Navigating Student Crisis Loans: Eligibility and Accessing Emergency Financial Aid

Unexpected financial hardships can significantly impact a student's ability to focus on their education and achieve academic success. Student crisis loans and emergency grants are designed to provide short-term financial assistance to eligible students facing unforeseen circumstances. This article explores the eligibility requirements, application process, and available resources for students seeking emergency financial aid.

Understanding Student Emergency Grants

Student Emergency Grant programs are designed to provide eligible students facing short-term, nonrecurring emergencies with a grant to provide emergency financial assistance to qualified students experiencing hardship which could adversely affect their educational success. These programs recognize that economic setbacks can be challenging and aim to support students effectively during difficult times. The Emergency Grant is available to students who can provide documentation of an unexpected financial hardship.

Funding Sources

These programs are often funded by donations received from foundations, philanthropic organizations, and generous donors. For example, the Student Emergency Grant program at CUNY School of Professional Studies is funded by donations received from the Carroll and Milton Petrie Foundation, Gerstner Philanthropies, CUNY SPS Foundation, and other generous donors.

Limitations and Priorities

Student emergency grant awards are limited and subject to fund availability. Applying for an emergency grant does not guarantee an award. To ensure that the greatest number of students in need get assistance, recipients can receive no more than one award every 12 months. Priority will be given to those that have not previously applied for the Emergency Grant. These grants are designed for short-term, unforeseen emergencies and are not intended to cover ongoing or long-term financial needs such as rent, food, and/or other cost of living expenses.

Eligibility Requirements for Emergency Grants

To be eligible for a student emergency grant, applicants typically need to meet specific criteria. These requirements may vary depending on the institution and the funding source, but common eligibility factors include:

Enrollment Status: Students must be registered at the institution for the current semester and matriculated in a degree program. Non-degree or certificate students may not be eligible.
Academic Standing: Students must have a record of good conduct and demonstrate an ability and intention to complete their course of study.
Financial Need: Students must have a current financial emergency need and be able to provide documentation demonstrating the need.
Residency: Only students residing in the United States may be eligible to apply.
Participation: Students must be willing to participate in post-award questionnaires and interviews.

Examples of Qualifying Emergencies

Emergency grants are intended to address unexpected financial hardships that can disrupt a student's education. Examples of emergencies that may qualify for assistance include:

Homelessness due to loss of housing or threat of eviction
Domestic violence
Destruction of living quarters due to fire or natural disaster (primary residence)
Recent overdue bills (medical, rent, utility turn-off notice)
Recent job or income loss
Unexpected expenses due to illness or death in the immediate family
Other unforeseen circumstances that create a financial emergency

It's important to note that the specific types of emergencies covered may vary by institution.

Expenses Not Covered by Emergency Grants

Student Emergency Grants cannot be used for:

Tuition
Previous educational debts
Textbooks
Credit card debts, loan payments including mortgages, and car note payments
Legal representation or services
Technology devices such as laptops, cellphones and other electronics
Transportation costs
Anticipated or upcoming expenses

How to Apply for a Student Emergency Grant

The application process for a student emergency grant typically involves the following steps:

Review Eligibility Requirements: Carefully review the eligibility criteria to ensure you meet the requirements.
Prepare Documentation: Gather the necessary documentation to support your application, including:
- A statement explaining your financial emergency and how the current situation is affecting your studies.
- A statement itemizing each cost with supporting documentation for each item.
- Documentation demonstrating you are experiencing a financial hardship. Examples of Loss of Income documentation: Termination letter, Unemployment benefits with claim history, Authorization of medical leave of absence, Paystubs demonstrating reduction of hours, Federal/State assistance, Bank statements with full name listed, Proof that unexpected expense exceeds current household income.
- Examples of expenses and acceptable documentation: Review the Emergency Grant Allowable Expenses and Required Documentation Resource Guide.
Submit Online Application: Complete the online application form, providing detailed information about your financial emergency and supporting documentation.
Follow Up: Respond promptly to any requests for additional information or documentation from the Office of Scholarships.

Review Process and Award Disbursement

Upon review of the student’s eligibility, complete applications will be reviewed by committee. Committee decisions are final. If approved, the grant will be disbursed to the approved payees within 10 -14 business days of the final award letter. The grant amount awarded will be based on need as described in the student’s application and as supported by the appropriate documentation.

