Copyright Newsweek
A Democratic representative has put forth a new bill to help federal workers with their student loan payments while the government remains in shutdown. Representative Jasmine Crockett from Texas introduced The Halting Education Loan Payments during Federal Employment Disruptions Act (HELP FEDs Act), according to a press release on Monday. Newsweek has contacted the GOP via email and Crockett via X. Why It Matters As hundreds of thousands risk falling behind on payments because they haven't received their paychecks, the HELP FEDs Act aims to protect these workers from penalties, defaults, credit damage, and growing debt due to missed student loan payments, directly connected to the shutdown, says the press release. The shutdown has entered its fourth week, and Republicans and Democrats have been casting blame back-and-forth over who is responsible, with both sides seeking to garner support for resolutions to reopen the government. The GOP has a majority in the House and Senate but requires Democratic support to reach a deal. What To Know The bill aims to automatically suspend student loan payments and accrued student loan interest for any federal employee furloughed or working without pay during the shutdown, which is now in its 28th day. It also blocks late fees, penalties, and negative credit actions that can be directly linked to payment delays, caused by a lapse in federal funding. According to Crockett's office, 5.3 million student loan borrowers in the U.S. have failed to repay their loans on time, and another 4.3 million borrowers are falling seriously behind on their student loan payments. Should the bill become law, the Department of Education—together with the Department of Personnel Management, the Administrative Office of the U.S. Courts, the Clerk of the House, and the Secretary of the Senate—would be required to issue clear guidance to implement these protections as quickly as possible. Around 750,000 federal workers have been furloughed during the shutdown. What People Are Saying Congresswoman Jasmine Crockett said in a statement: “Federal workers have faced unprecedented challenges over the last ten months, and now, because of the Republicans’ shutdown, they’re being forced to shoulder even more financial strain. Missing a paycheck is stressful enough. But being penalized for missing student loan payments you can’t make because the government stopped paying you? That’s unconscionable. These are hardworking public servants keeping our country running—they deserve protection, not punishment.” What Happens Next If enacted, the HELP FEDs Act would immediately halt student loan payments and interest accrual for federal workers affected by the shutdown, while federal agencies develop guidelines and regulations to support and implement these protections.
