To prohibit penalties, interest accrual, negative credit implications, or other adverse actions for qualified student loans for Federal employees during a lapse in Federal funding.
Summary
What This Bill Does
The bill defines definitions of Federal employee, qualified education loan, and involuntary disruption of pay, requires prohibition of late fees, penalties, interest accrual, and adverse credit reporting on federal employee student loans during government shutdowns, with retroactive application to October 1, 2025, and requires implementation mandate requiring Secretary of Education to issue regulations within 30 days, with mandatory cooperation from loan servicers and credit agencies. It relies on compliance mandates, definition changes, exemptions, and liability protections. The main policy areas are Finance, Labor, and Federal Employee Benefits.
Who Benefits and How
Federal employees with student loan debt could see lower costs, Federal employees affected by shutdowns since October 2025 could see lower costs, and Federal employees (executive, legislative, judicial branch) would be affected.
Who Bears the Burden and How
Federal student loan servicers (e.g., MOHELA, Nelnet, Aidvantage) could lose revenue opportunities, Federal student loan servicers would be affected, and Department of Education would be affected.
Key Provisions
- Defines definitions of Federal employee, qualified education loan, and involuntary disruption of pay.
- Requires prohibition of late fees, penalties, interest accrual, and adverse credit reporting on federal employee student loans during government shutdowns, with retroactive application to October 1, 2025.
- Requires implementation mandate requiring Secretary of Education to issue regulations within 30 days, with mandatory cooperation from loan servicers and credit agencies.
- Creates rule of construction preserving full repayment obligation for qualified education loans.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
The bill defines definitions of Federal employee, qualified education loan, and involuntary disruption of pay, requires prohibition of late fees, penalties, interest accrual, and adverse credit reporting on federal employee student loans during government shutdowns, with retroactive application to October 1, 2025, and requires implementation mandate requiring Secretary of Education to issue regulations within 30 days, with mandatory cooperation from loan servicers and credit agencies.
Key Policy Areas
Finance, Labor, Federal Employee Benefits
Primary Purpose
The bill defines definitions of Federal employee, qualified education loan, and involuntary disruption of pay, requires prohibition of late fees, penalties, interest accrual, and adverse credit reporting on federal employee student loans during government shutdowns, with retroactive application to October 1, 2025, and requires implementation mandate requiring Secretary of Education to issue regulations within 30 days, with mandatory cooperation from loan servicers and credit agencies.
Policy Domains
Whole bill
Identified Gains
- Federal employees with student loan debt
- Federal employees affected by shutdowns since October 2025
- Federal employees (executive, legislative, judicial branch)
- Federal student loan borrowers
- Federal student loan servicers
Identified Costs
- Federal student loan servicers (e.g., MOHELA, Nelnet, Aidvantage)
- Federal student loan servicers
- Department of Education
- Consumer credit reporting agencies (Equifax, Experian, TransUnion)
- Consumer credit reporting agencies
Legislative Progress
IntroducedMs. Crockett introduced the following bill; which was referred to …
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Federal student loan borrowers, Federal student loan servicers, Federal student loan servicers (e.g., MOHELA, Nelnet, Aidvantage)
Federal student loan servicers faces effects in multiple directions
Positive-direction: Federal student loan borrowers
Negative-direction: Federal student loan servicers (e.g., MOHELA, Nelnet, Aidvantage)
Federal employees affected by shutdowns since October 2025, Federal employees with student loan debt, Federal employees with student loans
Department of Education, Office of Personnel Management
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology