WASHINGTON, D.C. – U.S. Senator Mazie K. Hirono (D-HI) joined Senators Mark Warner (D-VA), Tim Kaine (D-VA), and 11 colleagues in introducing The Shutdown Student Loans for Feds Act, legislation that would require the Department of Education to pause student loan payments for federal workers – including federal contractors and military personnel – in the event of a federal government shutdown lasting longer than two weeks. If passed, this legislation would take immediate effect for the current Republican shutdown, which has lasted 29 days.
The Shutdown Student Loans for Feds Act would require the Department of Education to pause student loan payments for federal workers in the event of a federal government shutdown lasting longer than two weeks – including the current lapse in appropriations. During this time, these loans would not accrue interest, and borrowers would continue to be in good standing for forgiveness programs like Public Service Loan Forgiveness (PSLF), Student Loan Repayment Program (SLRP), or Retention through Educational Advancement Program (REAP).
This legislation will also ensure that the pause for federal workers has no impact on credit reporting. The legislation also authorizes the Secretary to issue a refund for a covered individual for any loan payment already made (if they already paid this month), if requested (to give borrowers flexibility as some may want to voluntarily pay during a period where interest is frozen). This pause would apply to all federal employees (furloughed and excepted), members of the military, and federal contractors.
The National Federation of Federal Employees (NFFE), the National Treasury Employees Union (NTEU), the American Federation of Government Employees (AFGE), and the National Education Association (NEA) have endorsed The Shutdown Student Loans for Feds Act.
In addition to Senators Hirono, Warner, and Kaine, this bill is also cosponsored by Senators Angela Alsobrooks (D-MD), Richard Blumenthal (D-CT), Cory Booker (D-NJ), Andy Kim (D-NJ), Ed Markey (D-MA), Jeff Merkley (D-OR), Ben Ray Lujan (D-NM), Bernie Sanders (I-VT), Chris Van Hollen (D-MD), Elizabeth Warren (D-MA), and Ron Wyden (D-OR). Companion legislation was introduced in the House of Representatives by Representative Sarah Elfreth (D-MD).
The full text of the legislation is available here.
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