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Will severance pay impact my unemployment benefits? As stated in K.S.A. 44-704 , severance pay delays the date that an applicant may begin receiving unemployment benefits. Severance pay does not reduce the amount of weeks a claimant is eligible for unemployment benefits. Q. How does severance pay, pay in lieu of notice or continuation pay affect my benefits? A. Severance payments do not usually affect your unemployment benefits. However, pay in lieu of notice or continuation pay with full benefits that are guaranteed can affect your benefits. EI does not stop your payments if you return to school through an approved provincial government retraining program. There is a process you need to go through to be approved though. If you pay for school on your own they will most likely stop your EI. EI doesn't pay for tuition. Those types of payments are done through the provincial governments.If you are considering getting state grants to help pay for trucking school, then you might actually have a lot more opportunity than you thought you did. Getting a state grant can also be a challenge but as with most grants, the reward can last you a lifetime.Hello All, I have a question.....I was told unemployment has a program to help pay for school and it won't effect my benefits. I called my old college to ask what I would need to do to reenroll and they told me I can reenroll anytime since I am a former student and they can send me a letter of acceptance to show unemployment.