Multiyear Financial Aid Agreements in Equivalency Sports Keri Mendoza, Big 12 Conference Megan Graham, Texas Tech University

Session Overview

Session Overview Applicable NCAA Legislation, Interpretations and Educational Columns Applicable Conference Bylaw and Interpretations Case Studies Institution Perspective

Applicable Legislation and Interpretations

Applicable NCAA Legislation Bylaw 15.02.7 (Period of Award). The period of award begins when the SA receives any benefits as a part of the student's grant-in-aid on the first day of classes for a particular academic term, or the first day of practice, whichever is earlier, until the conclusion of the period set forth in the FAA. An athletics grant-in-aid shall not be awarded in excess of the SA's five-year period of eligibility. Bylaw 15.3.3.1 (Period of Award). If a student's athletics ability is considered in any degree in awarding financial aid, such aid shall neither be awarded for a period less than one academic year nor for a period that would exceed the student's five-year period of eligibility (see Bylaws 12.8 and 15.01.5). One-year grants-in-aid shall be awarded (as set forth in the written statement per Bylaw 15.3.2.2) in equal amounts for each term of the academic year.

Applicable NCAA Interpretation 7/23/15 Official Interpretation: Multiyear Aid Agreements May Include One or More Years of No Athletically Related Financial Aid The committee determined that a multiyear financial aid agreement may stipulate that no athletically related financial aid will be provided in one or more academic years after the first academic year in which athletically related aid is provided, including the final year of the award (e.g., 50 percent in year one, zero percent in year two, 50 percent in year three; 50 percent in year one, zero percent in year two, zero percent in year three).

Applicable NCAA Educational Column 1/24/12 Educational Column: Proposal No. 2011-97 Financial Aid – Eligibility for Institutional Aid – Former Student-Athletes; Period of Institutional Financial Aid Award – Multiyear Grants-in-Aid Increases at any time and for any reason Provisions for reductions and cancellations remain the same Extensions = renewals, must review amount and period of award to determine if the aid was reduced Varying amounts of aid permissible in each year and academic term of award Permissible conditions to reduce or cancel- exhausted eligibility, graduation Separate awards required for summer terms

Applicable NCAA Educational Column 4/3/15 Educational Column: Multiyear Financial Aid Agreements Period of award defined Temporary increases Adjustments/renegotiation during period of award for amount of aid provided each academic year Extensions of one-year agreements to a multiyear agreement

Applicable Conference Bylaw and Interpretations Conference Bylaw 1.3.3.2 (Period of Award). Member Institutions shall award institutional athletically related financial aid for no less than the SA’s initial period of eligibility or graduation at the certifying institution. 5/29/15 Newly Adopted Conference Bylaws Question and Answer Document “Initial period of eligibility” includes all of the academic terms in which the SA has eligibility remaining upon initial enrollment at the institution or through graduation, whichever is earlier. If an institution issues a FAA that includes an average of “x” amount over the course of four years, the institution must notify the student-athlete of the amount of aid they will receive the next academic year by July 1. Multiyear agreements can include a year or years of no aid in equivalency sports and women’s volleyball.

Applicable Conference Bylaw and Interpretations 5/29/15 Newly Adopted Conference Bylaws Question and Answer Document (continued) NCAA exceptions to the one-year period legislation apply, except for initial enrollees (freshman and transfers in their first year of enrollment) Bylaw 15.3.3.1.1 (One-Year Period) Bylaw 15.5.2.2 (Voluntary Withdrawal) Bylaw 15.5.2.3 (Midyear Replacement- Women’s Volleyball) Bylaw 15.5.2.4 (Midyear Graduate Replacement- Women’s Gymnastics and Women’s Tennis) Aid can be provided to a FB SA for only one term or year per NCAA Bylaw 15.5.6.4.1 (Voluntary Withdrawal). “Extra” aid when a SA voluntarily withdraws from the sport can be provided to a SA not already receiving aid for only one term or year, except for initial enrollees. Baseball is exempt from the application of Bylaw 1.3.3.2.

Case Studies

Case Study #1- Initial Award and Initial Enrollee Softball SA Jessica is an incoming Freshman at Oklahoma State. Jessica is planning to take classes each summer term in order to graduate in 3.5 years (after the fall 2019 term). Oklahoma State wants to offer the following FAA: 2016-17: 25% 2017-18: 25% 2018-19: 50% Fall 2019: 50% Is Oklahoma State permitted to provide a multiyear FAA for 3.5 years? Yes No Answer: NO- although Jessica anticipates graduating in 3.5 years, per Conference Bylaw 1.3.3.2, Oklahoma State is required to provide her a FAA for four years since upon initial enrollment, there is no way for the institution to project an early graduation date and Jessica’s “initial period of eligibility” does not end until after the spring 2020 term. Alternative: Oklahoma State could provide a FAA that includes 0% in year 4 (2019-20) and increase her FAA for just the fall 2019 term after the 2018-19 academic year.

