TEGL 21-08, Change 2.pdf

ETA Advisory File Text

EMPLOYMENT AND TRAINING ADMINISTRATION ADVISORY SYSTEM U.S. DEPARTMENT OF LABOR Washington D.C. 20210 CLASSIFICATION Approved Training CORRESPONDENCE SYMBOL OWI DATE December 20 2022 RESCISSIONS None EXPIRATION DATE Continuing ADVISORY TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 21-08 Change 2 TO STATE WORKFORCE AGENCIES ALL STATE WORKFORCE LIAISONS STATE UI DIRECTORS COMPREHENSIVE AMERICAN JOB CENTER MANAGERS STATE AND LOCAL WORKFORCE BOARD CHAIRS AND DIRECTORS STATE LABOR COMMISSIONERS FROM BRENT PARTON Acting Assistant Secretary SUBJECT Federal Pell Grants and the Payment of Unemployment Benefits to Individuals in Approved Training 1. Purpose. To strongly encourage states to review their policies and practices for re- employment and re-skilling Unemployment Insurance UI beneficiaries and other unemployed jobseekers and to inform jobseekers of their potential eligibility for Federal Pell Grants Pell Grants and other student aid to meet educational expenses associated with enrollment in an eligible postsecondary program. Further to remind states that determinations made regarding UI Approved Training requests may be reported as countable non-monetary determinations for workload purposes. 2. Action Requested. The Department of Labor s Department Employmen t and Training Administration ETA strongly encourages State Workforce Agencies and UI Directors to continue to work together and coordinate efforts to ensure jobseekers and UI beneficiaries understand their options for retraining including their potential eligibility for Pell Grants and other student aid in accordance with the existing statutory definitions regulations and prior guidance. States should 1 ensure that information about Federal Pell Grants Pell Grants and other student aid is up to date and easily accessible and 2 ensure that UI beneficiaries determine before enrollment whether training is considered by the state as UI Approved Training. ETA reminds states that states are required to ensure that UI benefits are still available to individuals in training with the approval of the State UI agency. States must distribute this advisory to appropriate staff. 3. Summary and Background.a. Summary The Department is collaborating with the Department of Education ED which administers the Pell Grant program to work together with State UI agencies and 2 American Job Centers AJCs to continue to ensure that interested UI beneficiaries know how they ca n pursue training opportunities and continue to receive UI benefits and that all jobseekers can find the resources needed to get training and pursue new careers. Through this advisory states are strongly encouraged to send notification letters to UI ben eficiaries as outlined in prior guidance and to connect beneficiaries with information online about UI recipients potential eligibility for Pell Grants and other student aid. States are also encouraged to continue in their effort to make determinations approving or denying approval for training in advance of beneficiaries enrollment in education or training and to communicate with beneficiaries about how they can obtain a decision regarding training approval. These training request determinations ma y be reported as countable non -monetary determinations for workload purposes. b. Background State UI and workforce agencies regularly assist millions of jobseekers with financial stability reemployment and career advancement. For jobseekers and UI beneficiaries aiming to upskill and move into a new career path Pell Grants pro vide powerful support yet not all jobseekers are aware of Pell Grant availability or how their UI benefits and Pell Grants interact. In 2009 ETA published Training and Employment Guidance Letter TEGL No. 21 -08 Pell Grants and the Payment of Unemploym ent Benefits to Individuals in Approved Training to strongly encourage states to broaden their definition of approved training for UI beneficiaries during economic downturns to notify UI beneficiaries of their potential eligibility for Pell Grants and other student aid and to help individuals apply for Pell Grants on the Free Applic ation for Federal Student Aid FAFSA through the AJCs referred to in the guidance and regulations as one -stop centers . Subsequently advisory TEGL No. 21 -08 Change 1 advise d states of two important clarifications about Pell Grant eligibility requirem ents encourage d states to use procedures that inform UI beneficiaries before enrollment in a program whether training received in the program is considered by the state as UI approved training and remind ed states that determinations made on UI approved t raining requests may be reported as countable non -monetary determinations for workload purposes. 1 As jobseekers return to the workforce in large numbers bolstered by economic growth many jobseekers can use this opportunity to grow their skills obtain industry -recognized credentials and obtain higher -paying jobs. To support these jobseekers ETA is issuing this advisory to encourage State UI agencies a nd AJCs to continue to work closely together to ensure that jobseekers know about Pell as a resource and UI beneficiaries who are interested in training opportunities can find appropriate information about how they can pursue training and continue to rece ive UI benefits. 