The SCRA Benefits You Might Be Missing

The Servicemembers Civil Relief Act (SCRA) provides powerful financial protections for active duty military members. But here's the problem: most service members don't realize the full scope of what they qualify for. According to the Consumer Financial Protection Bureau, millions of dollars in SCRA benefits go unclaimed every year.

After helping thousands of service members claim their benefits, we've identified five eligibility scenarios that are consistently overlooked.

1. Pre-Service Student Loans (Even Private Ones)

If you took out student loans before joining the military, those loans qualify for SCRA's 6% interest rate cap. This includes:

  • Federal student loans (Stafford, PLUS, Perkins)
  • Private student loans from banks and credit unions
  • Consolidated student loans
  • Parent PLUS loans (if you're the student who benefited)

Many service members assume only federal loans qualify, but the SCRA applies to all pre-service obligations regardless of the lender. If you're paying 8%, 10%, or even 12% on private student loans, you could reduce that to 6%.

2. Credit Cards You Forgot About

That retail store credit card you opened in college? The gas station card from your hometown? If you opened any credit card before your active duty start date, it qualifies for SCRA protection.

Common overlooked credit accounts include:

  • Department store cards (Macy's, Kohl's, Target)
  • Gas station cards
  • Furniture store financing
  • Electronics store cards (Best Buy, etc.)
  • Medical payment plans opened before service

Even if the balance is small, if the interest rate is above 6%, you're entitled to relief.

3. Co-Signed Loans Where You're the Service Member

Here's a scenario we see constantly: a parent co-signed a car loan or student loan with their child. The child then joins the military. That loan qualifies for SCRA protection because one of the obligors is now on active duty.

This works for:

  • Parent-cosigned auto loans
  • Parent-cosigned student loans
  • Spouse-cosigned personal loans
  • Any joint obligation where one party is now active duty

4. Mortgages Taken Out Before Orders (Including Refinances)

If you bought a home before receiving your active duty orders, that mortgage qualifies. But here's what many miss: if you refinanced that mortgage before going active duty, the refinance also qualifies.

The key date is when the obligation was incurred. If your original mortgage and any refinances happened before your active duty start date, SCRA applies to the current loan.

5. Guard and Reserve Members on Title 10 Orders

This is the most commonly overlooked eligibility scenario. National Guard and Reserve members are fully covered by SCRA when activated under Title 10 orders for more than 30 consecutive days.

What many don't realize:

  • SCRA protections begin on the date you receive orders, not the date you report
  • You can apply for benefits retroactively once activated
  • Annual training (AT) orders of 30+ days may qualify
  • COVID-19 activations qualified for SCRA protection

What to Do Next

If any of these scenarios apply to you, you may have been overpaying interest for months or even years. The good news: SCRA benefits can be applied retroactively, and lenders are required to refund any excess interest you've paid since your active duty start date.

Start by gathering your active duty orders and a list of all debts you incurred before service. Then contact each lender or use a service like SCRA Saver to file your claims efficiently.

Don't leave money on the table. These benefits exist specifically to ease the financial burden of military service—but only if you claim them.