Media outlets report the funding will come to an end on Dec. 31.
Much of that money would have come as tuition loans. It's unclear how many of the school's roughly 700 students depend on federal aid.
The American Bar Association placed the school on probation in November for its non-compliance with standards.
The Department of Education says it acted because the school failed to meet ABA standards while making "substantial misrepresentation" to students about its standing and the "likelihood that its graduates would pass the bar exam."
School leaders said in a statement they are working to respond to the government and protect the students.
The school has until Jan. 3 to file an appeal.
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