U.S. Sens. Mark Warner (D-VA) and Tim Kaine (D-VA) introduced legislation that would require the Department of Education to pause student loan payments for federal workers if the federal government shutdown lasts longer than two weeks.
If passed, the Shutdown Student Loans for Feds Act would take immediate effect since the shutdown has already lasted nearly one month. This pause would apply to all federal employees (furloughed and excepted), members of the military, and federal contractors.
“Virginia’s federal workers – including federal contractors and servicemembers – are the backbone of the services Americans depend on,” Warner said. “They shouldn’t be forced to shoulder financial hardship because of a shutdown they did nothing to cause. This legislation would pause federal student loan payments for our public servants and give them the relief they need while they weather this shutdown.”
The Shutdown Student Loans for Feds Act also stipulates that during the pause, these loans would not accrue interest, and borrowers would continue to be in good standing for forgiveness programs. In addition, the bill would also ensure that the pause for federal workers has no impact on credit reporting.
Further, the legislation authorizes the Secretary to issue a refund for a covered individual for any loan payment already made this month, if requested.
“The millions of federal workers, government contractors, and military personnel who are forced to work without pay during a government shutdown shouldn’t have to worry about how they’re going to pay their student loans,” Kaine said. “That’s why I’m joining my colleagues in introducing legislation to pause student loan payments for these dedicated public servants during a shutdown. I will keep working to reopen the government, support federal workers, and protect Americans’ health care.”
Along with Warner and Kaine, this bill is sponsored by Sens. Angela Alsobrooks (D-MD), Chris Van Hollen (D-MD), Richard Blumenthal (D-CT), Cory Booker (D-NJ), Mazie Hirono (D-HI), Andy Kim (D-NJ), Ben Ray Luján (D-NM), Ed Markey (D-MA), Jeff Merkley (D-OR), Bernie Sanders (I-VT), Elizabeth Warren (D-MA), and Ron Wyden (D-OR).
U.S. Rep. Sarah Elfreth (D-MD) introduced companion legislation in the House of Representatives.
The bill is endorsed by 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).