These Problems Are Keeping Students From Getting Emergency Grants

• Author: Monica Jackson
• Posted: 2024-08-07

When the federal stimulus package was passed in late March, it promised emergency aid to students. The Higher Education Emergency Relief Fund was supposed to provide grants to students who need help with housing and food during the pandemic.

This sounded like a helpful idea, but in reality, it has not actually assisted many students. It turns out that a lot of students are not actually able to access the grants they should be getting. There are a few major issues that are delaying the payment of these grants.

You Have to Rely on Your School to Get the Federal Grants

One of the big problems with the federal grants is that you cannot get them directly from the U.S. Department of Education. Instead, the CARES Act states that institutions have to apply for federal funds before a deadline, and then they are the ones who decide how grants are distributed to students.

This has led to all sorts of confusion and mistakes because there are not any strict guidelines for how the funds are disbursed. If a school does not bother to apply for the funds in the first place, their students might not be able to get any grants at all.

Furthermore, the rules for who gets a grant change wildly depending on location. You might not be able to get a grant at all, while a student with similar finances who goes to a different school might get a huge grant.

Changes to Federal Guidance Have Delayed Grant Disbursement

For the most part, who gets a grant is left entirely up to the discretion of the college. However, the federal government did randomly introduce some student eligibility criteria in April, five weeks after the grants were supposed to go out. The new requirements said those not eligible for regular student financial aid, such as international students, students who default on student loans, or students with bad grades, cannot have a grant.

This left many schools scrambling, after their initial decision of who got the grants had to be reversed. Many schools have had to start over with the entire process of grant approval from scratch after eliminating students who did not meet the criteria. Even those who fulfill the grant requirements might have their payments delayed as schools deal with the sudden change.

There are already some legal battles over the new requirements. In California, District Judge Yvonne Gonzalez Rodgers granted some colleges a preliminary injunction, so they can disregard the requirements and give funds at their own discretion. A similar ruling was also made in Washington. All this confusion is further delaying grant payments.

Students Left in Financial Limbo As They Wait on Grants

A NASFAA poll of institutions reports that only half of the colleges had disbursed more than 75 percent of the federal funds to their students. This means that there are thousands of dollars in federal grants that are not actually being given to students.

Without their grant money, many students are in a tight spot. Students often work in the hospitality and retail industries, so opportunities for part time work are mostly absent. This has left them unable to pay for housing and food. Many students are having to dip into tuition savings to fund their living expenses. Those without savings often report anxieties about how they will eat and pay for housing.

Housing is one of the main issues for students right now, since many schools have closed their dorms. Students who were on scholarships may not be able to get assistance with housing outside of their campus, and many cannot easily travel back to their former home.

Options for Students Waiting on Federal Grants

For students in these tough situations, there may not be time to wait around for schools and federal departments to sort out all their arguments about grants. Instead, many need assistance now.

There are some other organizations who are stepping in to help students in need. Students are encouraged to visit their school's financial aid office and ask about private grants. These can be given to those who do not qualify for federal grants or do not have time to wait.

For example, ASU has given over $1 million in private grants to students who need immediate help. Many other universities have similar programs, that prioritize giving grants to at risk students as soon as possible.