White House freeze on federal aid will not affect student loans, Education Department says

U.S. Office Of Management And Budget News

White House freeze on federal aid will not affect student loans, Education Department says
U.S. Department Of EducationPersonal FinanceDonald J. Trump
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The Education Department said Trump's freeze on federal aid will not affect federal Pell Grants and student loans.

President Donald Trump ordered a temporary freeze on federal aid in an effort to review funding for causes that don't align with his agenda.The freeze, which could affect billions of dollars in aid, noted an exception for Social Security and Medicare. The pause "does not include assistance provided directly to individuals," according to the memo.

In addition to the federal financial aid programs that fall under Title IV, Title I provides financial assistance to school districts with children from low-income families. The Individuals with Disabilities Education Act, or IDEA, provides funding for students with disabilities. The pause could affect federal work-study programs and the Federal Supplemental Educational Opportunity Grant, which are provided in bulk to colleges to provide to students, according to higher education expert Mark Kantrowitz.

Most federal financial aid programs are considered Title IV funds "labeled for individual students" and so would not be affected by the pause, McCarthy said, but all other aid outside Title IV is unclear. "We are also researching the impact on campus-based aid programs since they are funded differently," she said.

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