Penn State is scheduled to receive just shy of $55 million from the federal Higher Education Emergency Relief Fund the university announced on Thursday morning.
The lump sum is Penn State’s portion of the $14 billion in support for postsecondary institutions and their students under the recently passed Coronavirus Aid, Relief, and Economic Security (CARES) Act, as announced by the U.S. Department of Education. According to Penn State approximately $27.5 million will be earmarked for emergency financial aid grants for Penn State students.
United State’s Secretary of Education Betsy DeVos said on April 9 that the Department of Education distribute more than $6 billion to colleges and universities for emergency student financial aid. Penn State is permitted to distribute cash grants to students to pay for expenses incurred related to COVID-19 disruptions, including course materials, technology, food, housing, health care and childcare.
“We are grateful that the Department of Education has committed to disbursing these funds quickly, as we are eager to begin providing a measure of financial relief for our students who need it the most,” said Penn State President Eric Barron in a press release. “Our goal is to get this money into the hands of our students as quickly as possible, so that they can continue their studies with peace of mind.”
Penn State will first be required to submit a certification form to receive the federal funds and is in the process of doing so according to a press release. The University has also appointed a task group to develop a plan for distributing the money to students. Details on how students can apply for the emergency aid will be shared as soon as they are available.
The federal aid will supplement ongoing efforts to provide financial relief for students in need of assistance. Since the pandemic began, Penn State has already disbursed more than $113,000 from the Student Emergency Fund to 155 students who needed financial support.
The Department of Education has indicated it will announce guidance for the second half of the funds allocated to postsecondary institutions — in Penn State’s case approximately $27.5 million — in the next two weeks. This funding is intended for direct institutional use to cover costs associated with changes to educational delivery and campus operations as a result of coronavirus disruptions.
According to the University it is Penn State’s intention to use these federal stimulus funds to support employees.
