"The White House on Monday ordered a pause on federal grants and loans, according to a memo, but the Department of Education said the freeze will not affect student loans or financial aid for college," CNBC reports.

... "'While the memo says the funding pause does not include assistance ‘provided directly to individuals,’ it does not clarify whether that includes money sent first to institutions, states or organizations and then provided to students,' said Karen McCarthy, vice president of public policy and federal relations at the National Association of Student Financial Aid Administrators."

"Most federal financial aid programs are considered Title IV funds 'labeled for individual students' and so would not be affected by the pause, McCarthy said, but all other aid outside Title IV is unclear. 'We are also researching the impact on campus-based aid programs since they are funded differently,' she said."

NASFAA's "Notable Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Articles included under the notable headlines section are not written by NASFAA, but rather by external sources. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.

Publication Date: 1/28/2025