Case Study #2- Increase and Renewal Oklahoma State offers the following FAA: 2016-17: 25% 2017-18: 25% 2018-19: 50% 2019-20: 0% Jessica completes the 2018-19 academic year and is on track to graduate after the fall 2019 term, so Oklahoma State increases her aid to 50% just for the fall 2019 term. However, Jessica still has one year of eligibility left after the 2019-20 academic year. Is Oklahoma State required to renew her aid for the 2020-21 academic year? Yes No It Depends (Does not compete) (Competes) (Competes) Increase Fall 2019: 50%, Spring 2020: 0% (Competes) Answer: IT DEPENDS. Although Jessica satisfied Conference Bylaw 1.3.3.2 by providing a multiyear FAA through her “initial period of eligibility” (4 years), NCAA Bylaw 15.3.5.3 does not permit aid to be reduced or cancelled after the period of award for an athletics reason for the duration of the student-athlete’s five-year period of eligibility. Oklahoma State must have a nonathletics reason to not renew her aid for the 2020-21 academic year. For example, a condition of the award stipulate that graduation is a reason for nonrenewal. Note: Oklahoma State would need to provide Jessica with an opportunity for an appeal hearing if her aid is reduced or cancelled. Question No. 2: If the institution wants to renew Jessica’s FAA without it being considered a reduction, what equivalency must the institution provide to Jessica in 2020-21? Answer No. 2: 31%. An average of the previous four years and must include any increases provided throughout the original FAA. 2016-17: 25% 2017-18: 25% 2018-19: 50% 2019-20: 25% 2020-21: 31%

Case Study #3- Initial Award and Transfer SA Men’s cross country SA Tim is a two-year transfer at Texas Tech. Tim did not compete at the two-year institution his initial year of enrollment, so he has 3 seasons left to compete at Texas Tech. 2014-15: Two-Year College (Did not Compete) 2015-16: Two-Year College (Competed; Year of Eligibility #1) 2016-17: Texas Tech (Year of Eligibility #2) 2017-18: Texas Tech (Year of Eligibility #3) 2018-19: Texas Tech (Year of Eligibility #4) Texas Tech wants to provide Tim with aid in his first year of enrollment, so they know they must provide him with a multiyear FAA. For how many years must the multiyear FAA be written? 2 3 4 Answer: THREE- Tim’s “initial period of eligibility” at Texas Tech is 3 years since coming into Texas Tech he has three years of eligibility remaining. Therefore, Texas Tech must provide a FAA that specifies the amount of aid he will receive for the next 3 academic years.

Case Study #4- Initial Award and Midyear Transfer SA Soccer SA Courtney is a four-year midyear transfer at Baylor. Courtney has 4 seasons left to compete upon transferring to Baylor. Fall 2016: Institution No. 1 (Did Not Compete) Spring 2017: Baylor Baylor wants to apply the one-year period exception for midyear enrollees per NCAA Bylaw 15.3.3.1.1-(a) and provide Courtney with aid only during the spring 2017 term. Is Baylor permitted to provide Courtney with a FAA that only includes the spring 2017 term? Yes No What term must Courtney’s FAA go through to satisfy the Conference multiyear FAA requirement? Fall 2019 Fall 2020 Answer 1: NO- Although NCAA rules permit Courtney to receive aid for only the spring 2017 term, Conference Bylaw 1.3.3.2 does not permit institutions to use the one-year period exceptions in the NCAA legislation for initial enrollees (e.g., freshman and transfers in their first year of enrollment at the institution). Answer 2: FALL 2020. Per Conference Bylaw 1.3.3.2, the FAA must be written for Courtney’s “initial period of eligibility” at Baylor which would go through the fall 2020 term, for a total of 4 years. Spring 2017 2017-18 2018-19 2019-20 Fall 2020 Alternative- Baylor could provide years of “zero” for any year the sport needs flexibility with scholarship limits.  Spring 2020  Spring 2021

