FAQs - The CARES Act & Higher Education Emergency Relief Fund

What is the CARES Act?

The CARES Act is federal legislation that provides a variety of financial support to individuals and businesses affected by the COVID-19 (novel coronavirus) pandemic. The CARES Act established the Higher Education Emergency Relief Fund (HEERF). One part of this federal program has allocated money to UCSC, with the allocation amount primarily determined by the number of enrolled Pell eligible students. At least 50% of that allocation is required to be awarded to students who may be experiencing additional financial expenses due to Coronavirus COVID-19: this is explicitly defined as emergency funding for eligible students.

How much funding did UC Santa Cruz receive? 

UC Santa Cruz received $9.6 million for emergency grants.

Who can qualify for CARES Act funding?

Students who have financial hardship due to COVID-19 and are or could be eligible to participate in programs under Section 484 in Title IV of the Higher Education Act of 1965, as amended (HEA), may receive emergency financial aid grants. If a student has filed a Free Application for Federal Student Aid (FAFSA), then the student has demonstrated eligibility to participate in programs under Section 484 the HEA. 

Spring Term

Graduate Students

Graduate student funds were allocated and awarded CARES Act funding based upon the number of previously verified Title IV eligible students enrolled in the spring term.  This funding was federally allocated for emergency financial grants. Due to limited resources, the number of eligible students, and the commitment to rapidly disburse the funds to the eligible population, the available funds were distributed evenly amongst eligible graduate students, as determined from extant FAFSAs, without the requirement of additional application materials. The Graduate Student Association (GSA) was consulted. 

Undergraduate Students 

Undergraduate students with identified financial need were awarded CARES Act funding as prioritized by campus leadership in consultation with the Student Union Assembly (SUA).   The number of eligible students as determined by a previously submitted and verified  2019-2020 FAFSA for students enrolled in spring term.

Summer term

All spring eligible undergraduate and graduate students enrolled at least half-time for summer will be considered for an award.  

No. However, the UC system and UC Santa Cruz are committed to the support of our entire community. UCSC will use institutional funding to provide an UC funded grant to our eligible enrolled Dreamers that equals the amount received by CARES Act eligible students.

What kinds of expenses should the CARES grant payment be used to cover?

The CARES grant is intended for expenses related to the disruption of campus operations due to the COVID-19 pandemic (including eligible expenses under a student’s cost of attendance, such as food, housing, course materials, technology, health care, and child care).

How much will I qualify for?

Spring Term

Graduate recipients will be awarded $800.

Undergraduate recipients will be awarded based upon an intersection of prioritized needs, as informed by the student’s financial aid status in the Spring term. Students eligible for institutional, state, and federal grants during the academic year, students utilizing federal student loans, and students with remaining federal financial need will receive a base award of $500.  Additional funding will be provided to Pell Grant eligible students, independent students, students with local housing impacts and students impacted by reduction in campus employment, with final awards ranging from $500 - $1,400 . 

Summer Term

Upon assessing the final impact for spring, we are planning on awarding all spring eligible students $400-$500. 

Do I need to  apply?

No additional application is required, eligible students will be awarded based upon previously filed FAFSA Applications.

What is the fastest way for eligible students to get the payment?

If you have not already done so, please be sure to sign up for direct deposit (MyUCSC >> Sign up for direct deposit) as soon as possible. Direct deposit refunds are processed three times a week and usually are applied to your banking account within three days. For more information regarding direct deposits, please review the instructions on the Student Business Services website .

If you intend on receiving a paper check, please be sure to update your mailing address (MyUCSC >> Student Center >> Personal Information >> Addresses). Paper check refunds are processed weekly and may take up to ten business days to reach your address. For more detailed instructions on updating your mailing address, please review the instructions on the Registrar's website .

Does the CARES Act grant money need to be repaid?

No, money received through this fund does not need to be repaid.  If you received a CARE Grant, the funds are intended to assist you with any expenses you have incurred (or will incur) related to the disruption of campus operations due to coronavirus.  Please note that these expenses include, but are not necessarily limited to, those for food, housing, course materials, technology, health care, and child care.  You may be asked to provide substantiation that such expenses were (1) related to coronavirus-caused campus disruption, and (2) actually incurred and paid by you, and you should be prepared to provide such substantiation if ever requested.

Would this funding reduce my current financial aid awards?

No, this fund will not reduce or replace financial aid, and grant funding will only be available in Spring and Summer terms of 2020.

Is the CARES Act grant money taxable?

The following information regarding the taxability of the CARES Act grant funds was provided on May 6, 2020  by the Internal Revenue Service (IRS) as part of their  FAQs on the Higher Education Emergency Relief Fund and Emergency Financial Aid Grants under the CARES Act.

Section 18004 of the CARES Act directs the Secretary of Education to allocate funds out of the Higher Education Relief Fund to higher education institutions to directly support students facing urgent needs related to the COVID-19 pandemic, and to support institutions as they cope with the immediate effects of the COVID-19 pandemic, including school closures.  These funds may be used (1) to defray the institutions’ expenses, including lost revenues and payroll for employees and (2) for “emergency financial aid grants to students for expenses related to the disruption of campus operations due to the COVID-19 pandemic (including eligible expenses under a student’s cost of attendance, such as food, housing, course materials, technology, health care, and child care).”  Recipient higher education institutions must pay no less than 50 percent of these funds 

Q1: I am a student who received an emergency financial aid grant under section 3504, 18004, or 18008 of the CARES Act for unexpected expenses, unmet financial need, or expenses related to the disruption of campus operations on account of the COVID-19 pandemic.  Is this grant includible in my gross income?

A1: No.  Emergency financial aid grants under the CARES Act for unexpected expenses, unmet financial need, or expenses related to the disruption of campus operations on account of the COVID-19 pandemic, such as unexpected expenses for food, housing, course materials, technology, health care, or childcare, are qualified disaster relief payments under section 139 of the Internal Revenue Code.  This grant is not includible in your gross income.

Q2: I received an emergency financial aid grant under the CARES Act and used some of it to pay for course materials that are now required for remote learning because my college or university campus has moved to remote instruction.  Can I claim a tuition and fees deduction for the cost of these materials, or treat the cost of these materials as a qualifying education expense for purposes of claiming the American Opportunity Credit or the Lifetime Learning Credit?

A2: No.  Because the emergency financial aid grant is not includible in your gross income, you cannot claim any deduction or credit for expenses paid with the grant including the tuition and fees deduction, the American Opportunity Credit, or the Lifetime Learning Credit. See section 139(h) of the Internal Revenue Code.