On Oct. 1, 2025, the U.S. government entered a shutdown after Congress failed to enact funding legislation or a continuing resolution before the fiscal deadline. This marks the first shutdown in nearly seven years, and it is projected to affect many Americans, including college students.
According to Britannica (7 October 2025), a government shutdown is a “forced cessation of most nonessential operations and services … performed by a range of federal departments and agencies due to lack of funding.”
Alongside hundreds of thousands of federal workers being laid off without pay, Britannica said others who work in essential positions including law enforcement, border protection and air traffic control will be forced to work without pay.
However, the effects of the shutdown fall not only on the general population but also on the shoulders of college students. The shutdown affects student resources such as grant applications and disbursements.
Heather Johnson Schmitz, Manager of Grants and Contracts at UW-Eau Claire, said that while federal grant applications are still being accepted, the review process has been temporarily suspended.
“Applications for federal grants are still being accepted during the shutdown,” Johnson Schmitz said. “Federal agencies have said that the review process for new applications will be on hold during the shutdown.”
Johnson Schmitz said most federal agencies have issued statements to grant holders, assuring them they can continue as normal. However, no new grants can be made during the shutdown.
“This can delay projects,” Johnson Schmitz said. “The Office of Research and Sponsored Programs and University Accounting are here to help faculty and staff navigate any delays.”
Johnson Schmitz said at the Office of Research and Sponsored Programs, students can come and get tailored guidance to navigate external funding.
Student Body Vice President Zachary Cardille said there are no immediate effects for students, but the university has been told to hold off.
“As of right now, there are no immediate impacts,” Cardille said. “But the university has been told to wait to hear back from the UW system if more details arise around funding.”
Brett Schroedel, manager of Student Services of Blugold Central, said the shutdown will not affect student aid disbursements or borrowers making loan payments.
“Per a recent memo received from The Department of Education, we have learned that the department will continue to disburse student aid such as Pell Grants and Federal Direct Student loans,” Schroedel said. “And student loan borrowers will still be required to make payments on their outstanding student debt.”
According to Schroedel, Blugold Central will continue to support students in the wake of the shutdown.
“There is no change to any existing processes, timelines or deadlines within Blugold Central in light of the shutdown,” Schroedel said. “We continue to support students by answering whatever questions they may have.”
According to AP News (1 October 2025), “The federal government was thrown into a shutdown Wednesday with no easy endgame in sight. Democrats held firm to their demands to salvage health care subsidies that President Donald Trump and Republicans in Congress have dismissed as something to possibly discuss later.”
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