The coronavirus pandemic is causing disruption to current and prospective college students. If the pandemic causes job loss, salary reductions, an increase in college costs or otherwise affects the student’s and parent’s ability to pay for college, they can appeal to the college’s financial aid office for an increase in the financial aid package.
Financial aid application on a desk. Student loan.
Consideration of COVID-19 Appeals
The U.S. Department of Education has issued guidance to college financial aid administrators, allowing them to use professional judgement when “students and/or their families have been affected by COVID-19.”
The process for considering these financial aid appeals, however, has not changed due to COVID-19. In particular, the decisions must be made on a case-by-case basis and supported by documentation.
The college financial aid administrator may make adjustments to the cost of attendance or the data elements used to calculate the expected family contribution (EFC) on the Free Application for Federal Student Aid (FAFSA). Many colleges have emergency financial aid funds available.
Examples of special circumstances related to COVID-19 that might justify an adjustment include:
- The student or parent’s employer closes for a period of time, laying off or furloughing staff
- Death of a parent or other wage-earner
- Lost wages due to illness, a quarantine period or shelter-in-place order
- Inability to work because of illness (e.g., impaired lung function prevents a parent from engaging in substantial gainful activity)
- Illness or death of a parent
- Costs of returning home and putting belongings in storage after the college orders students to vacate the dorms
The FAFSA is based on the prior-prior year income. Changes in family income since this base year are good grounds for an appeal for more financial aid.
You can appeal for more financial aid at any time. Students who have been admitted but not yet enrolled are also able to appeal for more financial aid, not just current college students.
The U.S. Department of Education guidance also allows colleges to continue paying Federal Work-Study (FWS) wages even if the student is unable to work because the college campus or the student’s employer closes because of COVID-19. The college can continue to pay Federal Work-Study wages if the college continues to pay its faculty and staff and continues to pay its share of the Federal Work-Study wages.
How to Apply for Financial Relief
To appeal for more financial aid, ask the college financial aid office for a professional judgment review. Some colleges have a form you can download from their web site. Others ask you to write a letter describing the special circumstances that affect your ability to pay for college. Include documentation of the special circumstances, such as copies of job layoff notices, pay stubs and doctor’s bills.
If the college told you to leave your dorm room, ask the college for a refund of the room and board charges you paid. Some colleges have said that they will provide a pro-rata refund of room and board charges. Others have been silent, but may decide to do the right thing if enough families ask for a refund.
Colleges are unlikely to provide tuition refunds if they switched to providing the college classes in an online format. Several colleges have argued that the students are still being taught by the same faculty, even though online education is less effective than face-to-face education. However, families should ask for a refund if the college cancelled one or more of the student’s classes without moving the classes online.
If a college graduate needs to pause repayment on their student loans, they should contact the lender or loan servicer. Options for federal student loans include deferments, forbearances and income-driven repayment plans. Options for private student loans include forbearances and partial forbearances (interest-only payments). Congress is considering a proposal to suspend all student loan payments in the Direct Loan program, interest-free, for a period of 3-6 months.
Sources of Additional Information
I have provided a free, one-page tip sheet on financial aid appeals and professional judgment reviews. This tip sheet is based on my book on the topic, How to Appeal for More College Financial Aid.
The U.S. Department of Education has posted information for students, borrowers and parents as part of its broader coronavirus response.
