The U.S. Division of Training stated in an announcement on Tuesday morning that the memo despatched to authorities businesses the day earlier than calling for a broad pause on federal spending didn’t apply to federal scholar loans or Pell grants. That cash will proceed to circulation, the assertion stated.

“The short-term pause doesn’t impression help acquired immediately by people,” stated Madison Biedermann, who, in response to the division, is at the moment delegated to carry out spokesperson duties. This help consists of funds like federal direct scholar loans and Pell grants that the division gives to “particular person college students,” her assertion stated.

A part of the confusion, which included many alarmed posts on social media, sprung from the “acquired immediately” portion of the Workplace of Administration and Funds memo. Grants and loans for schooling might be despatched to the varsity, so college students could by no means obtain the cash immediately.

In a follow-up assertion, the division confirmed that no Pell grants or loans can be paused or delayed due to the order. Funding for the federal work-study program, which helps pay for campus jobs, will proceed to circulation, too.

The federal authorities, together with businesses just like the Nationwide Institutes of Well being, additionally gives grants to conduct analysis at universities, and people packages could present grants and stipends to graduate college students who’re working for them. It was not instantly clear whether or not any of that funding can be affected.

Persis Yu, deputy govt director on the Scholar Borrower Safety Heart, an advocacy group, stated the memo generated a whole lot of worry and chaos for college kids and their households as a result of it got here at a time when lots of them have been ready for his or her federal loans.

“Tens of millions of scholars are ready for disbursements of their federal support in order that they will proceed their schooling, and eat and maintain a roof over their heads,” she stated. “Wielding this worry is an abuse of energy.”