Prolonged Closure Could Delay Student Aid Payments

By Staff

Source: Slate.com

As this government shutdown continues, many of you are worried it could affect student loans and public education. As it turns out, you’re right to be concerned. College students may now find themselves affected when it comes to their finances. This is largely due to the furlough of Education Department employees who manage disbursement of funds.

For now, 14 million students will continue to get financial aid when it comes to federal loans and Pell grants. If there’s no resolution within a week though, nearly 4,000 employees who process student aid will be furloughed. This could even make it difficult for students to apply for new loans or grants.

This means the money for these grants and loans could be delayed. Elementary and secondary schools could see a cut off in cash flow to their local districts as well if the shutdown continues.

Some are concerned this could cause problems when it comes to the quality of education offered. One college student said he hopes Congress gets it’s act together, for everyone’s sake.

While most financial aid has already been given out for this semester, some workers said it’s hard to tell what the future will be like.

Rhonda Howell, a financial aid counselor, said, “It really depends on how long it takes. Right now, student loans aren’t being denied or any of that sort.”

If these student aid employees were to be furloughed, it would mean students would have a difficult time asking questions or getting answers about a loan or grant.

According to the Washington Post, a prolonged shut down will result in the following effects on the Department of Education:

TOTAL EMPLOYEES: 4,225 EXPECTED TO WORK: 212

FURLOUGHED: 3,983