The House GOP is searching for ways to save money as the new administration has entered the White House. Federal loan cutback announcements had me shaking in my proverbial boots. About 34 percent of UHD students get federal loans, and I am one of them. I immediately contacted their Financial Aid office to get confirmation of the freeze and fell back on my sofa when I heard the response.
“I am… aware of the freezes, but there has been no order to stop funds for students,” a staff member said.
I wiped my brow with relief as frayed nerves began to settle. I depend on student aid funds to help me complete my studies for my bachelor’s degree and for my master’s degree.
“White House freeze on federal aid will not affect student loans, says the Education Department,” said CNBC writer Jessica Dickler. The effort to freeze federal aid funds is designed to review initiatives that are not in line with the current administration’s plans for federal fund distributions.
According to CNBC, The White House ordered a pause on federal grants and loans, but student aid is not affected. More time is needed to assess where cutbacks are needed and will be more effective. Reviews of the specific federal departments will continue, however, for determination of where funds can be cut to save taxpayer dollars.
The Federal Student Aid website submitted a direct response to students concerning this matter.
“The Office of Management and Budget rescinded its Jan. 27 guidance about pausing some federal financial assistance programs. Federal Student Aid funds (for example, Direct Loans and Pell Grants) were not impacted by the initial guidance and will continue to award and disburse federal student aid.”
I am cleared for loans. However, students should stay vigilant concerning changes in federal rules. Check with the financial aid office UHD for changes regularly.