15.02.5.4 Exempted Institutional Financial Aid. The following institutional financial aid is exempt and is not counted in determining the institution's financial aid limitations:

(a) An honorary award for outstanding academic achievement or an established institutional research grant that meets the criteria set forth in Bylaw 15.02.7 (and must be included in determining if the student-athlete's cost of attendance has been met);

(b) A postgraduate scholarship awarded by an institution in accordance with Bylaw 16.1.4.1.1;

(c) Federal government grants awarded based on a student's demonstrated financial need [e.g., Supplemental Educational Opportunities Grant (SEOG)], regardless of whether the institution is responsible for selecting the recipient or determining the amount of aid, or providing matching or supplementary funds for a previously determined recipient;

(d) State government grants awarded based on a student's demonstrated financial need, regardless of whether the institution is responsible for selecting the recipient or determining the amount of aid, or providing matching or supplementary funds for a previously determined recipient, provided the aid is administered in accordance with the federal methodology for determining a student's financial need and has no relationship to athletics ability. However, such aid is not exempt for purposes of determining a football or basketball student-athlete's counter status pursuant to Bylaw 15.5.1.1;

(e) State government merit-based grants, regardless of whether the institution is responsible for selecting the recipient or determining the amount of aid, or providing matching or supplementary funds for a previously determined recipient, provided the aid is awarded consistent with the criteria of Bylaws 15.5.3.2.2.1, 15.5.3.2.2.2 or 15.5.3.2.2.3 and has no relationship to athletics ability. However, such aid is not exempt for purposes of determining a football or basketball student-athlete's counter status pursuant to Bylaw 15.5.1.1; and

(f)  Contributions made by the institution and matching payments made by the Department of Veterans Affairs pursuant to the Yellow Ribbon G.I. Education Enhancement Program [see Bylaw 15.2.5.1-(e)].

15.02.7 Honorary Academic Award/Research Grant. An honorary academic award for outstanding academic achievement or a research grant is an award that meets the following criteria:

(a) The award or grant is a standing scholarship award or an established research grant;

(b) The basis for the award or grant shall be the candidate's academic record at the awarding institution;

(c) The award or grant shall be determined by competition among the students of a particular class or college of the institution. Competition for the award or grant may include additional objective criteria unrelated to athletics abilities (e.g., gender, race and ethnicity, financial need); and

(d) The award or grant is included in determining if the student-athlete's cost-of-attendance limitation has been met.

15.3.2.4 Release of Obligation to Provide Athletically Related Financial Aid. Before becoming a counter for an academic year pursuant to a one-year or multiyear grant-in-aid, if a prospective student-athlete or student-athlete is awarded institutional financial aid unrelated to athletics that is of equal or greater value than his or her signed award of athletically related financial aid for the specific academic year, the prospective student-athlete or student-athlete may, on his or her initiative, release the institution of its obligation to provide the athletically related financial aid for that academic year.

15.5.3.2.4.1 Academic Honor Awards -- Based on High School Record. Academic honor awards that are part of an institution’s normal arrangements for academic scholarships, based solely on the recipient’s high school record and awarded independently of athletics interests and in amounts consistent with the pattern of all such awards made by institutions, are exempt from an institution’s equivalency computation, provided the recipient was ranked in the upper 10 percent of the high school graduating class or achieved a cumulative grade-point average of at least 3.500 (based on a maximum of 4.000) or a minimum ACT sum score of 105 or a minimum SAT score of 1200 (critical reading and math) for SAT tests taken before March 1, 2016; or a minimum SAT score of 1270 (critical reading and math) for tests taken on or after March 1, 2016, based on the concordance determined by the College Board.

15.5.3.2.4.1.1 Additional Requirements. The following additional requirements shall be met:

(a) The awards may include additional, nonacademic criteria (e.g., interviews, essays, need analysis), provided the additional criteria are not based on athletics ability, participation or interests, and the awards are consistent with the pattern of all such awards provided to all students;

(b) No quota of awards shall be designated for student-athletes;

(c) Athletics participation shall not be required before or after collegiate enrollment;

(d) No athletics department staff member shall be involved in designating the recipients of such awards; and

(e) Any additional criteria shall not include athletics ability, participation or interests.

15.5.3.2.4.1.2 Renewals. The renewal of an academic honor award (per Bylaw 15.5.3.2.4.1) may be exempted from an institution’s equivalency computation regardless of whether the recipient qualified for exemption in his or her initial academic year enrollment, provided:

(a) The recipient achieves a cumulative grade-point average of at least 3.000 (based on a maximum of 4.000) at the certifying institution; and

(b) The recipient meets all NCAA, conference and institutional progress-toward-degree requirements.

15.5.3.2.4.2 Academic Honor Awards -- Transfer Students. Academic honor awards that are part of an institution’s normal arrangements for academic scholarships, either based solely on the recipient’s cumulative academic record from all collegiate institutions previously attended or based on the recipient’s high school record and cumulative academic record from all collegiate institutions previously attended, awarded independently of athletics interests and in amounts consistent with the pattern of all such awards made by the institution, may be exempted from a team’s equivalency computation, provided the recipient achieved a cumulative transferable grade-point average of at least 3.000 (based on a maximum of 4.000).

15.5.3.2.4.2.1 Calculation of Grade-Point Average. Grades earned in all courses that are normally transferable to an institution shall be considered in determining the grade-point average for meeting this exception, regardless of the grade earned or whether such grade makes the course unacceptable for transferable-degree credit.

15.5.3.2.4.2.2 Renewals. The renewal of an academic honor award (per Bylaw 15.5.3.2.4.2) may be exempted from an institution’s equivalency computation, provided:

(a) The recipient achieves a cumulative grade-point average of at least 3.000 (based on a maximum of 4.000) at the certifying institution; and

(b) The recipient meets all NCAA, conference and institutional progress-toward-degree requirements.

15.5.3.2.4.3 Institutional Academic Scholarships. Institutional academic scholarships that are part of an institution’s normal arrangements for academic scholarships, based solely on the recipient’s academic record at the certifying institution, awarded independently of athletics interests and in amounts consistent with the pattern of all such awards made by the institution, are exempt from an institution’s equivalency computation, provided the recipient has completed at least one academic year of full-time enrollment at the certifying institution and has achieved a cumulative grade-point average of at least 3.000 (on a 4.000 scale) at the certifying institution.

15.5.3.2.5 Cancellation of Athletically Related Aid. If a student-athlete is dismissed from or voluntarily withdraws from a team and his or her athletically related financial aid is canceled (see Bylaws 15.3.2.3, 15.3.4.2 and 15.3.5.1) during an academic term, all other countable financial aid the student-athlete receives during the remainder of the term is countable toward the student-athlete’s equivalency for the academic year; however, the institution is not required to count other countable financial aid toward the student-athlete’s equivalency during any remaining terms of the academic year. If a student-athlete is dismissed from or voluntarily withdraws from a team and his or her athletically related financial aid is canceled at the end of an academic term, the institution is not required to count other countable financial aid toward the student-athlete’s equivalency during any remaining terms of the academic year.