On Jan. 27, many college students, faculty and universities woke up to learn that the White House Budget Office ordered a pause on grants, loans and other federal financial assistance. This effort was a part of the Trump administration’s goal to reduce federal spending, since “of the nearly $10 trillion the federal government spent, more than $3 trillion was federal financial assistance, such as grants and loans.”
This means the federal aid that many students use to fund their education could be delayed or altered based on Trump’s priorities. The memo states that “this memorandum requires federal agencies to identify and review all federal financial assistance programs […] consistent with the president’s policies and requirements.”
The National Center for Education Statistics shared in a 2023 press release that nearly 55% of all undergraduate students in the United States receive federal student aid, with an average aid package of $8700 — double the amount of state aid the average student receives.
According to UnviStats, at Wake Forest during the 2021-2022 school year, approximately 42% of students receive federal, state, local, institutional or other grant aid with 9% receiving Pell Grants and 16% receiving federal student loans.
Notably, the Trump administration stated that the freeze would not impact federal assistance programs for individuals, including social security, medicare, food stamps, student loans and scholarships. However, the administration stated that a pause is necessary to align funding for other programs based on Trump’s executive orders.
Students, faculty and universities are concerned about the implications for their institutions. In addition, the lack of specificity and detail in the memo left many confused about the ramifications of the freeze.
At the University of North Carolina, administrators emailed the entire campus urging patience until decisions can be confirmed directly by federal agencies.
Wake Forest’s Financial Aid Office, attempting to reassure concerned students, sent out an announcement that read, “The Office of Management and Budget and the Department of Veterans Affairs have confirmed that neither federal student aid nor veterans education benefits payments are included in any of the presidential executive orders to temporarily pause federal financial assistance programs.”
Aissa Canchola Bañez, a policy director at the Student Borrower Protection Center, which eliminates the burden of student debt for millions of Americans stated that “any kind of freeze to federal financial aid across the board is incredibly harmful to working families just trying to pay for college.”
Amid widespread confusion surrounding the memo and speculation of its devastating consequences, the Trump administration rescinded it less than two days after its release. This decision came largely in response to a federal judge blocking the memo after issuing a preliminary injunction just minutes before it was set to take effect, stating the need to “preserve the status quo while the court considers the merits of the case.”
While the freeze was short-lived, the backlash it received highlights the role of federal aid in higher education. As the Trump administration moves forward, this incident highlights the challenges of implementing its agenda while balancing the concerns of the millions of Americans affected by its decisions.
