How Much Cares Act for College Students
The COVID-19 pandemic brought unprecedented challenges to students, educators, and institutions worldwide. In response, the U.S. government enacted the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March 2020, which aimed to provide relief to various sectors, including higher education. This article delves into how the CARES Act affects college students, the financial aid provisions it includes, and what students need to know to access these funds.
What is the CARES Act?
The CARES Act is a federal law designed to provide economic relief in response to the COVID-19 pandemic. With a total of $2.2 trillion allocated, the act includes provisions for individuals, businesses, and various sectors, including higher education.
Key Provisions of the CARES Act
- Direct Payments: Economic impact payments to individuals.
- Unemployment Benefits: Expanded unemployment benefits for those affected by COVID-19.
- Small Business Support: Loans and grants for small businesses.
- Funding for Education: Financial aid for students and institutions.
- Enrollment Status: Full-time vs. part-time enrollment can influence the amount awarded.
- Financial Need: Students with greater financial need may receive larger amounts.
- Institution Policies: Each institution has its own criteria for distribution.
- Tuition and fees
- Housing costs
- Food expenses
- Health care
- Child care
- Be enrolled in a degree or certificate program at an eligible institution.
- Be eligible for federal student aid under Section 484 of the Higher Education Act of 1965.
- Have experienced disruptions due to the COVID-19 pandemic.
CARES Act Funding for College Students
One of the most significant aspects of the CARES Act for students is the Higher Education Emergency Relief Fund (HEERF). This fund allows colleges and universities to distribute emergency financial aid to students affected by the pandemic.
HEERF Allocation
The total funding allocated for the HEERF is approximately $14 billion. This funding is divided into three parts:
1. Institutional Grants: For colleges and universities to cover costs associated with disruptions to campus operations.
2. Student Emergency Grants: Direct aid to students for expenses related to the disruption of campus operations due to COVID-19.
3. Institutional Support: Additional funding for institutions that were already facing financial difficulties.
How Much Aid is Available?
The amount of aid that a student can receive through the CARES Act varies based on several factors, including:
Breakdown of Student Emergency Grants
The student emergency grants provided by the CARES Act are intended to cover expenses such as:
Student Eligibility Criteria
To be eligible for the emergency funds, students must meet the following criteria:
How to Apply for CARES Act Funds
Applying for CARES Act funds is a relatively straightforward process, but it varies by institution. Here are the general steps students should follow:
1. Check Eligibility: Confirm if you meet the eligibility criteria outlined by your institution.
2. Contact Financial Aid Office: Reach out to your college’s financial aid office for specific application procedures.
3. Complete Required Forms: Fill out any necessary forms or applications as directed by your institution.
4. Await Notification: After submitting your application, wait for notification regarding your award status.
Application Timeline
The timeline for receiving funds can differ widely. Some students may receive their funds within a few weeks, while others may take longer depending on institutional processing times.
Comparison of CARES Act Funding with Other Aid Programs
| Feature | CARES Act Funding | Pell Grants | Federal Student Loans |
|---|---|---|---|
| Target Audience | College students affected by COVID-19 | Low-income undergraduate students | All eligible students |
| Repayment Required | No | No | Yes |
| Application Process | Varies by institution | FAFSA | FAFSA |
| Funding Amount | Varies (up to $6,195) | Up to $6,495 (2023-2024) | Varies based on loan type |
| Usage Restrictions | Flexible (tuition, housing) | Tuition and fees only | Tuition, fees, living expenses |
Challenges and Considerations
While the CARES Act has provided much-needed relief, there are challenges and considerations that students should keep in mind:
Limited Accessibility
Not all students are aware of the funding available to them. Many institutions have struggled to communicate effectively about the application process and eligibility requirements.
Varying Institutional Responses
Different colleges and universities have implemented the CARES Act provisions in various ways. Some may prioritize students with the greatest financial need, while others may distribute funds more broadly.
Long-Term Impact on Financial Aid
The CARES Act funding is a temporary solution. Students should be aware of how this may affect their future financial aid eligibility. For example, receiving CARES Act funds does not impact future Pell Grant or loan eligibility.
Frequently Asked Questions (FAQ)
How much money can I receive from the CARES Act?
The amount varies based on your enrollment status and financial need. Some students received grants ranging from $500 to over $6,000.
Do I need to pay back the CARES Act funds?
No, the emergency grants provided through the CARES Act do not need to be repaid.
How can I find out if my college is participating in the CARES Act?
You can contact your college’s financial aid office or check the institution’s website for information regarding their participation.
What expenses can CARES Act funds cover?
Funds can cover a range of expenses, including tuition, housing, food, health care, and child care.
Is the CARES Act funding available to international students?
Generally, the CARES Act funding is available only to U.S. citizens and eligible non-citizens. International students may not qualify.
Conclusion
The CARES Act has provided critical financial support to college students during an incredibly challenging time. While the emergency grants are a temporary reprieve, they have helped alleviate some of the financial burdens caused by the COVID-19 pandemic. Students should stay informed about their eligibility and take advantage of the resources available to them. As the situation evolves, it is crucial to remain proactive in seeking financial aid and support to ensure a successful academic journey.
