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#1364154 - 03/25/10 06:56 PM Adjusting the rate to 6%
Zuki Offline
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Zuki
Joined: Jul 2009
Posts: 13
Pacific Northwest
From what we read in the regulation, we cannot force an accelerated reduction in principal which would happen if we just change the interest rate of an active servicemember's loan to 6%.

The only way we see to accomplish this is to manually calculate what the interest portion of the payment would have been under the old rate, calculate the interest portion using the 6% rate, find the difference, and reduce the original payment by that difference. Every month. For every loan.

Has anyone found an easier way to do this? What are the implications if we just change it to 6% and call it good?

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Lending to Servicemembers (SCRA, JWNDAA), War, Terrorism
#1364462 - 03/26/10 01:30 AM Re: Adjusting the rate to 6% Zuki
Andy_Z Offline
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Andy_Z
Joined: Oct 2000
Posts: 27,455
On the Net
The law actually requires more than this, but it is generally deemed sufficient to lower the rate to 6% and turn off fees. Fees would be interest, so if the rate is at 6%, no fees.That should suffice for anyone who asks.
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