The federal funding freeze memo spooked student loan borrowers. Here’s how to handle the next surprise

“If federal aid disbursements stopped, a significant number of borrowers wouldn’t be able to continue their schooling,” says Betsy Mayotte, president and founder of The Institute of Student Loan Advisors, a nonprofit that provides assistance to student loan borrowers. “That is not an outcome [the administration] would want on its resume.”

Even if Trump did try to freeze federal student aid, it would traditionally require an act of Congress. “An executive order can’t be contrary to federal law,” says Mayotte. “We saw that with the Biden administration. We saw that with the prior Trump administration, with the borrower defense debacle. Only Congress can change federal law.”