How might colleges benefit from the coronavirus stimulus package? – Education Dive
These states and institutions stand to benefit the most from the formula that will be used to distribute the funds, based on one group’s analysis.
The higher education sector has not escaped the effects of the coronavirus, which has forced many institutions to close classrooms, move instruction online and empty residence halls.
Administrators anticipate their colleges will take a financial hit as some refund room and board money and create new digital infrastructure to ensure students can complete their work online. Future enrollments have also been called into question, as college leaders fear the economic turmoil the virus created will inhibit students, particularly from overseas, from attending four-year institutions in the U.S.
To remedy financial losses nationwide, Congress passed a $2.2 trillion stimulus package last week that included billions of dollars for higher ed. The precise amount of funding institutions will receive has yet to be determined, but the American Council on Education (ACE) knew its members would be seeking information early and calculated its own estimates.
ACE used the formula outlined in the legislation for how the money would be distributed. It’s based on enrollments of two groups of students: full-time students who receive federal Pell Grants and full-time students who do not. The calculation excludes students who were enrolled exclusively in distance learning programs before the pandemic.