Will White House freeze on federal aid affect student loans?
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President Donald Trump has ordered a temporary suspension of federal grants and loans, impacting trillions of dollars in government funding and various public programs.
The directive, effective from January 28 at 5PM, targets funding for state and local governments, research projects, housing assistance, and education grants.
The Education Department said the freeze will not affect federal Pell Grants and student loans.
“The temporary pause does not impact Title I, IDEA, or other formula grants, nor does it apply to Federal Pell Grants and Direct Loans under Title IV [of the Higher Education Act],”
It also has no affect on the Free Application for Federal Student AidĀ for the upcoming year.
The pause excludes student loans, Social Security, SNAP and Medicare benefits, but aims to review and reallocate resources away from initiatives related to diversity, equity, and inclusion, foreign aid, and gender policies.
The freeze could affect federal work-study programs and the Federal Supplemental Educational Opportunity Grant, which are provided in bulk to colleges to provide to students, according to higher education expert Mark Kantrowitz.
