We've obtained the U.S. Department of Education's official memorandum to the Office of Management and Budget, which attempts to explain the impact of a government shutdown on U.S. Department of Education programs. Of note to our readers and clients is the impact of the shutdown on the federal loan and grant programs.
See page 3 of the memo for more information.
The memo, written by Education Secretary Betsy Devos, states that: "As a result of the permanent and multi-year appropriations, Pell Grants and student loans could continue as normal for some time. Staff and contractors associated with these areas will continue to work, and only skeletal program operations would continue under the “significant damage” standard. Should multi-year, unobligated funding be available, these funds could help cover costs for a period of time."
In other words, it really is going to depend on the length of the shutdown before we see any noticeable or significant impact on the federal loan programs. We will continue to monitor this situation and hope that a resolution is reached soon in Washington, D.C. to find a deal on government funding.
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