Shutdown Student Loans for Feds Act

Pause federal student loan payments for feds

If enacted, this bill would pause payments on certain federal student loans for some federal employees and qualifying contractors during agency funding gaps. The pause would apply for any agency lapse in appropriations of 14 days or more in fiscal year 2026 or later. Loans covered are those made under part D of title IV of the Higher Education Act. While payments are paused, interest would not accrue. Each suspended month would count as a payment for part D loan forgiveness programs. Suspended payments would be reported to consumer reporting agencies as if they were regular payments. The bill would take effect as if enacted on September 30, 2025. The Secretary of Education could refund any payment made during a qualifying lapse if the borrower asks for a refund. Covered individuals include agency employees (including excepted, emergency, or furloughed employees) and some contractors who do not perform covered services during the lapse, but not those who are paid their ordinary basic pay during the lapse.