The coronavirus pandemic has affected current and prospective college students. Many people have questions about options for financial relief and the coronavirus stimulus legislation. Here are the answers.
This article answers questions about unemployment benefits for college students (including Federal Work-Study jobs), eligibility of college students for the recovery rebate, class cancellations, college closures, the shift to online education and how to appeal for more financial aid due to the coronavirus pandemic.
A separate article answers questions about the student loan payment pause and interest waiver, as well as other options for student loan relief.
How to get help with college financial aid in the aftermath of the coronavirus pandemic
Unemployment Benefits
Can college students qualify for coronavirus unemployment benefits?
Generally, full-time college students are not eligible for unemployment benefits.
However, if a college student was working a part-time job or full-time job while enrolled in college, and the student’s employer closed because of the coronavirus pandemic, the student may be eligible for unemployment benefits. Even self-employed individuals may be eligible.
College students who are unable to work because they or a member of their household has been diagnosed with COVID-19, they are caring for a child or other member of their household who is unable to attend school because the school is closed due to the coronavirus public health emergency, they are under quarantine or lockdown, or their employer has closed because of the public health emergency, may be eligible for pandemic unemployment assistance. College students who are able to telework are not eligible.
College seniors who had a job, but the job offer was cancelled or who are unable to start work because of the coronavirus public health emergency, may also be eligible for unemployment assistance.
What happens if I lose my Federal Work-Study job because of the coronavirus outbreak?
If a college student loses their Federal Work-Study job because their employer or the college closes due to the coronavirus pandemic, they may be eligible to continue receiving paychecks for up to one year. The pay will be based on the scheduled award, not the hours previously worked. Colleges may provide this money in a lump sum or periodic payments.
Recovery Rebate
Are college students eligible for the recovery rebate?
Only U.S. citizens and residents who are not a dependent of another taxpayer and who have a work-eligible Social Security Number are eligible for the recovery rebate. Most traditional college students are considered to be dependents of their parents on federal income tax returns.
If the college student has reached age 17, their parents will not be able to get the $500 per child recovery rebate for them, because they are not considered to be a qualifying child as defined by the CARES Act.
Will college graduates receive a recovery rebate check if they have moved recently?
The stimulus check is an advance on next year’s federal income tax refund, which is increased by the amount of the recovery rebate.
The stimulus check will be based on 2019 tax information. If you have not filed a 2019 federal income tax return, it will be based on your 2018 federal income tax return. The stimulus checks can also be based on the receipt of Social Security benefit payments.
If you have not filed a federal income tax return because your income is below the tax filing thresholds, consider filing a 2019 federal income tax return anyway, to ensure that the IRS has your mailing address.
If your mailing address has changed since you filed your 2019 federal income tax return, file IRS Form 8822 (Change of Address) to provide the IRS with your new address.
The recovery rebate will be transferred by direct deposit if you previously provided the IRS with a bank routing number and account number for depositing an income tax refund.
The stimulus checks will be based on an estimate of your eligibility. You do not need to return the money if the estimate was too high.
If someone defaulted on a federal student loan, and thus does not receive income tax refunds, will they receive the $1,200 stimulus payment?
Yes. Section 2201(d) of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) specifies that the recovery rebate is exempt from offset. This means that a defaulted borrower of federal student loans will still receive the $1,200 stimulus payment ($2,400 for married filing jointly), assuming that their income is below the income phaseout thresholds, which start at $75,000 ($150,000) and are fully phased out at $99,000 ($198,000).
Financial Aid Appeals
Can college students appeal for more financial aid due to the coronavirus pandemic?
Yes. The U.S. Department of Education has issued guidance to colleges that students who have been affected by the coronavirus pandemic may appeal for more financial aid.
Reasons for an appeal might include job loss, pay cuts or reduction in work hours, or an inability to work due to a quarantine or lockdown due to the coronavirus outbreak. Some students may need financial help to return home, or to ship or store their belongings. If the college switched classes to an online education format, but the student does not have a computer or internet access, they can ask the college for help.
The professional judgment review process for considering a financial aid appeal has not changed. Call the financial aid office to ask about the process. Some colleges have an appeal form on their web site. Others ask the family to write a letter summarizing the circumstances that have affected the family’s ability to pay for college.
