1. Division I Financial Aid Part II Kris Richardson Alex Smith

2. Learning Objectives Assess whether student-athletes on your campus may receive a miscellaneous expense allowance for 2012-13. Evaluate alternatives under consideration to permit student-athletes to receive a miscellaneous expense allowance. Discuss financial aid legislation identified for the NCAA Working Group on Collegiate Model – Rules’ review.

3. Overview Miscellaneous expense allowance. –NCAA Proposal No. 2011-96. –Models under consideration. Rules Working Group review of NCAA Bylaw 15. –Proposed action plan and timeline. –Areas for review.

4. Miscellaneous Expense Allowance Proposal No. 2011-96

5. Miscellaneous Expense Allowance Proposal No. 2011-96. –October 27, 2011: Legislation adopted. –November 9-16, 2011: National Letter of Intent early signing period.

6. Miscellaneous Expense Allowance Proposal No. 2011-96. –December 19, 2011: Legislation suspended. Received more than 125 override requests. –December 21, 2011: Start of National Letter of Intent signing period for football midyear two- year college transfers. –January 14: Legislation defeated.

7. Miscellaneous Expense Allowance Financial aid agreements issued before December 20, 2011, could include a miscellaneous expense allowance. No miscellaneous expense allowances for summer terms.

8. Miscellaneous Expense Allowance Eligibility for miscellaneous expense allowance. –Specified in written financial aid agreement. and –Awarded athletically related and/or nonathletically related financial aid equal to the value of a full grant-in-aid.

9. Miscellaneous Expense Allowance Miscellaneous expense allowance may include: –Additional athletically related institutional financial aid. or –Combination of athletically related and nonathletically related financial aid up to lesser of cost of attendance or $2,000.

10. Miscellaneous Expense Allowance Proposed Models

11. Miscellaneous Expense Allowance Three models currently under consideration. –Miscellaneous expense allowance. –Unmet need grant. –Supplement NCAA Student Assistance Fund. All would permit up to $2,000.

12. Miscellaneous Expense Allowance No vote by NCAA Division I Board of Directors until at least August. Legislation would not be effective before 2013-14 academic year.

13. Miscellaneous Expense Allowance Opportunity for working group to: –Obtain information from spring /summer meetings. –Conduct focus group meetings. –Evaluate practical and administrative burdens. –Ensure gender-equity issues are fully addressed.

14. Proposed Model 1: Miscellaneous Expense Allowance

15. Maintain current definition of a full grant-in-aid. Maintain current regulations and exemptions concerning individual financial aid limits regarding cost of attendance.

16. Permit up to $2,000 of “exempt aid,” not to exceed cost of attendance, when all sources of aid countable toward individual limits, plus the Pell Grant, are included for any student-athlete who receives a full or equivalency grant-in-aid. –May be provided to full and equivalency grant recipients. Demonstrated financial need not required to qualify. Proposed Model 1: Miscellaneous Expense Allowance

17. Alternative 1. –Limit miscellaneous expense allowance for an equivalency grant based on proportionality. –Example: 0.33 or less = $500 0.34 - 0.66 = $1,000 0.67 - 0.99 = $1,500 1.0 = $2,000. Proposed Model 1: Miscellaneous Expense Allowance

18. Alternative 2. –Exempt Pell Grant from “individual limit” calculation. –Permits more Pell Grant recipients to receive the full $2,000. Proposed Model 1: Miscellaneous Expense Allowance

19. Examples. –Cost of Attendance = $25,000. –Full Grant-in-Aid = $22,000. Proposed Model 1: Miscellaneous Expense Allowance

20. Student-Athlete 1, Amy. –Expected Family Contribution = $0. –Athletics Grant-in-Aid = $22,000; –Pell Grant = $5,500; –Other Grants and Scholarships = $0. Proposed Model 1: Miscellaneous Expense Allowance Model 1 Alternative 1: Proportionality Alternative 2: Exclude Pell $0 $2,000

