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Federal Shutdown Triggers Education Department Furloughs as Student Aid Operations Persist

Pre-funded vendor contracts keep core aid services running, despite paused grants and investigations.

Overview

  • The federal shutdown began Oct. 1 after Congress failed to pass funding, triggering agency furloughs.
  • Education Department plans furlough roughly 87% to 95% of staff, including 632 of 747 at Federal Student Aid.
  • Mandated aid keeps flowing through pre-funded contracts, so borrowers must keep paying and FAFSA remains open and processed after its early Sept. 24 launch.
  • FSA staff cannot work through existing backlogs, leaving more than 1 million IDR enrollments and 74,510 PSLF determinations awaiting action.
  • New grant approvals, civil-rights investigations and other regulatory actions are paused, and districts reliant on Impact Aid face immediate funding gaps.