COVID-19 FAQs on Tuition, Financial Aid and Student Loans

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The global outbreak of COVID-19, the novel coronavirus, has led to university closures across the United States, dismissing thousands of students from campus with little notice and, in many cases, little guidance. While administrators are scrambling to safely and efficiently shut down their campuses, both international and domestic students face unique obstacles and unforeseen costs as they find their way home.

This unprecedented situation has left many students and parents on insecure financial footing and with questions about the status of their student loans, tuition and financial aid. Some need additional financial assistance simply to get home. Each university has handled this crisis differently, so policies regarding financial aid, costs and loans vary between universities. But there is some general information that all students should know during this crisis.

In a series of announcements, the U.S. Department of Education (DOE) has made it clear that it would make significant flexibility adjustments to current financial aid policies in response to the coronavirus outbreak “because of the highly unusual circumstances and challenges presented to the postsecondary education community by COVID-19.” Additionally, the Federal Student Aid office at the DOE has created a fact sheet that answers some questions. 

In this article, we further elaborate on common questions that students and their families have, based on our research as of today, March 20. We will update this information as new data becomes available, and we welcome your input by email at info@tun.com.

Can I use my student loans to cover living expenses since I can’t be on campus?

In most cases, yes, you can use your student loans to cover off-campus living expenses, as long as you are still enrolled in courses. 

Student loans may cover two kinds of costs:

  • Direct costs, which include all charges billed directly from the university, such as tuition, room and board, and meal plans.
  • Indirect costs, which include all other charges necessary to attend university, such as transportation, living expenses and off-campus housing.

If your campus is closed and courses have been shifted online, you are still enrolled in and taking courses, and therefore your student loans are still valid.

But remember, any money you take out in the form of student loans will have to be repaid in the future, so it is advisable to pay for living costs out-of-pocket, if possible.

Can I return student loans that I don’t need now?

It depends. If you’ve taken out federal student loans and no longer need all of the money, you are entitled to cancel them and return all or a portion of the loan funds within 120 days of the date of disbursement without having to pay interest or fees. 

The first step you will need to take is to call your school’s financial aid office. Every university has a slightly different procedure for returning student loans, so you will first want to speak with your school to make sure you are doing everything the right way. 

For example, at Penn State University, federal student loan borrowers have 120 days from the date of disbursement to return the funds to the school. To initiate the process, borrowers need to fill out a Request for the Return of Loan Funds online.

At Eastern Oregon University (EOU), those who borrow Perkins, Stafford, Parent PLUS and GradPLUS loans can return all or a portion of their loan disbursements to EOU within 14 days of disbursement. If more than 14 days have passed, however, they are required to return the loan funds to their loan servicer.

If you have to go through your loan servicer, you can find the contact information in your loan correspondence. You can also find it through the National Student Loan Data System, which you can log into with your FSA ID.

Unless there’s an online return process similar to Penn State’s, you should send a written cancellation letter by certified mail with a return receipt, whether you’re returning the funds to your school’s financial aid office or your loan servicer. Be sure to keep a copy of the letter and the receipt as proof of the request and the date it was sent.

If more than 120 days have passed since your loans were disbursed, you can always send the funds back to the student loan servicer as a student loan payment, but you will most likely have to pay any fees or interest that have accrued.

Just a reminder: all of this information applies to federal loans. If you have private loans, you will need to contact your lender for guidelines.

Will I get a refund for the room and board I no longer will be using?

There is no national policy regarding room and board refunds due to university closures. While some universities have committed to fully or partially refunding students for their room and board costs, others have yet to announce refunds or have even stated that they will not be issuing refunds. To find out what your school’s refund policy is, you’ll need to check with its bursar office.

For many universities, room and board costs are a major source of income and even partial refunds could be a detriment to their already-fragile bottom lines. The same can be said for students and their families, however. Room and board costs at most universities range between $10,000 and $12,000 per year.

