CARES Act

The Higher Education Emergency Relief Fund (HEERF) is a part of the federal government’s Coronavirus Aid, Relief, and Economic Security (CARES) Act. It provides emergency grants from the U.S. Department of Education to eligible students to help cover education-related expenses caused by the COVID-19 pandemic. The CARES Act requires recipients to use the funds they receive for unexpected expenses, unmet financial need, or expenses related to the disruption of campus operations resulting from the coronavirus. These expenses include food, housing, course materials, technology, health care or childcare.

Who is eligible to receive CARES Act Emergency Student Grants?

Initially, the U.S. Department of Education requires colleges and higher education programs to confirm that students receiving CARES Act emergency grants meet basic eligibility for federal “Title IV” financial aid. These eligibility criteria include having a demonstrated financial need certified by the income information provided on the student’s Free Application for Federal Student Aid (FAFSA); must be a U.S. citizen or national, permanent resident, or other eligible noncitizen; and being enrolled in a degree or certificate program making satisfactory academic progress. For complete list of federal student aid requirements, visit the Department of Education’s Student Financial Aid Eligibility Criteria page. However, in an updated statement on 5/21/2020; the US Department of Education stated, on its guidance portal, that the Student Financial Aid Eligibility Criteria is no longer the determining factor for which students are eligible to receive the CARES Act Emergency Grant  “guidance documents lack the force and effect of law.” See U.S. Department of Education’s Guidance Homepage,  https://www2.ed.gov/policy/gen/guid/types-of-guidance-documents.html (“Guidance documents represent the ED’s current thinking on a topic. They do not create or confer any rights for or on any person and do not impose any requirements beyond those required under applicable law and regulations.

Is there an application process?

No. Students have been sent a form requesting information regarding the impact that the COVID-19 pandemic has had on their personal lives. Eligible students will receive an email notifying them that they meet the emergency grant criteria based on their FAFSA and academic information and that their grants will be sent to them by check.

How did Universal Training Institute (UTI) determine the amount that students will receive?

 UTI used a number of factors in calculating grant amounts. These factors centered on student’s current financial need based on data collected from returned surveys. Students itemized the areas in which they most significantly impacted by the Covid-19 pandemic and indicated specific dollar associated with their needs. As UTI could not meet the individual need of each student, UTI determined that the most effective course of action would be to provide an equal amount of funding for each student who reported losses and unmet financial need.

When will qualifying students be notified of their selection status and the amount of their grants?

 Students will be notified of their status during the week of June 15, 2020.

How will students receive their grants?

Students will receive checks which will be mailed to the address in their Universal Training Institute Orbund Student Accounts. To verify that your current address is listed, please login to your Orbund account and update your mailing address, phone number, and email address. 

What if a student didn’t file a FAFSA application? Are they still eligible to receive a grant?

 Yes, US Department of Education stated, on its guidance portal, that the Student Financial Aid Eligibility Criteria is no longer the determining factor for which students are eligible to receive the CARES Act Emergency Grant “guidance documents lack the force and effect of law.” See U.S. Department of Education’s Guidance Homepage,  https://www2.ed.gov/policy/gen/guid/types-of-guidance-documents.html (“Guidance documents represent the ED’s current thinking on a topic. They do not create or confer any rights for or on any person and do not impose any requirements beyond those required under applicable law and regulations.

Will receiving a grant through the CARES Act Emergency Student Grant affect a student’s regular financial aid?

No. Recipients of the CARES Act emergency grants will see no impact on the calculation of their full financial need.

Are students who were not enrolled/waiting to return to the program/reviewing courses eligible to receive emergency financial aid grants?

No. The formula provided by Congress for calculating and distributing funds to institutions excludes students who were not enrolled in classes prior to March 13. This is because the emergency financial aid grants are for expenses related to the disruption of campus operations. Students who were not enrolled or not attending classes would not have expenses related to those disruptions.

Are CARES Act Emergency Student Grants taxable?

No. The grants are not included in the gross taxable income. For that reason also, students who use some of their grant to pay for course materials required for online learning cannot claim that expense as a qualifying tax deduction or credit.

Can students appeal decisions regarding their eligibility or the amount of their grant?

Students’ eligibility for a CARES Act grant is determined by the rules set by the Department of Education. Their grant amounts are calculated based on the allocation to Universal Training Institute and the individual criteria described above. There is no process for appeal.