How the Federal Loan and Grant Pause Affects Student Aid

The recent White House decision to pause certain federal grants and loans has raised questions for students and parents about how the federal grant pause affects student aid. The good news? Federal student loans and Pell Grants are unaffected. This means that students who plan on these funds for tuition, housing, and other expenses can continue their education without disruption. While some university programs funded by federal grants may still face uncertainty, direct student aid is not at risk. Let’s address common questions and concerns as well as what to watch for in the coming weeks.

Jump to:

What Is the Federal Grant and Loan Pause?

The Office of Management and Budget (OMB) ordered a temporary pause on certain new federal grants and loans. The pause mainly affects funding given to universities for specific programs. This does not impact direct financial aid for students like Pell Grants or federal student loans. 

What Student Aid Remains Unaffected?

For those wondering how the federal grant pause affects student aid, this part is what you may be most interested in. If you rely on federal financial aid like Pell Grants, federal student loans, or need-based assistance, you can rest assured: these programs are continuing as usual. That means if you’re counting on that money for tuition, housing, or other expenses, you can still plan on receiving it.

What Programs Might Be Adjusted?

While direct student aid isn’t changing, some university programs that receive federal grants may undergo adjustments. This could include:

  • Research Projects: Federal funding for scientific and academic research may be evaluated to ensure it supports initiatives that align with national priorities, potentially leading to shifts in focus areas.
  • Diversity, Equity, and Inclusion (DEI) Initiatives: Some DEI programs may undergo reassessment to determine their fairness, effectiveness, and alignment with the Trump Administration’s priorities.
  • Environmental and Climate-Related Studies: Federal support for sustainability and climate education programs may be restructured to align with new funding priorities as well.

What Does This Means for College Students and Parents?

For students, this is a reminder to stay informed. Additionally, explore backup funding options in case any changes down the road affect your school. Private scholarships, state grants, and institutional aid can all be great resources. Parents should check in with their student’s school to see if any tuition assistance or scholarship programs might be impacted.

How Can You Stay Prepared?

  1. Research Your Financial Aid Options: Start early by understanding different types of financial aid, including federal grants, state scholarships, and private funding sources.
  2. Ask About Institutional Scholarships: Many universities offer their own scholarships and grants. Reach out to admissions and financial aid offices to learn more.
  3. Plan for Flexibility: Since funding situations can change, create backup plans that includes multiple sources of financial support to ensure a smooth college experience.

What Comes Next?

While this federal loan and grant pause has created some uncertainty, direct financial aid for students remains intact. Therefore, students and parents should continue planning as usual. Staying informed and exploring additional funding options can help in navigating any future changes.

For the latest updates, stay in touch with your university’s financial aid office and trusted news sources. We’ll continue to monitor the situation and share important updates as they come.

In the meantime, students and parents can still fill out the FAFSA. You can also reach Cairn University’s Student Financial Services Office with questions here.

Share:

More Posts

Upcoming ABHE Visit to Cairn University

Cairn University will be hosting a programmatic accreditation visit by a team of evaluators from the Association for Biblical Higher Education (ABHE) on April 9 and 10 to determine its

Fall 2024 Graduation

Cairn University Celebrates Fall 2024 Graduates

Cairn University Celebrates Fall 2024 Graduates On Saturday, December 14, Cairn University celebrated the fall 2024 graduates. In total, the University recognized 84 graduates, 4 with associate degrees, 60 with

Want $1,000 Off Your Tuition?

Deposit by March 1 to receive this limited-time award!