Douglas Olsen
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed to help Americans recover from the economic fallout of the COVID-19 pandemic. While the act provides economic relief to students in the form of emergency grants, international students are not eligible for this funding. This exclusion has been justified by the Department of Education on the basis of ambiguity in the legislation and the potential for fraud and abuse. However, the Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act, proposed by House Democrats, may provide financial aid to international students.
| Characteristics | Values |
|---|---|
| Eligibility for CARES Act | Only Title IV-eligible students can receive funding |
| International students' eligibility | Not eligible for funding |
| DACA students' eligibility | Not eligible for funding |
| Students with undocumented status | Ineligible for funding |
| Students enrolled in spring 2020 | Eligible for funding |
| Full-time students | Eligible for funding |
| Students on co-op | Eligible for funding |
| Online students | Not eligible for funding |
| PhD students | Not eligible for funding |
| Certificate students | Not eligible for funding |
| Funding guarantee | No guarantee of funding upon application |
| Funding limit | Limited to one grant per eligible student |
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What You'll Learn
International students are not eligible for CARES Act grants
The Coronavirus Aid, Relief, and Economic Security (CARES) Act provides economic impact payments to American households, with individuals whose income was less than $99,000 receiving up to $1,200 per adult and $500 per child under 17. However, international students are not eligible for CARES Act grants.
The CARES Act was implemented to help Americans recover from the economic fallout of the COVID-19 pandemic. According to the US Treasury Department, international students are not eligible to receive any financial aid under the CARES Act, even if they are taxpayers with a social security number. This is because the CARES Act only applies to American citizens, and international students are considered nonresident aliens.
The Department of Education (ED) has issued a rule barring international students from receiving CARES Act emergency grants. The rule states that only Title IV-eligible students can receive funding. This decision was made to ensure that taxpayer money is used to support American students, in line with long-standing policy. The ED has also pointed to the language in the CARES Act, which includes references to Title IV standards, as justification for restricting emergency aid to only certain students.
International students attending American universities have been adversely affected by the pandemic, facing financial challenges and disruptions to their education. While they are ineligible for CARES Act grants, some universities, such as Drexel University, offer separate emergency funds for international students.
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International students are nonresident aliens
International students are generally considered nonresident aliens for tax purposes during their first five calendar years in the US. This classification applies to students in F, J, or M status, specifically F-1, J-1, or M-1 nonimmigrant status. After five years, these students may be considered resident aliens for tax purposes if they meet the "substantial presence" test.
The term "nonresident alien" specifically refers to an individual's tax residency status and does not reflect residency definitions in other contexts, such as tuition or permanent residency. Nonresident aliens are subject to different tax rules and requirements compared to resident aliens.
In terms of tax liabilities, nonresident aliens are generally liable for Social Security and Medicare Taxes on wages earned for services performed in the United States. However, there are exceptions for certain nonimmigrant statuses. For instance, foreign students in F-1, J-1, or M-1 status for less than five calendar years are exempt from Social Security and Medicare Taxes on wages earned for services performed within the US, provided these services are allowed by USCIS and align with the purposes of their visas. Additionally, students employed by their school, college, or university where they are enrolled at least half-time are exempt from Social Security and Medicare taxes, regardless of their tax residency status.
Regarding the CARES Act, international students are not eligible for emergency grants or funding. The Department of Education has issued a rule stating that only Title IV-eligible students can receive coronavirus emergency relief grants. This decision aims to clarify eligibility and ensure that funds are disbursed to American students in need.
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Title IV-eligible students can receive funding
The Coronavirus Aid, Relief, and Economic Security (CARES) Act provides emergency financial aid grants to students. However, the Department of Education (ED) has issued a rule stating that only Title IV-eligible students can receive funding. This rule comes after months of conflicting guidance from ED, which has created obstacles for institutions trying to disburse emergency grants to students.
While Title IV funding has benefited full-time students, it is important to consider how part-time students can also optimize these opportunities. Additionally, previously incarcerated applicants or those subject to incarceration for criminal offenses are generally not eligible for Title IV grants. Despite criticism from some who view the restrictions as cruel, ED justifies its rule by citing the lack of a clear definition of "student" in the CARES Act, ambiguity in the legislation, and concerns over potential fraud and abuse.
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International students are ineligible for stimulus payments
The Department of Education (DOE) has issued guidance stating that only students who meet federal financial aid eligibility criteria can receive funding. This includes being a Title IV-eligible student, which international students are not. The DOE has clarified that this rule is meant to provide certainty to institutions and ensure that funds can be disbursed quickly to eligible students.
The CARES Act was written to help Americans recover from the economic impact of the COVID-19 pandemic. According to Education Secretary Betsy DeVos, "U.S. taxpayers have long supported U.S. students pursuing higher education, and this rule ensures the continuity of that well-established policy."
While international students are not eligible for CARES Act funding, they may be able to apply for support through other means, such as Drexel University's Student Emergency Fund, which is separate from the CARES Act funding.
It is worth noting that the situation regarding financial aid for international students may change in the future. For example, the proposed Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act, which includes additional financial aid for students, would prohibit the US Department of Education from limiting who can receive grants, making international students eligible.
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The HEROES Act may provide financial aid to international students
The $3 trillion Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act, passed by the House of Representatives on May 15, is the fourth and largest legislative rescue package proposed by the US Congress in response to the COVID-19 pandemic. The HEROES Act allocates financial aid to state, local, tribal, and territorial governments. It also provides for a second round of Economic Impact Payments to individuals and additional funds for renters, homeowners, and small businesses.
The Act also calls for extending the CARES Act student loan payment plans to those who borrowed from private lenders, providing up to $10,000 in relief. $100 billion would also go to states to support education programs.
While the HEROES Act does not specifically mention international students, it is possible that they may be eligible for some of the financial aid provisions. The Act extends the CARES Act student loan payment plans, and the CARES Act itself included international students in its eligibility for emergency financial aid grants. This means that international students may be able to benefit from the extended payment plans offered by the HEROES Act.
However, it is important to note that the eligibility criteria for financial aid under the HEROES Act may vary and is subject to the discretion of the educational institutions. Additionally, the HEROES Act is considered a partisan bill, having passed with mainly Democratic support. It is not expected to become law, as the Trump Administration and Senate Majority Leader Mitch McConnell do not support it.
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Frequently asked questions
No, international students are not eligible for financial aid under the CARES Act.
The Department of Education (ED) has stated that only Title IV-eligible students can receive funding. This is because there is no definition for the word "student" in the statute, and the legislation is ambiguous.
Yes, international students can apply for support through Drexel's Student Emergency Fund.
