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Article updated on Jan 29, 2025

Trump's Funding Freeze Halted. What Financial Aid and Student Loan Recipients Should Know

Even if the freeze proceeds, experts say federal student loans and Pell grants won't be impacted.

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Written by 
Dashia Milden

Dashia Milden

Editor

Dashia is the consumer insights editor for CNET. She specializes in data-driven analysis and news that intersects personal finance, tech and consumer sentiment. Dashia investigates economic shifts and everyday challenges to help readers make well-informed decisions. She covers a range of topics, including technology, security, energy and money. Dashia graduated from the University of South Carolina with a bachelor's degree in journalism. She loves teaching spinning, baking and spending time with her family.

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Edited by 
Tiffany Connors

Tiffany Connors

Editor

Tiffany Wendeln Connors is a senior editor for CNET Money with a focus on credit cards. Previously, she covered personal finance topics as a writer and editor at The Penny Hoarder. She is passionate about helping people make the best money decisions for themselves and their families. She graduated from Bowling Green State University with a bachelor's degree in journalism and has been a writer and editor for publications including the New York Post, Women's Running magazine and Soap Opera Digest. When she isn't working, you can find her enjoying life in St. Petersburg, Florida, with her husband, daughter and a very needy dog.

See full bio , 
Courtney Johnston

Courtney Johnston

Senior Editor

Courtney Johnston is a senior editor leading the CNET Money team. Passionate about financial literacy and inclusion, she has a decade of experience as a freelance journalist covering policy, financial news, real estate and investing. A New Jersey native, she graduated with an M.A. in English Literature and Professional Writing from the University of Indianapolis, where she also worked as a graduate writing instructor.

See full bio
Written by
Dashia Milden
Dashia Milden

Dashia Milden

Editor

Dashia is the consumer insights editor for CNET. She specializes in data-driven analysis and news that intersects personal finance, tech and consumer sentiment. Dashia investigates economic shifts and everyday challenges to help readers make well-informed decisions. She covers a range of topics, including technology, security, energy and money. Dashia graduated from the University of South Carolina with a bachelor's degree in journalism. She loves teaching spinning, baking and spending time with her family.

See full bio
Edited by
Tiffany Connors
Tiffany Connors

Tiffany Connors

Editor

Tiffany Wendeln Connors is a senior editor for CNET Money with a focus on credit cards. Previously, she covered personal finance topics as a writer and editor at The Penny Hoarder. She is passionate about helping people make the best money decisions for themselves and their families. She graduated from Bowling Green State University with a bachelor's degree in journalism and has been a writer and editor for publications including the New York Post, Women's Running magazine and Soap Opera Digest. When she isn't working, you can find her enjoying life in St. Petersburg, Florida, with her husband, daughter and a very needy dog.

See full bio
Courtney Johnston
Courtney Johnston

Courtney Johnston

Senior Editor

Courtney Johnston is a senior editor leading the CNET Money team. Passionate about financial literacy and inclusion, she has a decade of experience as a freelance journalist covering policy, financial news, real estate and investing. A New Jersey native, she graduated with an M.A. in English Literature and Professional Writing from the University of Indianapolis, where she also worked as a graduate writing instructor.

See full bio
Article updated on Jan 29, 2025
trump
Getty Image/Zooey Liao/CNET

If you depend on federal student loans, Pell grants or another type of federal financial aid to pay for your tuition, you might be worried about the federal funding freeze that was announced and then temporarily halted on Tuesday.

Just before the Trump-Vance administration's federal funding freeze was set to go live, it was blocked by US District Judge Loren AliKhan. The federal court order prevents the White House from pausing funds that were already scheduled to be disbursed but allows the administration to freeze new funding. 

A hearing to review the case has been scheduled for Monday at 11 a.m. ET. The court order will last until Feb. 3 at 5 p.m. ET.

What does this mean for student loan borrowers? If the court rules that the White House can freeze all federal funding, it's not expected to impact federal aid that's provided to individuals. The Federal Student Aid office issued a statement that said the funding freeze shouldn't impact Title IV funds, such as federal student loans or Pell grants.

That doesn't mean that all student financial funding is safe. "It is unclear how this may impact aid from other programs that are not under Title IV," said Elaine Rubin, a student loan policy expert and CNET Money expert review board member.

For example, federal work-study programs and the Federal Supplemental Education Opportunity Grant could be impacted since these funds are sent to colleges to provide aid for students, said Mark Kantrowitz, a financial aid expert and CNET Money expert review board member. However, most of these funds would have already been allocated for the spring term, so it's possible these programs won't be unaffected by the freeze.

Experts say students shouldn't worry about their financial aid for the current semester.

"Students should expect their federal student aid to be available for their spring term," Rubin said. "College financial aid administrators remain actively engaged in monitoring policy changes and diligently evaluating their potential impact on those they serve."

Read more: Will Trump Toss Out the SAVE Student Loan Repayment Plan? Here's What Experts Say

More on Trump's effect on your finances

Written by
Dashia Milden
Editor
Read more from Dashia
Dashia is the consumer insights editor for CNET. She specializes in data-driven analysis and news that intersects personal finance, tech and consumer sentiment. Dashia investigates economic shifts and everyday challenges to help readers make well-informed decisions. She covers a range of topics, including technology, security, energy and money. Dashia graduated from the University of South Carolina with a bachelor's degree in journalism. She loves teaching spinning, baking and spending time with her family.
Our Experts
Written by 
Dashia Milden

Dashia Milden

Editor

Dashia is the consumer insights editor for CNET. She specializes in data-driven analysis and news that intersects personal finance, tech and consumer sentiment. Dashia investigates economic shifts and everyday challenges to help readers make well-informed decisions. She covers a range of topics, including technology, security, energy and money. Dashia graduated from the University of South Carolina with a bachelor's degree in journalism. She loves teaching spinning, baking and spending time with her family.

See full bio
Edited by 
Tiffany Connors

Tiffany Connors

Editor

Tiffany Wendeln Connors is a senior editor for CNET Money with a focus on credit cards. Previously, she covered personal finance topics as a writer and editor at The Penny Hoarder. She is passionate about helping people make the best money decisions for themselves and their families. She graduated from Bowling Green State University with a bachelor's degree in journalism and has been a writer and editor for publications including the New York Post, Women's Running magazine and Soap Opera Digest. When she isn't working, you can find her enjoying life in St. Petersburg, Florida, with her husband, daughter and a very needy dog.

See full bio , 
Courtney Johnston

Courtney Johnston

Senior Editor

Courtney Johnston is a senior editor leading the CNET Money team. Passionate about financial literacy and inclusion, she has a decade of experience as a freelance journalist covering policy, financial news, real estate and investing. A New Jersey native, she graduated with an M.A. in English Literature and Professional Writing from the University of Indianapolis, where she also worked as a graduate writing instructor.

See full bio
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