1. NCAA Division I Introduction to Financial Aid
2010 Regional Rules Seminars
Vanessa Fuchs
Alex Smith
NCAA academic and membership affairs

2. Overview Definitions. Eligibility for financial aid.
Permissible sources of aid.
Individual and team limits.
Retroactive aid.
Terms and conditions.
Renewals and nonrenewals.
Resources.

3. Definitions Financial aid. Institutional aid.
Funds received by the student-athlete to finance his or her education.
NCAA Bylaw
Institutional aid.
Aid administered by the institution.
Bylaw

4. Definitions Full grant-in-aid (FGIA). Cost of attendance (COA).
Tuition and fees, room and board and required course-related books.
Bylaw
Cost of attendance (COA).
Includes total cost of:
tuition and fees;
room and board;
books and supplies;
transportation; and
other expenses related to attendance.
As calculated by the financial aid office per Federal guidelines.
Bylaw

5. Definitions Individual limit. Counter.
Maximum amount of aid an individual may receive.
Bylaws and 15.1
Counter.
Student-athlete who must be counted against team limits.
Bylaw

6. Definitions Head-count sports: Equivalency sports:
Look at the number of counters, regardless of the amount of aid received.
Bylaws , , , and
Equivalency sports:
One grant-in-aid can be divided between multiple student-athletes.
Each team has a maximum number of FGIAs that can be divided among team members.
Bylaws and

7. Eligibility for Institutional Athletics Aid
Student-athlete must meet all guidelines.
Federal.
State.
NCAA.
Conference.
Institutional.
Bylaw

8. Eligibility for Institutional Athletics Aid
Undergraduate with eligibility remaining under five-year rule (Bylaw ); or
Graduate student-athlete with eligibility remaining under Bylaw ; or
Bylaws (a) and (b)

9. Eligibility for Institutional Athletics Aid
Within six years of initial full-time collegiate enrollment (provided no more than five years of aid during period)*; or
Student-athlete who is selected for an NCAA degree-completion award.
Bylaw (c) and (d)
*Note: After six years, the restriction applies only to unearned athletics aid for which the athletics department intercedes.

10. Permissible Sources of Financial Aid
Funds administered by the institution
(e.g., scholarships, grants, tuition waivers).
Bylaw
Other permissible sources (e.g., anyone on whom student-athlete is naturally and legally dependent, outside awards with athletics as major criterion and outside awards with athletics not a major criterion).
Bylaw -

11. Maximum Financial Aid Limits: Individual Limit
Student-athlete’s individual limit is COA.
Student-athletes may receive the following aid up to FGIA.
Athletically related institutional aid.
Outside aid with athletics participation as a major criterion.
Educational expenses from an Olympic committee or a national governing body.

12. Maximum Financial Aid Limits: Individual Limit
PLUS, a student-athlete may receive:
Other financial aid unrelated to athletics ability up to the COA;
Bylaw 15.1 OR
For a student-athlete who receives a Pell Grant, the greater of the value of a FGIA plus the Pell Grant or the value of a student-athlete’s COA.
Bylaw

13. How Does a Student-Athlete Become a Counter?
The student-athlete:
Receives financial aid based on athletics ability.
Recruited and receives outside aid for which athletics participation is a major criterion.
Receives educational expenses from an Olympic committee or national governing body.
Receives institutional aid with no certification that the aid was not based on athletics ability.
Recruited football or basketball student-athlete with only institutional aid certified as not based on athletics ability once engages in varsity competition.
Bylaws , and

14. Exceptions to Counter Legislation
Student-athlete aid specifically exempted by NCAA legislation:
academic honor awards;
institution academic scholarships;
honorary academic award/research grant;
exhausted eligibility; and
medical noncounters.
Reference: Figure 15.1.

