The "Shutdown Student Loans for Feds Act" aims to provide significant relief to federal employees and contractors holding federal student loans during government shutdowns. It mandates the suspension of payments for Direct Loans for "covered individuals" during any lapse in appropriations lasting at least 14 days , beginning in fiscal year 2026. A "covered individual" encompasses federal employees—whether furloughed, excepted, or performing emergency work—and contractors who support them, provided they are not receiving their ordinary basic pay during the shutdown. During these suspension periods, interest will not accrue on the affected loans, preventing borrowers from incurring additional debt. Each month a payment is suspended will be deemed as if a payment was made for the purpose of any federal loan forgiveness program, ensuring borrowers do not lose progress. Additionally, the bill protects borrowers' credit by requiring that suspended payments be treated as regularly scheduled payments made when reporting to consumer reporting agencies . The Act is effective retroactively to September 30, 2025, and allows for refunds of payments made by covered individuals during qualifying shutdown periods if requested.