How a government shutdown could affect student loan payments

Sponsored by Credible - which is majority owned by Fox Corporation. Credible is solely responsible for the services it provides.With Congress potentially unable to reach an agreement on federal spending legislation to be signed by the president, the government could shutdown on Oct. 1. And that’s a particularly important date for many student loan borrowers, as it marks the resumption of student loan payments following a federal pause that lasted more than three years.

In the event of a shutdown, government agencies such as the Department of Education would be strained. And although the Education Department has a contingency plan to roll out in the event of a government shutdown, it has not been updated since 2021. However, that contingency plan also noted that Pell Grants and Federal Direct Loans could still be issued as these are "Programs with mandatory funding" that "can make obligations and payments during a shutdown."

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