Consider going back to school if you are unemployed.
In May 2009, President Barack Obama changed regulations to allow individuals receiving unemployment benefits to enroll in secondary education, receive Pell Grant money and continue receiving unemployment. The change aims to encourage unemployed individuals to further their education and training in order to be more competitive when they re-enter the workforce.
School & Unemployment Benefits
Workers and employers pay into state unemployment insurance funds while working. When workers become unemployed, they have the right to claim unemployment benefits from the fund. However, individuals must be actively looking for work while receiving unemployment payments. Individuals can enroll in colleges, universities, community colleges and trade schools, and still receive unemployment; but they must show that they are looking for work while attending school.
Pell Grants
The federal government offers several types of financial aid to students to encourage more people to attend secondary schools and develop a highly educated workforce. Pell Grants are free money -- students do not have to pay the grants back -- to students with demonstrated financial need. More than 5,400 schools, including community colleges and some trade school, accept Pell Grants, and the maximum award for a grant was $5,550 for the 2010-2011 school year.
Changes
Before 2009, unemployed individuals returning to school were required to give up unemployment benefits to receive Pell Grant money. President Obama removed this regulation, increased the maximum Pell Grant award by $500 and asked financial aid offices to take students' employment status into account. State Labor Departments published material encouraging unemployed prospective students to alert financial aid offices to the fact that they are unemployed, stating that being unemployed may increase the Pell Grant award amount.
Uses
The federal government sends Pell Grant money to school's financial aid offices, which then decide to either apply the money to the student's tuition bill, send the student a check or both. When a student receives a check from a Pell Grant disbursement, the student can use the money for education-related expenses, which includes tuition and fees, books, other supplies, transportation and living expenses.
Tags: Pell Grant, financial offices, Grant money, Pell Grant money, Pell Grants, receiving unemployment, community colleges