HELP FEDs Act

HR 5816, the HELP FEDs Act, protects federal employees from student loan penalties during government shutdowns. It prevents late fees, additional interest, and credit damage on qualified education loans (like federal student loans) when employees miss payments due to a funding lapse causing government operations to halt. The law requires the Department of Education to coordinate with loan servicers and credit agencies to remove any inaccurate negative credit reports from these missed payments, applying retroactively to shutdowns after October 1, 2025. The bill does not eliminate the need to repay loans but pauses penalties and credit impacts during covered disruptions.