CARES†ACT†SUMMARY

SUMMARY OF HIGHER EDUCATION LANGUAGE IN THE CARES ACT
Section Subtitle Senate Summary Subparagraphs Provisions
3501 Definitions   Definitions of "Coronavirus"; "Foreign Institution";"Institution of Higher Education"; "Qualifying Emergency"; "Secretary"  
3503 Campus-Based Aid Waivers Waives the institutional matching requirement for campus-based aid programs. Allows institutions to transfer unused work-study funds to be used for supplemental grants.†† Waiver of Non-Federal Share Requirement Secretary shall waive non-federal share to match federal fund for 2019-20 and 2020-21 award years (AY) for part 3 of part A and part C of Title IV - Does not apply to nonfederal share under section 443(c)(3)
Authority to reallocate Institution may transfer up to 100% of unexpended allotment under sec 442 of HEA to allotment under section 413D of HEA (but may not transfer 413D allotment to 422 allotment)
3504 Use of Supplemental Educational Opportunity Grants for Emergency Aid Allows institutions to award additional SEOG funds to students impacted by COVID-19. In General Institutions of Higher Ed ("IHE") may reserve any amount of allocation under support 3 of part A of Title IV to assist undergrad and grad students with "unexpected expenses" and "unmet financial need" as a result of "qualifying emergency" [coronavirus]
Determinations In making determinations, IHE may waive calculation under sec. 471 of HEA; allow for funds to students up to max Pell for the AY; and permits IHE to utilize contract with a "scholarship-granting organization"
3505 Federal Work-Study During a Qualifying Emergency Allows institutions to issue work-study payments to students who are unable to work due to work-place closures as a lump sum or in payments similar to paychecks. In General IHE may make work-study payments despite inability of students to fulfill work obligations.††
Payments must be equal to or less than wages student would have been paid had the work obligation been met.††
Payments cannot be made to students not eligible for work study or who were not completing a work obligation prior to qualifying emergency
Payments shall meet matching requirements unless waived by the Secretary
Definition of Affected Work-Study Student Student received a work-study award for the AY in which the qualifying emergency occurred; earned work study wages during that AY and was prevented from fulfilling obligations due to qualifying emergency
3506 Adjustments of Subsidized Loan Usage Limits For students who dropped out of school as a result of COVID -19 excludes the term from counting toward lifetime subsidized loan eligibility. For purposes of determining subsidized loan limits, the Secretary shall exclude any term that was not completed due to a qualifying emergency  
3507 Exclusion from Federal Pell Grant Duration Limit For students who dropped out of school as a result of COVID-19 excludes the term from counting toward lifetime Pell eligibility. For purposes of determining Pell Grant duration limits, the Secretary shall exclude any term that was not completed due to a qualifying emergency  
3508 Institutional Refunds an Federal Student Loan Flexibility For students who dropped out of school as a result of COVID-19, the student is not required to return Pell grants or federal student loans to the Secretary. Waives the requirement that institutions calculate the amount of grant or loan assistance that the institution must return to the Secretary in the case of students who dropped out of school as a result of COVID-19. Institutional Waiver Eliminates requirement to conduct returns to Title IV waived for aid given to students (except Perkins Loans) that withdrew "as a result of a qualifying emergency"
IHE required to report to the Secretary number of aid recipients, amount of grant & loan assistance receivedby each recipient (except Perkins Loans), and total amount of grant & loan assistance (except Perkins loans) received for which the institution has not returned
Student Waiver Eliminates requirement for students to return Pell grants (or other grants) if they withdrew from an IHE due to a qualifying emergency
Cancelling Loan Obligations Cancels any Direct Loans associated with a payment period in which a student withdrew due to a qualifying emergency
Approved Leave of Absence IHE may, as a result of a qualifying emergency, provide students with an approved leave of absence that does not require the student to return to the same point in the semester when the leave began
3509 Satisfactory Academic Progress For students who dropped out of school as a result of COVID-19, the studentís grades do not effect a studentís federal academic requirements to continue to receive Pell Grants or student loans.   IHE may, as a result of a qualifying emergency, eliminate the quantities component of the attempted credit calculation in SAP
3510 Continuing Education at Affected Foreign Institutions Permits foreign institutions to offer distance learning to U.S. students receiving Title IV funds for the duration of the COVID-19 declaration of disaster. In General The Secretary may permit foreign institutions participating in Title IV that are facing a public health emergency, major disaster or emergency, or national emergency (as declared by the local government) to use distance learning for the duration of the emergency and the following payment period
Eligibility Any otherwise eligible program offered at a foreign institution between Marc 1, 2020 and the date of enactment of the CARES Act shall be deemed eligible for the duration of the qualifying emergency.Must report such use to the Secretary
Report Secretary shall send a report to congressional authorizing committees setting forth which institutions used this authority
Written Arrangements For the duration of a qualifying emergency, the Secretary may allow foreign institutions to allow students at such institutions to take part in courses while located in the United States
Nonprofit foreign institutions can only have written agreements with other nonprofit IHEs
Foreign for-profit medical, dental or nursing schools can enterinto written arrangements with for-profit or nonprofit IHEs
Foreign institutions must report such use to the Secretary
Report Secretary shall send a report to congressional authorizing committees setting forth which institutions used this authority on written arrangements
3511 National Emergency Educational Waivers Provide the Secretary of Education with waiver authority to provide waivers from the Elementary and Secondary Education Act, except civil rights laws, that are necessary and appropriate due to the COVID-19 declaration of disaster.    
