Halting Education Loan Payments during Federal Employment Disruptions Act or the HELP FEDs Act
This bill waives late fees, penalties, and other adverse actions for federal employees who miss student loan payments during a lapse in appropriations (i.e., government shutdown).
The bill applies to education loans made, insured, or guaranteed under the Higher Education Act of 1965, including loans held by the Department of Education (ED) or contracted loan servicers.
Under the bill, a federal employee who misses a student loan payment that is due during a period of involuntary disruption of pay (i.e., the employee did not receive scheduled wages due to a lapse in appropriations) may not be assessed a late fee or penalty or be subject to other adverse actions. The bill also prohibits federal employees from incurring additional interest on such loans during an involuntary disruption of pay.
In addition, the bill requires ED to coordinate with credit reporting agencies and loan servicers to ensure that no adverse information related to delayed or missed student loan payments of a federal employee during an involuntary disruption of pay is furnished to any consumer reporting agency.
The bill applies retroactively to any involuntary disruption of pay occurring on or after October 1, 2025.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5816 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 5816
To prohibit penalties, interest accrual, negative credit implications,
or other adverse actions for qualified student loans for Federal
employees during a lapse in Federal funding.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 24, 2025
Ms. Crockett introduced the following bill; which was referred to the
Committee on Education and Workforce
_______________________________________________________________________
A BILL
To prohibit penalties, interest accrual, negative credit implications,
or other adverse actions for qualified student loans for Federal
employees during a lapse in Federal funding.
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 ``Halting Education Loan Payments
during Federal Employment Disruptions Act'' or the ``HELP FEDs Act''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Federal employee.--The term ``Federal employee''
means--
(A) an employee as defined in section 2105 of title
5, United States Code;
(B) an employee as defined in section 2107 of title
5, United States Code; and
(C) a judicial employee as defined in section
13101(9) of title 5, United States Code.
(2) Qualified education loan.--The term ``qualified
education loan'' means any loan made, insured, or guaranteed
under the Higher Education Act of 1965 (20 U.S.C. 1071-1087ii),
including loans held by the Department of Education or
contracted loan servicers.
(3) Involuntary disruption of pay.--The term ``involuntary
disruption of pay'' means a situation where a Federal employee
does not receive their scheduled wages due to a lapse in
funding resulting in the Federal Government to cease operations
as identified under section 1341 of title 31, United States
Code.
SEC. 3. PROTECTION FROM PENALTIES AND ADVERSE CREDIT ACTIONS DURING
INVOLUNTARY DISRUPTION OF PAY.
(a) Waiver of Penalties and Late Fees.--No Federal employee shall
be assessed any late fee, penalty, or other adverse action on any
qualified education loan for any payment missed due during a period of
involuntary disruption of pay.
(b) Waiver on Interest Accrual.--No Federal employee shall incur
additional interest on any qualified education loan during a period of
involuntary disruption of pay.
(c) No Adverse Credit Reporting.--The Secretary of Education shall
coordinate with credit reporting agencies and loan servicers to ensure
that no adverse information related to delayed or missed payments of a
Federal employee described in subsection (a) is furnished to any
consumer reporting agency, as defined in section 603 of the Fair Credit
Reporting Act (15 U.S.C. 1681a).
(d) Retroactive Application.--This section shall apply
retroactively to any instance of involuntary disruption of pay
occurring on or after October 1, 2025. The Secretary shall coordinate
with credit reporting agencies and loan servicers to remove any adverse
credit information that was inappropriately reported.
SEC. 4. IMPLEMENTATION.
(a) In General.--The Secretary of Education, in coordination with
the Director of the Office of Personnel Management, the Administrative
Office of the United States Courts, the Clerk of the House of
Representatives, and Secretary of the Senate, shall issue regulations
and guidance for the Department, borrowers, loan servicers, and credit
agencies necessary to implement this Act within 30 days of the date of
enactment of this Act.
(b) Compliance and Enforcement.--Loan servicers and credit
reporting agencies shall cooperate fully with the Secretary of
Education in implementing this Act.
SEC. 5. RULE OF CONSTRUCTION.
Nothing in this Act shall be construed to excuse the full repayment
of qualified education loans or to eliminate any otherwise existing
repayment obligation.
SEC. 6. SEVERABILITY.
If any provision of this Act, or the application of such provision
to any person or circumstance, is held to be invalid, the remainder of
this Act shall not be affected.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Education and Workforce.
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