On Sunday, October 1st at 12:01 AM EST a government shutdown will occur if Congress doesn't approve a new “continuing resolution” that sets federal spending for the next year. Per continuing reports by NBC News, Congressional Republicans are pushing for substantial cuts to government spending that the Democratically-controlled Senate won't approve due to preapproved negotiations between McCarthy and Democratic leaders in May. The shutdown will affect several areas of everyday life, particularly those of college students.

If the government does indeed shut down on Sunday, here's how it could affect college students and alumni.

Student Loan Repayment

October 1st is the day that the Federal Student Loan pause is set to be lifted. Federal Student Loan repayment will continue throughout the government shutdown. Students looking to receive assistance or any additional funding during the shutdown would not receive it. The Office of Federal Student Aid already laid off staff and cut call center hours due to Congress not allocating more money to the agency this year per a report by Inside Higher Ed. A government shutdown could exacerbate the issue.

“As we approach a potential partial government shutdown, we urge the Department of Education to be as transparent as possible concerning any looming impacts on the Office of Federal Student Aid and the repayment system,” said Regan Fitzgerald, manager of the Pew Charitable Trusts’ student loan initiative, in a statement obtained by Inside Higher Ed. “The possible shutdown coincides with a pivotal and difficult time for borrowers and the repayment system as the transition back into repayment begins in earnest. Clear communication from the department is key.”

During a briefing on Monday, Karine Jean-Pierre, the White House press secretary, announced that the Office of Federal Student Aid will maintain its key operations for the next couple of weeks. However, she gave a contingency that signaled that a prolonged shutdown could cause massive challenges.
Related NewsArticle continues below
HBCU star Jada Byers wins the 2024 Black College Football Hall of Fame's player of the year award for his season at Virginia Union.
Nation’s best HBCU running back secures pro football contract
Virginia Union picks up a dominant victory over Lenoir-Rhyne to become the lone HBCU standing in the NCAA Division II Playoffs.
HBCU lands huge $8 million donation for amazing reason
Virginia State University is the newest HBCU to join the list of R2-designated institutions, which includes HBCUs
HBCU does ‘Boots on the Ground’ celebration at graduation
However, if it is a prolonged shutdown, lasting more than a few weeks, [it] could substantially disrupt the return-to-repayment effort and long-term servicing support for borrowers. The Department of Education will do its best to support borrowers as they return to repayment—as we have been saying for the past several months—but an extreme Republican shutdown, if this occurs, could be disruptive.

FAFSA Student Application

Per a report by Inside Higher Ed, the FAFSA application for students was supposed to be available on October 1st but was already pushed back to December due to attempts to modernize the system. The government shutdown would not have an impact on federal student aid for the 2023-2024 year as it is distributed at the start of the semester and funding for the aid programs was approved by Congress last year. But, the government shutdown could extend the delay on the application even further.

Programs such as Pell Grants and Federal Direct Student Loans, which have mandatory funding, would still receive support through the shutdown. However, some level of disruption could occur such as slower processing of paperwork and increased wait times for support calls as fewer personnel are available to address issues.

To handle your student loan, such as applying for loans and grants, modifying your repayment plan, renewing your FAFSA form, and accessing other services, you can visit studentaid.gov or get in touch with your student loan servicer through this link.