This Act may be cited as the Halting Education Loan Payments during Federal Employment Disruptions Act or the HELP FEDs Act.

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. 1071U.S. Code — Title 20, Section 1071View official source on GovInfo–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.

(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. 1681aU.S. Code — Title 15, Section 1681aView official source on GovInfo). (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.

(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.

Nothing in this Act shall be construed to excuse the full repayment of qualified education loans or to eliminate any otherwise existing repayment obligation.

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.