Section 1 Deferment for Federal employees during government shutdowns
Shutdown deferment—
Effect on principal and interest— Notwithstanding any other provision of law, a borrower of a loan made, insured, or guaranteed under part B or D of the Higher Education Act of 1965 (20 U.S.C. 1071 et seq.; 1087a et seq.) who meets the requirements described in paragraph (2) shall be eligible for a deferment, during which—
periodic installments of principal need not be paid; and
in the case of a—
loan made, insured, or guaranteed under part B of the Higher Education Act of 1965 (20 U.S.C. 1071 et seq.), the Secretary shall repay any interest owed; and
loan made under part D of the Higher Education Act of 1965 (20 U.S.C. 1087a et seq.), interest shall not accrue.
Eligibility— A borrower of a loan described in paragraph (1) shall be eligible for a deferment during any period of not less than 15 consecutive days in which such borrower is an employee of a Federal agency that is subject to a lapse in discretionary appropriations.
Effect of shutdown deferment on public service loan forgiveness—
In general— Notwithstanding any other provision of law, for purposes of section 455(m) of the Higher Education Act of 1965 (20 U.S.C. 1087e(m))—
the Secretary of Education shall treat an unpaid monthly payment on a loan during a deferment period described in subsection (a)(2) as if such monthly payment has been made on the loan if, during the reimbursement period, the borrower of such loan—
makes each monthly payment due on such loan for each month of such reimbursement period;
pays the amount of such unpaid monthly payment; and
not later than the day on which the first monthly payment is due during such reimbursement period, pays any other amounts that were due on such loan as of the day before the deferment period; and
with respect to a borrower who does not pay the amount of any such unpaid monthly payment on a loan during such reimbursement period, beginning with the first monthly payment due on such loan after the reimbursement period and for each succeeding monthly payment until the total amount of such unpaid monthly payments on such loan are paid, the amount of the monthly payment due on such loan shall equal—
the monthly payment due on such loan for such month; and
the amount of 1 unpaid monthly payment on such loan.
Definitions— For purposes of paragraph (1):
Deferment— The term deferment period, when used with respect to a borrower, means the period in which the borrower is in the deferment described in subsection (a)(2).
Monthly payment— The term monthly payment means a monthly payment under section 455(m)(1)(A) of the Higher Education Act of 1965 (20 U.S.C. 1087e(m)(1)(A)).
Reimbursement period— The term reimbursement period, when used with respect to a borrower, means a period that is—
equal to the number of days of the deferment period of the borrower; and
begins on the day after such deferment period.