H.R. 5850: Guaranteeing Retention and Aid During Shutdowns Act

This bill, known as the Guaranteeing Retention and Aid During Shutdowns Act (GRAD Act), aims to amend the Higher Education Act of 1965 by introducing a new requirement for institutions of higher education that participate in federal student financial aid programs. It stipulates that these educational institutions cannot terminate or alter a student's enrollment status if there is a disruption in the student's federal financial aid due to a lapse in appropriations, such as during a government shutdown.

Key Points of the Bill

• The bill applies to all institutions of higher education that receive funding through Title IV of the Higher Education Act.
• It specifically protects students whose federal financial aid is affected by a government shutdown or similar funding disruptions.
• By preventing the termination or alteration of a student's enrollment status, the bill seeks to offer stability to students during uncertain times.

Impact on Students

The primary focus of this bill is to safeguard students' academic status, ensuring that they can continue their education without being penalized due to circumstances beyond their control, such as funding interruptions from the federal government. This is particularly relevant for students who rely heavily on federal financial aid to support their studies.

Potential Effects on Institutions

Institutions may need to adjust their administrative processes and policies to comply with this requirement, ensuring that students facing funding disruptions are not negatively impacted academically. This change might necessitate further support systems or resources for managing student enrollment statuses during funding lapses.

Relevant Companies