Student loan help during government shutdown: What to know

As the federal government shutdown drags on, student loan borrowers may be worried about getting help with their student loans. But there are still resources available.

The stalemate over funding in Washington comes at a challenging time for the more than 40 million Americans carrying education debt.

President Donald Trump’s “big beautiful bill” phases out several affordable repayment plans and other relief options for borrowers. Staffing challenges and court orders have contributed to long waits for borrowers trying to access a new plan. The Trump administration has also resumed collection activity on student loan holders who fall behind on their bills, after a roughly five-year hiatus due to the Covid pandemic.

Even before the shutdown, student loan defaults have been mounting, and experts have said the current situation may exacerbate the problem.

While the Education Department is shuttered, here are some resources borrowers can turn to for assistance.

Even during the government shutdown, the U.S. Department of Education may still be helpful. To reach the Federal Student Aid Information Center, you call 1-800-4FED-AID, or 1-800-433-3243.

“Some of the Federal Student Aid call centers are still operational as they are actually staffed by contractors rather than direct employees of the federal government,” said Nancy Nierman, assistant director of the Education Debt Consumer Assistance Program in New York.

At the Education Department’s Studentaid.gov, student loan borrowers can take many steps on their own, including applying for a new repayment plan or a loan consolidation and requesting debt cancellation, said higher education expert Mark Kantrowitz.

Those pursuing Public Service Loan Forgiveness can still submit the form to verify their employment and get a pretty quick count of their qualifying payments, Nierman said. PSLF allows certain not-for-profit and government employees to have their federal student loans scrubbed after 120 payments.

But most loan forgiveness is on hold for now, she said, as the Education Department’s staff has to approve those requests.

You can likely get most of your questions answered with your student loan servicer, Nierman said.

“Loan servicers are government contractors and have funding to keep operating during a shutdown,” Nierman said. “Billing, payments and processing of certain applications, such as forbearance and deferment, should continue as normal.”

If you don’t know which company is managing your student loans on behalf of the Education Department, you can find out at Studentaid.gov.

Borrowers can look for organizations and nonprofits in their area that help people with student loan-related issues, consumer advocates said. For example, in New York, there’s EDCAP.

At the national level, there are groups like The Institute of Student Loan Advisors, a nonprofit offering advice and dispute resolution assistance.