Welcome to the Employment Development Department

Quick Links

Other References

Federal Initiative for Job Training or Education

en Español

On May 8, 2009, President Obama announced a federal initiative to allow unemployed workers or their dependents expanded access to financial aid for education and training during a period of economic uncertainty. This initiative enables applicants who apply for student federal financial aid to qualify based on their current economic status.

Beginning with the 2009-2010 academic years, the Federal Student Aid office within the U.S. Department of Education that issues the Free Application for Federal Student Aid (FAFSA) was mandated to broaden the eligibility criteria to include the unemployed status of an applicant, spouse, or parent.

Generally, federal grant aids such as the Pell Grant are available if you:

  • Are a U.S. citizen or an eligible non-citizen with a high school diploma,
  • Have not earned a bachelor’s degree, and
  • Are attending an undergraduate or certificate program (generally a two or four-year degree program) at least half-time.

This federal initiative encourages financial aid administrators to use their discretion when determining your eligibility if you are receiving unemployment insurance (UI) benefits. In addition to completing a FAFSA, you may be asked to provide UI documentation to the financial aid administrator so that your current financial status, including “special circumstance,” is considered along with your past income information.

Although the Employment Development Department (EDD) cannot assist you with seeking or obtaining Pell Grants and other federal or state student aid, you can find additional information on the FAFSA and apply online at www.fafsa.ed.gov or www.federalstudentaid.ed.gov.

After you have applied for federal student aid, you may be required to show proof to your school’s financial aid office that you are currently receiving unemployment insurance benefits. The following documents are proof that you are receiving UI benefits:

  • The Notice of Unemployment Insurance Award (DE 429Z) letter that was mailed to you when the claim was filed.
  • Any current message stub that is attached to your UI benefit check that reflects a payment or credit was issued
    • .
  • The Unemployment Claim Status and Payment History notice, which can be requested through “Ask EDD.”

While you are receiving UI benefits, the EDD will ask that you report any school attendance because this raises a question of your availability to seek suitable work. Therefore, it is important that you make an informed decision about pursuing additional training and consider the potential effects on the continuation of your unemployment insurance benefits. Even if a Pell Grant or other federal or state financial aid is awarded, in California there is no guarantee that you would continue to receive unemployment compensation unless you continue to be available for and seek full-time work or you are approved under the California Training Benefits (CTB) program.

The Benefit Determination Guide, Miscellaneous, Section 85, provides the policy and law resource that EDD staff will use to determine your eligibility for CTB once you have started school and you have been scheduled for a telephone eligibility interview.

For more information about eligibility requirements for the CTB program and how to apply, see the following links: