PenFed SCRA Benefits: 6% Cap and How to File
Part of: The Complete Guide to the SCRA
PenFed is one of the largest credit unions in the country and a heavily military membership, so its SCRA servicing is built to expect orders, activations, and PCS moves. The cap it applies is the statutory 6%, but it reaches across your whole relationship: cards, auto, mortgage, and personal loans on a single filing.
On a $15,000 pre-service balance, dropping from a typical card rate to 6% is real money every month, and PenFed forgives the excess rather than deferring it.
What you get
| Feature | Statutory SCRA | PenFed |
|---|---|---|
| Rate cap on pre-service debt | 6% APR | 6% APR, applied across loan types |
| Loans covered | Any creditor | Cards, auto, mortgage, personal, student, installment |
| Interest above 6% | Forgiven, payment reduced | Forgiven, payment reduced |
| How to file | Written notice plus orders | Upload orders at PenFed.org/secureupload |
| Window to file | Up to 180 days after service | Same |
The cap, the retroactivity to your duty start date, and the forgiveness of excess interest come from § 3937 and bind every lender, PenFed included.
How to apply
File your SCRA request with PenFed
- Gather your active-duty orders covering the service period, and list every PenFed account you opened before active duty.
- Upload your orders at PenFed.org/secureupload, or contact PenFed member services to open the request.
- Attach a § 3937 letter from the letter generator as your written notice.
- Confirm the 6% rate and the retroactive adjustment to your duty start date on your next statements.
- File within 180 days of leaving active duty, and update PenFed if your orders extend.
Things people trip on
Being a PenFed member is not the same as filing. Membership does not auto-apply the cap. You still have to send orders and request it on each pre-service account.
Pre-service only. The 6% cap covers debt you opened before active duty. A card or loan opened during service falls under the Military Lending Act, not the SCRA cap.
No published sub-6% rate, and that is fine. PenFed sticks to the statutory 6%. Where an issuer advertises a voluntary 4% or 0%, that number can be withdrawn. Your 6% floor cannot. See who beats the cap on the bank leaderboard.
The law behind this: 50 U.S.C. § 3937
Maximum rate of interest on debts incurred before military service — read the statute.
Frequently asked questions
Does PenFed go below the 6% SCRA cap?
PenFed applies the statutory 6% cap and forgives interest above it on eligible pre-service debt. It does not publish a voluntary sub-6% military rate the way Citi or the 4% club do. The value here is breadth and ease: one filing reaches your cards, auto, mortgage, and personal loans, and the servicing is built for the military.
Which PenFed loans qualify?
Any PenFed debt you incurred before you entered active duty: credit cards, auto loans, home mortgages, personal loans, installment loans, and student loans. A loan you opened after active duty began is not covered by the SCRA cap, though the Military Lending Act may cap its cost instead.
How do I apply for PenFed SCRA benefits?
Upload your active-duty orders to PenFed.org/secureupload, or contact PenFed member services to start the request. The reduction is retroactive to the date your active duty began, and you can file up to 180 days after your active duty ends.
Sources
Heads up: SCRA Saver publishes general information, not legal or financial advice. Laws change and every situation differs. Confirm details with your installation legal assistance office (free for service members) or a licensed professional.