I came across this news article by Market Watch. It looks like this is part of the new COVID bill (not yet signed at the time of this writing).
Under the section titled “Expanding eligibility for Pell Grants,” there is a section that states…
“Students who were defrauded by their colleges will also have their Pell eligibility restored through the legislation. Students are limited to six years-worth of Pell grant eligibility and right now, borrowers who had put their limited Pell grant funds towards attending scam schools couldn’t recoup those grants.
The legislation passed Monday will re-start the Pell grant eligibility clock for borrowers who receive a borrower defense discharge, or a cancellation of federal student loans incurred at schools that defrauded students. “
Has anyone heard anything about this and maybe knows a little more. Would this mean the DOE is required to return the pell grant money to the student when it was stolen by the defrauded school? Can we find out more?