Under a little-known federal law—the Soldiers’ and Sailors’ Civil Relief Act—the maximum interest rate that may be charged to active military service members for obligations incurred before active duty is limited to 6%. And now the federal Pension and Welfare Benefits Administration has announced that this interest cap applies to employee benefit plan loans. Federal agencies have said that a lender must forgive, not simply postpone, interest in excess of 6% during the active-duty period. Benefit plans may also suspend a participant’s obligation to make loan payments while on active duty. The 6% limit doesn’t apply where a creditor can prove that the service member’s ability to pay a higher interest rate is not materially affected by their military service.