What happens to student loans when the government shuts down?

A potential government shutdown looms as lawmakers are deadlocked over the 2026 federal budget.
The Department of Education plans to furlough about 95% of its non-Federal Student Aid staff in the first week.
Student loan payments will still be due, and Pell Grants and Federal Direct Student Loans will continue to be disbursed.
The Department of Education, alongside other agencies, is preparing for a possible government shutdown as Democrats and Republicans remain deadlocked over the 2026 federal budget.
Democrats want to extend Affordable Care Act subsidies, while Republicans aim to block undocumented immigrants from receiving federal health benefits and require 80 hours of work or volunteer service per month to qualify.
The deadline to avoid a shutdown is midnight on Oct. 1. Without a deal,