4. Notifying UI Beneficiaries of Pell Grant Eligibility . The Pell Grant program is a post - secondary educational grant program . Pell Grants are awarded to help students with demonstrate d financial need to meet the cost of their postsecondary education. The circumstances many UI beneficiaries experience may m ean they are eligible for Pell Grants or eligible to receive a larger Pell award and ED has made effort s to encourage 1 See https wdr.doleta.gov directives corr doc.cfm DOCN 2752 3 student financial aid administrators to use the discretion available to them to adjust financial aid applicants information and accurately reflect their income. Guidance to financial aid administrators from January 2021 updated in April 2022 is available here https fsapartners.ed.gov knowledge -center library dear -colleague -letters 2021 -01 - 29 updat e-use -professional -judgment -financial -aid -administrators . To ensure that UI beneficiaries are aware of their potential eligibility for Pell Grants states are asked to send each beneficiary a letter or other communication model attached describing the Pell Grant program directing them to information about Pell Grants and emphasizing that UI beneficiaries can in some circumstances 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 the website https studentaid.gov understand - aid types grants which provides addition al information about Pell Grants and other federal grants for postsecondary enrollment. State UI agencies are free to modify thi s letter or message to reflect appropriate contact information and state UI policy. States are encouraged to tell letter recipients about information that can inform their training decisions such as https collegescorecard.ed.gov https collegescorecard.ed.gov training and https www.trainingproviderresults.gov and that advice and assistance are available through AJCs. State UI agencies should ensure that both the name and address of the recipient is included in the body of the letter or message. States should transmit this letter or message to all beneficiaries who received payments of UI for the most recent week of unemployment. Also states should send this letter or message to individuals who receive first payments of regular compensation and those who receive paymen ts as a result of filing an additional or reopened claim. Ongoing administrative costs that may be charged to this UI initiative should be reported in accordance with prior guidance. As required by the Paperwork Reduction Act OMB has reviewed and app roved this information collection OMB Control Number 1205 -0553 which expires on December 31 2025. Under 5 CFR 1320.5 b an agency cannot conduct sponsor or require a response to a collection of information unless the collection displays a valid OMB C ontrol Number . A. Criteria for Determining if Training May be Approved . Section 3304 a 8 of the Federal Unemployment Tax Act FUTA requires as a condition of employers in the state receiving credit against the Federal unemployment tax that C ompensation 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 availab ility for work active se arch for work or refusal to accept work As stated in prior guidance t his 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 her or his prospects of employment by participating in approved training. States use a variety o f procedures for determining when UI beneficiaries may 4 participate in approved training and continue to receive UI benefits . Some states place strict limits on approved training such as limiting approvals to occupational training i.e. training desi gned to lead to a specific occupation and to situations where there is no demand for an individual s most recent job. As an example an individual laid -off from a fast -food restaurant would be denied training in some states as fast -food jobs continue t o exist. Such approaches limit an individual s ability to obtain skills that might lead to more secure employment and higher wages. In an effort to help job seekers return to the workforce increase their skills and obtain industry -recognized credentia ls ETA has continued to strongly encourage states to reconsider their laws and regulations and any applicable administrative requirements to determine if their approved training requirements are appropriate to the current economy. State UI agencies should also continue to consider approval of programs at community colleges with job skills components courses leading to general equivalency degrees courses in adult basic educatio n language courses or other courses of study including degree and certificate programs which are likely to increase the individual s long -term employability. Note that not all training programs meet the threshold necessary to meet a state s definition of approve d training as contemplated in FUTA which will allow a student access to Pell Grants as defined under the Higher Education Act of 1965 as amended. Program eligibility requirements for the Pell Grant are defined in 34 C FR 668.8. Programs at community colleges may be more likely to qualify students for Pell Grant s than programs at training facilities or institutions that are not institutions of higher education that participate in the Title IV federal student aid progra ms including the Pell Grant program . The Department will continue its commitment to work with states as they review their current policies. State UI agencies and workforce