Keep in mind, your school’s policy may change in the coming weeks as it further develops plans for the rest of the semester. Pressure from frustrated students and parents also may push some universities to offer prorated room and board, if they haven’t already. For example, after stating it will not be offering refunds, Boston University reversed course and announced that it will be prorating room and board costs.

My campus is closed. Can I keep my financial aid?

Students at universities that have moved courses online can keep their federal financial aid, even if their campuses have closed. This does not apply if your school has cancelled all classes for the remainder of the semester.

However, some students may face reductions in financial aid if one or more of their courses are actually cancelled, rather than transitioned online. Lab courses, for example, often cannot be conducted online, and may be closed at some universities. 

Students who lose credits as a result of course cancellations may lose full-time enrollment status, and as a result may no longer be eligible for federal financial aid. If this describes your situation, contact your school’s administration for assistance.

I had some courses cancelled due to coronavirus. Can I get a partial tuition refund?

Unfortunately, probably not. The vast majority of universities that have cancelled in-person classes, either temporarily or for the semester, have moved all possible courses online. As a result, some universities will provide partial refunds for room and board expenses, but no major universities have yet announced the intention to provide tuition reimbursement.

In the short term, that doesn’t seem likely to change. However, students at some universities, such as Ohio State and University of Vermont, have petitioned for tuition relief. 

My family’s income has been reduced due to coronavirus and, as a result, I’m in need of greater financial assistance. Can my financial aid be raised?

Most likely. Universities are allowed to increase a student’s financial aid in cases where a member of their family loses employment.

When you fill out the FAFSA (Free Application for Federal Student Aid), you are required to give detailed information about your family’s finances, which is used to calculate your family’s Expected Family Contribution (EFC). If your family member loses employment, and as a result, income, your EFC will be automatically lowered, even after submitting your FAFSA. Contact your school’s financial aid administrator to make adjustments to your FAFSA and increase your financial aid.

These rules apply for any loss of employment, whether due to coronavirus or not. 

I have a Federal Work Study (FWS) job on campus. Will I keep my job or be compensated during the outbreak?

Students with FWS jobs are expected to show up to work until notified otherwise. If your campus has closed and you’ve been directed to return home, you may still receive payment for your FWS job, even if you’re not working. The U.S. Department of Education recently authorized universities to pay students via work study whether they are working or not during this time. However, the decision ultimately lies with your school, so you should contact your supervisor to find out if you will continue to receive payment.

My university has closed and I don’t have enough money to pay for transportation home and temporary housing. What should I do?

The sudden closing of universities around the country has left a number of international and lower-income students effectively stranded, thousands of miles and/or a prohibitively expensive plane ticket away from home. This burden has fallen particularly hard on lower-income and international students, forced to make last-minute plans to transport not only themselves, but also their belongings.

If you are stuck in a position where you can’t get home easily, you may be able to get approval from your school’s administration to stay on campus longer than your peers. Most universities  are allowing students with extenuating circumstances to apply for an exception, allowing them to stay on campus beyond emergency move-out dates. Talk to your school’s housing department for instructions on how to arrange an exception.

There are also external resources for students who need financial assistance. 

A group of student advocacy organizations and nonprofits have created an emergency fund for students in need of assistance. So far, the fund has raised more than $20,000 in relief money to support students facing hunger and homelessness as a result of campus closures. A number of universities like Penn State have also established emergency funds for their students, while others like Ohio University offer emergency microgrants for students in need of short-term financial assistance. At some universities, students have taken the initiative to create emergency funds as well as social media groups and forums that enable connect students in need with useful resources and other students who can help. If you need temporary storage space, U-Haul has announced that it will be offering students free self-storage for 30 days during the coronavirus outbreak. 

If you are in need of financial support, there may be resources available to you. The first action you should take is to speak with your student affairs office. They can tell you about any university programs that can be of assistance. Be sure to use your school’s resources before looking toward outside resources.

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