H.R. 5816

119 HR 5816 IH: Halting Education Loan Payments during Federal Employment Disruptions Act
 U.S. House of Representatives
 2025-10-24
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 I  119th CONGRESS  1st Session  H. R. 5816  IN THE HOUSE OF REPRESENTATIVES   October 24, 2025   Ms. Crockett  introduced the following bill; which was referred to the  Committee on Education and Workforce    A BILL
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.
1.
Short title
This Act may be cited as the   Halting Education Loan Payments during Federal Employment Disruptions Act   or the   HELP FEDs Act  .
2.
Definitions
In this Act:
(1)
Federal employee
The term  Federal employee  means—
(A)
an employee as defined in section 2105 of title 5, United States Code;
(B)
an employee as defined in section 2107 of title 5, United States Code; and
(C)
a judicial employee as defined in section 13101(9) of title 5, United States Code.
(2)
Qualified education loan
The term  qualified education loan  means any loan made, insured, or guaranteed under the Higher Education Act of 1965 ( 20 U.S.C. 1071–1087ii ), including loans held by the Department of Education or contracted loan servicers.
(3)
Involuntary disruption of pay
The term  involuntary disruption of pay  means a situation where a Federal employee does not receive their scheduled wages due to a lapse in funding resulting in the Federal Government to cease operations as identified under section 1341 of title 31, United States Code.
3.
Protection from penalties and adverse credit actions during involuntary disruption of pay
(a)
Waiver of penalties and late fees
No Federal employee shall be assessed any late fee, penalty, or other adverse action on any qualified education loan for any payment missed due during a period of involuntary disruption of pay.
(b)
Waiver on interest accrual
No Federal employee shall incur additional interest on any qualified education loan during a period of involuntary disruption of pay.
(c)
No adverse credit reporting
The Secretary of Education shall coordinate with credit reporting agencies and loan servicers to ensure that no adverse information related to delayed or missed payments of a Federal employee described in subsection (a) is furnished to any consumer reporting agency, as defined in section 603 of the Fair Credit Reporting Act ( 15 U.S.C. 1681a ).
(d)
Retroactive application
This section shall apply retroactively to any instance of involuntary disruption of pay occurring on or after October 1, 2025. The Secretary shall coordinate with credit reporting agencies and loan servicers to remove any adverse credit information that was inappropriately reported.
4.
Implementation
(a)
In general
The Secretary of Education, in coordination with the Director of the Office of Personnel Management, the Administrative Office of the United States Courts, the Clerk of the House of Representatives, and Secretary of the Senate, shall issue regulations and guidance for the Department, borrowers, loan servicers, and credit agencies necessary to implement this Act within 30 days of the date of enactment of this Act.
(b)
Compliance and enforcement
Loan servicers and credit reporting agencies shall cooperate fully with the Secretary of Education in implementing this Act.
5.
Rule of construction
Nothing in this Act shall be construed to excuse the full repayment of qualified education loans or to eliminate any otherwise existing repayment obligation.
6.
Severability
If any provision of this Act, or the application of such provision to any person or circumstance, is held to be invalid, the remainder of this Act shall not be affected.