1. Interest rate limitation on debt entered into during military service to consolidate or refinance student loans incurred before military service (a) In general Subsection (a) of section 207 of the Servicemembers Civil Relief Act ( 50 U.S.C. App. 527 ) is amended— (1) in paragraph (1), by inserting on debt incurred before service after Limitation to 6 percent ; (2) by redesignating paragraphs (2) and (3) as paragraphs (3) and (4), respectively; (3) by inserting after paragraph (1) the following new paragraph (2): (2) Limitation to 6 percent on debt incurred during service to consolidate or refinance student loans incurred before service An obligation or liability bearing interest at a rate in excess of 6 percent per year that is incurred by a servicemember, or the servicemember and the servicemember's spouse jointly, during military service to consolidate or refinance one or more student loans incurred by the servicemember before such military service shall not bear an interest at a rate in excess of 6 percent during the period of military service. ; (4) in paragraph (3), as redesignated by paragraph (2) of this subsection, by inserting or (2) after paragraph (1) ; and (5) in paragraph (4), as so redesignated, by striking paragraph (2) and inserting paragraph (3) . (b) Implementation of limitation Subsection (b) of such section is amended— (1) in paragraph (1), by striking the interest rate limitation in subsection (a) and inserting an interest rate limitation in paragraph (1) or (2) of subsection (a) ; and (2) in paragraph (2)— (A) in the paragraph heading, by striking effective as of date of order to active duty and inserting effective date