October 2, 2025

Hold tight, students and parents! On October 1, 2025, the US government slipped into a partial shutdown because lawmakers couldn't agree on funding. This sparks big questions about your student loans, FAFSA, and school money. But here’s the spicy scoop: federal student loans are still very much alive. Even though 87% of Education Department staff are furloughed, essential loan workers and FAFSA teams keep things ticking. The Department of Education handles a massive $1.6 trillion loan portfolio for nearly 10 million borrowers across 5,400+ colleges. Thanks to private contractors running most loan work, monthly payments, auto-debits, and repayment plans go on without a hitch. So, don’t be fooled—missing payments now will bring late fees and mess up your credit. The FAFSA process keeps rolling too! Students can still apply for aid for the next school year, and deadlines haven't moved. The essential staff on duty make sure applications are handled smoothly, so don’t delay your submissions. Double-check your forms to avoid mistakes that can slow things down. On the funding front, important programs like Pell Grants, Title I for low-income schools, and IDEA for students with disabilities continue working. Students using federal aid won’t see sudden stoppages in tuition help. But heads up! New grants and advisory programs are on pause, which could slow projects or hiring in some schools. Impact Aid, backing about 1,200 districts near military bases or federal lands, might get hit if shutdown sticks around beyond a week. Delays here could mean budget headaches for those schools. The sharpest pain is with civil rights enforcement. The Education Department’s Office for Civil Rights has stopped accepting new discrimination complaints linked to race, sex, or disability—ouch! Existing cases move at a snail’s pace, but if you face injustice, keep detailed records and talk with your school until the feds return. What should students and families do now? Simple! Keep paying your student loans on time; don’t trust any news suggesting you can skip. Submit FAFSA forms before deadlines—early submissions are key. Watch for possible bumps if you expect new federal funding, and check with your school if unsure. For civil rights troubles, keep your documents ready and stay in touch with school officials. Though the shutdown dims some lights, critical education support keeps flickering as we wait for funds to flow again.

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Tags: Us government shutdown, Student loans, Fafsa, Education department, School funding, Civil rights,