Trump federal funding freeze: What pause means for student loans, Pell Grants

President Donald Trump’s administration issued a national freeze on federal grants and loans, beginning Jan. 28.

Education funding for K-12 and colleges is under review, but a Department of Education spokesperson said Tuesday that student financial aid is still operating under normal conditions.

“The temporary pause does not impact ‘assistance received directly by individuals,’” Madison Biedermann, deputy assistant secretary for communication strategy, told USA Today. This includes higher education funding such as federal Pell Grants and direct loans.

There was initial concern and “widespread confusion” about student aid being affected since federal grants and loans are awarded via the student’s selected college or university, according to USA Today.

Nationally, some state agencies and nonprofits reported issues accessing federal funds related to preschool, housing and veteran’s services.

The Alabama Commission on Higher Education is monitoring how this “impact grants awarded to campuses for research or public services but have no details at this time,” according to executive director Jim Purcell.