Some welcome news arrived for higher education in the form of an added $23 billion in relief aid stemming from the $900 billion coronavirus-relief package that was passed by Congress in December 2020. This amount is in addition to the $14 billion in direct aid to public and private higher education institutions that was furnished through the Coronavirus Aid, Relief, and Economic Security (CARES) Act last March. The assistance is aimed at offsetting new costs that colleges and universities have assumed that are associated with the implementation of online learning and coronavirus prevention measures. Many institutions also have been devastated financially by steep declines in auxiliary revenue derived from tuition as a result of declines in enrollment and also from related sources involving campus housing, dining operations, and campus facility rentals to outside groups.
As the year 2021 opened in January, there are no signs that the pandemic is declining. New mutations are proving to be more transmissible and the number of fatalities and hospitalizations from the disease have attained record levels in many states across the nation in recent weeks. The availability of vaccines is a hopeful sign, but the number of individuals who have been fortunate enough to receive them is paltry in comparison to the size of the overall U.S. population. When the day arrives that student enrollment reaches pre-pandemic levels, it appears reasonable to suppose that students could face higher out-of-pocket costs as institutions raise tuition to fill any revenue gaps. That possibility means that the federal government will be called upon to provide financial assistance to enable students from disadvantaged backgrounds to benefit from participation in higher education offerings.
Federal Aid To Higher Education In 2021
Page two of this issue of the newsletter lists funding made available under the Consolidation Appropriations Act, 2021 (P.L. 116-260) for a variety of activities. Some items not listed on that page, which have a bearing on higher education are as follows:
$754 million for the Health Resources and Services Administration (HRSA) Title VII Health Professions And Title VIII Nursing Workforce Development Programs.
$15 million for the HRSA Health Careers Opportunity Program (HCOP), a federally funded grant that provides students from economically or educationally disadvantaged backgrounds an opportunity to develop the skills needed to compete successfully for, enter, and graduate from health professions schools.
$51.5 million for the HRSA Scholarships for Disadvantaged Students Program, which provides scholarships to full-time, financially needy students from disadvantaged backgrounds, who are enrolled in health professions and nursing programs.
An additional $35 billion for the Higher Education Relief Fund directed towards public institutions and public and private Historically Black Colleges and Universities (HBCUs).
A change in how eligibility for Pell Grants is determined means an additional 555,000 students will qualify for Pell Grants each year and 1.7 more million students will qualify to receive the maximum Pell award annually. The subsidy on interest for some federal student loans is being expanded. Approximately $1.3 billion in capital loans owed to the federal government by HBCUs is being forgiven.
Another important provision will make it easier for students to fill out the Free Application for Federal Student Aid (FAFSA) form. After several years of work in Congress to achieve this result, simplification will benefit an estimated 20 million families who fill out these complicated forms every year. Reducing FAFSA from 108 questions to 36 will remove a major barrier to helping more low-income students pursue higher education.
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