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Division II Financial aid
Katie willett and Karen Wolf
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Session overview Review and apply select financial aid legislation.
Counter status. Period of the award. Academic awards. Reduction or cancellation of award. Examine case studies that practically apply the legislation. Discuss institutional policies and procedures and share best practices. NCAA Division II Legislation Committee Bylaw 15 review update. NCAA Compliance Assistant update.
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Financial aid legislation
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counter NCAA Bylaw defines a “counter” as a student- athlete that: Is receiving financial aid based in any degree on athletics ability. NC : Eliminated the certification requirements related to institutional financial aid awarded without regard to athletic ability. Is receiving institutional financial aid that has not been certified as being granted without regard to athletics ability. Current legislation requires that any student-athlete receiving athletics aid or institutional financial aid must be considered a counter and included in the maximum institutional grant-in-aid limitations unless there is certification, by the faculty athletics representative and the director of financial aid, on file, in the office of the director of athletics, that the student's financial aid was granted without regard in any degree to athletics ability. The elimination of the noncounter certification form is intended to ease the burden for faculty athletics representatives and financial aid directors certifying that aid was awarded without regard to eligibility. In order to avoid counter status for a student-athlete, an institution will still have to confirm that institutional aid is awarded without regard in any degree to athletics ability, participation or achievement.
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Period of Award Begins when a student-athlete receives any benefits as part of the grant-in-aid on the first day of classes for a particular academic term, or the first day of practice whichever is earlier. Ends at the conclusion of the period set forth in the financial aid agreement. Decrease not permitted from time prospective student-athlete or student-athlete signs financial aid agreement until the conclusion of the period set forth in the agreement. Bylaws and
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Period of Award (Continued)
Financial aid based on athletics ability shall not be awarded in excess of one academic year. An institution may award financial aid for an academic year or part thereof. Example: academic year or 2014 fall term. Bylaws , and
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Academic Awards Criteria:
Recipient qualifies for academic award that is part of institution’s normal arrangements for academic scholarships pursuant to minimum institutional criteria; and Upper 20% of high school graduating class; High school cumulative GPA of 3.500; or Minimum 100 ACT or 1140 SAT. Bylaw (a)-(1)-(i) OR May want to talk at the beginning of your presentation about counter vs. non-counter as it relates to exempting these awards. I have received questions from institutions that think a noncounter’s academic award must be counted if it doesn’t meet this criteria.
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Academic Awards (continued)
Criteria: Recipient qualifies for academic award that is part of institution’s normal arrangements for academic scholarships pursuant to minimum institutional criteria; and Has completed at least one academic year in college; and Cumulative GPA of for all academic work completed during collegiate enrollment that results in degree credits at the awarding institution.
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Exempted Institutional Financial Aid – Academic Awards
Case studies
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Exempting Academic Awards
The Facts: Student-athlete is an incoming soccer student-athlete. Ranked 22nd in graduating high school class. SAT of 1120. Cumulative GPA is 3.70. Student-Athlete received the following aid package: Athletics award = $10,000. Academic award = $15,000. Take out marketing ….
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Exempting academic awards
Would the academic award have to be counted in the student-athlete and institutions limits? Ranked 22nd in graduating high school class. Determine if this is upper 20% of graduating class. SAT of 1120. Needs to be a minimum of 1140. Cumulative GPA is 3.70. Cumulative GPA of 3.5 based on 4.0. Student-athlete does not meet all of the criteria, can the aid be exempted? YES.
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Exempting academic awards
The Facts: Student-athlete is now a continuing student-athlete. Student-athlete’s GPA after Year 1 is 3.0. Student-athlete received the following aid package: Athletics award = $12,000. Academic award = $15,000. Exempted under Bylaw (a)-(1)-(i) as an incoming student-athlete. Add that SA’s GPA after Year 1 is 3.0 ….
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Exempting academic awards
Can the academic award still be exempted following initial year of enrollment? YES. If aid is exempted under Bylaw (a)-(1)- (i) it can continue to be for the remainder of the student-athlete’s eligibility. Renewed in accordance with institutional policy.