15. Specific Exceptions Based on high school academic record.
Academic Honor Awards.
Based on high school academic record.
Awarded independently of athletics interests.
Recipient must:
Be in the top 10% of graduating class; or
Achieve a cumulative grade-point average of at least 3.500; or
Achieve a minimum score of 1200 on the SAT or 105 on the ACT.
Bylaw

16. Specific Exceptions Based on academic record at the institution.
Institutional Academic Scholarships.
Based on academic record at the institution.
Awarded independently of athletics interests.
Recipient must:
Complete one academic year at the certifying institution; and
Achieve a minimum cumulative GPA of
Bylaw

17. Team-Limit Calculations
Head-count sports:
Men’s basketball (13).
FBS football (85 total; 25 initial).
Women’s basketball (15).
Women’s gymnastics (12).
Women’s tennis (8).
Women’s volleyball (12).
Equivalency sports:
- See Bylaw (men’s equivalency sports) and Bylaw (women’s equivalency sports).

18. How is an Equivalency Calculated?
Calculate a fraction for all counters.
Numerator includes all institutional aid for room, board, tuition and fees and books up to the value of a FGIA, except for legislated exceptions.
Denominator is the value of a FGIA based on the actual costs or average costs of a FGIA for all students.
The dollar amount used for books in both the numerator and the denominator is $400.
Bylaw and April 23, 2008, Official Interpretation

19. Case Study - Jesse
Jesse is a freshman field hockey player at State University
Meets NCAA initial-eligibility requirements.
Signed an NLI and offer of athletics aid for $7,000.
Receives scholarship for $9,000 from institution based on HS academic record, including cumulative GPA, 104 sum ACT score and class rank of 22 of 198.
Family friend has agreed to cover all other costs for the first year.

20. Case Study – Jesse (continued)
State University
FGIA, in state $15,000
COA, in state $20,000

21. Case Study – Jesse (continued)
Is she eligible for institutional athletics aid?
Can she accept aid from all sources?
Individual or team limit issues?

22. Case Study – Jesse (Review)
Eligible for athletics aid.
Family friend is impermissible source of aid.
Counter.
Equivalency = .47 (7,000/15,000).
Meets one of the academic criteria (cumulative GPA) for exception of academic honor award.

23. Case Study - Jordon
Jordon is an in-state swimmer who commutes from home to State University.
Entered institution as a midyear transfer after three semesters at another four-year institution.
Aid package includes:
Employee dependent tuition benefit (dad has been a faculty member for three years).
Athletics aid for spring term of $3,500.
Jordon also has a part-time job during the academic year.

24. Case Study – Jordon (continued)
State University
FGIA, in state $15,000
COA, in state $20,000

25. Case Study – Jordon (continued)
Is he eligible for institutional athletics aid?
Award or limit issues?

26. Eligibility for Institutional Athletics Aid Transfer Student-Athlete: From Four-Year Institution
During first academic year at certifying institution.
Must have been academically eligible for competition had he remained at the previous institution; or
Meet exception (nonsponsored sport or nonparticipation).
Bylaws and

27. Period of Institutional Financial Aid
One-year period.
- Aid may not be awarded in excess of one academic year or for a period of less than one academic year.
Bylaw
- Aid shall be awarded in equal amounts for each term of the academic year.
Bylaw

28. Period of Institutional Financial Aid
Exceptions to one-year period:
Midyear enrollment.
Final semester/quarter.
One-time exception.
Eligibility exhausted/medical noncounter.
Bylaw

29. Case Study – Jordon (Review)
Eligible at previous institution.
Midyear exception to one-year rule.
Employee dependent tuition benefit not excluded unless minimum five year full-time employment [Bylaw (a)(4)].
Living at home effect on denominator.
Divide equivalency by two for team maximum limit impact but not for proportionality for summer aid.

30. Case Study – Jordon (Bonus Issue)
Could Jordon have used the midyear enrollee exception to the one-year period legislation if he had been a returning student-athlete who was not enrolled during the 2009 fall semester?

31. Case Study – Jordan (Jordon’s twin )
Jordan is an entering freshman midyear with the same aid as his twin, Jordon.
Signs aid agreement valued at $7,000 prior to beginning classes.
Does not meet initial-eligibility requirements.
Initial-eligibility waiver approved five weeks into the term.
Can Jordan receive all of his institutional aid?

