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Government Shutdown: Impact on U.S. Education Department

by Priya Shah – Business Editor October 1, 2025
written by Priya Shah – Business Editor

Education department ‌Faces ​Shutdown Impacts, But⁣ Core funding Protected

WASHINGTON⁣ (AP) – ‌A potential government shutdown would trigger disruptions at teh Department of Education, halting​ civil rights⁢ investigations and delaying aid to school districts reliant ⁤on⁣ federal land revenue, though core funding​ streams for schools with high poverty⁣ rates and students with disabilities would continue.

The shutdown’s impact will be uneven. Title I funding, ‍which supports schools with large numbers of students from low-income families, and funding ⁣under ‌the individuals with Disabilities ​Education Act (IDEA) ⁣are ‍expected to remain‍ uninterrupted. However,other programs face delays. Impact Aid, which ‌provides financial assistance to school districts impacted by federal activities like military bases and federal land ‍management, will⁢ likely​ see payment disruptions. Over​ 1,200⁤ districts across all 50 states receive Impact‍ Aid.

the‌ Department‍ has indicated it ‌will ⁣revise its contingency plan if ‍the​ shutdown extends beyond one⁤ week to mitigate‍ further disruptions to school ⁢districts.

A notable consequence⁣ of⁤ the shutdown will be the suspension ‍of the​ Department’s ‍civil ‌rights investigations into allegations of discrimination at schools and universities. The office responsible for ​these investigations has already been operating with a reduced staff as layoffs in March, having lost roughly half its personnel. ‍This staffing reduction previously raised concerns about the office’s ability to address a growing⁢ backlog⁢ of complaints‍ alleging discrimination based on race, sex, or disability.

Department data already shows a decline ⁤in the resolution of civil rights cases alongside an increase in⁣ new complaints from families. work on all pending cases will cease during the shutdown.

AP Education Writer collin Binkley contributed to this report.

The Associated Press’ education ‌coverage receives financial support ‌from multiple private ‌foundations. AP is solely responsible for all content. ‌AP’s standards for working with philanthropies, a list of supporters and funded coverage areas are available at ⁤AP.org.

October 1, 2025 0 comments
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Business

Student Loan Repayment System Overhaul: Borrowers Face Increased Risk of Default

by Priya Shah – Business Editor July 17, 2025
written by Priya Shah – Business Editor

Here’s a breakdown of the key points from the provided text:

the Biden Administration’s SAVE Plan:

Generous Terms: The SAVE plan, launched in summer 2023, offered the most generous student loan repayment terms to date, with many borrowers seeing their monthly bills cut by as much as half.
Legal Challenges and Repeal: Republican-led legal challenges blocked the SAVE plan, and Congress has since repealed it.
Interest-Free Pause Ending: The interest-free payment pause for SAVE borrowers, implemented during legal challenges, will expire on August 1st.
Transition to Other Plans: The Education Department is advising SAVE borrowers to transition to other legally compliant plans, such as the Income-Based Repayment (IBR) plan.
Impact of Transition: Experts warn that monthly payments under IBR will be “more than double” those under SAVE, causing significant stress for borrowers.

Trump’s “Big Gorgeous Bill” and Future Repayment Options:

Reduced Options for New Borrowers: Starting July 1, 2026, new federal student loan borrowers will only have two repayment plan options:
A standard repayment plan with fixed payments.
A single income-based plan called the “repayment Assistance Plan” (RAP).
Higher Payments Under RAP: Monthly payments under RAP are substantially higher than those under the SAVE plan for borrowers with the same income levels.
Example: A borrower earning $80,000 per year would pay $533 per month under RAP, compared to $179 under SAVE.
* Severe Impact on SAVE Beneficiaries: The changes are expected to severely impact student borrowers for whom the SAVE plan was the only affordable option.

overall Impact:

The article highlights a significant shift in student loan repayment options, moving from the more generous SAVE plan to less favorable options under the new legislation. This will likely lead to increased monthly payments for many borrowers, particularly those who benefited most from the SAVE plan.

July 17, 2025 0 comments
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