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Government Shutdown and Student Loans: How Are Borrowers Affected?
The Department of Education will furlough about 95% of non-Federal Student Aid staff while student loan payments and disbursements continue during the shutdown.
- On Oct. 1, the Department of Education warns midnight on Oct. 1 is the shutdown deadline, but student loan payments remain due and Pell Grants and Federal Direct Student Loans continue disbursing.
- Lawmakers are deadlocked over the 2026 federal budget, prompting agencies to prepare for a possible shutdown amid disputes over Affordable Care Act subsidies and immigrant benefits.
- The Department of Education plans to furlough about 95% of non‑FSA staff and roughly 85% of Office of Federal Student Aid staff, including 632 of 747 employees.
- Advocates warn that over 1 million pending applications may face delays, with Persis Yu urging, `It really is urgent for those borrowers who are already entitled to have their loans canceled to make sure that cancellation does get processed before the end of the year,` Yu said.
- About 9.9 million students should submit FAFSA soon to avoid delays, as Yu warns, `This moment is actually really important in the student loan cycle because we are on the cusp of millions of borrowers defaulting on their student loans.
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31 Articles
31 Articles
Will a government shutdown impact your student loans and federal financial aid?
Since President Donald Trump took office this year, he has made the dismantling of the U.S. Department of Education a priority — a scenario that will only continue under the government shutdown that started Wednesday.
·Springfield, United States
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Coverage Details
Total News Sources31
Leaning Left5Leaning Right0Center25Last UpdatedBias Distribution83% Center
Bias Distribution
- 83% of the sources are Center
83% Center
L 17%
C 83%
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