Secretary DeVos Announces First Round of Emergency Cash Grants for College Students

Thoughtware Alert Apr 09, 2020
COVID-19 Resources for Higher Education Institutions

The U.S. Department of Education (ED) recently announced an immediate release of $6.28 billion made available for cash grants to students for expenses related to the disruptions caused by SARS-CoV-2 virus and the incidence of COVID-19 (COVID-19). 

Key Takeaways

  • ED is using the most recent data available from the Integrated Postsecondary Education Data System (IPEDS) and the office of Federal Student Aid (FSA) for the calculation.
  • Each institution may develop its own system and process for determining how to allocate these funds.
  • Funds may be distributed to all students or only to students who demonstrate significant needs.
  • The only statutory requirement is that the funds be used to cover expenses related to the disruption of campus operations due to COVID-19 (including eligible expenses under a student’s cost of attendance such as food, housing, course materials, technology, healthcare and child care).
  • ED encourages leadership to consider prioritizing students with greatest need, as it desires to see distributions made as widely as possible (the letter provides the 2019–2020 maximum Pell grant amount of $6,195 as a possible maximum threshold).
  • Institutions may draw down their emergency assistance funds using ED’s G5 system after signing the Certificate of Funding and Agreement.
  • ED has posted the actual allocation listing by institution on its website.

As with most topics related to COVID-19, changes are being made rapidly. Please note that this information is current as of the date of publication. If you have questions, reach out to your BKD Trusted Advisor or use the Contact Us form below.
 

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