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How Will "Funding Freeze" Affect Federal Financial Aid

Writer's picture: Jeff Boron Jeff Boron


If you've been following the news, you may have recently heard about a pause on federal funding that many fear could impact countless agencies, programs, and organizations. The intended goal of the pause is to ensure that federal funding provided to these organizations is "aligned with" the current new administration's goals and intentions. The memo that was sent. out was clear to note that this was not a funding "freeze," but a temporary pause. For a more clear understanding, the White House released a fact sheet that intended to clear up any misconceptions regarding what or who would be impacted by future federal funding. You can review that Q&A here. It sums up the intention of the pause quite simply in its last statement, "To act as faithful stewards of taxpayer money, new administrations must review federal programs to ensure that they are being executed in accordance with the law and the new President’s policies."



Let's take a look at what was mentioned.

So, Will It Affect FAFSA Financial Aid?

The short answer is no. As of now, federal financial aid programs like FAFSA and Pell Grants will NOT be affected in any way by the funding pause.


What will the financial pause affect?

There are some things "on campus" that may look a little different based on the memos sent out by the White House administration. It remains unclear at the moment, but Jeff mentioned a few things that may be impacted.


  • Work Study Programs On Campus

  • Day Care / Child Care On Campus

  • Research Grants - Potential research laboratory work that may be funded by programs


Every Program May Be Scrutinized

Ultimately, Jeff spoke on how every program may be scrutinized, but the intention is to ensure that taxpayers are getting a return on investment for where the funding is going, and how the federal money is being dispersed. College inflation has seen a huge increase over the last 5, 10, 20 years. Jeff noted that the federal funding going under a microscope regarding college could be a positive. Colleges may need to lower the cost of college if the federal funding is lowered, which could make college more affordable. Colleges won't have a choice but to lower the cost if students don't have the money to pay out of pocket.

If You Have a FAFSA Question, Give Us a Call

When it comes to financial aid, our team is seasoned in providing solutions for students and families of WNY. If you or someone you know is concerned about any questions regarding financial aid, just give us a call or reach out via our contact form. Be sure to follow us on Facebook and Linkedin to stay up to date on all our college planning tips and helpful info!








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