South Carolina H 3413: Student Loan Interest Duration

Bill Text

2025-2026 Bill 3413 Text of Previous Version (Dec. 06, 2024) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 3413

Indicates Matter Stricken
Indicates New Matter

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

A bill

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ADDING PART 7 
TO CHAPTER 3, TITLE 37 SO AS TO LIMIT THE AMOUNT OF TIME THAT INTEREST MAY 
ACCRUE ON A STUDENT EDUCATION LOAN.

Be it enacted by the 
General Assembly of the State of South Carolina:

SECTION 1. Chapter 3, Title 37 of the S.C. Code is amended by 
adding:

Part 7

Student Loans

 Section 
37-3-700. As used in this part:

 (1) 
"Student education loan" means the creation or forbearance of debt incurred 
primarily for personal use to finance postsecondary education or other school 
related expenses. This term does not include an extension of credit secured by 
a first lien or equivalent security interest in real estate.

 (2) 
"Student loan borrower" or "borrower" means:

 (a) 
a resident of this State who has received or agreed to pay a student education 
loan; or

 (b) 
a person who shares legal responsibility with a resident for repaying the 
student education loan.

 Section 
37-3-710. (A) The interest rate on 
a private student education loan issued to a student loan borrower in this 
State only may be charged for a number of years equal to the amount of time the 
student loan borrower was enrolled in the postsecondary institution that received 
the funds provided by the student education loan. 

 (B) 
The interest rate on a private student education loan may not be charged for 
more than ten years for a bachelor's degree, ten years for a master's degree, 
and ten years for a doctorate or longer than the amount of time the student 
loan borrower was enrolled in a postsecondary institution, whichever is less.

SECTION 2. This act takes effect upon approval 
by the Governor.

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This web page was last updated on December 06, 2024 at 11:43 AM