Plain Language Summary
# HELP FEDs Act Summary **What the Bill Does:** The HELP FEDs Act would protect federal employees from financial penalties if they miss student loan payments during a government shutdown. Specifically, it would waive late fees, penalties, and prevent negative credit reporting when federal workers can't pay their education loans because they haven't received their paychecks during a lapse in government funding. The bill also prevents additional interest from accumulating on these loans during shutdown periods. **Who It Affects:** This bill directly impacts federal employees who have student loans from federal education programs. During a government shutdown, these workers stop receiving paychecks but still face bills—including student loan payments.
The bill aims to prevent them from being penalized for missing payments through no fault of their own. **Current Status:** The bill is currently in committee (HR 5816, 119th Congress), meaning it has been introduced but hasn't yet been voted on by the full House. It was sponsored by Rep. Jasmine Crockett (D-TX).
CRS Official Summary
Halting Education Loan Payments during Federal Employment Disruptions Act or the HELP FEDs ActThis bill waives late fees, penalties, and other adverse actions for federal employees who miss student loan payments during a lapse in appropriations (i.e., government shutdown). The bill applies to education loans made, insured, or guaranteed under the Higher Education Act of 1965, including loans held by the Department of Education (ED) or contracted loan servicers.Under the bill, a federal employee who misses a student loan payment that is due during a period of involuntary disruption of pay (i.e., the employee did not receive scheduled wages due to a lapse in appropriations) may not be assessed a late fee or penalty or be subject to other adverse actions. The bill also prohibits federal employees from incurring additional interest on such loans during an involuntary disruption of pay. In addition, the bill requires ED to coordinate with credit reporting agencies and loan servicers to ensure that no adverse information related to delayed or missed student loan payments of a federal employee during an involuntary disruption of pay is furnished to any consumer reporting agency. The bill applies retroactively to any involuntary disruption of pay occurring on or after October 1, 2025.
Latest Action
Referred to the House Committee on Education and Workforce.