3512 HBCU Capital Financing Authorizes the Secretary of Education to defer payments on current HBCU Capital Financing loans during the national emergency period so HBCUs can devote financial resources to COVID-19 efforts. Deferment Period Secretary may grant deferment on any loan payments to a loan under part D of Title III during the pendency of the qualifying emergency
Not required to pay interest or principal during the deferment period; Secretary shall make principal and interest payments
Terms shall be set regarding repayment of principal and interest paid by the Secretary during the deferment; repayment shall not begin prior to one full fiscal year after end of qualifying emergency
Termination Date Terminates on the date when the qualifying emergency is no longer in effect
Any loan or insurance agreement modified shall remain modified for the duration of the loan or insurance agreement
Report Secretary shall submit a report identifying institutions that received assistance
Funding $62,000,000
3513 Temporary Relief for Federal Student Loan Borrowers Requires the Secretary to defer student loan payments, principal, and interest for 6 months, through September 30, 2020, without penalty to the borrower for all federally owned loans. This provides relief for over 95 percent of student loan borrowers. In General Suspends all payments on Direct Loans and FFEL loans owned by the Department of Education through September 30, 2020
No Accrual of Interest Interest shall not accrue for all Direct Loans and FFEL loans owned by the Department of Education
Consideration of Payments Each month for which payments were suspended shall be deemed a month in which payments were made for the purpose of loan forgiveness or loan rehabilitation programs
Reporting to Consumer Agencies Secretary shall report to credit agencies that any payments suspended shall be treated as if the payment was made
Suspending Involuntary Collection Through September 30, 2020, Secretary shall also suspend wage garnishment, reductions of tax refunds, reduction of other federal benefit payments, or any other involuntary collection activity
Waivers Secretary may waive certain government processing requirements (paperwork reduction act, application of the master calendar for regulatory publications, negotiated rulemaking) to effectuate this requirement
Notice to Borrowers and Transition Period Secretary shall send notices to borrowers of the actions taken under this section within 15 days of enactment, and then, starting August 1, 2020, send not less than 6 notices regarding when payment obligations will renew
3514 Provisions Related to the Corporation for National and Community Service Provide participants serving in the National Service Corps programs with the educational award they were due to receive before their duties had been suspended or placed on hold during the COVID-19 declaration of disaster. Extend the age limits and the terms of service to allow individuals serving in national service programs to continue participating in programs after the COVID-19 declaration of disaster ends.    
3515 Workforce Response Activities Provides local workforce boards with additional flexibility to use funds received under the Workforce Innovation and Opportunity Act for administrative costs, including for online resources. Allows Governors to utilize reserved workforce funds on rapid response activities in response to COVID-19.    
3516 Technical Amendments Makes technical edits to the FUTURE Act to improve implementation and aid student loan borrowers.    
3517 Waiver Authority and Reporting Requirement for Institutional Aid Authorizes the Secretary of Education to waive certain outcome requirements for FY2021 grant programs for HBCU and other Minority Serving Institutions (MSI). Waiver Authority For HBCU and MSI, Secretary may waive:
eligibility data requirements in secs 391(d) and 521(e)
the wait-out period in sec 313(d)
the allotment requirements in 318(e)(2) and (3)
the allotment requirements in sec 324(b), (c), and (g)
sec 326(f)(3)(A), (C), (D), and (E)
the allotment restriction in sec 318(d)(4) and sec 323(c)(2)
May waive or modify any statutory or regulatory provisions to ensure that IHE receiving assistance under Title III, Title V or subpart 4 of part A of Title VII at the time of a qualifying emergency are not adversely affected by any formula calculation for fiscal year 2020 and for the period beginning on the first day of the qualifying emergency and ending on September 30 of the fiscal year following the end of the qualifying emergency
Use of Unexpended Funds Any funds paid under Title III, Title V or subpart 4 of part A of Title VIIand not expended during the 5-year period following the date in which the funds were paid may be carried over to the succeeding five year period
Report Secretary shall report to the authorizing committee and identify each institution receiving a waiver or modification under this section
3518 Authorized Used and Other Modifications for Grants Authorizes the Secretary of Education to waive or modify current allowable uses of funds for institutional grant programs (TRIO/GEARUP/Title III/Title V/and sections of Title VII) so colleges can re-deploy resources and services to COVID-19 efforts. Permits institutions to request waivers from the Secretary of Education for financial matching requirements in competitive grant and other MSI grant programs in the Higher Education Act so colleges can devote institutional resources to COVID-19 efforts. In General Secretary authorized to modify the allowable uses of funds for grants awarded under Part A or B of Title III, chapter I or II of subpart 2 of part A of Title IV, Title V, subpart 4 or Part A of Title VII at the request of the receiving IHE or grant recipient as a result of a qualifying emergency
