Student loans

(a) Definition of student loan In this section, the term student loan means the following: (1) A loan made, insured, or guaranteed under title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.), including any Federal Direct Stafford Loan, Federal Direct Unsubsidized Stafford Loan, Federal Direct PLUS Loan, or Federal Direct Consolidation Loan. (2) A private education loan, as such term is defined in section 140(a) of the Truth in Lending Act (15 U.S.C. 1650(a)). (b) Application to student loans This section shall apply to any situation in which— (1) the student loan payment of a Federal worker falls due or remains unpaid during a shutdown; and (2) during the shutdown described in paragraph (1), the Federal worker described in that paragraph has been furloughed or required to work without pay. (c) Deferment eligibility During a covered period, a Federal worker shall be eligible for deferment, during which, with respect to a student loan, periodic installments of principal need not be paid and interest shall not accrue. (d) Limitation on defaults If the student loan payment of a Federal worker falls due and remains unpaid during a shutdown, the lender with respect to the student loan may not place the loan in default without the order of a court. (e) Limitation on collections If the student loan of a Federal worker has been placed in default before the date on which a shutdown begins, the lender with respect to the student loan may not, without the order of a court, perform any of the following activities during the covered period with respect to the shutdown: (1) Send the student loan to collection. (2) Report adverse information with respect to the Federal worker to a consumer reporting agency. (3) Garnish wages, tax refunds, or government benefits. (f) Court stay In a proceeding to collect a student loan payment that is subject to this section, a court may, upon the motion of the court, and shall, if requested by a Federal worker whose ability to comply with the obligation resulting in the proceeding is materially affected by a shutdown— (1) stay the proceeding for a period of time as justice and equity require; or (2) adjust the obligation to preserve the interests of all parties. (g) Misdemeanor A person that knowingly violates this section, or attempts to violate this section, shall be fined as provided in title 18, United States Code, or imprisoned for not more than 1 year, or both.