“A bill to provide Federal student loan borrower relief for Federal employees.”
No CRS summary available for this bill.
This section establishes student loan relief, effective September 30, 2025, for covered federal employees and supporting contractors (i.e., agency personnel or contractors not paid during a lapse in appropriations of 14 or more days) during such lapses beginning in FY2026. For Direct Loans under part D of title IV of the Higher Education Act of 1965, the Secretary of Education must (1) suspend required payments, (2) halt interest accrual during the suspension period, (3) deem each suspended month as a qualifying payment for loan forgiveness programs under that part (e.g., Public Service Loan Forgiveness), and (4) report suspended payments to consumer reporting agencies as if regularly scheduled. The Secretary may refund any such payments made by covered individuals upon request.