The ongoing federal government shutdown has prompted concern among education officials regarding the possible effects on schools and student loans.
The development comes after the Department of Education was previously gutted when President Donald Trump signed an executive order to shut it down. Since then, the department has laid off nearly half of its entire workforce.
U.S. Government Shutdown
The layoffs were implemented over the summer, and it is estimated that roughly 80% of the department's staff are already furloughed. Authorities said that federal funding and disbursement of certain programs, such as student loans and Pell Grants, which are on an immediate basis, are expected to continue.
Additionally, essential employees will also continue other "key operations," including the processing of students' Free Applications for Federal Student Aid (FAFSA). But if the government shutdown drags on, furloughed support staff will not be able to help students and schools if a financial aid issue happens, according to ABC News.
A former management and program analyst with the Department of Education's Ombudsman Office, Rachel Gittleman, said that if something breaks on the FAFSA form, the employees responsible for fixing it are already furloughed.
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She added that if students have an issue getting their Pell Grant or getting their federal student aid, even if the government shutdown ends in six days, there will be some issues. However, it would at least be less than if the situation lasts longer.
Despite the government shutdown, however, day-to-day operations for the majority of schools will not be affected. This is because most of K-12 education receives funding through state and local budgets, K-12 Dive reported.
What Other Impacts?
While federal funding is critical, it only covers roughly 14% of elementary and secondary education. A Sept. 28 memo from U.S. Education Secretary Linda McMahon noted that the department will make grant funds for Title I and the Individuals with Disabilities Education Act available.
However, a funding pause will still result in some disruptions that will be noticeable to school districts and state education agencies. These include pauses in Office for Civil Rights investigations, new grant-making activities, and technical assistance support.
Amid the government shutdown, residents are still able to apply for federal financial aid, as remaining employees will ensure that mandated programs continue to operate. There is also a plan for FAFSA processing, which should not be impacted.
Additionally, student loan payments still need to be paid, as borrowers typically interact with their loan services to make the payments, as per CNBC.
