Pell grants and UI approved training

Accessible letter PDF: https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2009/TEGL21-08acc.pdf

CLASSIFICATION
       Employment and Training Administration                  Approved Training
                  Advisory System                              CORRESPONDENCE SYMBOL
             U.S. Department of Labor                          OWS/DL
              Washington, D.C. 20210                           DATE
                                                                May 8, 2009

ADVISORY:              TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 21-08

TO:                    STATE WORKFORCE AGENCIES
                       STATE WORKFORCE ADMINISTRATORS
                       STATE WORKFORCE LIAISONS
                       STATE AND LOCALWORKFORCE BOARD CHAIRS AND
                       DIRECTORS
                       STATE LABOR COMMISSIONERS

FROM:                  DOUGLAS F. SMALL /s/
                       Deputy Assistant Secretary

SUBJECT:               Pell Grants and the Payment of Unemployment Benefits to Individuals in
                       Approved Training

1.    Purpose. To strongly encourage states to: (1) broaden their definition of approved training
      for Unemployment Insurance (UI) beneficiaries during economic downturns, (2) notify UI
      beneficiaries of their potential eligibility for Pell Grants and other student aid, and (3) help
      individuals apply for Pell Grants through One-Stop Career Centers.

2.    References. Section 3304(a)(8) of the Federal Unemployment Tax Act (FUTA); Section
      303(a)(8) of the Social Security Act (SSA); the Higher Education Act of 1965, Title IV,
      Part A, Subpart 1; 20 U.S.C. 1070a (pertaining to Pell Grants); the Workforce Investment
      Act (WIA); Draft Legislation to Implement the Employment Security Amendments of 1970
      (commonly called the “Orange Book”); and Training and Employment Notice No. 32-08.

3.    Background. President Obama recently announced that the Administration seeks to enable
      more workers to obtain job training while receiving unemployment benefits so they can
      develop their skills while the economy recovers.

      Through this advisory states are strongly encouraged to widen the types of training and the
      conditions under which education or training are considered “approved training” for
      purposes of the state’s UI law during economic downturns. States are also strongly
      encouraged to notify UI beneficiaries of their potential eligibility for Pell Grants and other
      financial aid and to assist with applications.

 RESCISSIONS                                                 EXPIRATION DATE
 None                                                        Continuing

     The Pell Grant program is a post-secondary, educational grant program sponsored by the
     United States Department of Education. Pell Grants are awarded based on financial need
     and other factors. Many UI beneficiaries are potentially eligible for Pell Grants, and the
     Department of Education is currently undertaking a major effort to encourage student
     financial aid administrators to use the discretion available to them in determining if UI
     beneficiaries are eligible for Pell Grants. The Department of Labor (Department) requests
     state UI agencies to notify UI beneficiaries that they may qualify for Pell Grants (and other
     student aid) and give them information about how to apply.

4.   Revise Criteria for Determining if Training May be Approved. Section 3304(a)(8), FUTA,
     requires, as a condition of employers in the state receiving credit against the Federal
     unemployment tax, that—

              Compensation shall not be denied to an individual for any week
              because he is in training with the approval of the State agency (or
              because of the application to any such week in training, of State
              law provisions relating to available for work, active search for
              work, or refusal to accept work);

     This provision was added to Federal law to assure that UI eligibility criteria, such as
     actively seeking work, are not an impediment to the individual improving his or her
     prospects of employment by participating in training. All state laws contain provisions
     implementing this requirement. When this provision was added to Federal law in 1970, the
     Department took the position that each state was free to determine what training was
     appropriate for a claimant and what criteria to use in approving training. The Department
     noted that training should be approved for a particular individual when “in general, the
     individual’s present occupational situation is one which could be improved by training.”
     The Department also notes that approved training also excludes individuals from the
     special work search requirements of the Extended Benefits program.

     Since the 1970’s, many states have not updated their training approval requirements even
     though the labor market has significantly changed. Many states place strict limits on
     approved training, such as limiting approvals to occupational training (that is, training
     designed to lead to a specific occupation) and to situations where there is no demand for an
     individual’s most recent job. Thus, for example, an individual laid-off from a fast-food
     restaurant will be denied training since fast-food jobs continue to exist. Such approaches
     limit an individual’s ability to obtain skills that might lead to more secure employment and
     higher wages.

