Janice Lozano
The American Rescue Plan (ARP) is a stimulus funding program that provides emergency grants to students for expenses related to their attendance or emergency costs that arise due to the COVID-19 pandemic. Eligible students may receive the grant as a refund, which can be directly deposited into their bank account or sent by check.
| Characteristics | Values |
|---|---|
| Full form of ARP | America Rescue Plan |
| What is it used for? | Emergency costs that arise due to COVID-19, such as tuition, food, housing, health care, or child care |
| Who is eligible for it? | Eligible degree-seeking undergraduate or graduate student registered in coursework on or after the census date for the award term fall 2021 |
| How is it paid? | Direct deposit or check |
| What is AP? | Accounts Payable |
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What You'll Learn
HEERF III/ARP funds are auto-refunded 100% to students
The Higher Education Emergency Relief Fund III (HEERF III), created under the American Rescue Plan Act of 2021 (ARP), allows the Fashion Institute of Technology to award emergency grants to eligible students. These grants can be used for any component of a student's cost of attendance or for emergency costs arising due to COVID-19, such as tuition, food, housing, healthcare, or childcare.
Students must understand it is their responsibility to decline the award immediately if they will not incur expenses that meet or exceed the amount of their emergency grant. If a student does not have an E-Refund account, they will receive a check by mail, which may delay the receipt of the grant.
The Fashion Institute of Technology has received $10,079,484 in federal funds under HEERF III/ARP, with the sole purpose of providing financial aid grants to students. Similarly, American Public University received $330,991 in HEERF III funding, of which 100% was distributed to 1,060 students. LIM College also received funding and committed to using 100% of the Higher Education Emergency Relief Fund III (HEERF III) for emergency financial aid grants to students.
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The grant is for emergency costs related to COVID-19
The HEERF III/ARP grant is intended to provide financial aid to students for emergency costs related to the COVID-19 pandemic. This includes unexpected expenses, unmet financial need, or expenses related to the disruption of campus operations due to COVID-19. The grant can be used for any component of the student's cost of attendance, including tuition, food, housing, healthcare, and childcare.
Eligible candidates for the grant will be automatically notified by the Financial Aid Services Office via their institution email address. Award recipients may choose to decline the grant by responding to the notification email. It is important to note that the grant is a one-time relief payment, and recipients will not be required to return any portion of the funds.
The grant is typically refunded directly to the student, regardless of any outstanding account balance with the college. Students are encouraged to sign up for the E-Refund option to expedite their refund. This can be done by accessing the Student Tab, clicking on "Pay Student Account" and "View E-Bill," selecting the "eRefunds" tab, and filling out the necessary form with their bank account information. For those without an E-Refund account, the grant will be issued by paper check or direct deposit, which may cause a delay in receiving the funds.
It is worth mentioning that the grant is considered a qualified disaster relief payment under section 139 of the Internal Revenue Code and is, therefore, not included in the student's gross income. As a result, students cannot claim any deduction or credit for expenses paid with the grant. Additionally, the grant funds cannot be used to reduce or eliminate an outstanding balance on a student's account without their explicit permission.
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Students are notified of their eligibility via email
Students who are eligible for the ARP/HEERF III grant will be notified by the relevant financial aid office via email. This funding is provided by the American Rescue Plan (ARP) in response to the COVID-19 pandemic. The grant is intended to cover emergency costs, such as tuition, food, housing, health care, or childcare, that may arise due to the pandemic.
The notification email will outline the steps to receive the grant funding. Students are encouraged to sign up for the E-Refund option to expedite their refund. This can be done by logging into their student account, clicking on "Pay Student Account and View E-Bill," selecting the "eRefunds" tab, and filling out the necessary information. It is important to ensure that the bank account number provided is correct and up-to-date, as this is where the refund will be deposited.
For students who do not opt for the E-Refund option, the grant will be issued by check. However, this method may cause a significant delay in receiving the funding. It is recommended to allow ample time for the processing and mailing of the check.
It is important to note that the grant is provided as emergency financial aid and is not included in the student's gross income. Therefore, it cannot be used to claim any deductions or credits for expenses covered by the grant. The grant is intended to provide one-time relief to students facing financial challenges due to the COVID-19 pandemic.
In some cases, the grant may be used to reduce or eliminate any outstanding balances on the student's account, but this requires explicit permission from the student. This can typically be indicated through the student's account settings or preferences.
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Students can choose to decline the grant
Students deemed eligible for an Emergency Grant under the HEERF III – America Rescue Plan (ARP) will receive an email notification regarding their award. Eligible candidates for the ARP/HEERF III grant will automatically be notified by the FIT Financial Aid Services Office via their FIT email address. However, award recipients may choose to decline the HEERF III/ARP grant by responding to the email sent from the financial aid office.
The grant is intended to provide one-time relief to mitigate the financial impact of COVID-19. Students can use the funds for any component of the student's cost of attendance or for emergency costs related to COVID-19, such as tuition, food, housing, health care, or child care. The grant is not included in the student's gross income, and therefore, they cannot claim any deduction or credit for expenses paid with the grant.
If a student chooses to decline the grant, the funds will be refunded 100% to the student by either direct deposit or a check. It is recommended that students sign up for the E-Refund option to expedite their refund. To do so, students can follow the instructions provided by their educational institution. They will need to ensure that their bank account information is correct and up-to-date so that the refund can be routed to the right account.
In some cases, if a student has given permission and has outstanding balances, the grant may be applied to reduce or eliminate those balances. However, this is only done with the student's explicit permission, and otherwise, the funds will be refunded directly to the student.
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AP stands for Accounts Payable
In the context of "AP refund" on a student account, AP stands for Accounts Payable. Accounts Payable is an account within the general ledger representing a company's obligation to pay off short-term debts to its creditors or suppliers. It is considered a current liability since these debts are typically paid off in less than a year.
Accounts Payable, or AP, is a term used in accounting to refer to the money owed by a company to its vendors or suppliers for goods or services purchased on credit. This can include purchasing inventory, raw materials, or goods for resale, as well as other services such as cleaning, IT support, or subscription services. AP entries are created when a company buys goods or services on credit, with the amount representing the money owed to the supplier or vendor.
In the context of a student account, an AP refund may occur when a student receives financial aid or a payout that results in a negative account balance. The university then issues an AP refund to bring the overall balance back to zero. This could be related to the HEERF III – America Rescue Plan (ARP), where eligible students received emergency grants or funds to cover expenses or emergency costs related to their education or COVID-19.
AP is an important indicator of a company's short-term liquidity and working capital. Efficient management of AP can help a company maintain good cash flow and financial stability. It is also a critical variable used in managerial accounting and fundamental analysis to understand a company's financial position and efficiency in settling its liabilities.
The formula for calculating the AP Turnover Ratio is Net Credit Purchases divided by Average Accounts Payable. This ratio helps to determine how quickly and consistently a company is paying off its liabilities, with a higher ratio indicating efficient cash management.
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Frequently asked questions
ARP stands for America Rescue Plan. Eligible students can receive a 100% refund of their HEERF III/ARP Student Aid funds by direct deposit or check.
The ARP refund can be used for any component of the student's cost of attendance or for emergency costs related to COVID-19, such as tuition, food, housing, healthcare, or childcare.
To receive the ARP refund, you must sign up for the E-Refund option. You can do this by clicking on the Student Tab, then clicking on Pay Student Account and View E-Bill, followed by the tab for eRefunds, and finally clicking on Set Up Account.
No, eligible candidates will be automatically notified by the Financial Aid Services Office via their student email address.
AP stands for Accounts Payable. It is an accounting technique used to document your bursary.
