How will student loans be affected by a government shutdown?
By Paula Wethington / Monroe on a Budget
The Federal Student Aid program has posted this announcement on its Facebook page:
In the event of a government shutdown, we anticipate that there will be limited impact to the federal student aid application (FAFSA) process, to the delivery of federal student aid, or to the federal student loan repayment functions.
The Washington Post also includes this information from the Department of Education in its agency by agency roll call of shutdown impacts:
Pell Grants and Federal Direct Student Loans would continue to be processed, although payments may slow if there are fewer employees to process them.
In other words, your student loan payments are due as usual.
The allocations to schools are off-season anyway, as colleges that are on quarter or semester schedules have already started fall terms and we are weeks away from the winter / spring terms.
There might an impact on students who are on off-cycle academic terms such as “college for working adult” programs whose classes start whenever they are filled.