Can prospective students appeal for more financial aid due to the coronavirus pandemic?
Yes. Students who have been affected by the coronavirus pandemic can appeal to the college for more financial aid, even if they have not yet received a financial aid award letter or committed to enrolling in the college. Appeals for more financial aid can be submitted at any time.
Are there any emergency financial aid programs?
Some colleges may have had emergency financial aid programs even before the coronavirus pandemic. These programs may be expanded as a result of the pandemic.
In particular, colleges can transfer unused Federal Work-Study funding to the Federal Supplemental Educational Opportunity Grant (FSEOG) program and can award FSEOG up to the amount of the maximum Federal Pell Grant.
Some college students have raised money to help their peers. Local communities may have also raised money and set up emergency housing programs.
The CARES Act provides some funding that colleges can use to directly support students who are facing urgent needs related to the coronavirus pandemic. The amount of money available at a specific college may be limited.
Class Cancellations and College Closures
Will class cancellations affect my financial aid?
Many colleges have switched their classes to an online format. But, some classes have been cancelled because they cannot be offered online. For example, art classes and hands-on training might not work well with videoconferencing software.
Colleges are not required to reevaluate a student’s enrollment status after the add/drop date if it changed due to the coronavirus pandemic.
Colleges may waive the quantitative component of Satisfactory Academic Progress (SAP) policies, excluding grades if the student’s academic performance was affected by the coronavirus pandemic. The student does not need to appeal to receive this relief.
Can I get a refund of room and board if my college closes?
Some colleges are offering students prorated refunds of room and board charges after asking students to leave college-owned or operated housing. Others have been silent on the matter.
Some colleges will be providing refunds for continuing students as a credit toward charges for the next semester. If a college does this, the refund may count against the student’s eligibility for need-based financial aid. If the college pays the student a cash refund, on the other hand, it will not affect the student’s eligibility for need-based aid.
If a college does not offer a refund of room and board charges, they may become the target of a class action lawsuit. Fundamentally, a college cannot charge for goods and services that are not delivered. By requiring the students to leave involuntarily, the college is in breach of the housing agreement.
What happens to my financial aid if I withdraw due to the coronavirus pandemic?
The U.S. Department of Education has waived the normal rules for the return of “unearned” federal student aid, such as the Federal Pell Grant, if a student withdraws because of the coronavirus pandemic.
Federal education loans may also be cancelled if a student drops out of college mid-semester due to the coronavirus pandemic. This will affect just the federal student loans that were received for the current academic term.
If a student drops out of college, the subsidized Stafford loans and Pell Grants received during the academic term will be excluded from their respective duration limits.
If the student takes a leave of absence, the college can hold on to the financial aid funds for up to 180 days in anticipation of the student’s return.
Are there any options for college students who have been evicted from the dorms and who have nowhere to go?
Some students have nowhere to go if their college closed the dormitories. These include international students, independent students, and homeless students. Some students may be hesitant to return home because of the potential for harm to themselves or to a family member, such as a family member who is undergoing cancer treatment.
Some colleges have established an appeals process, where students with extenuating circumstances can ask to remain in the dorms. They may be required to relocate to a different dorm.
If the college does not accommodate their request, the students should call the local mayor for help. Local hotels may be willing to offer accommodations at reduced prices, sometimes even for free.
Shift to Online Education
How does the shift to online education affect study abroad programs and international students?
Normally, U.S. students who participate in study abroad programs and international students studying in the U.S. are limited in their ability to take classes online. For example, foreign universities may not offer classes online. Students who are in the U.S. on an M visa may not take any classes online and students who are in the U.S. on an F visa are limited to one online class per academic term.
The federal government is relaxing these rules. Study abroad programs are allowed to offer their programs online for the duration of the coronavirus pandemic. International students may likewise participate in distance learning during the pandemic.
Will my GI Bill money be affected by the coronavirus pandemic?
Congress has approved emergency legislation to ensure that veterans continue to receive the full benefits of their GI Bill funding and other veterans education benefits despite the shift to online classes.
