Maryland lawmakers try to pause student loan payments for fed workers
Published in Political News
WASHINGTON — Two Maryland lawmakers are introducing bills that would suspend student loan payments for federal workers during the government shutdown, providing relief for employees who missed their first full paycheck last week.
The bills are being introduced by Sen. Angela Alsobrooks and Rep. Sarah Elfreth. Maryland Sen. Chris Van Hollen is a cosponsor.
“This has been an ongoing effort that we have made to ensure that during the shutdown we’re providing as much support as we can to federal employees,” Alsobrooks told The Baltimore Sun.
It’s the latest action of a delegation that has often placed itself in the middle of a fight that has benefited no one — least of all Maryland, which has been disproportionately affected by the impact on government workers.
“It’s a smart angle to take,” GOP strategist Brittany Martinez said. “In this moment, everyone is trying to throw things at the wall and see what sticks.”
Maryland has one of the highest concentrations of federal employees of any state in the nation. Between workers, contractors, and military personnel, Maryland is home to over 500,000 government employees, according to Alsobrooks’ office and state estimates.
It’s also one of the most educated states. Roughly 44% of people 25 and older hold at least a bachelor’s degree. Maryland residents are more likely to have student loan debt than most across the country, with about 847,000 borrowers, according to a study by the Education Data Initiative.
The problem is personal for Elfreth. The freshman member still has student loan debt. And after electing to have her pay withheld during the shutdown, she had to adjust to make her payment.
“I was able to make, like, the most minimum payment this month,” Elfreth told The Sun. “But I’m still paying. And so, I think a lot of people are in that same position.”
“If this is one thing we can take off of their plates, that’s what I’d like to do,” Elfreth added.
Titled the “Shutdown Student Loans for Feds Act,” the legislation, exclusively obtained by The Sun, would require the Department of Education to pause student loan payments during a government funding lapse.
It includes multiple provisions. In the event of a government shutdown that lasts beyond two weeks — like the current one — the bill would pause loan payments for all federal employees. There are no caveats for contractors or furloughed employees. All federal workers who are not being paid would benefit.
The loans would not accrue interest when paused and have no impact on a person’s credit. The pause wouldn’t affect loan forgiveness programs. For forgiveness programs, the time passed would be considered as if the pause didn’t happen and payments were made normally.
Alsobrooks plans to introduce the Senate version of the bill on Wednesday. Elfreth, who represents Anne Arundel and Howard counties and partnered with Alsobrooks on the legislation, introduced its corresponding House bill on Tuesday. Alsobrooks and Elfreth also collaborated on legislation just before the shutdown that would pay federal employees who continue to work during the shutdown.
Although Alsobrooks mentioned the possibility of trying to pass the bill by unanimous consent, she isn’t expected to try on Wednesday. The Senate has been conversing on previously introduced federal worker bills, including one introduced last week by Van Hollen. Whether or not those bills gain bipartisan momentum could determine how Alsobrooks proceeds with her bill, a spokesperson for Alsobrooks told The Sun.
Elfreth doubted her bill would be acted on in time to help the current shutdown — Republicans have been gone since before funding lapsed, leaving the House in limbo. But she eyed how it could aid workers in potential future funding stalemates.
The National Federation of Federal Employees, the National Treasury Employees Union and the American Federation of Government Employees (AFGE) endorsed the act.
AFGE President Everett Kelley said it would provide “much-needed financial relief for federal workers impacted by government shutdowns.”
“No public servant should be penalized with mounting student debt while serving their country without pay,” Kelley said in a statement. “This bill offers fairness, dignity, and peace of mind to the federal workforce.”
Maryland lawmakers have frequently advocated during the shutdown for legislation that would aid federal workers. So far, it’s been to no avail.
“I don’t know whether it’s going to stick or not,” Martinez said.
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