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

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

3. What is institutional aid?

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

5. Institutional Aid
Aid from government or private sources if institution:
Selects recipient; or
Determines amount of aid; or
Provides matching or supplementary funds.
Bylaw (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 (administered by), 2003 Proposal No. 33 (financial aid - exempted - government grants - state grants).]

6. What are other sources of permissible financial aid?

7. 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

8. 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

9. 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.

10. 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

11. Recruited versus nonrecruited. Why does it matter?

12. 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).

13. exempted aid. Inside and out.

14. 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. 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 (a)-(2)

16. 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

17. 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 (based on maximum 4.000); or
Minimum ACT score of 100 or minimum SAT score of 1140.

18. 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 for all academic work at the awarding institution.

19. 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 (b)

20. 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
Bylaw (b)

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

22. what are my options?

23. 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
Requires a hearing opportunity.
Bylaw

24. 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.

25. 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.

26. 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]

27. Equivalency computations anyone?

28. 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

29. 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

30. Newly adopted legislation

31. NCAA Proposal No
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.

32. questions