive student loan debt by service to our country.
    Like (2)
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    It's not very easy to make payments while you're in an active combat zone...making phone calls can be tough
    Like (2)
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    After being ill for almost 20 years, I finally got my student loans deferred. And last month, they approved forgiveness. However, that became income so guess what? IRS will be notified and I'll have to pay taxes on it. I couldn't afford to pay the Dept of Education payments. How will I be able to pay IRS? Does that make sense. I think I'll be a bag lady in a few years, with no place to rest my head or keep me warm. All I have will be taken from me. And all because I wanted to get a higher education but became disabled before I could do it. Thank!
    Like (2)
    Follow
    Share
    Let me see if I understand the argument...the soldier has been called to active duty, possibly deployed into a combat zone, and needs to worry about making fucking student loan or any other freaking debt payments? Seriously? This is even an argument? Shut up and vote yeah.
    Like (2)
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    Being called to active duty can impose financial hardship on our service people, when their earnings as members of the armed forces are less than what they would normally make. This helps ease the financial burden that can result from their service.
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    Choosing to volunteer one's life for our country should come with benefits considering how young people are when they tend to join the military.
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    Of course always support soldiers
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    If they are deployed how are they supposed to make money to pay it off.
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    This is just a start for what should be done for those that risk their lives for our freedom.
    Like (1)
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    They shouldn't be burdened with student loan payments while they are serving in the military.
    Like (1)
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    We owe this to them,when illegals get free education
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