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Exempting academic awards
The Facts: Student-athlete is a transfer basketball student- athlete. Enrolled full time at Institution No. 1. & academic years. Cumulative GPA 3.40. Student-athlete received the following aid package: Athletics award = $8,500. Academic award = $17,500.
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Exempting academic awards
How do you determine if the academic award is exempt? High school rank, GPA or ACT/SAT. Ranked 32nd in graduating high school class. ACT of 100 with a cumulative GPA of 3.53. Can the aid be exempted under this criteria for a transfer student-athlete? YES.
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Exempting academic awards
What if the transfer student-athlete did not meet the criteria based on the high school record? Completion of one academic year in college; and Cumulative GPA of 3.30 for all academic work completed during the student’s collegiate enrollment resulting in degree credits at the awarding institution. Can the aid be exempted under this criteria for transfer student-athlete? YES. Student-athlete had completed an academic year and had 3.40 GPA. Do you have to certify this every year? Yes.
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Exempting Academic Awards
Two options. High school record: Ranked in upper 20% of graduating class; Cumulative GPA of at least (based on maximum ); or Minimum ACT score of 100 or minimum SAT score of 1140. College record: At least one academic year in college; and Achieved a cumulative GPA of for all academic work at the awarding institution.
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Exempting academic awards
What is the review process on your campus? Who is involved? Are your policies and procedures documented and evaluated?
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Reduction or cancellation of aid
Legislation
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Reduction or Cancellation
Financial aid based on athletics ability may be reduced or cancelled during the period of the award, if the student-athlete: Renders himself or herself ineligible for competition; Fraudulently misrepresents himself or herself; Engages in serious misconduct; or Voluntarily withdraws from a sport. Student-athlete’s aid may not be awarded to another student-athlete during the same term. Student-athlete’s aid may be awarded to another student-athlete in next term. Bylaw
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Nonathletic Conditions
Financial aid agreement may include nonathletically related conditions by which aid may be reduced or cancelled during the period of the award. Example: Compliance with team rules, compliance with academic polices, GPA requirement, study hall requirement. Bylaw
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Fraudulent misrepresentation
Student-athlete is awarded aid on basis of declaring intent to participate in a sport by: Signing an NLI; or Application or agreement. Action on part of student-athlete to not participate: Not reporting for practice; or Making token appearances. Institution is permitted to cancel or reduce aid. Bylaw
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Increase, Reduction, Cancellation Not Permitted
Institutional financial aid based on athletics may not be increased, decreased or cancelled during the period of award: On the basis of an student-athlete’s athletics ability, performance or contribution to the team; Because of an injury, illness or physical or mental medical condition; or For any other athletics reason. Bylaw
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Hearing Opportunity Bylaw 15.3.2.4
Institution’s regular financial aid authority shall notify in writing. Within 14 consecutive calendar days from the date of notification of the reduction or cancellation. Must include a copy of the established policies and procedures for conducting the hearing. Hearing must be conducted within 30 days of receiving the request. Bylaw
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Reduction or cancellation of aid
Case studies
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Reduction or cancellation of aid
The Facts: Football prospective student-athlete signs financial aid agreement February 4. Prospective student-athlete is notified in spring of his FAFSA award. A full grant-in-aid at the institution is $30,000. Prospective student-athlete received the following aid package: Athletics award = $28,000. Pell grant = $2,500. March 31, 1999 official interp stated it would be permissible for an institution to include in the language of the financial aid agreement that a component of the student-athletes financial aid award will be Pell Grant funds and that a student-athlete's athletic grant may adjusted due to receipt of such funds.
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Reduction or cancellation of aid
Is it permissible for the institution to reduce the prospective student-athlete’s athletics aid? It depends… Has the period of the award started? Yes. Were there any conditions included in the financial aid agreement related to Pell Grants? If no, aid can not be reduced. If yes, aid can be reduced. Is the institution required to provide the prospective student-athlete with a hearing opportunity?
