The U.S. Department of Education will largely continue its core operations during the government shutdown, with 87% of its workforce furloughed. Student loan payments, Pell Grants, federal loans, and FAFSA processing will continue. The department manages a significant student loan portfolio and aids millions of students.
The U.S. Department of Education says many of its core operations will continue despite a government shutdown – though 87% of its workforce will be furloughed. The government officially shut down overnight after Congress failed to pass a funding measure before the 12 a.
m. Wednesday deadline. When this happens, many federal services pause, federal workers are furloughed, and Americans may feel ripple effects across daily life.Here’s what it means for the Department of Education. READ MORE: Government shutdown starts: Here's what closes during a shutdownStudent loan borrowers must continue making payments, even during a shutdown, as student aid will be largely unaffected in the short term, according to the department’s shutdown contingency plan. Pell Grants and federal loans will continue to be disbursed. RELATED: Some student loan borrowers brace for smaller paychecksThe Education Department manages a $1.6 trillion federal student loan portfolio. About 9.9 million students receive some form of federal aid from some 5,400 colleges, according to the department. Within the Office of Federal Student Aid, the department plans to furlough 632 of the 747 employees during the shutdown, although it didn’t say which ones. For most student loan issues, borrowers work with loan servicers hired by the department rather than directly with FSA staff.The department will also continue to process the Free Application for Federal Student Aid, or FAFSA, which is a key piece of how colleges and universities provide aid packages to incoming students. Since he took office, President Donald Trump has called for the dismantling of the Education Department, saying it has been overrun by liberal thinking. Agency leaders have been making plans to parcel out its operations to other departments, and in July the Supreme Court upheld mass layoffs that halved the department’s staff.The department had about 4,100 employees when Trump took office in January. It now has about 2,500. Education Secretary Linda McMahon said some staffers were brought back after officials found that the cuts went too deep.The Trump administration has suggested that in a shutdown, federal agencies could see more positions eliminated entirely. In past shutdowns, furloughed employees were brought back once Congress restored federal funding. This time, the White House’s Office of Management and Budget has threatened the mass firing of federal workers.Republicans supported a short-term measure to fund the government generally at current levels through Nov. 21, but Democrats blocked it, insisting the measure address their concerns on health care. They want to reverse the Medicaid cuts in Trump’s mega-bill passed this summer and extend tax credits that make health insurance premiums more affordable for millions of people who purchase through the marketplaces established by the Affordable Care Act.Republicans called the Democratic proposal a nonstarter that would cost taxpayers more than $1 trillion.Neither side shows any signs of budging, which could make this shutdown a prolonged one. The last time the government shut down was December 22, 2018, during Trump’s first term. It lasted 35 days and cost the U.S. roughly $3 billion in lost GDP, the Congressional Budget Office estimated.
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Education Department Operations Continue Despite Government ShutdownThe U.S. Department of Education will continue core operations, including student loan disbursements and FAFSA processing, despite a government shutdown. However, 87% of its workforce will be furloughed. Student loan borrowers should continue making payments, and federal aid will largely remain unaffected in the short term.
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Education Department Operations Continue Amidst Government Shutdown, Despite Workforce FurloughsThe U.S. Department of Education implements its contingency plan, ensuring student loan payments and federal aid disbursement continue during the government shutdown, although 87% of its employees are furloughed. The article also explores the implications of the shutdown and the political gridlock that caused it, including the ongoing debate over funding and healthcare.
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Education Department employees surprised to find their email automatically changed to blame Democrats for shutdownNatasha Korecki is a senior national political reporter for NBC News.
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