U.S. Dept. of Ed Announces Distribution of $6 Billion in Emergency Aid for Students – Recommendations from NCAN

Posted by National College Attainment Network on April 14, 2020

The U.S. Department of Education (ED) has announced the first distribution of funds to institutions of higher education through the Coronavirus Aid, Relief, and Economic Security (CARES) Act Education Stabilization Fund. Institutions will receive half of their allotted funds, and these dollars must be used for emergency aid for students.

This is welcome news that institutions, upon signature of certification, will be able to immediately begin awarding funds to students. According to an ED stakeholder call, institutions that quickly turn around the form should have access to funds mid-next week. NCAN recommends communicating with your students that they should check their institution’s financial aid webpage or reach out directly if no information is available.

Institutions have almost complete discretion over how these funds are awarded, as long as the money is used to provide support to a student due to a coronavirus-related disruption in their education. Funds can be used for any allowable item in cost of attendance, including food, housing, course materials, technology, health care, and child care.

What else do you need to know? Institutions receiving these funds:

• Have discretion on how to determine which student receives how much aid and can decide to provide aid to all students.
• Are encouraged by the Secretary of Education to, in most cases, consider a maximum award per student equal to the maximum Pell Grant of $6,195.
• Can award these funds to any enrolled student. Title IV eligibility is not necessary, which means undocumented students are eligible, among others.
• Are strongly discouraged from counting these funds as estimated financial aid when considering a family’s expected family contribution (EFC) for either academic year 2019-20 or 2020-21.
• Have one year to spend the funds, including both the current and next financial aid award years.
• Must use this funding for emergency aid directly to students for expenses included in the cost of attendance as listed above.
• May not use these dollars to reimburse their own institutions for any expenses (such as refunds) already incurred.

For more information on the awarding of these funds, please check our COVID-19 policy blog.