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Reduction or cancellation of aid
The Facts: Cross country student-athlete was awarded $5,000 athletics scholarship for the academic year. Fall 2014 $2,500. Spring 2015 $2,500. Student-athlete reported for preseason but has not attended practice or competed for three weeks. Coach has repeatedly tried to contact student-athlete unsuccessfully. Team captain addressed behavior and student-athlete still has not attended practice or competed. March 31, 1999 official interp stated it would be permissible for an institution to include in the language of the financial aid agreement that a component of the student-athletes financial aid award will be Pell Grant funds and that a student-athlete's athletic grant may adjusted due to receipt of such funds.
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Reduction or cancellation of aid
What options are available to the coach? Is it permissible for the institution to reduce the prospective student-athlete’s athletics aid? Has the student-athlete fraudulently misrepresented the information on the aid agreement? Yes. Could the coach say that the student-athlete voluntarily withdrew? If no, aid can not be reduced. If yes, aid can be reduced. Is the institution required to provide the prospective student-athlete with a hearing opportunity if the aid is reduced? Fraudulent misrepresentation What constitutes this and how is it determined on campus. Do you have a policy? Who should be involved in Voluntarily Withdraws -What would be an appropriate standard? How is this handled on campus?
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Reduction or cancellation of aid
Can the aid be re-awarded to another student-athlete? If an institution has not reached the institutional financial aid limitations: May award the financial aid of a student-athlete who voluntarily withdraws from the team to another student-athlete during same term. Even if the award will cause the institution to reach the institutional financial aid limit as imposed by the institution itself. Official Interpretation [Reference: 5/14/96, Item No.4] Fraudulent misrepresentation What constitutes this and how is it determined on campus. Do you have a policy? Who should be involved in
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Best practices
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Best practices Hearing Opportunity
Institution’s regular financial aid authority shall notify in writing. Within 14 consecutive calendar days from the date of notification of the reduction or cancellation. Must include a copy of the established policies and procedures for conducting the hearing. Hearing must be conducted within 30 days of receiving the request. Bylaw Hearing Opportunity – Examples of what is appropriate notice, how is it handled on your campus? Who is involved?
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Best practices Nonathletically Related Conditions Bylaw 15.3.4.1.1
Financial aid agreement may include nonathletically related conditions by which aid may be reduced or canceled during the period of the award. Example: Compliance with team rules, compliance with academic polices, GPA requirement, study hall requirement. Bylaw Non-athletics conditions – what are your policies/approval procedures? Provide examples of conditions being used and how SAs are educated about them. SA rendered ineligible Academic ineligibility versus team disciplinary or playing rules.
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Legislation committee bylaw 15 review
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Bylaw 15 review The NCAA Division II Legislation Committee is currently conducting a review of Bylaw 15. The committee requested the use of NCAA Compliance Assistant data to help guide future conversations. Deadline to opt out of data collection was February 2. The committee received an overview of the data at the March meeting. Specific institution and student-athlete data will not be reviewed. Proposals anticipated for the 2017 or 2018 NCAA Convention. I think the key to emphasize here is that the feedback we’ve received suggests that a complete overhaul is not in the cards. Current legislation levels the playing field. The focus has shifted to ease of administration and making the legislation clearer.
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Noncontroversial legislation
Reorganization: Will not change the application of the legislation. Intent is to reformat legislation so it is easier to understand and apply. Maximum Financial Aid to Individual: Clarifies that student-athletes may receive financial aid above a full grant-in-aid, up to cost of attendance, provided the financial aid is unrelated to athletics ability. Management Council made four recommendations for noncontroversial legislation in January 2015. #2 - Fixes a discrepancy in the current legislation between Bylaws and 15.1.
