Account

The Actual News

Just the Facts, from multiple news sources.

How Student Loans Are Affected by a Government Shutdown: What to Know

How Student Loans Are Affected by a Government Shutdown: What to Know

Summary

During the U.S. government shutdown, the Department of Education will continue basic operations like distributing Pell Grants and processing student aid applications. However, most of its employees will be furloughed, leading to potential delays and limited help for student loan issues. Borrowers will still need to pay their student loans, but new grants won't be issued.

Key Facts

  • The Department of Education will furlough 87% of its workforce during the shutdown.
  • Pell Grants and Federal Student Loans will still be distributed.
  • The Free Application for Federal Student Aid (FAFSA) will continue to be processed.
  • New grantmaking activities will stop during the shutdown.
  • Borrowers must continue making student loan payments.
  • Employees in the Office of Federal Student Aid may still perform essential tasks.
  • Most loan servicing is handled by private companies, which should not be affected unless the shutdown lasts a long time.
  • The department will reassess its plans if the funding lapse continues for more than a week.

Source Information