The Colleges Getting The Most Money From The Stimulus Bill

On March 27th, Congress passed the third phase of the coronavirus relief package, known as the CARES Act. In addition to providing relief to student loan borrowers, the bill provides about $14 billion in grants to higher education institutions.

Grants to schools are based on a formula, awarding three-quarters of the dollars based on an institution’s Pell student enrollment — the low- and moderate-income students that receive a federal Pell Grant to help cover a portion of their higher education costs. This percentage excludes students already exclusively enrolled in online education, as they will experience fewer changes in their education. The other quarter of the formula is based on non-Pell enrollment, including graduate students.

Without specifics from the Department of Education, it was unclear at first glance how much schools might get. Yesterday, the Department of Education announced both the methodology used and the allocations to each institution in the country based on the formula.

Ben Miller, vice president of postsecondary education at the Center for American Progress, quickly did an analysis of how much schools were eligible to receive showing that about $8.9 billion will go to public colleges and universities, $2.5 billion to private nonprofit institutions, and $1.1 billion to for-profits. (A portion of the initial amount from Congress goes to the Department to implement the legislation.)

Of course, the schools with the largest student populations—particularly with large numbers of low-income students—will receive the most money. Below are the top schools by sector with their total amounts.

Public Institutions

1. Arizona State University — $63,533,137
2. The Pennsylvania State University — $54,994,846
3. Rutgers, The State University Of New Jersey — $54,160,640
4. University of Central Florida — $51,071,250
5. Miami Dade College — $49,074,737
6. Georgia State University — $45,243,852
7. California State University, Northridge — $44,652,328
8. The Ohio State University — $42,885,215
9. California State University, Long Beach — $41,729,439
10. California State University, Fullerton — $41,021,512

Private, Non-profit Institutions

1. Brigham Young University — $32,272,986
2. New York University — $25,626,944
3. Keiser University — $21,190,626
4. Universidad Ana G. Méndez — $21,074,293
5. University Of Southern California — $19,278,560
6. Brigham Young University  — $18,172,623
7. Universidad Ana G. Méndez — $17,052,692
8. Liberty University — $15,205,124
9. Boston University — $14,995,316
10. DePaul University — $14,373,219

For-profit Institutions

1. Grand Canyon University — $22,351,397
2. Nuc University — $21,367,165
3. Pima Medical Institute — $21,285,691
4. Florida Career College — $17,303,589
5. ECPI University — $16,762,368
6. Platt College — $16,031,127
7. United Education Institute — $14,992,982
8. Universal Technical Institute — $14,950,305
9. Lincoln College Of Technology — $13,341,054
10. San Joaquin Valley College — $12,104,128

Many were concerned about the funding because under the CARES Act all institutions could receive the money – including for-profit colleges. Others were less concerned given that many for-profit institutions have large proportions of their students exclusively online. Four Democratic Senators called on the Department of Education to require strict accountability measures on for-profit colleges before they could accept the money, but the Department did not appear to address those concerns.

These grants come with some restrictions. At least 50% of the money must be used to provide emergency grants to students to cover expenses like living costs, child care, technology, and more. Emergency funds are really important as many students’ lives are being disrupted, requiring some to move, lose their jobs, and purchase new technology as they move to online instruction.  

The remaining funds given to schools can cover expenses incurred related to the coronavirus. Congress gave colleges and universities discretion for this half, which will help them cover the costs of moving online or other unexpected expenses. Many colleges and universities are facing massive increases in costs to swiftly move students to online instruction.

While this seems like a great deal of money—it is—this won’t meet the needs of many institutions. The guidance issued from the Department says that the emergency grants cannot be used to reimburse institutions for costs or expenses. Many institutions hoped they might be able to use this money to cover costs, such as refunds for room and board they have issued or might issue to students who were told to leave campus. Institutions large and small will be impacted by unexpected costs, especially those already strapped for cash.

As Congress considers what Phase Four might look like, it is likely institutions will request more funds. A group of higher education associations recently outlined a request for an additional $46.6 billion, $12 billion for student aid and $34.6 billion to help with lost revenue. These revenues might be even more pressing if states cut higher education funding as they see higher unemployment, lost revenue, and tighter budgets.

To see the full list of allocations of funding from the CARES Act by institution, click here.