White House funding freeze exempts student loans, Pell Grants

The White House has announced a temporary pause on federal grants and loans, which will not impact student financial aid programs like Federal Pell Grants and Direct Loans, according to the Department of Education. This pause, effective from Tuesday, aims to allow the administration to review funding aligned with its policy priorities. The Office of Management and Budget clarified that benefits for programs such as Medicare, Medicaid, and various educational assistance will also remain unaffected. However, there is ambiguity regarding the impact on non-direct loans, including federal campus-based programs. Education officials emphasized that financial aid directly received by individuals is exempt from this pause, easing initial concerns among students. The review process for discretionary grants at the Department of Education will continue, with outcomes expected by February 10.