     In this time of recession, states are strongly encouraged to reconsider their laws and
     regulations, and any applicable administrative requirements, to determine if their approved
     training requirements are appropriate to the current economy. Post-secondary education
     and training are increasingly important for success in the job market. Periods of

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     unemployment, particularly in the current economic climate, provide opportunities for laid-
     off workers to develop new skills, so that employers will benefit from a skilled workforce
     when the economy recovers. In particular, states are asked to consider approval of
     programs at community colleges with job skills components, courses leading to general
     equivalency degrees, courses in adult basic education, language courses, or other courses of
     study, including degree and certificate programs, that are likely to increase the individual’s
     long-term employability. (States are reminded, however, that Pell Grants are only
     available for individuals enrolled at least half-time in an undergraduate degree or certificate
     program.)

     The Department will be working with states as they review their current policies, providing
     examples of state best practices, and considering what steps can best ensure that UI
     beneficiaries have appropriate opportunities during periods of economic downturns to
     develop their skills without sacrificing their UI benefits.

5.   Notify Claimants of Availability of Pell Grants. To ensure that UI beneficiaries are aware
     of their potential eligibility for Pell Grants, states are asked to send each beneficiary a
     letter (model attached) describing the Pell Grant program, directing them to information
     about Pell Grants, and explaining that UI beneficiaries can continue to receive UI benefits
     while in training with the state’s approval. The model letter provides information about
     Pell Grants and advises individuals of a new Web site, www.opportunity.gov, with Pell
     Grant and other information.

     State UI agencies are free to modify this letter to reflect appropriate contact information
     and state UI policy. States are encouraged to tell recipients of these letters to inquire about
     available training through the One-Stop Career Center system. State UI agencies should
     ensure that both the name and address of the recipient is printed in the body of the letter.

     As soon as possible after the publication of this guidance, States should mail this letter to
     all beneficiaries who received payments of UI for the week of unemployment beginning
     May 10, 2009. Also, states should send this letter to individuals who receive first
     payments of regular compensation and those who receive payments as a result of filing an
     additional or reopened claim. The Department will advise states when such mailings are
     no longer necessary.

6.   Assist Claimants in Finding Training and Applying for Financial Aid. After receiving
     notification of Pell Grant availability, increased numbers of UI beneficiaries will likely
     seek the services of One-Stop Career Centers. The state workforce agency, local
     workforce investment areas, and One-Stop Career Centers can play a pivotal role in
     connecting UI beneficiaries to the training and services necessary for them to become re-
     employed, and can assist UI beneficiaries in three ways.




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•    State UI agencies and One-Stop Career Centers can coordinate strategies for serving
     UI beneficiaries to ensure that UI beneficiaries enter training that allows them to
     continue receipt of their UI compensation. For instance, in some states, training
     provided to jobseekers under WIA is automatically considered approved training for
     UI purposes. States should establish processes that minimize the burden on
     individual UI beneficiaries in establishing whether a training program is consistent
     with UI eligibility rules. As part of working with UI beneficiaries to find appropriate
     training, One-Stop Center Staff should coordinate with UI staff to secure approval of
     that training, so the individual does not later face difficulty maintaining UI eligibility
     due to training that does not qualify.

•    States should ensure that all One-Stop Career Centers are prepared to assist UI
     beneficiaries in applying for Pell Grants and other financial aid. Some One-Stop
     Career Centers already routinely assist individuals with financial aid applications.
     Others may need to establish policies, provide desk aids, or upgrade Web sites and
     materials in the One-Stop Career Centers. Individuals interested in applying for a
     Pell Grant must complete the Free Application for Federal Student Aid (FAFSA).
     The Departments of Education and Labor have established a new web site,
     www.opportunity.gov, which provides useful information and links that states are
     encouraged to share. There is a considerable amount of information on applying for
     the FAFSA at www.fafsa.ed.gov, and helpful information on how to counsel
     individuals seeking federal financial aid at www.fsa4counselors.ed.gov.

•    One-Stop Career Centers should help UI beneficiaries obtain relevant training and
     become reemployed. One-Stop Career Centers should ensure UI beneficiaries
     seeking Pell Grants have access to the full range of services available within the One-
     Stop Center. UI beneficiaries may benefit from skill assessments, career guidance,
     labor market information, job search assistance, assistance in strategically choosing
     training that prepares them for job openings in their local economy, and assistance in
     obtaining funding for that training.

