Federal student loans, Pell Grants not tied up in funding pause, but will be reviewed

USA TODAY

Zachary Schermele

January 28, 2025

WASHINGTON – Students across the country expressed relief Tuesday after the U.S. Department of Education confirmed direct student loans and Pell Grants won’t be stopped amid a broad federal funding pause ordered by President Donald Trump.

The White House Office of Management and Budget issued a memo Monday directing federal agencies to “temporarily pause all activities related to obligation or disbursement of all federal financial assistance,” Reuters reported.

The sweeping announcement triggered widespread confusion and panic among government bureaucrats and everyday Americans scrambling to figure out the implications before a 5 p.m. deadline Tuesday when federal agencies would freeze certain funds.

Madison Biedermann, the deputy assistant secretary for communication strategy in the Education Department, said in a statement to USA TODAY Tuesday that the temporary pause will not impact “assistance received directly by individuals,” including federal direct student loans and Pell Grants, which are government subsidies that help low-income students pay for college.

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