Pell Grants, direct loans spared in federal aid freeze, Education Department says

By Rebecca Carballo | 01/28/2025 11:05 AM EST

Direct loans and Pell Grants, among other forms of direct financial assistance to individuals, will not be affected by the governmentwide freeze on federal aid, Education Department officials said Tuesday.

President Donald Trump’s Office of Management and Budget Monday ordered a hold on “all federal financial assistance” that could be affected by his executive orders pausing funding for a wide range of priorities — from domestic infrastructure and energy projects to foreign aid.

The move left agencies scrambling to figure out what programs the freeze would affect. But spokesperson for the Education Department, citing a footnote in the memo, outlined what education programs would be spared.

“Per the OMB memo issued yesterday, the temporary pause does not impact 'assistance received directly by individuals.' As such, Title IV, [Higher Education Act] funds that are provided to individual students, such as Federal Pell Grants and Direct Loans, are not impacted by yesterday’s guidance,” an Education Department spokesperson said in a statement to POLITICO.