CARES Act Information for Alumni & Donors
The CARES Act passed by Congress in response to the COVID-19 pandemic has several features that may benefit Loyola alumni and donors.
Student Loan Forbearance
Borrowers are not required to make payments on their federally held Direct Loans and Federal Family Education Loans (FFEL) from now until Sept. 30, 2021.
Interest accrual on these same federal loans has been suspended through the end of September.
Forced collections, such as garnishment of wages, tax refunds, and Social Security benefits have been suspended.
Negative credit reporting has been suspended.
More information about the COVID-19 student loan forbearance program is available here.
For specific questions, please contact your loan servicer. Contact information for individual loan servicers can be found by logging into your Federal Student Aid (FSA) account here.
CARES Act Charitable Contribution Extended for 2021
For 2021, giving to Loyola pays off. The Consolidated Appropriations Act (CAA) extended numerous provisions contained in the CARES Act, signed into law in March 2020. These provisions include tax changes that allow you to give more to Loyola at a lower cost.
For those who itemize their deductions, the charitable contribution limitation has been extended for 2021. The limitation for cash contributions, formerly set at 60%, has now been raised to 100% of an individual’s adjusted gross income (AGI). This means donors who itemize their deductions can now give more before reaching their AGI limitation. In addition, any giving beyond the 100% AGI limitation may be carried over and used in the next five years, but the enhanced deduction expires after 2021.
For those who don’t itemize their deductions, the CARES Act extension also expanded above-the-line charitable deductions. The CAA extends the CARES Act’s allowance for up to $300 of an individual taxpayer’s charitable contributions to qualify as an above-the-line deduction. Married couples who file joint returns can claim up to $600 as a deduction.
In order to qualify for these enhanced tax benefits, certain conditions need to be met. Contributions must be made to a public charity, like Loyola, or to certain limited types of private foundations. Supporting organizations and Donor Advised Funds are excluded.
Another condition that must be met is the type of contribution made. Both individual and corporate taxpayers must make a cash donation. Contributions of any kind of property, including marketable securities, real assets or otherwise, do not qualify.
Loyola University and the CARES Act
How much money did Loyola receive from the CARES Act?
Loyola received $2,913,258 total, and half of that ($1,456,629) will go directly to students in the form of emergency student aid grants. The other $1.45 million will be used to cover some of the significant institutional costs associated with the disruption related to the coronavirus. Loyola estimates its losses as of May 1, 2020 to be over $3 million, the majority of which is in the form of refunds/credits of room and board fees.
Click here for a list of the amount received at every college and university in the U.S.
Who is eligible to receive funds?
The federal government stipulated that students studying either part- or full-time in on-ground programs as of March 13 are eligible to receive funds. Students studying in fully online programs prior to March 13, 2020, are not eligible. The federal government also stipulates that students must be eligible to receive Title IV funds, such as Direct Subsidized/Unsubsidized Loan, Direct Graduate PLUS Loan, Direct PLUS Loan, Federal Pell Grant, Federal Supplemental Educational Opportunity Grant (SEOG), and Federal Perkins Loans, all of which require filing the FAFSA.
How did Loyola select who is eligible to receive money?
Loyola convened a group of administrators from across the institution to develop a process of determining eligibility. Loyola has opted to award $900 in immediate, direct grants to students who have the most need as determined by their Estimated Family Contribution on the FAFSA. Students who filed a FAFSA during the 2019-20 academic year and who had an Estimated Family Contribution of $0 - $5,500 will receive the CARES Act Grant automatically. Approximately 1,100 Loyola undergraduates and 300 graduate and law students met initial eligibility criteria.
To meet the needs of students who do not meet initial eligibility criteria, Loyola has created an emergency expense fund utilizing the remaining 17 percent (approximately $213,000) of the CARES Act fund to provide access to relief for those students who have expenses related to coronavirus.
Read more about student access to CARES Act funding here.