Will Trump’s pause on federal loans and grants impact my student aid?
Will Trump’s pause on federal loans and grants impact my student aid?
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The Department of Education said that discretionary grants will be the ‘only’ program impacted by the pause. Late Monday evening, President Donald Trump announced he is pausing federal loans and grants. While the initial memo said individual aid won’t be impacted, some types of federal student aid are first disbursed to colleges themselves, rather than directly to students, leaving many confused.
![[White House Press Secretary Karoline Leavitt was forced to clairfy that anyone receiving individual benefits will not be impacted, including Medicare and Social Security]](https://static.independent.co.uk/2025/01/28/18/SEI237705497.jpg)
However, the White House later clarified Trump’s memo and explained what it actually means for students on federal financial aid. Here’s what we know about how your student aid could be impacted:. No. The White House released a Q&A memo on Tuesday afternoon clarifying the order will not impact federal student loans.
“No,” it continues, “any program that provides direct benefits to Americans is explicitly excluded from the pause.” The Q&A document also clarifies Pell Grants “will not be paused.”. “The temporary pause does not impact Title I, IDEA, or other formula grants, nor does it apply to Federal Pell Grants and Direct Loans under Title IV [of the Higher Education Act],” Biedermann said. “The Department is working with OMB to identify other programs that are not covered by the memo.”.
Title IV of the Higher Education Act encompasses most federal aid programs, such as the William D. Ford Federal Direct Loan Program; the Federal Pell Grant Program; the Federal Supplemental Educational Opportunity Grant Program; the TEACH Grant Program; the Iraq and Afghanistan Service Grant Program; and the Federal Work-Study Program.
