LSDBi
Division I Proposal - 2019-119
FINANCIAL AID -- EXEMPTED INSTITUTIONAL FINANCIAL AID -- INSTITUTIONAL NEED-BASED AND NONDISCRETIONARY MERIT-BASED AID
Status: Adopted Final
Intent: To specify that the following is exempt and not counted in determining the institution's team financial aid limitations: (1) An institutional need-based grant awarded based solely on demonstrated financial need, as determined for all students by the institution's financial aid office using methodologies that conform to federal, state and institutional guidelines; and (2) A nondiscretionary institutional merit-based award with no relationship to athletics ability awarded based on documented criteria that apply to all students; further, to specify that such aid is not exempt in determining a student-athlete's counter status for purposes of applying the football or basketball, varsity competition legislation.
Bylaws: Amend 15.02.5, as follows:
15.02.5 Financial Aid. "Financial aid" is funds provided to student-athletes from various sources to pay or assist in paying their cost of education at the institution. As used in NCAA legislation, "financial aid" includes all institutional financial aid and other permissible financial aid as set forth below. (See Bylaws 15.01.6.1, 16.2, 16.3 and 16.4.)
[15.02.5.1 through 15.02.5.3 unchanged.]
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 institutional need-based grant awarded based solely on demonstrated financial need, as determined for all students by the institution’s financial aid office using methodologies that conform to federal, state and institutional guidelines. However, such aid is not exempted for purposes of determining a football or basketball student-athlete's counter status pursuant to Bylaw 15.5.1.1;
(b) A nondiscretionary institutional merit-based award with no relationship to athletics ability awarded based on documented criteria that apply to all students. 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;
(a c) 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);
[15.02.5.4-(b) through 15.02.5.4-(f) relettered as 15.02.5.4-(d) through 15.02.5.4-(h), unchanged.]
[15.02.5.5 through 15.02.5.6 unchanged.]
Source: NCAA Division I Council (Student-Athlete Experience Committee)
Effective Date:August 1, 2020; for institutional merit-based and need-based awards received by a student-athlete on or after August 1, 2020.
Proposal Category: Amendment
Topical Area: Financial Aid
Rationale: Currently, the opportunities for student-athletes to receive institutional financial aid awarded based on demonstrated financial need or merit are limited based on the application of team financial aid limitations. Removing the requirement to include institutional need-based and nondiscretionary merit-based awards in a team's equivalency computations would positively impact student-athlete well-being by reducing situations in which student-athletes are required to choose between athletics aid and institutional need-based or merit-based grants. As a result, this proposal will reduce the financial burden on student-athletes and their families. These institutional awards would still count toward a student-athlete's individual limit and render a recruited football or basketball student-athlete a counter upon competition. This proposal presents a hybrid of two proposals considered in the 2018-19 legislative cycle, Proposal Nos. 2018-71 and 2018-72, which were widely supported by the membership based on feedback from conferences. This proposal reflects the wide support for academic and need-based exemptions but stops short of exempting all institutional financial aid unrelated to athletics. Additionally, appropriate safeguards are included to address concerns related to potential abuse.
Division I Commitment addressed by proposal: The Commitment to Student-Athlete Well-Being.
Is the proposal consequential or nationally significant?: Yes. Providing additional opportunities for financial aid is nationally significant.
Is the proposal enforceable and how do the merits outweigh monitoring burdens?: Yes. The proposal would provide clear guidelines, which minimizes monitoring burdens.
How does the proposal support student-athlete success/well-being?: This proposal would allow student-athletes to accept need-based and nondiscretionary, merit-based institutional financial aid, which previously may have been declined due team financial aid limitations.
Estimated Budget Impact: None.
Impact on Student-Athlete's Time (Academic and/or Athletics): None.
Position Statement(s):
| Student-Athlete Advisory Committee | Supports | |
| Football Oversight Committee | No Formal Position | The committee noted the limited application to football. |
| Legislative Committee | Supports | |
| Women's Basketball Oversight Committee | No Formal Position |
History
| Nov 15, 2019: | In Progress | |
| Jan 7, 2020: | In Progress | Proposal updated to clarify that, to be exempted, a nondiscretionary institutional merit-based award with no relationship to athletics ability must be awarded based on documented criteria that apply all students. This update reflects the original intent of the sponsor. |
| Feb 7, 2020: | Ready for Vote | |
| Apr 1, 2020: | Tabled | |
| Jul 15, 2020: | Adopted by Council | The Council modified the proposal's effective date from August 1, 2021; for institutional merit-based and need-based awards received by a student-athlete on or after August 1, 2021 to August 1, 2020; for institutional merit-based and need-based awards received by a student-athlete on or after August 1, 2020. |
| Jul 27, 2020: | No Board Action | |
| Jul 27, 2020: | Adopted Final |
Legislative References
| Division | Number | Title |
|---|---|---|
| I | 15.02.5 | Financial Aid. |
| I | 15.02.5.4 | Exempted Institutional Financial Aid. |