21. Student-Athlete 2, Bob. –Expected Family Contribution = $10,000. –Athletics Grant-in-Aid = $7,000; –Pell Grant = $0; –Other Grants and Scholarships = $3,000. Proposed Model 1: Miscellaneous Expense Allowance Model 1 Alternative 1: Proportionality Alternative 2: Exclude Pell $2,000$500$2,000

22. Student-Athlete 3, Carol. –Expected Family Contribution = $20,000. –Athletics Grant-in-Aid = $11,400; –Pell Grant = $0; –Other Grants and Scholarships = $8,600. Proposed Model 1: Miscellaneous Expense Allowance Model 1 Alternative 1: Proportionality Alternative 2: Exclude Pell $2,000$1,000$2,000

23. Proposed Model 2: Unmet Need Grant

24. Maintain existing definition of a full grant-in- aid. Maintain current regulations and exemptions concerning individual financial aid limits regarding cost of attendance. Proposed Model 2: Unmet Need Grant

25. Permit up to $2,000 based on “unmet need,” not to exceed cost of attendance, when all sources of grant and gift aid countable toward individual limits are included for any student- athlete who receives a full or equivalency grant- in-aid. Proposed Model 2: Unmet Need Grant

26. Determining Unmet Need. –Student-athlete shall file a FAFSA. –If not eligible to file, follow institution’s uniform policy or institutional methodology to establish expected family contribution. Proposed Model 2: Unmet Need Grant

27. Unmet Need. –Equals cost of attendance – expected family contribution – grant-in-aid – other gift or grant aid. Unmet Need = Cost of Attendance – Expected Family Contribution – Grant-in-Aid – (other gift/grant aid). Proposed Model 2: Unmet Need Grant

28. Unmet Need. –Outside gift aid and exempt institutional aid is included when determining unmet need, regardless of whether the aid counts toward cost of attendance. Proposed Model 2: Unmet Need Grant

29. Proposed Model 2: Examples

30. Examples. –Cost of Attendance = $25,000. –Full Grant-in-Aid = $22,000. Proposed Model 2: Unmet Need Grant

31. Student-Athlete 1, Amy. –Expected Family Contribution = $0. –Athletics Grant-in-Aid = $22,000; –Pell Grant = $5,500; –Other Grants and Scholarships = $0. Proposed Model 2: Unmet Need Grant Unmet Need Unmet Need Grant $25K - $0 - $22K - $5.5K - $0 = ($2.5K)$0

32. Student-Athlete 2, Bob. –Expected Family Contribution = $10,000. –Athletics Grant-in-Aid = $7,000; –Pell Grant = $0; –Other Grants and Scholarships = $3,000. Proposed Model 2: Unmet Need Grant Model 1 Alternative 1: Proportionality Alternative 2: Exclude Pell $2,000$500$2,000 Unmet Need Unmet Need Grant $25K - $10K - $7K - $0 - $3K = $5K$2,000

33. Student-Athlete 3, Carol. –Expected Family Contribution = $20,000. –Athletics Grant-in-Aid = $11,400; –Pell Grant = $0; –Other Grants and Scholarships = $8,600. Proposed Model 2: Unmet Need Grant Model 1 Alternative 1: Proportionality Alternative 2: Exclude Pell $2,000$1,000$2,000 Unmet Need Unmet Need Grant $25K - $20K - $11.4K - $0 - $8.6K = ($15K)$0

34. Proposed Model 3: Institutional Supplement to NCAA Student-Athlete Opportunity Fund

35. Permit institutions to supplement NCAA Student-Athlete Opportunity Fund. Limit is $2,000 multiplied by total number of grants-in-aid awarded. Proposed Model 3: Institutional Supplement to NCAA Student-Athlete Opportunity Fun d