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Grant Amounts

Grant amounts can vary depending on the institution and the availability of funds. For example, at CUNY SPS, recipients can receive no more than one award up to $3,000 every 12 months. At the University of Pennsylvania, grants from this award process typically range from $200 to $1000.

Additional Resources and Support

In addition to emergency grants, students facing financial difficulties should explore other available resources and support services. These may include:

Financial Aid Counselor: Consult with your assigned financial aid counselor to discuss your financial situation and explore potential options, including federal and state aid programs.
Student Intervention Services: Seek support and advocacy from Student Intervention Services, which can provide guidance and connect you with relevant resources.
University Support Services: Take advantage of the various support services offered by your university, such as financial literacy programs, food pantries, and housing assistance.
External Organizations: Explore resources offered by external organizations, such as student loan counseling services and non-profit agencies that provide financial assistance.

HEERF and Emergency Financial Aid during COVID-19

The Coronavirus Aid, Relief, and Economic Security (CARES) Act included a Higher Education Emergency Relief Fund (HEERF) that provided emergency funding to higher education institutions. A portion of these funds was allocated to students in the form of emergency financial aid grants for expenses related to the disruption of campus operations due to the COVID-19 crisis.

Eligibility for HEERF Funds

According to ED's guidance, students must meet Title IV eligibility requirements in order to receive HEERF emergency funds. While ED's guidance does not require a FAFSA, having one on file would be the only practicable way for an institution to determine that a student is eligible to participate in the Title IV programs and meet all of applicable student eligibility requirements.

Allowable Uses of HEERF Funds

Institutions may use HEERF-student funds to reimburse themselves if they provided an emergency grant to a student that meets the same eligibility criteria of HEERF grant funds on or after March 27 - the day the CARES Act became law. The HEERF funds must be distributed to students in the form of cash grants.

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Student Emergency Funds at Drexel University

Drexel University established the Student Emergency Fund (SEF) as a partnership between Student Life, Institutional Advancement, and Drexel Central to support students who are in need of immediate financial assistance due to unexpected emergency expenses. The SEF is designed to provide one-time funding for expenses incurred due to temporary hardships such as accidents, illness, death of a family member, natural disasters, or loss of co-op.

Funding Limitations

Funding is usually limited to under $1,000 and most grants are under $500, which are made payable via refund from the Office of the Bursar. Students must also be enrolled in Direct Deposit. Amounts given will be factored into a student's financial aid package for the academic year.

Application Process

Any students who would like to apply for emergency funding can submit their request through the link below. Students should provide as many details regarding their circumstances and upload supporting documentation via the application (please do not submit any medical documentation or medical bills). All requests for Student Emergency Funds are vetted through a review committee at Drexel Central.

Loans, Stipend Advances, & Grants for Unexpected Expenses

The Office of Graduate Education and Life is able to offer a small interest-free loan (grants have been temporarily suspended) for graduate students who have unexpected expenses that could impede their ability to focus on their academics. Only students who are full-time enrolled, in good academic standing, and on campus are eligible. Both the loan and the grant can be requested at the same time. Stipend advances are offered through the payroll office for students employed and receive a semi-monthly stipend.

Navigating Student Loan Repayment

Beyond emergency financial aid, students should also be aware of options for managing student loan repayment. Major changes to student loan borrowing and repayment are coming. Eventually, the changes will streamline the system and reduce the number of repayment options. Regardless of what plan you're on, your current loans will remain exactly the same for the next two years, as long as you don't take out new loans or consolidate the ones you have.

Income-Driven Repayment Plans

Borrowers on income-driven repayment plans will have the same options available for two more years, according to Betsy Mayotte, founder of The Institute of Student Loan Advisors. Borrowers on other existing income-driven repayment plans will need to choose between IBR and RAP (or a standard plan).

Parent PLUS Loans

Parent PLUS borrowers have an important deadline approaching much sooner. Previously, Parent PLUS borrowers could use a loophole to access income-driven repayment plans after consolidating their loans twice. That means if you currently have a Parent PLUS loan, you need to act now if you want an income-driven repayment plan.

Reevaluating Student Loan Strategy

"I think everybody should be reevaluating their student loan strategy every year at tax time, because things change," she said. Beyond the Department of Education, there are organizations where borrowers can find help. At least two states, New York and California, have invested in one-on-one student loan counseling, Berkman-Breen said. That's especially "a now or never kind of situation" if you need to make structural changes or consolidate your loans, he said.

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