Sample Letter to Request 6% Loan Interest Rate

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Sample Letter to Request 6% Loan Interest Rate

This a sample letter you can use to lower your loan interest rate to 6% under the Servicemembers Civil Relief Act
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The Servicemembers Civil Relief Act and interest rates

When you go on active duty, it may be hard to keep up with all of your credit payments. This is especially true if you have loans with high interest rates. The Servicemembers Civil Relief Act (SCRA) may allow you to reduce your rate of interest on those pre-existing loans while you are on active duty.  This federal law sets a maximum interest rate of 6%.  (This includes service charges, renewal charges and fees.)
 

It applies in cases where your "active duty materially affects your ability to pay." For example, if you will lose income because of your military service. The form letter provided below may be able to help you to reduce your rate of interest on loans.

 
Do I qualify for this benefit?
 
  1. You must have taken on the debt before beginning active duty; and 
     
  2. You must show that your ability to pay the debt has been materially affected due to military service (such as reduced income). 
     
Do my student loans qualify for the 6% interest rate cap?
Privately financed student loans have always been subject to the interest rate cap provision of the Servicemembers Civil Relief Act (SCRA).  Since August 14, 2008, the Higher Education Opportunity Act has also made it possible for service members to use the SCRA to have their interest rate reduced to six (6) percent on federal student loans that were taken prior to their entry into active duty.
 
 

How to use this letter to request lower loan interest rate

This is a sample letter. All you need to do is answer a few simple questions. Then print out your form. The program will create a letter and instructions. You can use this to notify your lending institution that they cannot charge you more than six percent (6%) interest on your loan.
 
All you need to do is:
  • Download and customize your letter
  • Print out your form 
  • Proofread and sign it
  • Attach a copy of your Current Leave and Earnings Statement
  • Attach a copy of your Activation Orders 
  • Make copies for your own records 
  • Then send the original, with attachments, to your credit card company

 

This is a sample letter. You can customize and use this letter to notify your lending institution that they cannot charge you more than 6% interest on your loan.

 

  • Sample Form is attached.

 

Attachment Size
Sample Letter to Request 6% Loan Interest Rate under the SCRA.docx144.44 KB 144.44 KB
Sample Letter to Request 6% Loan Interest Rate under the SCRA.pdf332.67 KB 332.67 KB
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