agencies are encouraged to continue to work closely together to ensure that UI b eneficiaries who are interested in training opportunities can pursue training and continue to receive UI benefits. B. UI and Workforce Agency Coordination . ETA strongly encourages state workforce agencies and state UI agencies to continue their re -employment efforts to help jobseekers including UI beneficiaries understand their potential eligibility for Pell Grants and other student aid and to ensure that UI beneficiaries enter training that allows them to continue receipt of their UI benefits. Providing referrals to and coordination of activities with other programs and services are free basic career services through the AJCs. State UI and workforce agencies may take several steps to accomplish this i. States should review or establish processes to minimize the burden on individual UI beneficiaries in establishing whether a training program is consistent with UI eligibility rules. 5 ii. State UI agencies should share with state workforce agencies and AJCs whe ther and when beneficiaries can continue to receive UI benefits while in approved training and how the state determines UI -approved training. Where WIOA program staff are advising UI beneficiaries on appropriate training WIOA program staff should coordi nate 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. iii. State a gencies should coordinate how to best share information about UI - approved t raining and about how to obtain financial assistance in obtaining that training . C. Assisting Claimants in Finding Training and Applying for Financial Aid . States must ensure that WIOA staff or staff in other AJC partner programs are prepared to provide UI beneficiaries jobseekers and learners as a part of their basic career services assistance in establishing eligibility for programs of financial aid assistance for training and education programs not under WIOA 20 CFR 678.430 a 11 in applying for Pell Grants and other financial aid. Individuals interested in applying for a Pell Grant must complete the Free Application for Federal Student Aid FAFSA . Extensive and helpful information on applying for the FAFSA is available at https studentaid.gov h apply -for - aid fafsa . WIOA staff and other AJC partners can also provide UI be neficiaries seeking Pell Grants with skill assessments career guidance labor market information job search assistance assistance in choosing training and assistance in obtaining funding for that training. These basic and as necessary individualized career services are available at no cost to jobseekers and UI beneficiaries to support their employment goals to provide information on eligible providers of education and training programs and if eligible pay for the training. It may be appropriate to enroll UI beneficiaries in the WIOA Dislocated Worker or Adult program to access these services. An individual who meets WIOA Dislocated Worker eligibility whether or not she or he is enrolled in the WI OA Dislocated Worker program may qualify for either the simplified needs test or automatic zero expected family contribution test used by the FAFSA to determine the student s need for federal student aid. As an example a dependent student who has a pare nt who is a dislocated worker or an independent student who is or whose spouse is a dislocated worker may be eligible for more need -based aid including Pell Grants. There is a question on the 202 2-23 FAFSA about dislocated worker status. For more information please see page 21 of the following link https fsapartners.ed.gov sites default files 2022 -2023 2022 - 2023 Federal Student Aid Handbook knowledge -center fsa -handbook 2022 - 2023 application -and -verification -guide ch2 -filling -out -fafsa.pdf . Note that not everyone who receive s unemployment benefits will meet the definition of a dislocated worker. For example in general those who quit their jobs are not considered dislocated workers even if they are receiving unemployment benefits. ETA encourages WIOA program staff and A JCs to respond to general information requests about the dislocated worker eligibility and definition from financial aid offices as necessary. 6 D. Administrative Costs. To ensure the continuity of service continues with UI beneficiaries state UI agencies were advised through TEGL No 21 -08 that administrative costs associated with this initiative could be charged to a UI grant. Costs associated with informing claimants of their benefit rights and determining eligibility for UI including eligibility for benefits while in approved training are necessary for the proper and efficient administration of a state s UI law and may be charged to the UI grant consistent with Se ction 303 a 8 of the Social Security Act SSA . Ongoing administrative costs that may be charged to this UI initiative should be reported in accordance with prior guidance in TEGL No. 21 -08. State agencies may request reimbursement for ongoing administ rative costs that were charged to the UI program related to this initiative via the quarterly UI -3 report. Such amounts should be included on line 26 labeled Other and identified in the UI -3 comments section as Pell Grant . While costs associated with AJC staff providing information advice and referral to training or education services that are part of this initiative may not be charged to UI grants such costs are appropriate as career services under WIOA see 20 CFR 678.430 a 11 . There are no costs for a student to complete the FAFSA which is the sole method to determine Pell Grant eligibility. It is cost free. 5. Inquiries . Please direct inquiries to the appropriate Regional Office. For questions on Pell Grant eligibility students should contact the financial aid office at their current or prospective institution. 