This bill provides federal student loan relief to federal employees and contractors who are affected by government shutdowns lasting at least 14 days. When a shutdown occurs, the Secretary of Education must suspend all federal student loan payments (under the Direct Loan program) for affected workers, and interest will not accrue during the suspension period. Additionally, the suspended payment months will count toward loan forgiveness programs as if the borrowers had made regular payments, and the payments will be reported to credit agencies as timely. The bill applies retroactively to September 30, 2025, allowing workers to request refunds for any loan payments made during qualifying shutdowns in fiscal year 2026 and beyond. This legislation is aimed at preventing federal employees from falling behind on student loans when they lose income during government funding lapses.
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