by Washington DC – A new proposal from a Texas Democrat aims to protect federal employees from falling into student loan debt while they remain unpaid during the ongoing government shutdown.
Representative Jasmine Crockett has introduced the Halting Education Loan Payments during Federal Employment Disruptions Act, also known as the HELP FEDs Act, according to a press release issued Monday.
Why It Matters
As the shutdown stretches into its fourth week, hundreds of thousands of federal workers risk missing student loan payments because they have not received their paychecks. Without action, missed payments could lead to penalties, defaulted loans, credit score damage, and rising interest — all tied to circumstances beyond employees’ control.
Republicans and Democrats continue to trade blame for the funding stalemate. The GOP holds the majority in both the House and Senate but still requires Democratic support to pass any agreement reopening the government.
What the Bill Proposes
The HELP FEDs Act seeks to:
- Automatically pause federal student loan payments for workers who are furloughed or required to work without pay
- Stop interest from accruing during the shutdown
- Block late fees and penalties resulting from delayed payments
- Prevent negative credit reporting directly tied to the shutdown
The measure would apply for the duration of the government funding lapse, which has now reached 28 days.
The Numbers
- 5.3 million borrowers nationwide are already behind on payments
- 4.3 million more are at serious risk of falling into default
- 750,000 federal workers have been furloughed during the shutdown
If passed, the bill would require the Department of Education and other federal agencies — including the Office of Personnel Management and the Clerk of the House — to quickly issue guidance to ensure protections take effect without delays.
What Happens Next
If enacted into law, student loan payments and interest for impacted federal workers would be paused immediately. The bill aims to give workers financial relief while federal agencies create and carry out the long-term rules necessary to support these protections.
As lawmakers continue negotiations to reopen the government, millions of Americans with student loan obligations are watching closely for updates that could determine their financial stability in the coming week.
