To help small businesses, higher education institutions and individuals recover from the economic impact of the coronavirus pandemic, Congress recently passed a $2 trillion stimulus package.
After analyzing the Coronavirus Aid, Relief and Economic Security (CARES) Act, the Center for American Progress (CAP) released a brief to highlight what has been done to aid the education sector so far and laid out policy recommendations needed in a fourth stimulus package.
The brief said the current funds allocated would “only make a dent” in addressing long-term funding issues.
In the stimulus package, $14 billion was allocated to “stabilizing” higher education institutions. The needs of under-resourced colleges and those serving low-income students will be assessed while distributing the funds. Three-quarters of the funding is to be distributed based on the number of Pell Grant recipients institutions have. Students taking online classes full-time will not qualify, according to the brief.
For minority-serving institutions, prior awards can be used in addition to the emergency funding.
Additionally, under the bill, federal student loan payments will be suspended over the next six months and there will be an elimination of interest accrual.
In the short term, CAP suggested that more student loan borrowers be “protected” and a wider section be included in future legislation. According to the brief, 43 million adult Americans owe more than $1.5 trillion in federal student loans or private debt. Under the current bill, 1.9 million borrowers with Perkins loans and $7.9 million Federal Family Education loan borrowers are omitted.
