The shutdown isn't stopping Trump's major student-loan repayment overhaul

"On Monday, the Department of Education will begin its second week of negotiations with stakeholders on President Donald Trump's plan to overhaul repayment plans and impose new caps on borrowing. The changes were codified in Trump's "big beautiful" spending bill, which he signed into law in July. The department is now undergoing negotiated rulemaking, a process that includes negotiation sessions and periods of public comment, with implementation set to begin in July 2026."

"The negotiations are continuing despite the ongoing government shutdown. Jeff Andrade, the department's deputy assistant secretary for policy, told negotiators during the first session in October that a lapse in appropriations would not prevent the rulemaking process from moving forward. "Failure to actively continue work towards promulgating these regulatory changes would substantially impair otherwise funded programs, like Pell Grants and direct loans, from implementing new statutory requirements by the statutory deadlines under the One Big Beautiful Bill Act," Andrade said."

Negotiated rulemaking on the student-loan repayment overhaul has entered its second week, with stakeholders meeting to discuss new borrowing caps and repayment-plan changes. Negotiations proceed despite the government shutdown, and department officials said a lapse in appropriations will not halt the rulemaking. The department began sessions that include negotiation phases and public comment, with implementation scheduled for July 2026. Some departmental materials, such as proposed rule text, will not be posted on the website until the shutdown ends, but sessions are livestreamed for public access. Officials warned that pausing work would impair programs like Pell Grants and direct loans.

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