Penn State to receive $55 million from federal stimulus fund; half earmarked for students in need
Penn State is set to receive nearly $55 million from the Coronavirus Aid, Relief and Economic Security (CARES) Act, and half of those funds — about $27.5 million — will go toward emergency financial aid grants for students, the university announced Wednesday.
It’s not yet known exactly when the university will receive that money, or how Penn State might disburse those funds. But U.S. Secretary of Education Betsy DeVos announced April 9 that about $6 billion from the nearly $14 billion total earmarked for colleges and their students will be “distributed immediately.”
The university said it is in the process of submitting a certification form to receive the aid. It’s also organizing a task group — with members from Student Affairs, the Office of Financial Aid, Commonwealth Campuses, and more — to help with the disbursement.
“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,” Penn State President Eric Barron said in a written statement. “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.”
According to the university, details on how students can apply for emergency aid are not yet available but will be shared “as soon as they are.” (So far, Penn State has given more than $113,000 from the Student Emergency Fund to 155 students.)
The Department of Education announced it will offer guidance for the second half of the funds allocated for Penn State in the next two weeks. Because those funds are expected to cover institutional costs, the university said it intends to use that stimulus money to support its workforce.
The $2.2-trillion CARES Act is the largest economic relief bill in U.S. history, meant to support individuals and businesses during the COVID-19 pandemic. About $31 billion of that is going toward education at all levels, while nearly $14 billion is for post-secondary institutions.
Of that $14 billion, Penn State is set to receive the $55 million.
“While Congress was crafting the CARES Act, we advocated to our congressional delegation for maximum support for higher education and students,” said Zack Moore, Penn State vice president for government and community relations. “We pushed for more funding for education, and in particular we lobbied for funding to help students impacted by the crisis. Our students always come first, and that’s something that Congress noted and addressed in the final bill.”
