March 25, 2020
Urgent Government Relations Update
"Higher Education and Our Sector!"
We are in the process of confirming every single item as we get access to actual bill language, here is what you should know:
The Coronavirus Aid, Relief, and Economic Security Act provides:
Grants for Emergency support for Education Institutions: $30.75 billion
- 46% of which goes to Institutions of Higher Education (IHE): 14.145 billion
- 9.8% of which goes to Governors for use within their state: -1.358 billion
- 7.5% of which goes to minority serving institutions: -1.061 billion
- Net amount to IHE’s (not primarily on-line): $11.726 billion
- Because primarily on-line schools do not provide direct on-site education delivery, they are not eligible for such funds to do things such as clean up after exposure; support low-income students impacted by the virus, etc.
- Governors have the ability to determine eligibility and use of the $1.358 billion in state grants between all institutions of education.
- Now of this $11.7 billion for institutions of higher education, the schools will have to submit grant applications to the Secretary.
The Big Victory!
The past two days have been crazy, a roller-coaster full of intensity, outreach, and passion. The original Senate Bill includes our sector as eligible for the emergency support to education institutions. Continuing their ideological hostility to our sector, the House proposal provided funding to all institutions of higher education EXCEPT our sector’s schools!
On Tuesday, we learned that Senator Alexander’s Education Committee staff offered to their House counterparts to yield to the House on eligibility for such grants. Upon learning this, our sector – and especially Steve Gonzalez our Senior Vice President for Government, Military and Veterans Relations was working every phone, text, email and conference call possible to restore the language. He deserves great praise and appreciation for his efforts and the final result!
Title IV Provisions of Importance to you and your school:
Regarding title IV financial aid, the bill:
- Waives matching requirement for campus-based aid
- Allows schools to transfer unused work-study funds to SEOG grants
- Allows schools to then award additional SEOG funds to students impacted by the virus
- Allows schools to issue work-study payments to students unable to work due to closures
- Students who drop out will not count this term in calculation of lifetime eligibility
- Students who drop out will NOT be required to repay either Pell Grant or Student Loan
- Institutions will NOT have to calculate such grant or loan in a return payment to Secretary
- Students who drop out will not have terms grades impact federal academic requirements for future eligibility
- Requires Secretary to defer loan payments, principal and interest for 6 months through September 30, 2020 without penalty.
We will provide you additional information and detail as it becomes available. If you have any specific questions, don’t hesitate to reach out to us at any of the following email addresses:
On behalf of the CECU Team
Career Education Colleges and Universities
1530 Wilson Blvd | Suite 1050 | Arlington, VA 22209
Phone: 571.970.3941 | Fax: 571.970.6753 |