The Department of Education said Tuesday that the sweeping freeze on federal aid instituted by the Trump administration does not impact federal student loans or "assistance received directly by individuals."
The memo released by the Office of Management and Budget on Monday announcing the freeze also said that Social Security and Medicare were not impacted. Instead, the pause of federal aid was aimed at "financial assistance for foreign aid, non-governmental organizations, DEI, woke gender ideology, and the green new deal."
The DOE made it clear Tuesday that federal financial aid also was not impacted.
"The temporary pause does not impact Title I, IDEA, or other formula grants, nor does it apply to Federal Pell Grants and Direct Loans under Title IV [of the Higher Education Act]," Education Department spokesperson Madi Biedermann said in a statement to CNBC.
However, confusion came regarding federal monies that are sent to states, colleges, and universities on behalf of students receiving aid, Karen McCarthy, vice president of public policy and federal relations at the National Association of Student Financial Aid Administrators, told CNBC.
"We are also researching the impact on campus-based aid programs since they are funded differently," she told CNBC.
Mark Swanson ✉
Mark Swanson, a Newsmax writer and editor, has nearly three decades of experience covering news, culture and politics.
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