“To provide Federal student loan borrower relief for Federal employees.”
No CRS summary available for this bill.
This section establishes relief from payments on Direct Loans (i.e., loans made under part D of title IV of the Higher Education Act of 1965) for covered individuals—federal agency employees subject to furlough or performing excepted/emergency work during a lapse in appropriations, plus contractors supporting them who cease work, excluding those paid during the lapse—during any agency lapse in appropriations of 14 or more days in FY2026 or subsequent fiscal years. For such loans, it (1) suspends required payments, (2) prevents interest accrual during the suspension period, (3) deems each month of suspension as a qualifying payment for any Direct Loan forgiveness program (e.g., Public Service Loan Forgiveness), and (4) requires the Department of Education to report suspended payments to consumer reporting agencies as regularly scheduled payments. (Thus, affected borrowers maintain credit standing and forgiveness progress during shutdowns.) The provision applies retroactively as of September 30, 2025, and authorizes the Secretary of Education to refund any such payments made by covered individuals upon request.