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1 1 (April 7, 2020)

handle is hein.crs/govcqzq0001 and id is 1 raw text is: CARES Act Higher Education Provisions President Donald J. Trump declared a U.S. national emergency on March 13, 2020, in response to the COVID- 19 pandemic. The Coronavirus Aid, Relief, and Economic Security Act (CARES Act; P.L. 116-136) was enacted on March 27, 2020, to address income, health, and economic security in response to the national emergency. This In Focus provides brief descriptions of several higher education provisions included in the law. St:. Af-l\ Aid N,, n,'c To provide postsecondary education student relief, several provisions in the CARES Act temporarily modify the requirements of existing student aid programs, such as those authorized under Title IV of the Higher Education Act (HEA). The Federal Supplemental Educational and Opportunity Grant (FSEOG) program and the Federal Work-Study (FWS) program are two campus-based financial aid programs authorized under the HEA. Under the programs, federal funds are awarded to institutions of higher education (IHEs) that administer the programs. Use of FSEOG for Emergency Aid. Under the FSEOG program, IHEs provide grants to undergraduate students who demonstrate exceptional financial need. The CARES Act authorizes expansion of the FSEOG program to allow IHEs to provide emergency grants to undergraduate and graduate students for unexpected expenses and unmet financial need as a result of a qualifying emergency. FWS During a Qualifying Emergency. Under the FWS program, IHEs provide part-time employment opportunities for eligible undergraduate, graduate, and professional students. The CARES Act permits IHEs to continue paying students who participated in the FWS program but were unable to fulfill their work-study obligation due to a qualifying emergency. IHEs are permitted to make payments as a one-time grant or as multiple payments. Waivers of Campus-Based Aid Matching Requirements. Under FSEOG and FWS, IHEs provide institutional funds to match federal funds received. The CARES Act requires that the Secretary of Education waive the matching requirement under the FSEOG and FWS programs for funds made available for award years 2019-2020 and 2020- 2021, except that private for-profit organizations that employ FWS students continue to be required to provide a match in funds. IHEs are also permitted to transfer up to 100% of their FWS allocation to the FSEOG program during a period of a qualifying emergency. Loans to support students' postsecondary educational pursuits are currently available under the William D. Ford Federal Direct Loan (Direct Loan) program and the Federal Perkins Loan program. Loans were previously available through the Federal Family Education Loan (FFEL) program, and some of those loans remain outstanding. Adjustment of Subsidized Loan Usage Limits. New borrowers on or after July 1, 2013, may only borrow Direct Subsidized Loans for a period not to exceed 150% of the published length of the academic program in which they are enrolled. If a borrower remains enrolled beyond this limit, he or she will lose the interest subsidy on such loans. The CARES Act permits any semester (or equivalent) that the student does not complete due to a qualifying emergency to be excluded from the 150% limits. Temporary Relieffor Student Loan Borrowers. For all Direct Loan program loans and for FFEL program loans held by the Department of Education (ED), the CARES Act (1) suspends all payments due and counts such suspended payments towards specified loan forgiveness programs (e.g., Public Service Loan Forgiveness) and loan rehabilitation, (2) halts interest accrual, and (3) suspends involuntary collections on defaulted loans, through September 30, 2020. Institutional Refunds and Student Loan Flexibility. If a student withdraws from an IHE before the end of a period of enrollment for which HEA Title IV federal student aid funds were disbursed, the IHE and/or the student may be required to return grants and student loans received for that period to ED. The CARES Act requires the Secretary of Education to waive the requirement that IHEs and students do so in the case of students who withdraw from the IHE as a result of a qualifying emergency. Modifications to Teacher Loan Forgiveness Requirements. The HEA authorizes loan forgiveness of up to $17,500 for borrowers who teach for five consecutive complete years in eligible low-income schools. The CARES Act permits the Secretary to waive requirements that qualifying teaching service be completed in consecutive years under two conditions: (1) if a recipient's teaching service is temporarily interrupted due to a qualifying emergency, and (2) following such interruption, if the borrower resumes teaching and completes five years of teaching service, including teaching performed before, during, and after the qualifying emergency. Continuing Education at Affected Foreign Institutions. Educational programs offered via distance education (e.g., online education) by foreign IHEs, and those offered in April 7, 2020 .O 'T gognpo goo g , q 'S a X 11LULANJILiN,

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