Susan Davis: “Last year Congress passed a budget reconciliation bill that allows servicemembers to get a deferment on their student…”

“Last year Congress passed a budget reconciliation bill that allows servicemembers to get a deferment on their student loans when they are activated, but that particular deferment only applies to repayment of the principle and existing interest on these loans. It does not prevent new interest from accruing while our servicemembers are on active duty. One Reservist told me that while he was granted a deferment on his loan, he was told that the interest would continue to accrue while he was away and would be added on to his loan when he returned. Servicemembers such as this Reservist already have enough to worry about when they are called to active duty without this added burden. This amendment will cover all active duty servicemembers, including Reserve units and the National Guard. According to CRS estimates, this will help the average servicemember save between $1,200 and $1,500 over the course of a 12- to 15-month activation period, with even more savings for those activated for longer periods. In addition, and the best part, the CBO scored this amendment and found that it will not cost the American taxpayer any significant amount. I urge my colleagues to support this amendment.”