It may be appropriate to enroll UI beneficiaries in the Workforce Investment Act (WIA)
Dislocated Worker or Adult program to access these services. An individual who meets
WIA Dislocated Worker eligibility, whether or not she or he is enrolled in the WIA
Dislocated Worker program, may qualify for one of the simplified needs analyses used by
financial aid administrators to determine the student’s need for federal student aid. A
dependent student who has a parent who is a dislocated worker, or an independent student
who is, or whose spouse is, a dislocated worker, may be eligible for one of the simplified
needs analyses. Financial aid offices may need additional general guidance to clarify the
definition of dislocated workers and to determine appropriate documentation of dislocated
worker status. As the local workforce investment system is uniquely positioned to offer this
guidance, the Department of Labor encourages local One-Stop Career Centers to respond
to general information requests about the dislocated worker definition from financial aid
offices, as necessary. The Department of Labor previously published information on the
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      new questions in the FAFSA that affect WIA Dislocated Workers, and how the workforce
      investment system can assist One-Stop Career Center customers and financial aid
      administrators. See Training and Employment Notice 32-08.

7.    Administrative Costs. In implementing and administering this initiative, state UI agencies
      will incur administrative costs for activities such as sending notices to beneficiaries
      (including the attached letter), responding to inquiries about eligibility, reviewing
      applications for training approval, computer programming, and overhead. Because the
      costs associated with informing claimants of their benefit rights and determining eligibility
      for UI (here, a UI training benefit) are necessary for the proper and efficient administration
      of a state’s UI law, they may be charged to the UI grant consistent with Section 303(a)(8),
      SSA.

      Start-up costs (e.g., computer programming, initial wave of notification letters) will be
      addressed through the supplemental budget request (SBR) process. A separate advisory
      will provide more details and dates for submission. Ongoing administrative costs related to
      this initiative will be reported in the comments section of the quarterly UI-3 report,
      identified as such, and broken out by the following activities: postage, notification letters,
      training approval application reviews, programming, overhead, and other.

8.    Paperwork Reduction Act (PRA) Statement. The public reporting burden for this third
      party dissemination is estimated to average approximately 40 hours per state including time
      for gathering and maintaining the data needed to complete the required disclosure.

      This TEGL contains a third party dissemination as it strongly encourages states to notify
      UI beneficiaries of their potential eligibility for Pell Grants and other student aid.
      According to the Paperwork Reduction Act of 1995 (Pub. L. 104-13), no persons are
      required to comply with a request for third party dissemination unless it displays a valid
      Office of Management and Budget (OMB) control number. The Department notes that a
      Federal agency cannot conduct or sponsor a request for third party dissemination of
      information unless it is approved by OMB under the PRA, and displays a currently valid
      OMB control number, and the public is not required to respond to a third party
      dissemination of information unless it displays a currently valid OMB control number. See
      44 U.S.C. § 3507. Also, notwithstanding any other provisions of law, no person shall be
      subject to penalty for failing to comply with a third party dissemination request that does
      not display a currently valid OMB control number. See 44 U.S.C. § 3512. The OMB
      Control Number for this third party dissemination request is 1205-0473, which appears on
      the top right of the Draft Letter below (Attachment).

9.    Action. State administrators are requested to distribute this advisory to appropriate staff.

10.   Inquiries. Questions should be addressed to your Regional Office.

11.   Attachment. Draft Letter Advising Claimants of Pell Grants/UI Approved Training


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                                                                                        Attachment

                                                                 OMB Control Number 1205-0473

           Draft Letter Advising Claimants of Pell Grants/ UI Approved Training

[Claimant name and address should be printed on letter.]

I am writing to urge you to consider taking advantage of new opportunities for education and
training available now to unemployed workers.

On May 8, President Obama announced that workers like you who are getting unemployment
insurance (UI) benefits will receive special consideration for financial aid to pay for job training
or education. You may also be able to keep your UI benefits while enrolled. Studies have
shown that workers with more education and training have more secure jobs and higher wages.

Federal Pell Grant scholarships cover up to $5,350 in education and training expenses. They are
accepted at nearly all universities and community colleges and many trade and technical schools.
Even if you do not qualify for a Pell Grant, you may be eligible for other aid.

