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Interest Rates & Protections for Servicemembers If you are an active duty military member, the Servicemembers Civil Relief Act (SCRA) caps the interest for loans and debts to 6% for loans taken out prior to your active duty entry. The SCRA protects servicemembers from actions while they are deployed until the time they leave active duty, including eviction, foreclosure, and defaults. For an interest rate reduction under the SCRA, two conditions must be met. First, the debt or obligation must have incurred prior to coming on active duty. Second, the ability to pay the debt or obligation must be materially affected by reason of military service. If you qualify and seek to lower your interest rate to 6%, you must send a written request to your loan servicer with a copy of your orders for active duty. You may submit a request during your active service and up to 180 days after your discharge. If you are seeking to retroactively obtain the SCRA interest rate cap, you must recalculate debt payments from your date of induction and request a refund. Under the SCRA, an interest rate over 6% must be forgiven. If you are unsure of whether you qualify for the SCRA interest rate cap or may retroactively obtain it, contact one of our attorneys today.