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Noncontroversial legislation Continued
Elimination of Noncounter Certification Form: Would eliminate NCAA requirement for the faculty athletics representative and director of financial aid to sign the noncounter certification form. Institutions would still be responsible for determining the counter status of all student-athletes. Aid Renewed, Successful Appeal: Would revise legislation to specify that a student- athlete would only be a counter if he or she continues to receive athletics aid after a successful appeal.
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Discussion of possible concepts
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Bylaw 15 review possible concepts
Legislation Committee developed nine concepts for feedback from NCAA Division II Presidents Council and NCAA Division II Management Council. The Councils recommended gathering feedback on all nine concepts.
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Concept No. 1: Count only athletics aid toward individual and current team equivalency limits
Would significantly reduce administrative burden. Institutions would only be responsible for tracking the aid awarded by the athletics department and ensuring that student-athletes do not receive a financial aid package that exceeds a full grant-in-aid or the cost of attendance where applicable.
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Concept no. 2: Count Only Athletics Aid Toward Individual and Team Equivalency Limits, and Reduce the Team Equivalency Limit in All Sports Reducing the maximum equivalency limits in all sports would level the playing field in a model in which only athletics aid counts toward the individual and team equivalency limits. The reduction of equivalency limits could alleviate potential concerns about certain institutions having a recruiting and/or competitive advantage. The financial aid data indicates that only four Division II institutions currently fund 90 percent or more of the maximum equivalencies across all sponsored sports.
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Concept No. 3: ELIMINATE TERM-BY-TERM FINANCIAL AID AWARDS
Eliminating term-by-term awards addresses student-athlete well-being concerns. Exceptions could be included to provide flexibility in those instances in which an award of less than one academic year is warranted (e.g., midyear enrollee, final semester/quarter, one-time exception). The financial aid data indicates that at least three quarters of financial aid awards are provided for a one-year term.
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Concept no. 4: PERMIT MULTIYEAR FINANCIAL AID AGREEMENTS
Currently, a financial aid award cannot exceed one academic year. Allowing multiyear financial aid agreements would provide institutions with the flexibility to offer a student-athlete with financial aid for more than one academic year. A legislative change would be permissive in nature and would not require institutions to offer multiyear financial aid agreements. Since Division I institutions are permitted to offer multiyear financial aid agreements, Division II institutions could potentially be at a recruiting disadvantage by only offering a single-year aid agreement.
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Concept no. 5: Permit Increases in Athletically Related Financial Aid at Any Time, For Any Reason
Currently, once the period of the award begins, an increase must be for a reason other than athletics. Allowing athletics aid to be increased at any time, for any reason will provide institutions the discretion to distribute athletics aid as deemed appropriate on an individual campus.
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Concept no. 6: Exempt All Academic Aid and Eliminate National Criteria for Exemption
During the 2014 NCAA Convention, NCAA Proposal No was referred on the Convention floor to committee for further review and discussion. The proposal would have eliminated the national criteria for exempting academic awards and allowed institutions to exempt academic aid provided the student-athlete met the institutional criteria for the award. Such a change would reduce the administrative burden of having to monitor both national and institutional criteria.
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Concept no. 7: Exempt All Need-Based Aid
Allowing institutions to exempt all need-based aid received by a student- athlete would ensure that student-athletes receive all aid to which they are entitled without concern that it would negatively impact individual and team equivalency limits. Need-based aid could be defined by institutional policy or national criteria could be established.
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Concept no. 8: Exempt Any Aid Received by All Students at the Institution (e.g., Tuition Discounts)
As institutions continue to develop ways to recruit and retain students, tuition discount programs are becoming increasingly popular. Exempting aid that is offered to all students at an institution would ensure that student-athletes are treated similarly to their non-student-athlete peers.
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Concept no. 9: Eliminate the Restriction on the Total Awards in Men's Sports
Bylaw (overall limit) specifies that an institution shall not award more than 60 total number of awards in men's sports, excluding football and men's basketball. Eliminating this restriction would provide additional opportunities for male student-athletes to receive athletics aid. Institutions are ultimately responsible for managing Title IX and gender-equity requirements.
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Compliance assistant update
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Questions?
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