How student-loan borrowers will be affected by the government shutdown

"The government ran out of money to pay its bills on October 1 after Democratic and Republican lawmakers failed to reach a funding agreement. This means that each federal agency's shutdown contingency plans, which include furloughing thousands of federal employees, closing national parks, and delaying grant disbursements, are now being rolled out. For the Department of Education, the shutdown will slow down the work of an already stripped-down agency."

"According to the department's contingency plan, it will furlough 1,485 of its 1,700 employees, excluding the Federal Student Aid office. FSA will be staffed by just 115 employees during the shutdown. Even with the minimal FSA staff, the department said it will continue to disburse student aid like federal student loans and Pell Grants, and student-loan borrowers are still required to make their payments during the shutdown."

"Since funds for student aid programs are provided through mandatory appropriations, the department said, those programs will continue for the 9.9 million students who depend on student aid. "Other contracts needed to obligate and process payments, maintain systems necessary to disburse Pell Grants and student loan payments, and provide legal counsel to FSA and other offices have been prefunded and will continue," the department said."

The government ran out of money to pay its bills on October 1 after Democratic and Republican lawmakers failed to reach a funding agreement, triggering federal shutdown contingency plans. Agencies will furlough many employees, close national parks, and delay grant disbursements. The Department of Education will furlough 1,485 of its 1,700 employees, excluding Federal Student Aid, which will operate with about 115 staff. Mandatory-funded student aid programs, including federal student loans and Pell Grants, will continue and borrowers must keep making payments. FAFSA processing and Title I disbursements will continue. Negotiations on Trump's student-loan repayment overhaul will also continue.

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