On October 1, 2025, the U.S. Department of Education issued guidance on how Federal Student Aid (FSA) will operate during the current government shutdown. While some offices are closed, most key FSA systems and services remain up and running to ensure minimal disruption to students, borrowers, and schools.
Here’s what’s continuing, what’s paused, and what we at College Aid Services recommend for financial aid professionals.
What’s Still Running
Websites & Systems
- StudentAid.gov is available, though no new updates will be posted until the shutdown ends.
- The FAFSA Processing System is fully operational; students can submit applications, and schools can retrieve data.
- The Common Origination and Disbursement (COD) system is active for disbursements and reporting.
- The National Student Loan Data System (NSLDS) remains available to authorized users.
Customer Service & Loan Servicing
- Call centers, including 1-800-4-FED-AID, remain open.
- Loan servicers continue normal functions such as billing, payments, and deferment/forbearance processing.
- Borrowers must continue making loan payments.
What’s Paused or Delayed
- Updates to StudentAid.gov and the Knowledge Center are suspended.
- Scheduled training events and webinars are canceled.
- Compliance reviews, audits, and oversight activities are paused.
- Some submissions (e.g., eCDR appeals, ED Form 799/2000) can be uploaded but won’t be processed until after reopening.
- FSA staff are unavailable for conferences or negotiated rulemaking sessions.
Key Deadlines
- FISAP Deadline (October 1, 2025): Submissions for 2026–27 must be completed electronically by 11:59 p.m. ET and paper copies and paper signature pages postmarked the same day.
- If system access issues occur, institutions should still submit as soon as possible and document the issue by contacting FSA support.
What This Means for You
- Students and Borrowers: FAFSA submissions, loan payments, and core servicing functions are uninterrupted. Delays may occur for refunds or discharges.
- Schools and Lenders: Core processing continues, but oversight and compliance activities will restart only after the government reopens.
What We Recommend
At College Aid Services, we encourage financial aid offices to:
- Stay on Schedule: Submit FISAP by the October 1 deadline if possible. If technical issues prevent submission, document the issue and notify FSA support.
- Communicate with Students: Reassure them that FAFSA and loan processing remain operational. Encourage them to continue loan payments to avoid penalties.
- Plan Around Delays: Expect slower timelines for refunds, discharges, and oversight-related processes. Build flexibility into your workflows.
- Document Everything: Keep records of attempted submissions, system errors, and any communications with FSA. This will be essential if deadline flexibility is needed.
- Monitor Updates: We’ll continue tracking FSA announcements and provide timely updates once federal operations resume.
Bottom Line
Even in a shutdown, most critical FSA services remain active. By planning ahead, maintaining clear student communication, and documenting any issues, financial aid offices can navigate this period smoothly.
College Aid Services will keep you informed with updates and best practices as the situation develops.