Financial Protections
Interest Forgiveness
50 U.S.C. § 3937(a)(2)
Definition
Under SCRA, excess interest above 6% is permanently forgiven, not deferred. This means servicemembers never have to pay back the interest that exceeds the cap during their period of military service.
Legal Reference
This term is defined in 50 U.S.C. § 3937(a)(2) of the Servicemembers Civil Relief Act.