Alsobrooks, Van Hollen, Elfreth Introduce Legislation to Pause Student Loans for Federal Workers, Contractors, and Military

WASHINGTON, DC - As reported in The Baltimore Sun, Senators Angela Alsobrooks and Chris Van Hollen (both D-Md.) and Congresswoman Sarah Elfreth (D-Md.-03) released legislation, The Shutdown Student Loans for Feds Act, 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.

This bill is cosponsored by Senators Warner (D-Va.), Kaine (D-Va.), Blumenthal (D-Conn.), Booker (D-N.J.), Hirono (D-Hawaii), Kim (D-N.J.), Luján (D-N.M.), Markey (D-Mass.), Merkley (D-Ore.), Sanders (I-Vt.), Warren (D-Mass.), and Wyden (D-Ore.).

"Maryland is home to 494,000 federal workers and federal contractors and 34,000 uniformed military personnel. Many of these Marylanders have spent their lives serving their fellow Americans-fighting to defend our country, ensuring our food and water are safe, making sure our parents and grandparents get their Social Security checks, and researching cures for cancer. They are experiencing unprecedented financial hardship at this time, and so I am proud to partner with Congresswoman Elfreth to help provide relief. Republicans need to reopen this government and ensure affordable health care, immediately, so Marylanders can get back on their feet," said Senator Alsobrooks.

"America's federal employees, contractors, and servicemembers shouldn't pay the price for a shutdown that's entirely beyond their control. Our legislation ensures that student loan payments aren't an added burden for these dedicated public servants to bear while they're going without pay. While we fight to protect these workers, we will keep pressing Trump and Republicans to come to the table to reach a responsible government funding agreement that holds the President accountable to the law, protects federal workers and our servicemembers, and prevents massive spikes in Americans' health care costs," said Senator Van Hollen.

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

"As the daughter of two civil servants and someone who is still working to pay off my own student loans, this issue is personal to me. I'm grateful to work alongside Senator Alsobrooks to introduce the Shutdown Student Loans for Feds Act, which would automatically pause student loans held by federal workers and federal contractors during prolonged government shutdowns. These civil servants went to school to earn the skills that would allow them to serve the American people, and they shouldn't be penalized by the inaction of Washington," said Congresswoman Elfreth.

"The American Federation of Government Employees strongly supports Senator Alsobrooks' Shutdown Student Loans for Feds Act, providing much-needed financial relief for federal workers impacted by government shutdowns. No public servant should be penalized with mounting student debt while serving their country without pay-this bill offers fairness, dignity, and peace of mind to the federal workforce," said AFGE National President Everett Kelley.

"Frontline federal employees are not to blame for this disastrous government shutdown yet they are the ones missing paychecks, which is why we support Sen. Alsobrooks' and Rep. Elfreth's legislation to pause their student loan payments. NTEU endorses the Shutdown Student Loans for Feds Act because it would be one less bill for unpaid federal employees to worry about until the shutdown ends and their income is restored," said Doreen Greenwald, National President of the National Treasury Employees Union

"This legislation ensures that federal workers, contractors, and our nation's servicemembers with student loan debt receive essential financial relief during prolonged government shutdowns. As the current government shutdown continues and congressional Republicans jeopardize access to affordable health care and critical social safety net programs, our federal workers deserve all of the support we can offer. This bill makes sure that federal workers dedicated to serving our country don't have to worry about mounting debt while they weather the shutdown-promoting fairness and financial support for public servants," said Senator Blumenthal.

"Federal workers are being put through enough right now - going without pay and continuing to be unfairly targeted by the Trump administration. During a time of such financial uncertainty, no servicemember or public servant should have to worry about covering their next student loan payment at the same time," said Senator Kim.

"In New Mexico and across the country, our federal workers, service members, and contractors dedicate their lives to serving the American people. They pursued education and training to gain the skills needed to do that work, and they should not be penalized with student loan payments while they are not receiving a paycheck," said Senator Luján. "That's why I'm joining my colleagues to introduce legislation that would pause federal student loan payments for federal employees during the shutdown."

"Donald Trump and MAGA Republicans are using federal workers and service members as political pawns as they refuse to come to the table to negotiate. They want to sacrifice the health and wellbeing of hardworking federal workers and everyday Americans so they can hand billions in tax giveaways to their billionaire buddies. I'm proud to join my colleagues in introducing this legislation to pause student loan payments for federal workers and give them the relief they need while Trump and Republicans choose to play politics with their lives," said Senator Markey.

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.

More about The Shutdown Student Loans for Feds Act

• 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).
• This legislation will also ensure that the pause for federal workers has no impact on credit reporting.
• The legislation also directs the Secretary to deem each month for which a loan payment was suspended as if the borrower had made a payment for the purposes of student loan forgiveness programs.
• 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).
• This pause would apply to all federal employees (furloughed and excepted), members of the military, and federal contractors.

Read more in The Baltimore Sun: Alsobrooks, Elfreth try to pause student loan payments for fed workers

Read the full bill text here.

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