Will a Government Shutdown Impact College Students?
Credit: Tim Graham / Getty Images- Colleges and universities have minimal direct reliance on the federal government.
- Experts predict a government shutdown wouldn’t impact the lives of most college students.
- International students and student veterans, however, may be more impacted than others.
- Congress has until March 14 to pass a measure to avoid a shutdown.
A government shutdown may sound alarming, but for the average college student, it is unlikely to impact their studies.
The federal government is teetering on the brink of a government shutdown, as a stop-gap measure is scheduled to expire after March 14. Many college students rely on the federal government’s financial aid programs to afford college, but because those funds have largely already been disbursed, the day-to-day life of the average college student likely won’t change if a shutdown does occur, at least not in the short term.
A shutdown may, however, impact international students and student veterans more than others.
A government shutdown would begin on March 15 if lawmakers cannot pass a temporary spending plan before then. Democrats in the U.S. Senate have already said they would not support the House of Representatives’ six-month measure, and there aren’t enough Republicans in the Senate to muscle through a filibuster, setting the stage for a shutdown.
Fears of a shutdown also come after a nearly 50% reduction in the Department of Education’s workforce since President Donald Trump took office.
Impacts Minimal for Students During Shutdown
Thankfully for college students, the academic school year is already underway.
That means federal financial aid — including federal student loans — has already been disbursed to students. Once that money is handed out, the federal government’s role in funding higher education is largely satisfied.
The American Council on Education (ACE) said a shutdown occurring mid-semester is more preferable to one occurring at the start of the academic year.
“Typically, institutions of higher education do not feel many negative effects from a short-term government shutdown,” ACE wrote. “The impact of a shutdown on higher education depends on a variety of circumstances. Timing, for example, is a key variable.”
The Office of Management and Budget put forth a contingency plan in case of a shutdown for the Department of Education (ED) in 2021. The plan stated that for many grant and loan programs, as long as there are enough funds, ED may continue distributing funds even during a shutdown. So, according to the plan, if a shutdown were to carry over into the spring 2025 semester, financial aid should not be impacted.
“For programs meeting the significant damage standard, employees could be brought into work as ‘excepted employees’ to provide payments and fulfill obligations to grantees and other recipients,” the plan stated.
It’s worth noting, however, that OMB’s contingency plan is no longer available online, so it’s unclear whether the Trump administration will abide by this guidance.
There are some programs and functions that ED cannot justify keeping employees focused on during a shutdown. According to the plan, those include:
- Federal work-study programs
- Supplemental Educational Opportunity grants
- Customer service
- Administrative functions not related to student aid
- Development of new programs, policies, and activities
The contingency plan said more than 90% of ED’s employees could be furloughed in the event of a shutdown.
ACE added that there may be some delays in processing benefits for veteran students. However, the period for certifying GI Bill benefits generally starts in August, so a shutdown beginning in March should have minimal impact.
International students may also be impacted. ACE stated that the U.S. Department of Homeland Security may not process applications for changes in status during a shutdown, so some visa applications may not be reviewed.
Students relying on the Supplemental Nutrition Assistance Program (SNAP) to pay for food and groceries won’t be impacted immediately should there be a shutdown. Former Secretary of Agriculture Tom Vilsack said in September 2023, when a previous shutdown was rumored, that there would be “some serious consequences” for SNAP if a shutdown stretched on.
Lastly, ED’s contingency plan states that the Office for Civil Rights would pause all investigations of civil rights complaints during a shutdown, potentially impacting former and current college students.