Case Study #5- Initial Award and Graduate Transfer SA Men’s tennis SA Antonio is a four-year graduate transfer at Oklahoma. Antonio has 1 season left to compete upon transferring to Oklahoma. 2012-13: Institution No. 1 (Did Not Compete) 2013-14: Institution No. 1 (Competed; Year of Eligibility #1) 2014-15: Institution No. 1 (Competed; Year of Eligibility #2) 2015-16: Institution No. 1 (Competed; Year of Eligibility #3) 2016-17: Oklahoma (Year of Eligibility #4) Oklahoma wants to provide Antonio a FAA for two years: 2016-17 (athletic FAA) and 2017-18 (former SA FAA) to cover all of his graduate school expenses. Is Oklahoma permitted to provide Antonio with one multiyear FAA for two academic years? Yes No Answer 1: NO- Although NCAA rules permit Oklahoma to provide aid to Antonio for both the 2016-17 and 2017-18 academic years, the language in Bylaw 15.02.7 (Period of Award), precludes the institution from providing an athletic FAA beyond his five-year period of eligibility. As an alternative, Oklahoma could provide a FAA for the 2016-17 academic year and another FAA for the 2017-18 academic year (pursuant to the former SA legislation per Bylaw 15.01.5.2), that both may be executed at the same time.

Case Study #6- New Award for Continuing SA that Previously Received Aid Women’s golf SA Alejandra is a sophomore SA at Kansas. Alejandra received a single year FAA for her first year of enrollment but her aid was cancelled for not meeting GPA requirements. 2014-15: 50% 2015-16: FAA Not Renewed 2016-17: Leftover aid? A few days into the fall 2016 term, a SA who was slated to receive aid for the 2016-17 academic year decided not to attend Kansas. Kansas wants to provide this “leftover” aid to Alejandra. Is Kansas permitted to provide Alejandra a FAA only for the 2016-17 academic year to award her with this “leftover” aid? Yes No Answer 1: NO- Although NCAA rules permit Kansas to provide a single-year FAA to Alejandra for the 2016-17 academic year, Conference Bylaw 1.3.3.2 requires Kansas to provide a multiyear FAA to Alejandra for her “initial period of eligibility” or through graduation. The exception that allows an institution to provide leftover aid for only one term or academic year only applies to a SA who did not previously receive aid. Alternative- Kansas could provide Alejandra a multiyear FAA beginning 2016-17 and include a zero amount of aid for the 2017-18 academic year.

Case Study #7- Continuing SA and Change in Residency Status Wrestling SA Trey signed a multiyear FAA for four years at West Virginia for $10,000 each year. Trey was classified as a non-resident during his first two years. Prior to his junior year, he receives in-state residency status in accordance with state guidelines. Is West Virginia required to calculate his equivalency starting his junior year using the in-state residency amount in the denominator? Non-Resident Example: $10,000 FAA/$50,000 Non-Resident Cost = 20% In-State Resident Example: $10,000 FAA/$20,000 Resident Cost = 50% Yes No Answer 1: YES. Since the FAA was based on a dollar amount (i.e. $10,000), the institution would be required to provide Trey with $10,000 during his junior and senior years and his equivalency must be adjusted to reflect the true value of his equivalency based on his revised in-state residency status. Alternative- when awarding a dollar amount, West Virginia could include language in the FAA that provides flexibility to adjust the award if the residency, enrollment or institutional average COAchanges after the FAA is signed.

Case Study #8- Issuing a NLI for a Midyear Enrollee Women’s track and field PSA Taylor will graduate from her two-year college in December 2016 and have 2 years of eligibility remaining. TCU would like to offer a multiyear FAA beginning spring 2017 through her remaining period of eligibility. Spring 2017: 25% 2017-18: 50% 2018-19: 50% Can TCU include a 2017-18 NLI with the FAA? Yes No Answer 1: YES. Since the FAA includes aid for the 2017-18 Taylor may sign a NLI with the FAA and enroll midyear. Midyear enrollees intending on participating in a sport with a February signing date (Football, Soccer) cannot sign a NLI during the early signing period.

Institution Perspective

Implementing on Campus Updated the Athletic Scholarship Agreement Developed SA Expectation document Updated process to request Athletic Scholarship Agreement Updated process to request a cancellation or reduction Updated renewal process Established multiyear format to track team limits Increased sport and SA education

Sport Approach Years of “zero” Varying amounts per year Utilizing one-year agreements as an exception Increase requests

Looking Forward SA feedback More clearly identify one-year agreements (as exception) that require renewal More clearly identify SAs that may need to be renewed as a result of a redshirt year Managing impacts of unplanned redshirt seasons Continued sport education on scholarship rules and athletic department expectations Considering communication for continuing SAs– identifying scholarship amount and distribution

Questions?