32. Case Study – Jordan (Jordon’s twin)
No retroactive financial aid.
Aid awarded after first day of classes in any term may not exceed the remaining room and board charges and educational expense for that term.
Bylaw
Jordan’s aid agreement signed before the term, however. Waiver allows Jordan to be made whole based on agreement in place as of the beginning of the term.

33. Reductions/Cancellations. Increases. Renewals. Nonrenewals.

34. Period of Award
During the academic year, the period of the award begins with the first day of class or practice, whichever is earlier.
Bylaw
Reductions/cancellations may not occur from the time the prospective student-athlete or student-athlete signs the financial aid letter until the conclusion of the period set forth in the financial aid agreement, except under the conditions set forth in Bylaw
Bylaw

35. When is Reduction or Cancellation Permitted During Period of Award?
Ineligible.
Fraud.
Serious misconduct.
Voluntary withdrawal. Bylaw
Failure to satisfy nonathletically related conditions included in financial aid agreement. Bylaw

36. When is Reduction or Cancellation Not Permitted During Period of Award?
Generally, not permitted for any reason not listed in Bylaw or per Bylaw
Bylaw specifically prohibits reductions:
Based on the student-athlete’s athletics ability.
Because of an injury, illness or physical or mental medical condition.
For any other athletics reason.

37. Hearing Requirement
Prior to reduction or cancellation of institutional aid based in any degree on athletics ability, the student-athlete must be provided with the following:
Written notice of the reduction or cancellation; and
Written notice of an opportunity for a hearing.
Written notice shall include a copy of the institution's established policies and procedures for conducting the required hearing, including the deadline by which a student-athlete must request such a hearing.
Bylaw

38. Hearing Requirement Hearing must be prompt.
Hearing cannot be conducted by athletics department or faculty athletics committee.
Athletics department staff may be standing member of a committee that conducts hearings.

39. When is an Increase Permitted During Period of Award?
Between the period when the student-athlete signs the financial aid agreement and the beginning of the period of the award (i.e., first day of practice or class).
During the period of the award, if the institution can demonstrate that the increase is unrelated to an athletics reason.
Bylaw

40. Renewals and Nonrenewals
Must be made in writing on or before July 1.
Notification must:
Be prompt and in writing.
Be sent to all student-athletes who received an award the previous academic year and has eligibility remaining.
Come from the institution’s regular financial aid authority, not from the athletics department.
Bylaw
Hearing required if reduced or not renewed.
Bylaw

41. Case Study - Ben
Ben is a recruited out-of-state third-year student-athlete participating in track and field.
Awarded .40 of a full grant applied to tuition and fees and books for the full academic year.
Has not performed up to his coach’s expectations, is often dealing with minor injuries and has been attending counseling sessions for depression.

42. Case Study – Ben (continued)
Coach wants to discuss the following scenarios:
Cancel Ben’s aid at midyear.
Reduce his athletics aid for the following year.
Renew his aid for the next year but cancel Ben’s aid before school starts if he can get a junior college transfer to commit over the summer.

43. Case Study – Ben (continued)
Counsel to Coach:
May not reduce or cancel a student-athlete’s aid for either athletics reasons or due to injury, illness or physical or mental medical condition during period of the award. This would include midyear or after renewal.
May not renew but note hearing opportunity.

44. Preview of Division I Advanced Financial Aid Session
Tuesday: 8:30 to 10 a.m.
Thursday: 1:30 to 3 p.m.
Agenda:
Financial aid.
Summer aid.
Guest presenter – financial aid administrator.
Recap of NCAA Division I Awards, Benefits, Expenses and Financial Aid Cabinet.

45. Resources NCAA Division I Manual. Figures 15-1 and 15-2.
Legislative Services Database for the Internet (LSDBi).
Compliance Assistant (CA).
Academic and membership affairs staff: 317/

46. Questions?