H.R. 781House116th Congress (2019-2021)In Committee

Student Loan Relief for Feds Act

Introduced January 24, 2019

AI-Generated Summary

Updated April 14, 2026 at 12:51 AM UTC

The Student Loan Relief for Feds Act requires the Secretary of Education to give a special deferment on certain federal student loans to federal employees who are affected by a lapse in discretionary appropriations, such as a government shutdown. The deferment pauses principal payments and either stops interest from accruing or has the government pay it, and it also ensures that missed payments during the deferment count toward Public Service Loan Forgiveness. It applies to borrowers with Direct or FFEL loans who work for federal agencies, contractors, or certain District of Columbia entities that are furloughed or unpaid because of the lapse.

Key Provisions

  • Adds a new “special deferment” (Section 493E) to the Higher Education Act for borrowers with loans under parts B or D.
  • During the deferment, borrowers do not have to pay principal; interest on part B loans is paid by the Secretary and interest on part D loans does not accrue.
  • Eligibility includes federal agency employees, contractors, and certain state or District of Columbia employees who are furloughed or unpaid because of a lapse in discretionary appropriations, and the deferment continues for three months after the lapse ends.
  • Missed monthly payments made during this deferment are treated as paid for the purpose of counting the 120 qualifying payments required for Public Service Loan Forgiveness.

Legislative Activity

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1 earlier action
HouseIntro Referral Latest Action

Referred to the House Committee on Education and Labor.

January 24, 2019

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HouseIntro Referral

Introduced in House

January 24, 2019

HouseIntro Referral

Referred to the House Committee on Education and Labor.

January 24, 2019

Floor Debate

5 members

What members said about H.R. 781 on the floor

2 Republicans3 Democrats
Sheila Jackson Lee
Rep. Sheila Jackson LeeD-TX-18 · Feb 14, 2019

Madam Speaker, this is a Republican bill that we are trying to fix to keep the government open and not holding our Federal employees hostage. I support this bill with qualifications that I know that…

Ed Perlmutter
Rep. Ed PerlmutterD-CO-7 · Feb 14, 2019

Madam Speaker, by direction of the Committee on Rules, I call up House Resolution 131 and ask for its immediate consideration. Madam Speaker, for the purpose of debate only, I yield the customary 30…

Tom Cole
Rep. Tom ColeR-OK-4 · Feb 14, 2019

Madam Speaker, I thank my good friend from Colorado (Mr. Perlmutter) for yielding, and I yield myself such time as I may consume. Madam Speaker, we are here today to pass an appropriations package…

Debbie Lesko
Rep. Debbie LeskoR-AZ-8 · Feb 14, 2019

Madam Speaker, I thank Representative Cole for yielding me the time. Madam Speaker, if the previous question is defeated, we will amend the rule to bring an extension of the Violence Against Women…

Norma J. Torres
Rep. Norma J. TorresD-CA-35 · Feb 14, 2019

Madam Speaker, since the 116th Congress took office this January, I have voted five times to open up the Federal Government. And today I rise in support of the conference report. I want to…

Bill Text

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Introduced in HouseIssued January 24, 2019

I

116th CONGRESS

1st Session

H. R. 781

IN THE HOUSE OF REPRESENTATIVES

January 24, 2019

Mr. Perlmutter (for himself and Mr. Hurd of Texas) introduced the following bill; which was referred to the Committee on Education and Labor

A BILL

To require the Secretary of Education to provide a deferment for certain student loans of Federal employees subject to a lapse in discretionary appropriations, and for other purposes.

1.

Short title

This Act may be cited as the Student Loan Relief for Feds Act.

2.

Special deferment for Federal employees during lapse in appropriations

(a)

Special deferment

Part G of the Higher Education Act of 1965 (20 U.S.C. 1088 et seq.) is amended by adding at the end the following:

493E.

Special deferment for Federal employees during lapse in appropriations

(a)

Effect on principal and interest

A borrower of a loan made, insured, or guaranteed under part B or part D, who meets the requirements described in subsection (b) shall be eligible for a deferment, during which—

(1)

periodic installments of principal need not be paid; and

(2)

in the case of a—

(A)

loan made, insured, or guaranteed under part B, the Secretary shall repay any interest owed; and

(B)

loan made under part D, interest shall not accrue.

(b)

Eligibility

A borrower of a loan described in subsection (a) shall be eligible for a deferment during—

(1)

any period in which such borrower is an employee—

(A)

of a Federal agency that is subject to a lapse in discretionary appropriations;

(B)

of a private entity that has a contract with a Federal agency subject to a lapse in discretionary appropriations who is not paid during such period due to such lapse in discretionary appropriations;

(C)

who is an employee of a State or other Federal grantee—

(i)

whose compensation is advanced or reimbursed in whole or in part by the Federal Government, and

(ii)

who is furloughed due to a lapse in Federal discretionary appropriations; or

(D)

who is furloughed due to a lapse in Federal discretionary appropriations as an employee of the District of Columbia Courts, the Public Defender Service for the District of Columbia, or the District of Columbia government; and

(2)

the 3 months after the date on which the lapse in discretionary appropriations described in subparagraphs (A) through (D) of paragraph (1) applicable to such employee has ended.

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(b)

Effect of shutdown deferment on public service loan forgiveness

Section 455(m) of the Higher Education Act of 1965 (20 U.S.C. 1087e(m)) is amended by adding at the end the following:

(5)

Treatment of missed monthly payments during special deferment

For purposes of calculating the 120 monthly payments on an eligible Federal Direct Loan under paragraph (1)(A), the Secretary shall treat an unpaid payment on a loan under a repayment plan described in clauses (i) through (iv) of paragraph (1)(A) that occurs during a deferment under section 493E as if such monthly payment was made on the loan.

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