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What Happens to the FAFSA and Student Loans if the Department of Education Shuts Down?

You should still fill out the FAFSA if you need help paying for college, but experts warn there could be delays.
The article from CNET discusses the potential impacts on the Free Application for Federal Student Aid (FAFSA) and student loans if the U.S. Department of Education were to shut down due to a government funding lapse. It explains that while the Department of Education would be significantly affected, certain critical functions would continue. Student loan payments would still be due, and interest would continue to accrue. However, there could be delays in processing new FAFSA applications, and the distribution of federal student aid might be disrupted. The article also notes that during past shutdowns, some services like Pell Grants and Direct Loans continued to be disbursed, but new loan applications and other services might face delays. Additionally, the shutdown could affect the ability of the Department to provide customer service, potentially leaving students and families with unanswered questions about their financial aid. The piece emphasizes the importance of planning ahead and understanding that while some services might be impacted, essential student loan operations would likely continue.

Read the Full CNET Article at:
https://www.cnet.com/personal-finance/loans/what-happens-to-fafsa-and-student-loans-if-the-department-of-education-shuts-down/

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