White House freeze on federal aid won't affect student loans, Education Department says

The Department of Education said Tuesday that the pause on federal grants and loans will not affect student loans or financial aid for college.

The Department of Education said Tuesday that the pause on federal grants and loans will not affect student loans or financial aid for college.

The freeze, which could affect billions of dollars in aid, noted an exception for Social Security and Medicare. The pause “does not include assistance provided directly to individuals,” according to the White House memo that announced the pause on Monday.

The pause gives the White House time to review government funding for causes that don’t fit with President Donald Trump’s policy agenda, according to Matthew J. Vaeth, acting director of the White House Office of Management and Budget.

The memo specifically cited “financial assistance for foreign aid, non-governmental organizations, DEI, woke gender ideology, and the green new deal.”

The Department of Education said the freeze also has no bearing on the Free Application for Federal Student Aid for the upcoming year.

https://www.nbcnews.com/business/business-news/white-house-freeze-federal-aid-will-not-affect-student-loans-education-rcna189685


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