Will a Government Shutdown Impact College Students?
Credit: Tim Graham / Getty Images- Colleges and universities have minimal direct reliance on the federal government.
- Experts predict a government shutdown wouldn’t impact the lives of most college students.
- International students and student veterans, however, may be more impacted than others.
- Congress had until Oct. 1 to pass a measure to avoid a shutdown, but failed to do so.
A government shutdown may sound alarming, but for the average college student, it is unlikely to impact their studies.
The federal government shutdown on Oct. 1, as lawmakers failed to pass a stop-gap funding measure or a full spending bill by the end of September.
The U.S. Senate on Sept. 19 rejected a continuing resolution from the House of Representatives that would have funded the government through Nov. 20. Just before the shutdown, another two measures failed due to mostly partisan gridlock.
The shutdown also comes after a nearly 50% reduction in the Department of Education’s workforce since President Donald Trump took office.
Many college students rely on the federal government’s financial aid programs to afford college, but because those funds have largely already been disbursed, the day-to-day life of the average college student likely won’t change during the shutdown, at least not in the short term.
A shutdown may, however, impact international students and student veterans more than others.
Impacts Minimal for Students During Shutdown
Thankfully for college students, the academic school year is already underway.
That means federal financial aid — including federal student loans — has already been disbursed to students. Once that money is handed out, the federal government’s role in funding higher education is largely satisfied.
The American Council on Education (ACE) has said a shutdown occurring mid-semester is more preferable to one occurring at the start of the academic year.
“Typically, institutions of higher education do not feel many negative effects from a short-term government shutdown,” ACE wrote. “The impact of a shutdown on higher education depends on a variety of circumstances. Timing, for example, is a key variable.”
Jill Desjean, director of policy analysis at the National Association of Student Financial Aid Administrators (NASFAA), told BestColleges that most students have already received their financial aid funds by the end of September.
Students who haven’t received funds by then, however, shouldn’t worry, she said. Funds have already been allocated and individual financial aid offices handle distribution of funds, so students aren’t likely to be left in the cold during a shutdown.
“Even if your information needs to be verified,” she said, “that’s done locally at your campus.”
The Department of Education (ED) put forth a contingency plan for a potential shutdown on Sept. 28.
That plan said approximately 95% of ED employees and 85% of employees at the Office of Federal Student Aid (FSA) would be furloughed. The department promised to continue to disburse student aid during a shutdown, including Pell Grants and federal student loans.
ED would not make any new grant awards during a shutdown, the plan stated.
“However, the majority of the department’s grant programs typically make awards over the summer and therefore there would be limited impact on the department’s grantmaking,” the plan stated. “Grantees will continue to be able to draw down funds from these awards, and therefore, the impacts on schools and students should be minimal.”
ACE has said that there may be some delays in processing benefits for veteran students. However, the period for certifying GI Bill benefits generally starts in August.
International students may also be impacted. ACE has said that the U.S. Department of Homeland Security may not process applications for changes in status during a shutdown, so some visa applications may not be reviewed.
The 2026-27 Free Application for Federal Student Aid (FAFSA) launched on Sept. 24. Desjean said the application already went through beta testing, which ran smoothly, so she doesn’t anticipate major disruptions to the FAFSA rollout during a shutdown.
ED’s contingency plan stated that the department would use permanent and multi-year appropriations to continue processing FAFSA forms.