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February 18, 2020
Federal Aid for Individuals Pursuing Non-degree Education and
Training Programs
Introduction
specific workplace skills to individuals through time spent
The Trump Administration and Congress have
at an employer’s worksite or a simulated work location.
demonstrated bipartisan support for increasing federal
Work-based learning experiences may be provided by
assistance to individuals pursuing postsecondary non-
employers, labor unions, external training providers, or
degree programs, sometimes referred to as short-term
educational institutions.
programs. A prominent argument for supporting
individuals pursuing non-degree programs is that there is a
Some examples of work-based learning include the
substantial employer need for individuals with some
following:
postsecondary credentials but not necessarily a degree.
According to the Bureau of Labor Statistics in 2016, 6% of
Internships, which are planned, structured learning
jobs in the national economy were in occupations for which
experiences that take place in a workplace for a limited
the typical entry-level education was a non-degree
period of time.
credential.
On-the-job training (OJT), which is paid, productive
Postsecondary non-degree programs often provide training
work experience intended to provide knowledge or skills
and education primarily to individuals who are beyond the
essential to the full and adequate performance of the job
typical age for secondary education. Non-degree programs
for which training is provided.
may be described as primarily provided by employers
(work-based learning) or by educational institutions (non-
Apprenticeships, which combine OJT and an
degree instructional education), although some programs
instructional component.
include both work-based learning and instructional training.
Some occupations require a non-degree credential early in
Co-op programs, which are full-time programs of
an employee’s career.
education consisting of phases of school instruction
alternated with training in a business or industrial
Instructional Programs
establishment, with such training being strictly
A postsecondary non-degree instructional program is any
supplemental to the school instruction.
curriculum or any combination of courses or subjects that
generally fulfills one or more identified educational,
Federal Assistance
professional, avocational, or vocational objectives; does not
Several federal programs or benefits provide financial
lead to a degree; is primarily offered through instruction;
support to individuals pursuing non-degree programs.
and does not require being enrolled in or having completed
Support for individuals pursuing non-degree programs is
a bachelor’s or higher-degree program. Examples include
generally a small share of federal assistance for higher
certificate programs for business administration, nurses’
education, and support of non-degree program pursuits is
aides, photography, and cybersecurity.
often not the primary objective of the programs and benefits
that can be used for such pursuits.
Diverse entities offer non-degree instructional programs
including, but not limited to, colleges, technical schools,
Table 1 provides a summary of select federal funding
businesses, professional organizations, and the military.
sources that assist individuals pursuing non-degree
Some non-degree instructional programs meet recognized
education and training programs. Sources selected provide
quality standards such as accreditation if offered for credit;
transition supports that lead to or help sustain employment
state board, licensure, or certification standards if the
and/or overall financial support for individuals in non-
relevant occupation requires state board approval, licensure,
degree programs. The programs and benefits presented in
or certification; or state standards if offered by an
Table 1 appear in an order that aims to correspond with
educational institution, as required by state law.
their relevance to supporting non-degree program pursuits.
Table 1 is intended to highlight differences and similarities
Work-Based Learning
in program design and purpose, the types of eligible non-
Work-based learning refers to a range of training and
degree programs, the target participant population, and the
educational activities that are intended to impart general or
payment structures.
https://crsreports.congress.gov
Federal Aid for Individuals Pursuing Non-degree Education and Training Programs
Table 1. Federal Assistance for Individuals Pursuing Non-degree Education and Training Programs
Program or
General
Eligible Non-degree
Payments / Tax
Federal Agency
Benefit
Purpose
Programs
Eligible Participants
Benefits
Department of
P.L. 113-128,
Workforce development.
Non-degree
Adults over age 18 who
Funds disbursed to
Labor
Individual Training Primarily supports career
instruction.
need training to obtain or training providers.
Accounts
services but also training and
retain employment that
training support services.
leads to economic self-
P.L. 113-128,
Job training, customized sufficiency.
Contracts
training, and incumbent
worker training.
Department of
Pell Grants
Wider distribution of the
Instructional credit
Undergraduate students
Funds disbursed to
Education
benefits of postsecondary
programs of at least
with financial need and no schools. Funds
education. Primarily support
600 clock hours over
bachelor’s degree.
remaining after
students pursuing degrees.
15 weeks.
payment of
institutional charges
Direct Loans
Instructional credit
Undergraduate and
are remitted to
programs of at least
graduate students, and
student or parent.
300 clock hours over
parents of undergraduates.
10 weeks.
Department of
Post-9/11 GI Bill
Adjustment to civilian life and
Non-degree instruction Veterans and
Tuition and fees paid
Veterans Affairs
civilian employment.
and training.
servicemembers and their to educational
Facilitate recruitment and
family members.
providers.
retention in the uniformed
Housing allowances
Veteran
services.
Only non-degree high- GI Bill-eligible veterans.
paid to participants.
Employment
technology programs
Through
that are not offered by
Technology
degree-granting
Education Courses
colleges.
Internal Revenue Lifetime Learning
Offsets higher education costs, Non-degree instruction Eligible taxpayers (or their Credit that reduces
Service
Credit
including those incurred to
and training.
dependents) if income is
federal income tax
acquire or improve job skills.
below specified limits.
liability.
Employer-Provided Increased employee
Non-degree instruction Employees of participating Assistance not
Educational
productivity.
and training.
employers.
subject to federal
Assistance
payroll or income
taxes.
529 Accounts
Encourages saving for
Non-degree instruction Beneficiaries of established Tax-advantaged
educational expenses
and training.
savings accounts.
savings account.
Department of
Supplemental
Providing employment and
Non-degree instruction SNAP participants
State agencies
Agriculture
Nutrition
training opportunities for
and training.
(financial and other
typically fund direct
Assistance Program SNAP participants, particularly
eligibility rules apply); E&T services or fund
(SNAP)
those subject to the work-
participants are typically
contracted partners
Employment &
related eligibility requirements.
those subject to work-
to provide services.
Training (E&T)
related requirements.
Department of
Temporary
End government dependency of Non-degree instruction Parents or caretakers of
States may pay
Health and
Assistance for
needy families and promote
and training.
TANF households.
participants or
Human Services
Needy Families
families living together.
service providers.
(TANF)
Primarily assistance for basic
needs.
Source: Congressional Research Service (CRS)
IF11432
Cassandria Dortch, Specialist in Education Policy
https://crsreports.congress.gov
Federal Aid for Individuals Pursuing Non-degree Education and Training Programs
Disclaimer
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https://crsreports.congress.gov | IF11432 · VERSION 1 · NEW