FROM THE DEPARTMENT OF EDUCATION
Updated April 9, 2020
Summary of Higher Education Provisions in H.R. 748, The Coronavirus Aid, Relief, and Economic Security (CARES) Act as it pertains to University of the Potomac
Sec. 3503. Campus-based aid waivers – Waives the requirements that institutions match federal funds and waives the limits on transferring funds between programs in the SEOG and FWS
Sec. 3504. Use of supplemental educational opportunity grants for emergency aid – Allows institutions broad flexibility to disburse SEOG funding as emergency grant aid to students.
- This is a good opportunity; however, it is limited in its funding. University of the Potomac has been allocated $32,000 for the upcoming award year.
- This provision allows University of the Potomac to re-allocate Federal Work-study funds to the FSEOG program.
Sec. 3505. Federal work-study during a qualifying emergency – Allows institutions to make FWS payments for students for a period of up to one year, even if the student is unable to perform the required work due to campus closures.
Sec. 3506. Adjustment of subsidized loan usage limits – Excludes loans borrowed from counting towards annual or cumulative limits if a borrower is unable to complete the term due to a qualifying emergency.
- This is a great benefit to any students who become unable to complete the term. The loan borrowed for the term will not count against the students’ aggregate limit for lifetime loan eligibility.
Sec. 3507. Exclusion from Federal Pell Grant duration limit – Excludes Pell Grants awarded from counting towards annual or cumulative limits if a Pell recipient is unable to complete the term due to a qualifying emergency.
- Much in the same way the loans will not count against the lifetime aggregate limit, the Pell grant will not as well
Sec. 3508. Institutional refunds and Federal student loan flexibility – suspends an institution’s obligation to return Title IV funds if a student withdraws during a payment period due to a qualifying emergency. Suspends a student’s obligation to return Title IV aid they have received if they withdraw during a payment period due to a qualifying emergency. Relieves
borrowers of the obligation to repay loans that were taken out if they withdraw due to a qualifying emergency during the payment period those loans were borrowed for. Allows for institutions to allow students to take a leave of absence without needing to return in the same semester.
- University of the Potomac will track all relevant student situations in which a refund would have occurred, University of the Potomac has been averaging around $8-10k in refunds per week.
- Students will not have to repay loans that are taken out in a period in which they withdraw due to the current public health situation
- The LOA provision is useful for students who need to take leave because of the current public health situation
Sec. 3509. Satisfactory academic progress – Allows institutions to exclude terms impacted by a qualifying emergency in the calculation of a student SAP.
- Student Finance and Academics will work together to put a process in place to meet this provision that will keep any covid-19 related issues from affecting a student’s academic progress
Sec. 3510. Continuing education at affected foreign institutions – Allows for otherwise eligible programs at foreign institutions to be eligible for Title IV aid for distance education
- N/A to University of the Potomac
Sec. 3512. HBCU Capital financing – Requires the Secretary to make principal and interest payments on these loans during a deferment period in which the institutions are not obligated to make any payments.
- N/A to University of the Potomac
Sec. 3513. Temporary relief for federal student loan borrowers – Suspends borrowers’ obligation to make payments on their federal Direct Loans through September 2020; suspends interest on the payments; counts the suspended payments towards payment requirements for forgiveness provisions; suspends garnishment of wages, Social Security and tax refunds, among other measures, for borrowers in default during this period.
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- This provision has frozen student loan payment obligations until the end of the current FY2018 reporting period. This could lead to an early close to FY2018 cohort. We will continue to monitor this closely
Sec. 3517. Waiver authority and reporting requirement for institutional aid – Authorizes the Secretary to waive certain statutory provisions regarding the distribution and uses of grant funding for minority-serving institutions, including graduate programs at HBCUs.
- N/A to University of the Potomac
Sec. 3518. Authorized uses and other modifications for grants – Allows the Secretary to waive requirements regarding the allowable uses of grant funding and requirements on matching grants at the request of the institution.
- N/A to University of the Potomac
