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Prolonged Closure Could Delay Student Aid Payments

Posted by admin on in College Advice |
Source: Slate.com

Source: Slate. com

That government shutdown continues, many of you happen to be worried it could affect student loans plus public education. As it turns out, you are right to be concerned. College students may today find themselves affected when it comes to their funds. This is largely due to the furlough of Education Department employees who handle disbursement of funds.

For now, 14 million students will certainly continue to get financial aid when it comes to federal government loans and Pell grants. If there’s no resolution within a 7 days though, nearly 4, 000 workers who process student aid is going to be furloughed. This could even make it difficult for students to apply for new loans or grants.

What this means is the money for these grants and loans could be delayed. Elementary and secondary schools could see a cut off in cash flow to their local districts as well if the shutdown continues.

Some are concerned this could cause issues when it comes to the quality of education offered. 1 college student said he hopes Our elected representatives gets it’s act together, regarding everyone’s sake.

While many financial aid has already been given out for this semester, some workers said it’s difficult to tell what the future will be like.

Rhonda Howell, economic aid counselor, said, “It really depends on how long it takes. Right now, student loans aren’t being denied or any of that sort. ”

If these student aid employees would be to be furloughed, it would mean learners would have a difficult time asking queries or getting answers about a mortgage or grant.

According to the Washington Post , a prolonged shut down will result in the following effects on the Department of Education:

TOTAL EMPLOYEES: 4, 225
EXPECTED TO WORK: 212
FURLOUGHED: 3, 983

The department will still spread $22 billion to public schools that is normally obligated on Oct. one This represents the second half of 2013 funding already appropriated by Our elected representatives to help educate poor and impaired K-12 students and to fund career and technical education programs. This funding does not require further congressional authorization.

If the shutdown lasts a week, approximately 212 of the department’s 4, 225 full- plus part-time employees will be working. An extra 30 employees may be called to operate if the shutdown lasts longer than a 7 days.

Pell Grants plus Federal Direct Loans will continue to be prepared, although payments may slow in case there are fewer employees to handle all of them. Other grant programs that use formerly appropriated dollars will continue, including Race to the Top, Investing in Innovation and Promise Neighborhoods.

At the same time, NPR reports that the Schooling Department has said that a shutdown outside of a week would “severely” curtail the cash flow to school districts, colleges and universities and vocational rehabilitation agencies that depend on department funds. For example , schools rely on department funds to pay continuing expenses for staff in programs for disadvantaged students. The section would not make additional details available on Friday about the number of districts, colleges and universities and vocational rehabilitation agencies that could more immediately feel the impact of a shutdown.

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