Which members of the military are protected by the SCRA?
The SCRA protects all branches of the U.S. Armed Forces, including the Army, Navy, Marines, Air Force, Coast Guard and Space Force.
In addition, the SCRA protects:
- Reservists called to Active Duty
- Members of the National Guard called to Active Duty pursuant to U.S. Code Title 10 or called to federal active service for more than 30 consecutive days under U.S. Code Title 32 section 502(f)
- Commissioned officers of the Public Health Service and National Oceanic and Atmospheric Administration engaged in active service
- U.S. citizens who are serving in the armed forces of a U.S. allied nation during the joint prosecution of a war or military action
Who isn't covered by the SCRA?
- Retired military personnel
- Members of the National Guard who haven't been called to Active Duty or who haven't been called to federal active service for a period of more than 30 consecutive days
- Servicemembers who applied for SCRA, and the request was submitted to Navy Federal greater than 180 days after their last day of Active Duty. As an SCRA requirement, a servicemember must apply no later than 180 days after the last day of Active Duty.
Are all my accounts eligible for SCRA interest rate reductions?
The following accounts are eligible for SCRA protection, provided the debt was incurred before going on Active Duty:
- Consumer loans (such as auto loans and personal loans)
- Credit cards
- Education loans (both federal and privately funded)
- Checking lines of credit
- Mortgages (such as first mortgages, fixed equity and home equity lines of credit)
- Business loans
I took out a loan as a full-time member of the military but before I was deployed overseas. Does my loan qualify for the 6% interest rate cap because of my deployment?
No, the SCRA caps the interest rate for pre-service debt only. SCRA interest rate benefit coverage isn't affected by deployment. Only loans you took out prior to Active Duty are covered by the SCRA.
I’m in the National Guard, and I was called to active service by the governor of my state for a state-related matter. Is the debt I incurred prior to this activation eligible for the 6% rate cap under SCRA?
No, for members of the National Guard, the SCRA extends protections for individuals called to Active Duty under Title 10 of United States Code (i.e., overseas combat) for any period or called to federal active service for more than 30 consecutive days in response to a national emergency or disaster declared by the President and supported by federal funds under Title 32 Section 502(f) of the United States Code. A call to active service by the governor of a state for a state mission that doesn't involve Title 32 Section 502(f) dollars doesn't qualify under the SCRA.
When you submit your SCRA request, please indicate if you’re also requesting benefits for a specific state. Your request will be reviewed for eligible benefits and protections for both federal SCRA and the state benefits in your request.
I incurred debt during a period of Active Duty, prior to my current Active Duty period. There was even an interruption between these 2 periods of Active Duty. Is the debt in question considered “pre-service” and, therefore, eligible for the SCRA 6% rate cap?
No, if the debt you incurred happened during an Active Duty period, it’s not eligible for SCRA. Only debt incurred during a civilian period, prior to Active Duty, is considered eligible.
I’m deploying and have been on Active Duty for the last several years; will Navy Federal reduce my interest rate?
The SCRA interest rate protection only applies to debts incurred prior to going on Active Duty. Deployments aren't covered by SCRA for purpose of reducing interest rates.
I am on Active Duty in the military, but my spouse isn't. Does the debt my spouse incurred in their name alone before I joined the military qualify for an SCRA rate reduction?
The SCRA protection is available for pre-service debt belonging to the servicemember alone or to the servicemember and a spouse jointly. Debt held by a non-servicemember spouse or non-spouse isn't subject to SCRA coverage. There are certain state laws that provide benefits for spousal coverage, but these laws require a case-by-case analysis. When you submit your SCRA request, please indicate if you're also requesting benefits for a specific state. Your request will be reviewed for eligible benefits and protections for both federal SCRA and the state benefits in your request.