Called to Active Duty? Your Loans Have Protections
The Servicemembers Civil Relief Act caps interest at 6.00% APR* on loans you took out before entering active duty service, when that service materially affects your ability to repay.
What the Act Does and Does Not Do
The Servicemembers Civil Relief Act applies only to loans to persons on active duty service that were made prior to entry into service, and applies only if active service materially affects the debtor's ability to repay the loan.
The act does not cancel the obligation to repay. It provides protection against legal action to force payment or to repossess loan collateral held by the debtor as security for the loan.
The primary protection provided by the act is a rollback of interest rates charged on the loan contract to 6.00% APR.*
Three Steps to Apply It
Gather Your Orders
Your active duty orders establish your entry date, which determines which loans qualify as pre-service.
We Review and Apply
We confirm eligibility and apply the rate protection to qualifying loans. The obligation continues, at a rate the law caps.
Disclosure
*APR = Annual Percentage Rate.
Your Service Should Never Cost You Your Financial Footing
Ask ACU whether your pre-service loans qualify for SCRA rate protection.
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