Student financial aid administrators are currently assessing the potential impacts of a recent White House budget office order that has paused federal grants and loans. The National Association of Student Financial Aid Administrators (NASFAA) is working closely with the Department of Education to understand how this directive may affect Title IV and financial aid administration.
The order states that the funding pause does not include assistance provided directly to individuals, but there is uncertainty regarding funds initially sent to institutions, states, or organizations before reaching students. NASFAA Vice President Karen McCarthy highlighted that while most Title IV funds pass through COD (Common Origination and Disbursement), they are designated for individual students and should ideally remain unaffected by the pause. The NASFAA is also investigating the potential impact on campus-based aid programs.
The National Education Association (NEA), representing millions of educators and support personnel, expressed frustration over the grant and loan pausing order. NEA President Becky Pringle emphasized that a freeze in federal funding would particularly harm students in lower-income communities who heavily rely on such support. Pringle noted that the accessibility of higher education could be compromised as institutional aid programs are affected, impacting real individuals seeking educational opportunities.