Applying for financial aid and finding training are not difficult. The Departments of Education
and Labor have created a single web site, www.opportunity.gov, where you can find helpful
information. If you are interested in pursuing these opportunities, here are the steps you should
take:

   •   Decide what type of training best meets your needs. You may want to visit
       www.careeronestop.org or visit your local community college or One-Stop Career Center
       for help in identifying potential education and training opportunities. To locate the
       nearest One-Stop Career Center, you may call the toll free number: 1-877-US-2-JOBS (1-
       877-872-5627) for assistance or visit www.servicelocator.org. [States are encouraged
       to provide the most specific information possible, including, if possible, auto-
       populating this information using zip-codes.]

   •   Colleges or One-Stop Career Centers can also help you apply for Pell Grant scholarships
       and other federal financial aid. An application is also available at www.fafsa.gov or by
       calling 1-800-4FEDAID. While you will need to report last year’s income when
       applying, your school can adjust your eligibility to reflect your current circumstances.

   •   Finally, please contact our office at [enter UI agency phone number] in advance of
       enrolling to ensure that you can continue to receive unemployment benefits while
       enrolled in the program you have chosen. Not every training program excuses you from
       the requirement that you be seeking and available for work in order to receive
       unemployment benefits.

Be sure to take this letter with you to the school you select. For the next 90 days, it confirms that
you are an unemployment insurance beneficiary. While it does not guarantee you a Pell Grant,
your school will use this letter to adjust your eligibility. After 90 days, or if you lose this letter,
you may provide alternative evidence that you are currently receiving unemployment insurance,
such as [enter state-specific example].

While our economy is struggling, we have an opportunity to improve workers’ skills and lay the
foundation for a stronger economy in the future. I encourage you to carefully consider this
opportunity.




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Linked official document 1: https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2009/TEGL21-08a1.pdf

Attachment

                                                                 OMB Control Number 1205-0473

           Draft Letter Advising Claimants of Pell Grants/ UI Approved Training

[Claimant name and address should be printed on letter.]

I am writing to urge you to consider taking advantage of new opportunities for education and
training available now to unemployed workers.

On May 8, President Obama announced that workers like you who are getting unemployment
insurance (UI) benefits will receive special consideration for financial aid to pay for job training
or education. You may also be able to keep your UI benefits while enrolled. Studies have
shown that workers with more education and training have more secure jobs and higher wages.

Federal Pell Grant scholarships cover up to $5,350 in education and training expenses. They are
accepted at nearly all universities and community colleges and many trade and technical schools.
Even if you do not qualify for a Pell Grant, you may be eligible for other aid.

Applying for financial aid and finding training are not difficult. The Departments of Education
and Labor have created a single web site, www.opportunity.gov, where you can find helpful
information. If you are interested in pursuing these opportunities, here are the steps you should
take:

   •   Decide what type of training best meets your needs. You may want to visit
       www.careeronestop.org or visit your local community college or One-Stop Career Center
       for help in identifying potential education and training opportunities. To locate the
       nearest One-Stop Career Center, you may call the toll free number: 1-877-US-2-JOBS (1-
       877-872-5627) for assistance or visit www.servicelocator.org. [States are encouraged
       to provide the most specific information possible, including, if possible, auto-
       populating this information using zip-codes.]

   •   Colleges or One-Stop Career Centers can also help you apply for Pell Grant scholarships
       and other federal financial aid. An application is also available at www.fafsa.gov or by
       calling 1-800-4FEDAID. While you will need to report last year’s income when
       applying, your school can adjust your eligibility to reflect your current circumstances.

   •   Finally, please contact our office at [enter UI agency phone number] in advance of
       enrolling to ensure that you can continue to receive unemployment benefits while
       enrolled in the program you have chosen. Not every training program excuses you from
       the requirement that you be seeking and available for work in order to receive
       unemployment benefits.

Be sure to take this letter with you to the school you select. For the next 90 days, it confirms that
you are an unemployment insurance beneficiary. While it does not guarantee you a Pell Grant,
your school will use this letter to adjust your eligibility. After 90 days, or if you lose this letter,
you may provide alternative evidence that you are currently receiving unemployment insurance,
such as [enter state-specific example].

While our economy is struggling, we have an opportunity to improve workers’ skills and lay the
foundation for a stronger economy in the future. I encourage you to carefully consider this
opportunity.




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