Matching Requirement Modifications Secretary is authorized to modify any matching requirement for a competitive grant or a grant under Part A or B of Title II or subpart 4 of Part A of Title VII at the request of an IHE or grant recipient
3519 Service Obligations for Teachers For teachers who could not finish their year of teaching service as a result of COVID-19, their partial year of service shall be counted as a full year of service toward TEACH grant obligations or Teacher Loan Forgiveness. Waives a requirement that teachers must serve consecutive years of teaching service for Teacher Loan Forgiveness eligibility, if a teacherís service is not consecutive as a result of COVID-19. Teach Grants Secretary may modify the categories of extenuating circumstances under which a grant recipient is relieved of the service obligation and
Shall consider part-time or temporarily interrupted teaching service as fulfilling the service obligation
Teacher Loan Forgiveness Secretary shall waive requirement that years of teaching service be interrupted is a borrower is interrupted due to a qualifying emergency or
  after the interruption due to a qualifying emergency the borrower resumes teaching and completes five years if teaching service including qualifying teaching service before the qualifying emergency
         
APPROPRIATIONS BILL - Allocates $30.75 Billion for "Education Stabilization Fund"
Section Subtitle Senate Summary Subparagraphs Provisions
18001 General Provisions Education Stabilization Fund Elementary and Secondary Education: $13.5 billion in formula funding directly to states, to help schools respond to coronavirus and related school closures, meet the immediate needs of students and teachers, improve the use of education technology, support distance education, and make up for lost learning time. Allocations Allocates not more than 0.5% to the outlying areas;0.5% for Bureau of Indian Education; 1% for grants to states w/highest coronavirus burden - need application
Higher Education: $14.25 billion in funding to institutions of higher education to directly support students facing urgent needs related to coronavirus, and to support institutions as they cope with the immediate effects of coronavirus and school closures. This provides targeted formula funding to institutions of higher education, as well as funding for minority serving institutions and HBCUs. Reservations Sets forth amounts reserved to sections 18002 (9.8% of total), 180003 (43.95 of total) and 18004 (46.3% of total)
State Flexibility Funding: $3 billion in flexible formula funding to be allocated by states based on the needs of their elementary and secondary schools and their institutions of higher education.
18002 Governor's Emergency Education Relief Fund $3,013,500 in grants (9.8% of total) Grants Governor must apply
Allocations 60% on basis of relative populations between 5 and 24; 40% on basis of number of children
Uses of funds Emergency support through grants to LEA/SEA (Ele/Sec); Emergency support through grants to IHE that have been most significantly impacted by coronavirus to continue to support provision of educations services and ongoing functionality of the institution; and provide support to any IHE, LEA or any education related entitygovernor deems essential for carrying out emergency educational services
Reallocation Must return funds received but not awarded within one year of receipt; Secretary to reallocate returned funds to remaining states
18003 Elementary and Secondary School Emergency Relief Fund $13,499,2500 (43.9% of total)    
18004 Higher Education Emergency Relief Fund $14,237,250 (46.3%of total) In general (a)(1) - 90% to each IHE to prevent, prepare for, and respond to coronavirus - apportioned by
75% according to FTE of Pell Grant recipients not exclusively enrolled in distance education courses
25% according to FTE enrollment who are not Pell Grant recipients who are not exclusively enrolled in distance education
(a)(2) - 7.5% for additional awards under Parts A and B of Title III, Parts A and B of Title V, and subpart 4 of Part A of Title VIII to address needs directly related to coronavirus and which may be used to defray expenses incurred by the OHE
(a)(3) - 2.5% for Part B of Title VII for IHE with greatest unmet need related to coronavirus, which may be used to defray expenses incurred by IHE
18004 Higher Education Emergency Relief Fund (Cont'd) $14,237,250 (46.3%of total) Distribution Distributed using same system the Secretary typically uses
Uses of funds IHE uses to cover any costs associated with significant changes to delivery of instruction due to coronavirus - but cannot include:
payments to contractors for pre-enrollment recruitment activities
endowments
capital outlays associated with facilities for athletics, sectarian instruction or religious worship
Institutions shall use no less than 50% of funds for emergency financial aid grants to students due to disruption on campus due to coronavirus
Special Provisions In awarding grants under (a)(3) [2.5% for Part B for Title VII], Secretary my prioritize IHE not otherwise eligible for funding under (a)(1) or (a)(2)
HBCU and MSI may use prior awards provided under Titles III, V, and VII to prevent, prepare for, and respond to coronavirus
Report IHE receiving funds must submit a report to the Secretary that describes the use of the fund provided
18005 Assistance to Non-Public School     LEAs receiving funds under sections 18002 or 18003 shall provide equitable services under section 1117 of the ESEA to students and teachers in non-public schools.††
18006 Continued Payment to Employees     Any LEA, States, IHE or other entity receiving funds shall, to the greatest extent practicable, continue to pay its employees and contractors during the period of any disruptions or closures related to coronavirus
18997 Definitions     Definitions of "elementary education", "secondary education", "institution of higher education", "Secretary", "State", "cost of attendance", "non-public school", and "public school"