MD Lawmakers Move To Pause Student Loan Payments Amid Shutdown

A group of Maryland lawmakers has introduced legislation that would pause student loan payments for federal workers amid the ongoing government shutdown.

The Shutdown Student Loans for Feds Act was introduced on Wednesday by U.S. Sens. Angela Alsobrooks and Chris Van Hollen, as well as U.S. Rep. Sarah Elfreth. All three lawmakers are Democrats.

Under the legislation, the U.S. Department of Education would be required to pause student loan payments for federal workers, including federal contractors and military personnel, in the event of a federal government shutdown lasting longer than two weeks.

If passed, this legislation would take immediate effect for the current shutdown, which entered its fifth week on Wednesday.

"America’s federal employees, contractors and servicemembers shouldn’t pay the price for a shutdown that’s entirely beyond their control," Van Hollen said in a statement. "Our legislation ensures that student loan payments aren’t an added burden for these dedicated public servants to bear while they’re going without pay."

The bill is sponsored by several other lawmakers from states including Virginia, Connecticut, New Jersey, Massachusetts, Vermont, New Mexico, Oregon and Hawaii.

The funding fight in Washington gained new urgency this week as millions of Americans face the prospect of losing food assistance, more federal workers miss their first full paycheck and recurring delays at airports snarl travel plans.

While the strain is building on Democratic lawmakers to end the impasse, many senators, including those representing states with many federal workers, have not appeared ready to back down.

Virginia Sen. Tim Kaine said he was insisting on commitments from the White House to prevent the administration from mass-firing more workers. Democrats also want Congress to extend subsidies for health plans under the Affordable Care Act.

“We’ve got to get a deal with Donald Trump,” Kaine said.

But shutdowns grow more painful the longer they go. Soon, with closures lasting a fourth full week as of Tuesday, millions of Americans are likely to experience the difficulties firsthand.

“This week, more than any other week, the consequences become impossible to ignore," said Rep. Lisa McClain, chair of the House Republican Conference.

If passed, the Shutdown Student Loans for Feds Act would provide at least some relief to federal workers.

Under the program, loans would not accrue interest, and borrowers would continue to be in good standing for forgiveness programs like Public Service Loan Forgiveness, Student Loan Repayment Program or Retention through Educational Advancement Program.

The legislation will also ensure the pause for federal workers has no impact on credit reporting and authorizes the Secretary of Education to issue a refund for any federal worker for any loan payment already made.

Read the full bill text here.

The Associated Press contributed to this report.