(GENERAL-23-46) Sunset of COVID-19 Waivers and Flexibilities

Because different programs at the same institution may have different payment periods, waivers and flexibilities for those programs may end at different times. For example, assume that an institution offers Programs A and B. Both programs have spring terms that overlap May 11, 2023, but Program A’s term ends on May 26 while Program B’s term ends on June 9. In that situation, most CARES Act waivers and flexibilities ended for Program A on May 26, while the same waivers and flexibilities ended for Program B on June 9.

For programs with standard term academic calendars, waivers that are tied to the end of an academic year conclude on the last date of that academic year. For example, the application of a waiver to a program with a standard term academic calendar using semesters would end on the last date of the spring semester (or the summer semester, if it is treated as a trailer). For nonstandard term programs, clock hour programs, and nonterm credit hour programs where there is no normal academic calendar, HEROES Act waivers that are tied to the end of an academic year will end when no more students in the program are enrolled in that academic year.

Relief for students who withdrew due to COVID-19, which included a waiver of the institution’s obligation to return funds under the Return of Title IV Funds (R2T4) requirements, reversal of Pell Grant lifetime eligibility/subsidized loan usage for aid received for the period of withdrawal, and cancellation of TEACH Grant and Direct Loan funds received for the period. This waiver concludes at the end of the payment period or period of enrollment that includes the date of May 11, 2023. Institutions may not use the Coronavirus Indicator for withdrawals from payment periods or periods of enrollment that begin after May 11. Additionally, institutions must complete reporting of the Coronavirus Indicator and amounts not returned under R2T4 requirements by the following deadlines for each award year in which a qualifying withdrawal occurs:

A waiver of the requirement for students in term-based programs to resume training where they left off following a leave of absence (LOA). This waiver applies to any approved LOA granted due to COVID-19 that began on or prior to May 11, 2023. It will conclude for an institution when all such LOAs granted by that institution have ended.

The ability for an institution to exclude from the quantitative component of the satisfactory academic progress (SAP) calculation any attempted credits that were not completed by such student due to COVID-19. This waiver ends at the end of the payment period that includes May 11, 2023. After that point, schools are no longer permitted to calculate a student’s SAP with consideration of COVID-19 related circumstances as it relates to attempted credits and excluding credits due to temporary cessation of operations at a school. Beginning with the following payment period, schools must comply with normal SAP requirements. Schools may continue to approve student appeals based on COVID-19-related circumstances on a case-by-case basis based on normal SAP authority.

The ability to pay Federal Work-Study (FWS) wages to students whose employment was interrupted by COVID-19. This waiver is effective until the earlier of June 30, 2023, or the end of the payment period that includes the date of May 11, 2023. After that, the institution is no longer permitted to pay FWS wages to students whose employment was interrupted by circumstances related to COVID-19 and who did not earn the wages by working the requisite hours.

The authority for an institution to transfer up to 100 percent of its FWS allocation to its Federal Supplemental Educational Opportunity Grant (FSEOG) allocation. This authority ends on the earlier of June 30, 2023, or the last day of the payment period that includes the date of May 11, 2023. Awards of any FSEOG funds transferred from FWS must be completed by the applicable end date.

The authority to award and disburse FSEOG Emergency Grants. This authority concludes on the earlier of June 30, 2023, or the last day of the payment period that includes the date of May 11, 2023. Institutions may not award or disburse FSEOG Emergency Grants on or after that date.

Waivers of requirements for state authorization of distance education and for evaluation and accreditation of an institution’s effective delivery of distance education by a Department-recognized agency with accreditation of distance education in the scope of its recognition. These waivers will conclude at the end of an institution’s first payment period that begins after April 10, 2023. Note that students enrolled in programs offered in whole or in part through distance education will lose eligibility for Title IV aid on the sunset date for the waiver if the institution has not been evaluated and approved to offer distance education by an agency recognized for distance education. See the Department's January 19, 2021 Electronic Announcement and Dear Colleague Letter GEN-23-09 for more information.

Various verification waivers, which allowed institutions to: accept, as verification of identity or educational purpose, electronic copies of verification materials and electronic signatures including signatures using a stylus or finger to sign and images of signatures affixed to relevant statements; waive signature requirements if no responsible parent can be found; accept, in lieu of a verification of non-filing from the Internal Revenue Service, a copy of an individual’s W-2 or a signed statement certifying that the individual did not and was not required to file and attempted to obtain a verification of non-filing;and satisfy requirements for Verification Tracking Groups V4 and V5 by accepting a signed, dated statement from the applicant attesting to completion of high school or using documentation of high school completion that the institution had already obtained. These waivers will conclude at the end of the first payment period that begins after April 10, 2023. Following the end of the waiver period, schools must adhere to normal verification requirements. Signature requirements will revert to the practices outlined in the 2023-24 FSA Handbook, Application and Verification Guide, Chapter 4, which includes the following options for tax returns: a signed paper return that the student either mailed or brought to the school; a signed paper return that the student faxed or scanned and emailed; an electronic copy of the return that the student signed with a stylus or finger; or an electronic copy of the return with an image of the student’s signature attached. Statement of educational purpose verification will require a “wet” signature provided in person or notarized and sent by mail.

Waiver of the requirement that an Electronic Funds Transfer (EFT) be a direct deposit transaction, which allows institutions and third-party servicers to use any type of EFT under applicable Treasury regulations, including payment methods such as Zelle and PayPal. This waiver will expire at the end of the first payment period that begins after April 10, 2023.

The ability of an institution to remain Title IV-eligible despite a temporary cessation of instruction due to the COVID-19 pandemic. Institutions must resume instruction by the start of the institution’s scheduled payment period, as published in the institution’s academic calendar, that is one payment period after the payment period that includes April 10, 2023. For example, if an institution’s scheduled spring term includes April 10, 2023, and its summer term begins on June 12, 2023, the institution must resume instruction by June 12 to remain Title IV-eligible. If April 10, 2023, falls between an institution’s scheduled payment periods, it must resume instruction by the scheduled start date of the first payment period that begins after April 10.

An allowance for institutions to submit to the Department unaudited institution and new owner audited financial statements six months after the date of a change in ownership. Those items are ordinarily due 10 business days after the change in ownership occurs. For changes in ownership that occurred before April 10, 2023, the audited financial statements must be submitted within 6 months of the closing date of the change in ownership. For changes in ownership that occur on or after April 10, 2023, the audited financial statements must be submitted by the later of October 10, 2023, or 10 business days after the change in ownership occurs.

An allowance for institutions to submit approvals from its accrediting agency and state and an audited same-day balance sheet (SDBS) or statement of financial position to the Department six months after the last date of the month for the month following a change in ownership. Those items are ordinarily due by the end of the month of the month following the change of ownership. For changes in ownership that occurred before April 10, 2023, accrediting agency and state approvals of the change in ownership and the audited SDBS or statement of financial position must be submitted no later than 6 months from the last day of the month of the month following the closing date of the change in ownership. For changes in ownership that occur on or after April 10, 2023, the state and accrediting agency approvals of the change in ownership and the audited SDBS or statement of financial position must be submitted by the later of October 10, 2023, or the last day of the month of the month following the change in ownership.