Halting Education Loan Payments during Federal Employment Disruptions Act or the HELP FEDs Act
This 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.