6. 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 1998 Amendments to Higher Education Act of 1965 Public Law Pub. L . 105 - 244 Section 401 a 1 20 U.S.C. 1070a a 1 20 U.S.C. 1070a pertaining to Pell Grants The Workforce Innovation and Opportunity Act WIOA Public Law Pub. L. 113 - 28 Title I sec. 134 c 3 E enacted July 22 2014 Employment and Training Administration Workforce Innovation and Opportunity Act Final Rule WIOA DOL Final Rule published at 81 FR 56071 Aug. 19 201 6 20 CFR 680.600 Draft Legislation to Implement the Employment Security Amendments of 1970 commonly called the Orange Book Training and Employment Notice No. 32 -08 - Guidance on 2009 -2010 FAFSA New Needs Determination to Include WIA Dislocated Work ers Training and Employment Guidance Letter TEGL No. 21 -08 and Change 1 - Pell Grants and the Payment of Unemployment Benefits to Individuals in Approved Training ET 207 Report in Handbook No. 401 7. Attachment . Draft Letter Advising Claimants of Pell Grants UI Approved Training I-1 ATTACHMENT I 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 opportunities for education and training available to unemployed workers currently receiving Unemployment Insurance UI benefits . If you are unsure of your UI benefit status please contact our office at enter UI agency phone number . Bolstered by successful vaccination efforts and economic growth following the COVID -19 pandemic displaced and u nemployed jobseekers seeking to ret urn to the workforce can use this opportunity to grow their skills obtain industry -recognized credentials and obtain higher -paying jobs. Jobseekers such as you rself receiving UI benefits will receive special consideration for financial aid to pay fo r job training or education and may also be eligible to continue receiving UI benefits while enrolled in approved training and education programs. Studies have shown that workers with more education and training have more secure jobs and earn higher wages. The Federal Pell Grant program provides financial aid to eligible applicant s for educational expenses and cover s up to 6 345 per year. The se grants are provided at many institutions of higher education IHE including universities community colleges and many trade and technical schools . Please check with the financial aid office of the IHE you are interested in attending to ensure participation in the Pell Grant program. If you do not qualify for a Pell Grant you may be eligible for other types of aid such as Federal Direct Loans or aid from your State or IHE . Applying for financial aid and finding training is not difficult. To apply for Federal student aid s ubmit the Free Application for Federal Student Aid FAFSA here https studentaid.gov h apply -for -aid fafsa . The application is free to submit there is no cost. Check out https studentaid.gov understand -aid types grants for helpful information as well . If you are interested in pursuing these opportunities here are the steps you should take Decide what type of training best meets your needs at https collegescorecard.ed.gov For additional resources You may want to visit www.MyNextMove.org sponsored by the U.S. Department of Labor to explore careers. You can also learn about different education and training programs at https collegescorecard.ed.gov www.TrainingProviderResults.gov . Staff at American Job Centers may also be able to assist you in making education training or career decisions. To locate the nearest American Job C enter you may call the toll free number 1 -877 -US -2-JOB S 1 - 877 -872 -5627 for assistance or visit https www.careeronestop.org LocalHelp service -locator.aspx . I-2 States are encouraged to provide the most specific information possible including if possible auto -populating this information using zip codes. Colleges or American Job Centers can also help you submit the FAFSA for Pell Grant s and other federal financial aid. The only application is available at https studentaid.gov h apply -for -aid fafsa or by calling 1 -800 -4FEDAID to receive a paper copy . For 202 2-202 3 FAFSA you will need to report your income from 20 20 you can ask your IHE to 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 will excuse you from the requirement that you be seeking and available for work in order to receive unemployment benefits. Also not ever y UI benefits training program will qualify for Pell Grants please contact the IHE you would like to attend to learn more. Be sure to take this letter with you to the school IHE 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 can use this letter to adjust your eligibility. After 90 days or if you no longer have this letter you may provide alternative evidence that you are currently receiving unemployment insurance such as enter state -specific example . While our economy is rebounding we have an opportunity to improve workers skills and lay the foundation for a stronger econom ic future. I encourage you to carefully consider this opportunity.