When Federal Uncertainty Becomes a Barrier to Student Success

Colleges and universities that serve active-duty service members and veterans face a distinct set of challenges, particularly during government shutdowns or periods of policy uncertainty. These disruptions affect both students and the institutions that support them. 

Delayed Benefits and Disrupted Enrollment Decisions

Government shutdowns can delay GI Bill processing, tuition assistance (TA) reimbursements, and reduce access to essential support services due to furloughs or administrative delays. When service offices close or operate with limited capacity, service members and veterans may be left without guidance on how to persist with their education. Department of Defense TA is funded through annual appropriations, making it vulnerable during shutdowns or continuing resolution gaps. Delays or cancellations in TA approvals or reimbursements can force students to cover expenses out of pocket that are typically funded through military benefits, stalling enrollment decisions for active-duty service members. 

The National Association of Veterans’ Program Administrators (NAVPA) collected survey responses from 2,428 students nationwide regarding their use of GI Bill benefits during the 2025 government shutdown. Of those surveyed, 97.5% reported they were currently using GI Bill benefits, and 45% of those students indicated they did not receive their October payment on time. This left many students uncertain about how they could continue their education without those funds.

Impacts on Institutional Risk and Student Success

The institutional impact of these disruptions can be significant. Institutions that enroll a high population of military-affiliated students may experience enrollment volatility and increased administrative work during periods of federal uncertainty, as students delay start dates or withdraw from courses due to concerns about covering educational expenses out of pocket. 

Reduced student retention can contribute to revenue declines and cash-flow challenges, but, more importantly, can interrupt a student’s academic journey toward degree completion. Operationally, staff time needs to shift from growth-focused initiatives to re-engaging students who withdrew due to governmental disruptions and helping them return to their educational pathway. 

Mitigating Risk Through Proactive Planning

Proactive planning is essential to mitigating institutional risk associated with governmental disruptions while strengthening military and veteran student persistence and success through intentional support structures. 

At Excelsior University, dedicated staff guide military-affiliated students through admissions, enrollment, and financial services, helping them understand how various tuition assistance and veterans’ benefit programs can be leveraged effectively. Institutions may also consider establishing emergency grants or endowment-supported scholarships to cover tuition during periods of federal uncertainty. Tuition deferrals and flexible payment plans can further enable students to remain enrolled while awaiting delayed government reimbursements. These strategies not only support students but will also stabilize institutional revenue and continuity.

Protecting Those Who Have Served

Active-duty service members and veterans have made sacrifices in service to their country. Institutions committed to serving this population must be equally intentional in protecting their educational pathways. By planning for governmental volatility, colleges and universities can safeguard student persistence while also mitigating institutional risk and ensuring long-term business continuity.

Sources

National Association of Veterans’ Program Administrators (NAVPA). (2025). Government Shutdown 2025 Final Analysis https://docs.house.gov/meetings/VR/VR10/20251216/118757/HHRG-119-VR10-20251216-SD004.pdf

American Council on Education. (2025, September 30). Government shutdown could set off uncertainty for research, oversight, some student benefits, and services. https://www.acenet.edu/News-Room/Pages/Shutdown-Uncertainty-Research-Oversight-Student-Services.aspx