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.