NASFAA Mention: How the Shutdown Affects Tuition Payments and Loans

"With the partial U.S. government shutdown about a month old, a student showed up at the College of Southern Maryland's financial aid office with two preschool children in tow to request emergency help paying her $3,000 in tuition and fees. She is one of the 800,000 workers not getting paid," Reuters reports.

"It was heartbreaking, said college President Maureen Murphy, who decided the institution needed a plan because it is close to two naval bases and had a lot of affected families.

Normally, colleges do not allow students to attend classes if they miss a tuition payment, and payment plans carry fees. But a handful of colleges - including Connecticut State Colleges and Universities, the Nevada System of Higher Education Institutions and Wayne State University in Michigan - have publicly told students they can stay in college and delay tuition payments without paying penalties.

In addition, schools like the College of Southern Maryland, have provided special scholarships to cover necessities such as books. Students also have access to an on-campus food bank that has been far busier than usual, said Murphy, who added that her school has so far helped about 100 students with tuition.

Many other schools with smaller populations of federal workers have not adopted defined plans, however. They may rely instead on existing pools of money reserved to help students that encounter sudden hardships such as layoffs or family health issues.

Students seeking aid typically are required to show income data. In the case of the federal shutdown, they would need to document government employment and the temporary cutoff in pay.

Justin Draeger, president of the National Association of Student Financial Aid Administrators, said he sent a query asking colleges about responding to the shutdown and received no replies.

There is probably finger crossing that this gets resolved soon, said Draeger. Not all schools can offer payment plans or defer payments. Big state schools will be fine, but vocational, arts and community colleges are tuition-dependent."

NASFAA's "Notable Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.

 

Publication Date: 1/24/2019

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