By Catherine Brown, Senior Director, Policy and Advocacy
Reading time: Two minutes
If you’re feeling like it’s Groundhog Day, you’re not alone. Once again, we are on the brink of a government shutdown, with federal funding authority set to expire on September 30, 2025 at midnight. Congressional leaders are heading to the White House this afternoon,
and the situation may change rapidly. In fact, by the time you read this blog, the crisis may have been averted. But as of now, neither side appears to be blinking.
The good news for the college access and success field is that Free Application for Federal Student Aid (FAFSA) and Pell will be largely unaffected. The US Department of Education’s (ED) shutdown plan can be found here.
In brief, it states:
FAFSA will continue operating: Students and families will be able to access and complete the FAFSA and the Office of Federal Student Aid (FSA) staff will continue processing FAFSA forms.
The call center will continue to be staffed: Students will still be able to contact the call center to have their FAFSA and student loan questions answered.
Pell Grants, Campus-Based Aid, and Direct Student Loans will continue to be disbursed: All federal student aid will continue to be disbursed. Pell Grants and Direct Student Loans, which are forward funded, meaning funded using the prior year appropriation, and funded with mandatory money, will not be impacted.
Borrowers will be required to continue making payments.
Other federal education programs may be impacted: ED’s plan says about 17 discretionary programs have unspent funds from FY25 that may be used in the event of a shutdown. It does not specify which programs are in that category. GEAR UP and TRIO could be on the list.
Grantmaking will halt but grant drawdowns may continue: ED will pause new grantmaking, but grantees will be able to draw down funds they have already been awarded. The plan notes that most grantmaking occurs over the summer and most
grant aid has already been drawn down.
Budget reconciliation rulemaking will continue: FSA will not furlough employees working on budget reconciliation rulemakings necessary to meet deadlines established by the budget reconciliation bill enacted in July. The negotiated
rulemaking session going on now will switch to a virtual format.
Other activities will stop: The Office for Civil Rights will pause its investigations, and ED staff will stop developing and implementing guidance and providing technical assistance, other than those required by budget reconciliation.
Despite its promises to maintain student aid services, the plan says 85% of staff at FSA and 87% of other ED staff will be furloughed. This level of impact is extensive and may result in disruptions. If a shutdown continues for a prolonged period, the
impact on core services will grow. This issue will unfold over the next day and we at the National College Attainment Network (NCAN) will keep you posted on the impact should a shutdown commence.
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