Warner & Kaine Introduce Legislation to Pause Student Loans for Federal Workers, Contractors, and Military

U.S. Sens. Mark R. Warner and Tim Kaine, a member of the Senate Health, Education, Labor and Pensions (HELP) Committee, (both D-VA) introduced The Shutdown Student Loans for Feds Act, legislation that would require the Department of Education to pause student loan payments for federal workers - including federal contractors and military personnel - in the event of a federal government shutdown lasting longer than two weeks. If passed, this legislation would take immediate effect for the current Republican shutdown, which has lasted 29 days.

"Virginia's federal workers - including federal contractors and servicemembers - are the backbone of the services Americans depend on," said Sen. Warner. "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 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," said Sen. Kaine. "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."

1. The Shutdown Student Loans for Feds Act would require the Department of Education to pause student loan payments for federal workers in the event of a federal government shutdown lasting longer than two weeks - including the current lapse in appropriations. During this time, these loans would not accrue interest, and borrowers would continue to be in good standing for forgiveness programs like Public Service Loan Forgiveness (PSLF), Student Loan Repayment Program (SLRP), or Retention through Educational Advancement Program (REAP).
2. This legislation will also ensure that the pause for federal workers has no impact on credit reporting.
3. The legislation also authorizes the Secretary to issue a refund for a covered individual for any loan payment already made (if they already paid this month), if requested (to give borrowers flexibility as some may want to voluntarily pay during a period where interest is frozen).
4. This pause would apply to all federal employees (furloughed and excepted), members of the military, and federal contractors.

In addition to Sens. 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). Rep. Elfreth introduced companion legislation in the House of Representatives.

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) have endorsed The Shutdown Student Loans for Feds Act.

Read the full bill text here.

Sens. Warner and Kaine have introduced several bills to support federal workers, servicemembers and contractors for the duration of the GOP shutdown, including the Federal Employee Civil Relief Act, which would protect federal workers, federal contractor employees, and their families from foreclosures, evictions, and loan defaults during a government shutdown, and the True Shutdown Fairness Act, which would ensure that all federal employees, as well as servicemembers and federal contractors, receive their pay for the duration of the Republicans' shutdown.

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