The "Shutdown Student Loans for Feds Act" aims to provide significant relief for federal employees and contractors holding federal student loans during government shutdowns. It mandates that the Secretary of Education suspend all payments for Direct Loans for "covered individuals" during any lapse in appropriations lasting at least 14 days, starting in fiscal year 2026. A "covered individual" includes federal employees, whether furloughed or deemed essential, and contractors who support federal employees, provided they are not paid their regular salary during the shutdown. During these payment suspension periods, interest will not accrue on the affected loans, alleviating financial burden. Each suspended month will also be deemed as a payment made for the purpose of any federal loan forgiveness program, ensuring borrowers do not lose progress. The bill further stipulates that these suspended payments will be reported to consumer reporting agencies as if they were regularly scheduled payments made by the borrower, protecting credit scores. Additionally, the Act allows for refunds of payments made by eligible individuals during qualifying shutdown periods if requested, with a retroactive effective date of September 30, 2025.