What's Happening?
The Department of Education's rule-making session, focused on implementing new student loan policies, faces a potential delay due to a looming government shutdown. If Congress does not pass legislation to keep the government open, the session will be postponed by two weeks. The department plans to furlough nearly 87% of its employees, but those involved in the rule-making process may continue working. The session aims to finalize regulations on new graduate loan caps and consolidated income-driven repayment plans before they take effect in July 2026.
Why It's Important?
A government shutdown could disrupt the timeline for implementing critical changes to student loan policies, affecting millions of borrowers. The delay may complicate the department's efforts to meet its regulatory deadlines, potentially impacting students' access to financial aid and repayment options. The situation highlights the broader implications of political gridlock on essential government functions and services. The education sector, already facing challenges from policy changes and funding cuts, could experience further uncertainty and disruption.
What's Next?
If the government shuts down, the Department of Education plans to resume the rule-making session online after a two-week delay. The department will need to navigate staffing challenges and maintain momentum to finalize the regulations. Stakeholders, including educational institutions and advocacy groups, will likely monitor the situation closely and may push for timely resolution to avoid further disruptions.
