The Impact of a Shutdown on Education and Colleges

The looming government shutdown could disrupt the U.S. Education Department's fall plans, including negotiations for student loan forgiveness, finalizing rules on Title IX and gainful employment, and launching a new version of the Free Application for Federal Student Aid. The shutdown could also impact colleges and universities, while student loan servicers are concerned about the return to repayment becoming chaotic. The Education Department is planning to designate essential staff to continue work on overhauling the FAFSA, but a prolonged shutdown could disrupt long-term servicing support for borrowers. The department's ability to finalize regulations and meet deadlines may also be affected, potentially causing a year's delay in implementation.