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Legislative bills

Senators Warner and Kaine Introduce Legislation to Pause Student Loans for Federal Workers During Shutdown

Strategic Insights

— 2 min read

US Senators Mark R. Warner and Tim Kaine have 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 contractors and military personnel, in the event of a federal government shutdown lasting longer than two weeks. This legislation aims to alleviate financial hardship for these public servants, who are forced to work without pay during the shutdown. The bill would take immediate effect for the current Republican shutdown, which has lasted 29 days.

Key Takeaways:

  • The Shutdown Student Loans for Feds Act would require the Department of Education to pause student loan payments for federal workers, contractors, and military personnel in the event of a federal shutdown lasting longer than two weeks.
  • The legislation would apply to all federal employees, including furloughed and excepted personnel, members of the military, and federal contractors.
  • During the pause, loans would not accrue interest, and borrowers would remain in good standing for forgiveness programs like Public Service Loan Forgiveness (PSLF), Student Loan Repayment Program (SLRP), or Retention through Educational Advancement Program (REAP).
  • The legislation would also ensure that the pause does not impact credit reporting.
  • The Secretary of Education would be authorized to issue a refund for any loan payment already made by a covered individual, if requested.
  • The bill is sponsored by Senators Mark R. Warner (D-VA), Tim Kaine (D-VA), 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).
  • Companion legislation has been introduced in the House of Representatives by Rep. Elfreth.

Statistics:

  • The current Republican shutdown has lasted 29 days.
  • The legislation would apply to federal workers, contractors, and military personnel affected by the shutdown.
  • The number of federal workers, contractors, and military personnel affected by the shutdown is estimated to be in the millions.
  • The impact on credit reporting would be eliminated during the pause.

Sources:

  • [MIL OSI USA News, "U.S. Senators Mark R. Warner and Tim Kaine Introduce Legislation to Pause Student Loans for Feds" (no date available)]
  • [National Federation of Federal Employees, "NFFE Endorses The Shutdown Student Loans for Feds Act" (no date available)]
  • [American Federation of Government Employees, "AFGE Endorses The Shutdown Student Loans for Feds Act" (no date available)]
  • [National Education Association, "NEA Endorses The Shutdown Student Loans for Feds Act" (no date available)]
  • [House of Representatives, "Companion Legislation Introduced by Rep. Elfreth" (no date available)]

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