Federal Employee Student Loan Protection During Government Shutdowns.
This law protects federal employees with federal student loans from financial harm if they miss payments due to a government shutdown causing a pay disruption. During these involuntary pay interruptions, no interest or late fees will be charged, and their credit history will not be negatively affected. The goal is to provide financial stability to employees whose wages are halted through no fault of their own.
Key points
Stops interest accrual and late fees on federal student loans for federal employees during periods when they are not receiving scheduled wages due to a government shutdown.
Prohibits reporting delayed or missed payments to credit agencies, safeguarding the credit history of affected employees.
The protections apply retroactively to pay disruptions occurring on or after October 1, 2025, requiring the removal of any adverse credit reports.
Status:
Introduced
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