119-s3070

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 3070 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 3070

 To provide Federal student loan borrower relief for Federal employees.

_______________________________________________________________________

 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>