Trusteeship - May/June 2020 - 4

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NEWS IN BRIEF
IU Trustees Approve
Borrowing up to
$1 Billion, Postpones
Election of New Trustee

How Higher Ed Fares in the Federal
Stimulus Package due to COVID-19
The federal government's stimulus package to an effort to mitigate the effects of
the financial fallout of the novel coronavirus pandemic, the Coronavirus Aid, Relief,
and Economic Security (CARES) Act, included nearly $14 billion in grants to go
directly to higher education institutions.
On April 9, 2020, the U.S. Department of Education announced guidelines about
how most of that aid-$12.5 billion-will be awarded. (The rest of the funds are
earma rked for minority-serving institutions and other small institutions.)
The first wave of CARES Act funding will provide aid to students for expenses
like course materials, technology, housing, food, health care, and childcare.
U.S. Secretary of Education Betsy DeVos announced that $6 billion will be distributed immediately to colleges and universities to provide direct emergency cash
grants to college students whose lives and educations have been disrupted by the
coronavirus outbreak.
"What's best for students is at the center of every decision we make," said Secretary DeVos, in a statement. "That's why we prioritized getting funding out the
door quickly to college students who need it most. We don't want unmet financial
needs due to the coronavirus to derail their learning."
Colleges and universities are required to utilize the $6.28 billion made available
as of April 9 to provide cash grants to students for expenses related to disruptions
to their educations due to the COVID-19 outbreak, including things like course

INDIANA UNIVERSITY Board of Trustees is
allowing the institution to borrow up to $1 billion to mitigate potential financial losses due to
the coronavirus pandemic on April 10, according
to the Associated Press.
Indiana University also announced on April 1,
2020, that it is postponing the summer election
of a new member of its Board of Trustees due to
the pandemic.
Board of Trustees Chair Michael Mirro noted
in requesting the change that the current circumstances would have made regular election
practices that include interacting with alumni
impossible. They added that it would be difficult
for a new trustee starting July 1 to address the
complex issues.
"The Board of Trustees is grateful to Governor
Holcomb for his order postponing this spring's
alumni election in light of the COVID-19 pandemic," Mirro said. "Attempting to conduct an
election in the current environment would be
patently unfair to the candidates and, in many
cases, deny our alumni the opportunity to cast a
ballot. Given these extraordinary circumstances,
the board appreciates Trustee Pat Shoulders'
willingness to serve one additional year until we
can undertake a new election next year."

materials and technology as well as food, housing, health care, and childcare. In
order to access the funds, the Department must receive a signed certification from

Indiana University

the higher education institution affirming they will distribute the funds in accordance with applicable law. The college or university will then determine which
students will receive the cash grants.
Earlier, colleges and universities were given immediate regulatory flexibility
so students' educations could continue online. Additionally, the U.S. Department
of Education also provided student loan relief to tens of millions of borrowers by
setting all federally held student loan interest rates to zero percent and allowing
borrowers to defer payments for 60 days without interest. The CARES Act extends
those benefits to six months.
SHUTTERSTOCK/ ZHEN LI PHOTOGRAPHY

4 TRUSTEESHIP MAY. JUN. 2020

Trusteeship - May/June 2020

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