Penn State to Distribute COVID-19 Relief Grants to More Than 23,000 Students

Penn State will award more than 23,000 cash grants to students through funding provided by the federal Higher Education Emergency Relief Fund II, part of the Coronavirus Response and Relief Supplemental Appropriations Act signed into law in December.

The law directs university to prioritize students with the greatest financial need and Penn State President Eric Barron said he is hopeful the grants will provide a measure of relief to students most in need of assistance.

“The university is thankful for this funding for students, and we look forward to getting it into our students’ hands quickly so that it can begin to ease financial strain and allow them to focus on their studies with less worry,” Barron said.

Penn State is receiving a total of nearly $85 million Higher Education Emergency Relief Fund II allocation and will disburse $27.5 million to students — the same amount it provided in student grants with CARES Act funding received last March.

The grants are given to students based on data from the 2020-21 Free Application for Federal Student Aid (FAFSA). Pell Grant-eligible students will be offered $1,200, while other students in need of aid could receive $1,000.

Undergraduate, graduate, law and medical students from any Penn State campus are eligible. Students who qualify will receive an email from the Office of Student Aid with a subject line of “CRRSAA Award” at their Penn State email address

Students will be able to accept or deny the grant offer. If they do not need the full money offer, they may request a lower amount as well.

The cash grants can be used for attendance costs or emergency costs that occurred because of COVID-19, such as tuition, housing, health care, mental health care and child care. All expenses need to be from March 13, 2020, to now. When a student accepts the cash grant, they must agree that any expenses paid for with the money are in accordance with the CRRSAA.

Students can choose for the grant to be refunded directly to them, applied to an outstanding balance from the spring of 2021 or combined between the two options.

Penn State also will offer an application-based second round of cash grants to those who have not completed the FAFSA or families who faced unexpected financial downfalls due to the coronavirus. Details about this second round of funding have not been released yet.

The university expects to receive more COVID-19 relief funding from the $40 billion designated for higher education assistance in the American Rescue Plan Act of 2021, which was signed into law in March.

Penn State officials said it they do not yet know how much will be allocated to the university, but the law states that at least half the money has to be disbursed among students as emergency financial aid grants. A task group will assist administrators in creating a distribution plan once the U.S Department of Education gives the funds to Penn State.