The U.S. Department of Education said in a statement on Tuesday morning that the memo sent to government agencies the day before calling for a broad pause on federal spending did not apply to federal student loans or Pell grants. That money will continue to flow, the statement said.
“The temporary pause does not impact assistance received directly by individuals,” said Madison Biedermann, who, according to the department, is currently delegated to perform spokesperson duties. This assistance includes funds like federal direct student loans and Pell grants that the department provides to “individual students,” her statement said.
Part of the confusion, which included many alarmed posts on social media, sprung from the “received directly” portion of the Office of Management and Budget memo. Grants and loans for education can be sent to the school, so students may never receive the money directly.
In a follow-up statement, the department confirmed that no Pell grants or loans would be paused or delayed because of the order. Funding for the federal work-study program, which helps pay for campus jobs, will continue to flow, too.
The federal government, including agencies like the National Institutes of Health, also provides grants to conduct research at universities, and those programs may provide grants and stipends to graduate students who are working for them. It was not immediately clear whether any of that funding would be affected.
Persis Yu, deputy executive director at the Student Borrower Protection Center, an advocacy group, said the memo generated a lot of fear and chaos for students and their families because it came at a time when many of them were waiting for their federal loans.
“Millions of students are waiting for disbursements of their federal aid so that they can continue their education, and eat and keep a roof over their heads,” she said. “Wielding this fear is an abuse of power.”
