Government Shutdown and Student Funding

Our Government has been closed for a week. Photo Credit: USA Today

It's been over a week since the federal government shutdown on October 1, and students at Dean College and across the country are now asking themselves how it might affect their financial aid, loan payments, and FAFSA applications.

Most of the federal student aid programs are proceeding, but with reduced staff, under the U.S. Department of Education. The Department stated that Direct Loans and Pell Grants will continue to be disbursed since they are considered "mandatory funding," and therefore are not affected by new congressional appropriations.

In a statement released by the Office of Federal Student Aid, officials stated that "the FAFSA form is still available, and students can still submit and edit." The Department also mentioned that its primary websites, including StudentAid.gov, will continue to function but with certain updates or new information being delayed.

While the main systems continue to function, the shutdown has furloughed about 90 percent of the Department of Education's employees. They include those who process questions, appeals, and corrections on a routine basis. "Customer service centers will close, and emails or inquiries received during the shutdown will not be responded to until funding resumes," the statement continued.

For most students, this will translate to previously granted financial aid continuing uninterrupted. For others who are in the process of appeals, pending verification, or seeking one-on-one assistance, it may result in delays of a few weeks. Colleges will also have less interaction with the Department, which will make it harder to finalize complicated aid cases.

Associated Press stated that "loan servicing companies will remain open because they are run through private contracts," i.e., repayment arrangements and account access won't be discontinued. Students should still make their payments on time.

The U.S. Department of Education offices are closed all over the country. Photo Credit: CNN

College financial aid counselors in the local area are calling on students to take a proactive approach. "The most that students can do at this point is check their FAFSA status early and stay in constant contact with their school," one campus financial aid administrator told The Dean Daily. "We are doing all we can to make sure there are no gaps, but the longer this shutdown continues, the more complicated it gets."

The Department of Education also verified that a series of other operations have been shut down, such as Title IX and civil rights investigations and the processing of new federal grants. Any new grant requests or complaints will be handled when normal operations resume.

For students across the country, the uncertainty is hardest to swallow. As Congress bickers over what's next, the Department announced it will continue to send aid, though the situation might look different if the shutdown goes on a long time.

In the department's own words: "We remain committed to ensuring that students receive the aid they are entitled to, even under these challenging circumstances."

For now, students current aid is secure, but in this ever changing political environment, it is important that students stay up to date.