Shutdown Student Loans for Feds Act

Student loan pause for shutdown-affected federal workers and contractors

If enacted, your Direct federal student loan payments would pause during any funding lapse of 14 days or more at your agency. During the pause, no interest would accrue. Each paused month would count toward loan forgiveness, and your credit would show an on-time payment. You would qualify only if you were furloughed, excepted or emergency staff working without pay, or a contractor who stopped work, and you were not paid basic pay during the lapse. The Education Department could refund any payment you made during the lapse if you ask. This would apply in fiscal year 2026 and later, and would take effect as if on September 30, 2025. It covers only Direct Loans under part D of the Higher Education Act.