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.