The federal response to the COVID-19 pandemic includes several waivers and pre-approvals. The Office of Management and Budget (OMB) has directed the heads of executive departments and agencies, including the Department of Education and the Internal Revenue Service to be flexible in enforcing requirements and deadlines during this crisis.

The Department of Education is maintaining a list of coronavirus resources and has provided guidance for Title IV compliance; an FAQ  to help institutions determine their obligations during this state of emergency; and instructions for submitting Federal Work Study community service requirement waiver requests. The Department also issued information regarding compliance with the Family Educational Rights and Privacy Act (FERPA).

●   Permission for institutions to launch distance learning programs without going though the approval process.

●   Permission for accreditors to waive their distance education standards and review requirements.

●   The requirement to match the federal share for campus based programs is waived.

●   Refunds and waivers of housing, tuition, and fees will not result in a mandatory re-evaluation of the student's cost of attendance. Changes to a student's Title IV awards are not required. However, the department has not waived the rules on Title IV credit balances.

●   Permission for an institution to continue to make Federal Work Study payments to disaster-affected students who are unable to continue working. There are some restrictions.

●   An institution that determines it must close as the result of the COVID-19 emergency may request a temporary reduction in the length of its academic year.

●   In most scenarios, institutions must return all Title IV and Direct Loan funds credited to students who were enrolled in foreign institutions or study abroad programs but were unable to begin classes due to closures.

●   In cases where a student withdraws during a payment period, the institution must return the Title IV funds. Students are considered withdrawn if an institution ceases operation and fails to reopen during a payment period. If such is the case, an institution must return Title IV funds. If the institution reopens during the payment period, students who began before the closure but did not return after the reopening are considered withdrawals. Their Title IV funds must be returned.

●   In cases where a student has taken an approved leave of absence, the institution may retain Title IV funds with the intent of applying them when the student returns. If the student does not return within 180 days, the institution is required to perform the Return of the Title IV funds calculation based on the start date of the leave of absence.

●   Financial aid administrators must document all cases where professional judgement has been used to adjust the cost of attendance or the EFC. Documentation must substantiate the reason for any adjustment. Professional judgement determinations must be made and documented on a case-by-case basis.

●   Institutions must give consideration to circumstances related to COVID-19 when considering a student's SAP appeal regardless of official policy. 

●   Institutions may offer flexible program schedules to accommodate students impacted by cancellations.

The house is expected to pass the Coronavirus Aid, Relief, and Economic Security Act, (CARE Act) soon. This is the third stimulus package to be passed this month. It follows the Coronavirus Preparedness and Response Supplemental Appropriations Act and the Families First Coronavirus Response Act. The CARE Act is the largest economic relief initiative in recent history. President Trump has promised to expedite signing it into law.

Although the relief is welcome, the pending legislation has been criticized for failing to provide adequate assistance for colleges and universities.

In fact, legislators and advocates have already begun working on a 4th stimulus package promised to include significant funding for higher education.

What it Includes

●  Allocates $14,000,000,000 for higher education of which $1,002,000,000 is earmarked for minority-serving institutions as emergency Title III and Title V funds. See Section 18004.

●  Creates an Education Stabilization Fund containing $30,750,000,000 (page 752). Of those funds 9.8 percent is reserved to provide Emergency Education Relief grants for state governors. See Section 18082. 
 
●  Permits use of Supplemental Education Opportunity Grants for emergency aid. See Section 3504.

●  Permits employers to delay paying payroll taxes. See Section 2302.

●  Permits employers to receive an advance on the tax credit they will receive for providing the paid sick leave and family leave to employees mandated by phase two legislation. See Section 3606.

●  Permits employers to use Small Business Administration loans to cover  mandated paid sick leave and family leave. See Section 1102.

●  Adjusts the rules related to Small Business Administration Emergency Economic Injury Disaster Loans that small businesses, private nonprofits, and small agricultural cooperatives are eligible to receive. Waives rules related to personal guarantees on advances, waives the requirement that applicants be unable to obtain credit elsewhere. See Section 1110.

●  Permits applicants to request an advance of not more than $10,000 which must be disbursed within three days. Requires the applicant to self-certify eligibility prior to receiving the advance. The applicant would not be required to repay the advance even if subsequently denied the loan. See Section 1110.

●  Permits employers to provide a tax-free student loan repayment benefit with some restrictions. See Section 2206.

●  Permits minority-serving institutions to use prior awards provided under Titles III, V, and VII to prevent, prepare for, and respond to COVID-19. Institutions may be required to document use of these funds. See Section 18004. 

●  Permits the Secretary of Education to defer HBCU Capital Finance loan payments for the duration of the emergency. The Secretary would make principal and interest payments due under the loan agreement. At the closing of a loan deferred in that way, terms will be drafted for the institution to repay the Secretary on a schedule that would begin upon repayment in full to the lender with some restrictions. See Section 3512.

●  Includes a paycheck protection program to expedite government guaranteed loans that can be used to cover salaries, sick leave, insurance premiums, utilities, mortgages, and rent. See section 1102.