Congresswoman Crockett Introduces Bill to Protect Federal Workers from Student Loan Penalties and Interest Accrual During Government Shutdowns

Washington, D.C.- Congresswoman Jasmine Crockett (TX-30) introduced the Halting Education Loan Payments during Federal Employment Disruptions Act(or "HELP FEDs Act") to protect federal workers from student loan interest accrual as well as penalties, defaults, and credit damage caused by missed payments during a government shutdown.

As the Republican-led government shutdown drags on, more than 750,000 federal workers have been furloughed without pay, while others continue working without paychecks. With families already struggling to afford rent, groceries, and medical expenses, many are now at risk of missing student loan payments through no fault of their own. While government employees can currently apply for forbearance and deferment, ultimate approval depends on the individual loan guarantor, and student loan interest continues to still accrue.

Recent reports show that roughly 5.3 million student loan borrowers are currently in default, and another 4.3 million borrowers are falling into late-stage delinquency. Now, hundreds of thousands of federal employees are at risk of falling behind or face these financial catastrophes-all because their paychecks have been halted.

"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," said Congresswoman Jasmine Crockett. "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."

TheHELP FEDs Actwould:

• Automatically suspend student loan payments and interest accrual for any federal employee furloughed or working without pay during a shutdown.

• Prohibit late fees, penalties, and adverse credit actions for missed payments tied to a lapse in federal funding.

• Require the Department of Education-in consultation 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-to issue clear regulations and guidance to swiftly implement these protections..

Click hereto read the full text of the bill.