S 3070

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IN THE SENATE OF THE UNITED STATES

October 29, 2025

Ms. Alsobrooks (for herself, Mr. Van Hollen, Ms. Warren, Mr. Blumenthal, Mr. Warner, Ms. Hirono, Mr. Wyden, Mr. Kim, Mr. Markey, Mr. Lujan, Mr. Merkley, Mr. Kaine, Mr. Sanders, Mr. Booker, and Mrs. Gillibrand) introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions

A BILL

To provide Federal student loan borrower relief for Federal employees.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the “Shutdown Student Loans for Feds Act”.

SEC. 2. FEDERAL STUDENT LOAN BORROWER RELIEF FOR FEDERAL EMPLOYEES.

(a) Definitions.—In this section—

(1) the term “agency” means each authority of the executive, legislative, or judicial branch of the Government of the United States; and

(2) the term “covered individual”—

(A) means an employee of an agency, without regard to whether the employee is, during a period during which there is a lapse in appropriations with respect to the agency—

(i) determined to be an excepted employee or an employee performing emergency work, as those terms are defined by the Office of Personnel Management; or

(ii) subject to furlough;

(B) includes a contractor who—

(i) as part of the ordinary job duties of the individual, provides support to any employee described in subparagraph (A); and

(ii) during a lapse in appropriations with respect to the applicable agency, does not provide the services described in clause (i); and

(C) does not include an individual described in subparagraph (A) or (B) who, during a period during which there is a lapse in appropriations with respect to the applicable agency, is paid the basic pay ordinarily payable to the individual.

(b) Relief.—During any period in fiscal year 2026 or any subsequent fiscal year during which there is a lapse in appropriations of not less than 14 days with respect to an agency, the Secretary of Education shall suspend all payments due by covered individuals for loans made under part D of title IV of the Higher Education Act of 1965 (20 U.S.C. 1087a et seq.).

(c) No Accrual of Interest.—Notwithstanding any other provision of the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.), interest shall not accrue on a loan described under subsection (b) for which payment was suspended for the period of the suspension.

(d) Consideration of Payments.—Notwithstanding any other provision of the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.), the Secretary shall deem each month for which a loan payment was suspended under this section as if the borrower of the loan had made a payment for the purpose of any loan forgiveness program authorized under part D of title IV of the Higher Education Act of 1965 (20 U.S.C. 1087a et seq.) for which the borrower would have otherwise qualified.

(e) Reporting to Consumer Reporting Agencies.—During the period in which the Secretary suspends payments on a loan under subsection (b), the Secretary shall ensure that, for the purpose of reporting information about the loan to a consumer reporting agency, any payment that has been suspended is treated as if it were a regularly scheduled payment made by a covered individual.

(f) Retroactive Effective Date.—

(1) In general.—This Act shall take effect as if enacted on September 30, 2025.

(2) Refunds.—The Secretary of Education may issue a refund for any loan payment made by a covered individual—

(A) for a loan made under part D of title IV of the Higher Education Act of 1965 (20 U.S.C. 1087a et seq.) during any period in fiscal year 2026 or any subsequent fiscal year during which there is a lapse in appropriations of not less than 14 days with respect to the agency at which the individual is an employee; and

(B) if requested by such covered individual. <all>