ED to Publish Interim Final Rule Barring Undocumented, International, and Non-Title IV Eligible Students From CARES Act Emergency Grants – NASFAA
The Department of Education (ED) on Thursday issued a preview of its interim final rule regarding the distribution of coronavirus emergency relief grants to students, doubling down on its position that only Title IV-eligible students can receive the funding.
The rule, which will become effective immediately once published in the Federal Register, comes after months of changing and often conflicting guidance from ED that has created obstacles for institutions trying to disburse emergency grants to students. ED clarified in the rule that enforcement of the Title IV eligibility interpretation will not be retroactive before the date of publication in the Federal Register, but reminded institutions of its prior guidance regarding funds issued to individuals living in the country illegally, those enrolled in the Deferred Action for Childhood Arrivals (DACA) program, and international students.
At the heart of ED’s argument for restricting the emergency grants to only Title IV-eligible students is the lack of a definition for the word “student” in the statute, the ambiguity in which Congress wrote the legislation, and concern over the potential for fraud and abuse, ED asserts.