What happens to Pell grants in case of a government shutdown?
By Paula Wethington / Monroe on a Budget
If you are a college student in classes during fall semester or quarter, it’s likely that any Pell grants for this academic term have already been credited to your student account and therefore there is no impact on your current college financial aid even if there is a government budget shutdown.
This is a snippet from the U.S. Department of Education Planning for Potential Government Shutdown report:
Program funds for Pell Grants and Direct Student Loans are provided through mandatory and carryover appropriations. Over 14 million students receive student aid, in the form of grants and loans, at over 6,600 schools through these programs. As a result of the permanent and multi-year appropriations, Pell Grants and student loans could continue as normal. …
Federal Student Aid’s Chief Operating Officer and other management officials responsible for Pell Grants and Direct Student Loans will designate the minimum number of employees necessary for these programs. These could include employees needed to obligate and process payments, maintain systems necessary to disburse Pell Grants and student loan payments, and provide legal counsel in FSA and other offices. For the short term, these employees would continue to work.