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Biggest higher ed changes in the Bipartisan relief bill compared to the CARES Act: More money.
$20 billion to higher ed
-$17 billion going directly to colleges
-$2 billion additional for HBCU's and MSIs
-$1 billion for institutions w/high need https://www.cassidy.senate.gov/imo/media/doc/BAI20965.pdf 1/
$20 billion to higher ed
-$17 billion going directly to colleges
-$2 billion additional for HBCU's and MSIs
-$1 billion for institutions w/high need https://www.cassidy.senate.gov/imo/media/doc/BAI20965.pdf 1/
Change in distribution formula to better account for all students, likely meaning more money for community colleges: 37.5% based on share of FTE Pell recipients, 37.5% based on total Pell recipients, 12.5% based on FTE non-Pell, 12.5% based on total non-pell 2/
50% must go toward financial aid ($8.5 bn) but includes students exclusively in distance ed and will be determined solely by institution. This attempts to fix the Department interpretation that excluded certain students from receiving aid, specifically undocumented students 3/
Cuts distribution to wealthy colleges subject to the endowment tax by 50%. Many of these colleges did not accept funds under CARES Act 4/
Requires standardized reporting of spending using one template developed in consultation with IES. This means better data on how funds are spent 5/
Eliminates provision that prioritizes colleges not receiving at least $500,000. This resulted in ED giving large sums to tiny colleges that served few Pell recipients https://www.insidehighered.com/news/2020/05/07/small-colleges-get-millions-while-other-colleges-struggle 6/
Adds in guidance on reallocating unspent funds for institutions that do not apply within 60 days, such as when wealthy colleges chose not to accept CARES Act funds 7/
Finally, extends student loan payment pause to April 1, but still excludes millions of borrowers with federal loans not held by ED 8/
