SCRA Interest Savings Calculator

Frequently Asked Questions

Does SCRA apply to debt I took on after entering active duty?

No - only debt incurred before entering active duty qualifies for the 6% interest cap. Post-activation debt is subject to normal market rates.

Does the cap apply automatically?

No - you must request it in writing with a copy of your orders. Lenders are then required to apply it retroactively to your activation date.

Does SCRA cover federal student loans?

Federal student loans have their own 0% interest benefit during active duty under a separate provision; SCRA's 6% cap generally applies to private student loans, not federal ones.

What else does SCRA cover?

Penalty-free lease termination on PCS or 90+ day orders, protection from mortgage foreclosure during active duty, and a 90-day stay of civil court proceedings if military service materially affects your ability to respond.

Does SCRA cover reservists?

Yes - reservists and Guard members called to active duty on qualifying orders get SCRA coverage on debt incurred before activation.

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This calculator provides estimates for informational purposes only. Results are based on assumptions and may not reflect actual outcomes. Consult qualified professionals in relevant fields before making important decisions based on these results.

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How It Works

Under the Servicemembers Civil Relief Act (SCRA), interest on debt you incurred before active duty is capped at 6% per year during your active-duty service. The savings come from the rate gap: the difference between your actual interest rate and the 6% cap, applied to your outstanding balance for the duration of coverage.

Mortgages get an additional one-year window after the end of active service where the 6% cap continues. This calculator estimates your monthly, annual, and total interest savings from the SCRA rate reduction, based on your current balance, current rate, active-duty duration, and whether you include the post-service mortgage window.

Eligibility

SCRA protections apply to active-duty service members and, in some cases, to reservists called to active duty. Key criteria include:

The debt must have been incurred before entering active duty - SCRA does not cap rates on debt taken on after activation.

Your current interest rate must exceed 6% for there to be any benefit.

You must request the rate reduction in writing and provide a copy of your military orders to the lender.

The lender is required to apply the 6% retroactively to your activation date and refund excess interest already paid.

Reservists called to active duty qualify for SCRA protection on their pre-activation debts.

Tips

Send your written SCRA request and orders copy to every lender as soon as you receive orders - the retroactive application saves money from activation date, not from the date you notify the lender.

The SCRA interest cap applies to credit cards, auto loans, mortgages, personal loans, and private student loans incurred before service - review all your debts, not just the most obvious ones.

SCRA also covers penalty-free lease termination with 30 days' written notice and a copy of orders (90+ day orders required), protection from foreclosure, and a 90-day stay of civil legal proceedings.

After the service period (and for mortgage loans, after the additional one-year window), rates can return to the original contracted rate. Monitor your statements for automatic reset.

Military OneSource provides free legal consultations with JAG attorneys who can verify your specific SCRA rights and help draft the lender notification letter.

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