Division II Financial Aid Jenn Fraser and Leslie Schuemann 2010 Regional Rules Seminars

Overview Sources of financial aid. Exempted aid. Financial aid from outside sources. Reduction and cancellation. Determining equivalencies. Newly adopted legislation. Questions.

What is institutional aid?

Institutional Aid All funds administered by the institution including: Scholarships. Grants. Tuition waivers based on athletics ability. Loans. NCAA Bylaw 15.02.4.1

Institutional Aid Aid from government or private sources if institution: Selects recipient; or Determines amount of aid; or Provides matching or supplementary funds. Bylaw 15.02.4.1-(b) Financial Aid - State Government Grants (II) Date Issued: May 5, 2003 Date Published: May 5, 2003 Type: Official Interpretation Item Ref: 1 The NCAA Interpretations Subcommittee of the Division II Legislation Committee confirmed that state government grants received by a student-athlete as part of a program in which academic ability and/or financial need are the primary criteria and which have no relationship to athletics ability may be exempt from both individual and institutional financial aid limits.  Further, the subcommittee determined that in states in which the institution is the entity responsible for administering the state grant to students, the state grant may be exempt from both individual and institutional financial aid limits, provided the institution has no control in selecting or determining the recipients other than ensuring the recipients who have satisfied the requirements of the state statute receive the grant.  [Reference:  NCAA Bylaw 15.02.1 (administered by), 2003 Proposal No. 33 (financial aid - exempted - government grants - state grants).]

What are other sources of permissible financial aid?

Sources of Permissible Financial Aid Aid from person student-athlete is naturally or legally dependent. Aid awarded with no relationship to athletics ability. Education expenses from the United States Olympic Committee. Count in sport-by-sport limit. Count against full grant-in-aid. Bylaw 15.02.4.2

Aid from Outside Sources: Athletics Participation Not Major Criterion Awarded from an established and continuing outside program: Award made based on past performance or overall record; Written notification must be provided to the certifying institution; and The donor of the aid may not dictate where the recipient must attend. Does not count against sport limit. If RECRUITED award counts against student-athlete’s full grant-in-aid limit. Bylaw 15.2.5.3

Aid from Outside Sources: Athletics Participation as a Major Criterion Aid awarded from an established and continuing outside program: Recognition of outstanding high school graduates. Written notification must be provided to the certifying institution. Award may only be provided once.

Aid from Outside Sources: Athletics Participation as a Major Criterion The donor may not: Dictate where the recipient must attend; or Be a representative of athletics interest or booster. If RECRUITED award counts against sport limit. Award counts against student-athlete’s full grant-in-aid limit. Bylaw 15.2.5.4

Recruited versus nonrecruited. Why does it matter?

Impact of Recruited Status Type of Aid Recruited? Sport Limit Full Grant-in-Aid Outside grant, athletics major criterion Yes No Outside grant, athletics not a major criterion No (Yes, if receiving athletics aid).

exempted aid. Inside and out.

What is Exempted Institutional Financial Aid? Aid that does not count in the student-athlete’s: Full grant-in-aid; or Cost of attendance. Aid that does not count in institutional financial aid limitations. Bylaw 15.02.4.3

Institutional Financial Aid That May Be Exempted Academic award for outstanding academic achievement or research grant, provided: Standing scholarship or established research grant; Basis of award is academic record at awarding institution; and Competition among the students of a class or college. Bylaw 15.02.4.3-(a)-(2)

What Institutional Financial Aid May Be Exempted? Academic Awards: Awarded independently of athletics; Normal arrangement for academic scholarships; Amount consistent; and Must meet exemption criteria. Bylaw 15.02.4.3

Criteria for Academic Awards Based on high school performance: Meets minimum institutional criteria; and Meets high school criteria: Ranked in upper 20 percent of graduating class or cumulative grade-point average of at least 3.500 (based on maximum 4.000); or Minimum ACT score of 100 or minimum SAT score of 1140.

Criteria for Academic Awards Student-athlete does not meet the exemption criteria based on the high school record: At least one academic year in college; and Achieved a cumulative grade-point average of 3.300 for all academic work at the awarding institution.

Institutional Financial Aid That May Be Exempted (continued) Legitimate loans provided: Regular repayment schedule; Available to all students; and Administered the same for all students. Bylaw 15.02.4.3-(b)

Institutional Financial Aid That May Be Exempted (continued) Out-of-state tuition waivers with no relationship to athletics ability. Employee dependent tuition benefits. Postgraduate scholarship awarded in accordance with Bylaw 16.1.3.1.1. Bylaw 15.02.4.3-(b)

Financial Aid That May Be Exempted Exempted government grants. Pell Grants. Supplemental Educational Opportunities Grants. State government grants. Other grants listed in Bylaw 15.2.4.1. Operation Gold Grant. Bylaws 15.02.4.4 and 15.02.4.4

what are my options?

Reduction or Cancellation During the Period of the Award An institution may reduce or cancel institutional aid during the period of the award, provided: Renders himself or herself ineligible for competition; Fraudulent misrepresentation; Serious misconduct; or Voluntary withdraw. Bylaw 15.3.4.1 Requires a hearing opportunity. Bylaw 15.3.2.4

A Closer Look at a Voluntary Withdraw Voluntary withdraw allows an institution to reduce or cancel financial aid. Aid cannot be awarded to another student-athlete: In the term of reduction or cancellation; or During the ensuing academic term, if the award was cancelled prior to the regular academic term.

What does the May 14, 1996, Interpretation Tell Us? Aid may be awarded to a another student-athlete, provided: Institution did not award the maximum equivalency in that sport. Aid may be awarded in the same academic term as the voluntary withdraw.

Reminder About Voluntary Withdrawals! A student-athlete requesting permission to contact another institution does not equate to voluntarily withdrawing from a team. Staff Interpretation [Reference: 1/26/05, Item No. 1a]

Equivalency computations anyone?

Value of institution’s full grant-in-aid Create the Fraction Amount of student-athlete’s countable institutional financial aid received Value of institution’s full grant-in-aid

In-state full grant-in-aid Example Lanie is a volleyball student-athlete receiving a $3,000 institutional scholarship for graphic design and a $5,000 athletics award for volleyball. The full in-state grant-in-aid at Kennedy University is $18,000. $3,000 + $5,000 = $8,000 Institutional awards $18,000 In-state full grant-in-aid = 0.44

Newly adopted legislation

NCAA Proposal No. 2010-12 Establishes a "hierarchy model" for financial aid in sand volleyball. A multisport student-athlete (volleyball and sand volleyball), aid counts against the volleyball equivalency. Maximum equivalency of 5.0 for sand volleyball. No competitive advantage in volleyball by offering sand volleyball financial aid to student-athletes who were recruited to play volleyball.

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