S. 5411: Emergency Grant Aid for College Students Act

This bill would create a new federal grant program to help college students pay for urgent, unexpected financial problems. It would amend the Higher Education Act to let the U.S. Department of Education give grants to colleges and universities, which would then provide emergency financial aid grants directly to their students.

What the grants could be used for

The grants would be for students facing an emergency that affects their ability to stay in school. The bill says the emergency can include financial problems tied to any part of the student’s cost of attendance, or other financial trouble that could keep the student from continuing their studies.

How the program would work

Colleges and universities would have to apply to the Department of Education to participate. Their application would need to explain things like:

• how they would decide which students qualify,
• how they would advertise the grants,
• how quickly they would process and send out money,
• how they would let students apply online,
• and how students could appeal if denied.

The department would also have to do outreach to schools at least 60 days before each application deadline.

Which schools could get priority

The department could give preference to certain schools, including:

• community colleges,
• some institutions serving lower-income or rural students,
• schools where at least 33% of students receive Pell Grants,
• and some under-resourced or broadly accessible institutions.

How students could be helped

Schools would have to use the grant money only for emergency aid to students. A student could receive aid up to the school’s cost of attendance, but not more than the maximum annual Federal Pell Grant amount in a single academic year.

The bill also allows schools to use simpler need calculations, and in some cases to work with scholarship-granting organizations to distribute the money.

Rules for getting aid to students

Schools would have to:

• acknowledge applications,
• fund approved applications within 10 business days,
• provide an online application option,
• allow at least one appeal of a denial,
• and conduct outreach so students know the aid exists and how to apply.

Reporting and oversight

Schools receiving grants would have to report to the department at least once a year on how the program is working. Those reports would include information such as:

• how much aid was awarded,
• how many students applied, were approved, denied, or appealed,
• which types of students were prioritized,
• how quickly schools responded and disbursed funds,
• and whether the grants affected student retention, persistence, or completion.

How the aid would be treated

The bill says these emergency grants would not count as regular financial aid for certain federal aid calculations, would not be counted as income for federal tax purposes, and would not count against eligibility for other public benefits.

It also says students could not be denied these grants based on citizenship or immigration status.

Funding and administration

The bill authorizes whatever money is needed for fiscal years 2027 through 2032 to run the program.

It also bars the Department of Education from transferring these functions to, or jointly carrying them out with, other federal agencies for the purposes covered by the bill.

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