Sec. 9. Student loans
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In this section, the term student loan means the following: A loan made, insured, or guaranteed under title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1070 et seq. ), including any Federal Direct Stafford Loan, Federal Direct Unsubsidized Stafford Loan, Federal Direct PLUS Loan, or Federal Direct Consolidation Loan. A private education loan, as such term is defined in section 140(a) of the Truth in Lending Act ( 15 U.S.C. 1650(a) ). This section shall apply to any situation in which— the student loan payment of a Federal worker falls due or remains unpaid during a shutdown; and during the shutdown described in paragraph (1), the Federal worker described in that paragraph has been furloughed or required to work without pay.
During a covered period, a Federal worker shall be eligible for deferment, during which, with respect to a student loan, periodic installments of principal need not be paid and interest shall not accrue. If the student loan payment of a Federal worker falls due and remains unpaid during a shutdown, the lender with respect to the student loan may not place the loan in default without the order of a court. If the student loan of a Federal worker has been placed in default before the date on which a shutdown begins, the lender with respect to the student loan may not, without the order of a court, perform any of the following activities during the covered period with respect to the shutdown:
Send the student loan to collection. Report adverse information with respect to the Federal worker to a consumer reporting agency. Garnish wages, tax refunds, or government benefits. In a proceeding to collect a student loan payment that is subject to this section, a court may, upon the motion of the court, and shall, if requested by a Federal worker whose ability to comply with the obligation resulting in the proceeding is materially affected by a shutdown— stay the proceeding for a period of time as justice and equity require; or adjust the obligation to preserve the interests of all parties.
A person that knowingly violates this section, or attempts to violate this section, shall be fined as provided in title 18, United States Code, or imprisoned for not more than 1 year, or both.
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