NCAA LSDBi

Division I Proposal - 2010-63

FINANCIAL AID -- DEFINITIONS AND APPLICATIONS -- EXEMPTED INSTITUTIONAL FINANCIAL AID -- STATE NEED-BASED FINANCIAL AID

Status: Adopted Final

Intent: To specify that 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 is not included in determining the institution's financial aid limitations, 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 in determining a student-athlete's counter status for purposes of applying the football or basketball, varsity competition legislation.

Bylaws: Amend 15.02.4.3, as follows:

15.02.4.3 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 15.02.6 (and must be included in determining if the student-athlete's cost of attendance has been met); and

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

(c) 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 15.5.1.2.

Source: NCAA Division I Awards, Benefits, Expenses and Financial Aid Cabinet

Effective Date:August 1, 2011

Proposal Category: Amendment

Topical Area: Financial Aid

Rationale: All state aid based on a student's demonstrated financial need (regardless of whether the aid is administered by an institution) should be exempt from counting toward a team's maximum financial aid limits, 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. The aid would continue to count against the individual limit. This proposal does not change the current application for determining a football or basketball student-athlete's counter status pursuant to the football or basketball, varsity competition legislation. This change would have a positive impact on student-athlete well-being by permitting additional sources of aid to be exempt from team financial aid limits and eliminating situations in which student-athletes are required to choose between accepting athletics aid or state need-based aid. The potential for abuse is minimized through the use of safeguards already in place to determine the recipients of state need-based aid and the requirement that the aid is administered in accordance with the federal methodology for determining a student's financial need and has no relationship to athletics ability. Finally, this change reduces bureaucracy for NCAA compliance monitoring and financial aid offices.

Estimated Budget Impact: None.

Impact on Student-Athlete's Time (Academic and/or Athletics): None.

History

Jun 1, 2010: Submit; Submitted for consideration.
Jun 2, 2010: Awards, Benefits, Expenses and Financial Aid Cabinet, Sponsored
Jan 13, 2011: Leg Council Init Review, Adopted; Pending Possible Board of Directors Review
Jan 15, 2011: Adopted, Override Period; No Action Taken by the Board of Directors
Jan 16, 2011: Adopted, Override Period; Start of Override Period
Mar 16, 2011: Adopted, Override Period; End of Override Period
Mar 16, 2011: Adopted; Adopted - Final

Legislative References

Division Number Title
I 15.02.4.4 Exempted Institutional Financial Aid.
References