CARES Act Student Emergency Grant

Brief Description
The CARES Act establishes a $30.75 billion Education Stabilization Fund that is composed of the Governor’s Emergency Relief Fund, the Elementary and Secondary School Emergency Relief Fund, and the Higher Education Emergency Relief Fund (HEERF).

The CARES Act provides several different methods for distributing roughly $14 billion in funds to institutions of higher education. The most significant portion of that funding allocation provides that $12.56 billion will be distributed to institutions using a formula based on student enrollment. Of the amount allocated to each institution under this formula, at least fifty (50) percent must be reserved to provide students with emergency financial aid grants to help cover expenses related to the disruption of campus operations due to the coronavirus pandemic. Colleges should not assess any institutional charges, and must make these funds available to students to cover student expenses related to the disruption of campus operations due to coronavirus, such as food, housing, course materials, technology, health care, and child-care expenses.

The remaining fifty (50) percent can be used for institutional expenses due to the disruption of the coronavirus pandemic, to facilitate distance education, and to award additional grants to students. Institutions will be able to use the institutional Grant funds to cover costs associated with significant changes to the delivery of instruction due to the coronavirus. The institutional Grant funds must be spent only on those costs for which the institution has a reasoned basis for concluding such costs have a clear nexus to significant changes to the delivery of instruction due to the coronavirus pandemic. It is permissible for the institution to use the funds for Institutional Costs to reimburse itself for costs related to refunds made to students for housing, food, or other services that the institution could no longer provide, or for hardware, software, or internet connectivity that the institution may have purchased on behalf of students or provided to students.

Who is the CARES Act HEERF Student Emergency Grant Targeting and What is the Reason
After the President’s declaration of national emergency on March 27, 2020, the CARES Act Higher Education Emergency Relief Fund was enacted to provide funds to institutions to provide emergency financial aid grants to eligible students whose lives have been disrupted by the COVID-19 pandemic, to cover expenses such as food, housing, course materials, technology, health care, and child-care expenses. The Student Emergency Grant funds must be made available directly to students meeting eligibility criteria in section 484 of the Higher Education Act (HEA). Institutions have the responsibility of determining how grants will be distributed to students, how the amount of each student grant is calculated, and the development of any instructions or directions that are provided to students about the grant. Students cannot apply for assistance directly from the U.S. Department of Education but should contact their institutions for further information and guidance.

Guidance from the U.S. Department of Education
Institutions have received and will continue to receive guidance for each allocation share of the Higher Education Emergency Relief Fund from the U.S. Department of Education. Added eligibility criteria by the U.S. Department of Education, enforceable effective June 17, 2020, is that students selected to receive funds from the CARES Act HEERF Students Emergency Grant, must meet section 484 of the Higher Education Act (HEA). Section 484 of the HEA states that Title IV eligible students must: