Shutdown Student Loans for Feds Act

This bill would require the Secretary of Education to pause federal Direct student loan payments for federal employees, and certain contractors who support them, during any government funding lapse of at least 14 days starting in fiscal year 2026. It covers employees whether they are furloughed or required to keep working, but not those who continue to receive their regular pay. Interest would not build up on paused loans, and paused months would count toward loan forgiveness programs the borrower would otherwise qualify for. Paused payments would be reported to credit agencies as if they were made on time, and borrowers could request refunds of payments made during a covered funding lapse, with the law applying back to September 30, 2025.

Full text and official record on Congress.gov

Sponsors

• Angela D. Alsobrooks Democrat sponsor
• 15 cosponsors