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Government Shutdown

Business

Student Loan Shutdown: Impacts & What Borrowers Need to Know

by Priya Shah – Business Editor September 29, 2025
written by Priya Shah – Business Editor

Will Your Student Loans Be Impacted ⁣By A Government Shutdown?

A potential government shutdown‌ raises concerns⁣ for millions of Americans with federal student‍ loans. While the core functions of ⁣FAFSA processing and​ federal student aid disbursement are​ expected‌ to ⁣continue, significant disruptions and delays are likely in other areas, potentially leaving borrowers​ facing unresolved issues with limited recourse.

FAFSA &​ Federal Student Aid: Core Functions Expected to Continue, But Support might potentially be Limited

The Department of Education is expected to maintain⁢ the flow of FAFSA applications and federal student aid, even with a shutdown. Though, the staff responsible for addressing complex issues and providing individual assistance ‌are highly vulnerable to furlough. This means⁣ students and families encountering problems with the FAFSA process may find ⁤themselves without ⁢support to‌ resolve‌ them, potentially facing significant hurdles.

Student Loan Forgiveness⁤ Programs Face potential Delays

Borrowers ⁢pursuing federal student‍ loan ‍forgiveness through programs like Public Service Loan Forgiveness (PSLF), Total and Permanent Disability discharge (TPD), and Borrower‍ Defense to​ Repayment ⁢could experience processing delays. Department ⁢of Education staff are⁢ integral ‍to ⁤the implementation and approval‌ of ​these ‍programs, and a shutdown would likely halt​ or slow their ⁢work.

This comes ⁣at a particularly challenging time for many borrowers. The TPD discharge ‌program has been struggling⁤ with administrative issues and delays throughout the year ‌following a transition to a new processing system. Furthermore,the Department of Education is currently facing a class action lawsuit regarding ongoing delays related ⁣to Income-Driven Repayment (IDR) student loan forgiveness and the PSLF Buyback program – which allows borrowers to qualify for forgiveness by making a lump sum payment for past non-qualifying deferments or forbearances. A shutdown would likely worsen these existing problems, extending wait times⁢ for relief.

Dispute Resolution Services Will Be Substantially Impacted

borrowers with​ disputes regarding their federal‍ student loans – such as misapplied payments ​or wrongly denied forgiveness⁤ – will ​also ⁢be⁤ affected.​ The ⁢Department of education’s contingency ​plan indicates⁣ a likely furlough of most, if not all, staff within ⁣the Feedback unit⁣ at the Office of Federal‌ Student Aid and the Ombudsman ⁣group. These units are responsible for handling borrower disputes.

As of August, the FSA Feedback ⁣unit already had a significant backlog of 41,507 open cases, while the Ombudsman group was managing 27,006. ‌A government shutdown is expected to⁢ dramatically increase these‌ backlogs,leaving borrowers with ⁣unresolved issues for an extended period.

Sources:

* ​ https://www.ed.gov/sites/ed/files/about/shutdown/contingency-plan-2024.pdf

* https://www.forbes.com/sites/adamminsky/2025/09/04/major-student-loan-discharge-program-is-crumbling-under-new-system/

* https://www.forbes.com/sites/adamminsky/2025/09/25/these-5-student-loan-borrower-groups-may-be-covered-by-class-action-suit/

September 29, 2025 0 comments
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Health

Government Shutdown Threat: Democrats Demand Health Care Deal Before Funding Lapse

by Dr. Michael Lee – Health Editor September 13, 2025
written by Dr. Michael Lee – Health Editor

Democrats‍ Prepare to Draw Line on Health Care Spending as Shutdown Looms

WASHINGTON – As the October 1st deadline for a government shutdown rapidly approaches, Democrats are signaling a willingness ⁣to fiercely defend health care spending, setting up a potentially high-stakes⁤ confrontation wiht Republicans who control Congress. The looming budget battle centers on federal outlays, ‍with health care already ‍consuming‌ a significant portion – 27% ​of all ‍federal funds in fiscal year 2024, according to the Kaiser Family Foundation (KFF).

The Democratic stance comes⁢ amid growing​ scrutiny of the efficiency of U.S.‌ health spending, which some experts argue doesn’t translate to improved health outcomes.⁣ Michael Cannon, a health​ policy expert, highlighted⁤ this point, stating, “We have the most ‍expensive health sector​ in the world… Maybe the⁢ most inefficient one. Some people say. There’s more disagreement about that. but there’s a lot of evidence ​that when you reduce spending in the United⁣ States,it doesn’t affect health outcomes much.” Cannon detailed his research, citing ⁢multiple randomized, controlled⁢ trials examining subsidized medical care that have failed to demonstrate corresponding health improvements, in both a Wall Street Journal op-ed and​ a Substack entry.

However, Cannon also⁣ contends that the⁣ high cost is driven by ⁣industry influence. ‍”The industry has captured the policymaking process,” he said. “The industry has captured​ the debate over health care⁤ and health spending.”

While a government shutdown is a serious prospect, Cannon downplayed its⁣ potential impact, suggesting,​ “They just close the Washington monument for a few ​days, and then somebody caves, and they ⁢reinstate all the spending that was going to be there… So,‍ there’s really… not much downside to a shutdown. but there’s a huge downside to increasing government spending on‌ health care.”

The political calculus ⁣for Democrats is complex. Casey Burgat,Legislative Affairs Programme Director at George Washington University,described the situation as a “literal trillion-dollar question,” noting that shutdowns harm‌ everyone,but the key is “politically,who do they ⁤hurt more?”

Burgat explained that Democratic voters are motivated to see their representatives‍ resist⁢ the agenda ⁤of President donald Trump. with over two weeks remaining before the​ deadline, public posturing carries‌ limited risk for Democrats. Though, the dynamic shifts as the ​deadline nears.

“Maybe⁤ they’re⁤ making the calculation‌ that it forces Republicans to the⁣ table on at least some of their priorities,” Burgat said. He also‌ suggested Democrats could potentially deflect ‌blame for a shutdown, given Republican control of both Congress and the White House. “I think the easier case to make for the public… is they know who’s in the White house. And then‌ if⁣ they’re paying⁢ even a little bit more attention,they know who​ has ​congressional majority.” Despite this potential advantage,⁢ Burgat acknowledged a shutdown‍ would be damaging for both parties, calling it⁢ “a pox on both our houses.”

September 13, 2025 0 comments
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