36. Example: Proposed Model 3: Institutional Supplement to NCAA Student-Athlete Opportunity Fun d Head CountGIA AwardedEquivalencyGIA Awarded MFB85MBA11.7 MBB13MCC/MTI/MTO12.6 WBB15WCC/WTI/WTO18 WTE8WSB12 WVB12WSO14 TOTAL133TOTAL68.3 Maximum Permissible Supplement to SAOF = (133 + 68.3) * $2,000 = $402,600

37. Permit use for up to a $2,000 “Miscellaneous Expense Allowance,” not to exceed cost of attendance, when combined with other sources of financial aid that count toward individual limits. –At discretion of institution and its conference. –May be provided to any student-athlete. Proposed Model 3: Institutional Supplement to NCAA Student-Athlete Opportunity Fun d

38. New allocation of funds not restricted to miscellaneous expenses allowances. –May be used for other direct benefits to student- athletes as currently permitted. Proposed Model 3: Institutional Supplement to NCAA Student-Athlete Opportunity Fun d

39. Continue to prohibit use of Student-Athlete Opportunity Fund toward “countable” athletics aid, except summer school. Continue to permit institutions to use Student- Athlete Opportunity Fund funds for direct benefits to student-athletes. Proposed Model 3: Institutional Supplement to NCAA Student-Athlete Opportunity Fund

40. Comparison of Proposed Models FGIA/COA $22,000/$25,000 Amy EFC: $0 Bob EFC: $10,000 Carol EFC: $20,000 Athletics Aid$22,000$7,000$11,000 Pell Grant$5,500$0 Other Aid$0$3,000$8,000 Model 1: MEA $0$2,000 Model 1: Proportionality $0$500$1,000 Model 1: Exclude Pell $2,000 Model 2: Unmet Need Grant $0$2,000$0 Model 3: Supplement SAOF Institutional/Conference Discretion

41. What feedback do you have on the proposed models? What other models should be considered? Miscellaneous Expense Allowance Proposed Models

42. Rules Working Group Review of Bylaw 15

43. Begins this year. –Proposed action plan and timeline. Reviewed by Rules Working Group in April. Will be presented to NCAA Division I Awards, Benefits, Expenses and Financial Aid Cabinet in June. –Information available on NCAA Working Group on Collegiate Model – Rules page at ncaa.org. Rules Working Group Review of Bylaw 15

44. Need feedback. –Surveys will be distributed. –Focus group and subgroup participation. Key Dates. –July 2012. Action plan finalized by Rules Working Group. Action plan published for membership. Rules Working Group Review of Bylaw 15

45. Key Dates. –Fall/Winter 2012. Administer Phase I survey. –February 2013. Cabinet: review Phase I survey results. –June 2013. Cabinet: develop Phase I commitments and concepts. –August 2013. Board of Directors review of Phase I commitments and concepts. Rules Working Group Review of Bylaw 15

46. Key Dates. –September 2013. Begin Phase II review. –February 2014. Development of commitments and concepts for Phase II. –April 2014. Board of Directors review of Phase II commitments and concepts. Rules Working Group Review of Bylaw 15

47. Areas for review – Phase I. –Equivalency computation method; –Team maximum financial aid limitations; Head count and equivalency sports Number of grants-in-aid in each sport and Terms and conditions of awarding institutional financial aid. Rules Working Group Review of Bylaw 15

48. Areas for review – Phase II. –Role of recruited status on financial aid; –Period of award; –Summer financial aid; and –Retroactive financial aid. Rules Working Group Review of Bylaw 15

49. Areas for review – Phase II. –Role of recruited status on financial aid; –Period of award; –Summer financial aid; and –Retroactive financial aid. Rules Working Group Review of Bylaw 15

50. Phase IPhase II Equivalency computation method. Role of recruited status on financial aid Team maximum financial aid limitations. Period of award Terms and conditions.Summer financial aid. Retroactive financial aid. Rules Working Group Review of Bylaw 15 What other topics should be part of the review? What commitments should govern financial aid legislation?

51. Review Miscellaneous expense allowance. –Proposal No. 2011-96. –Models under consideration. Rules Working Group review of Bylaw 15. –Proposed action plan and timeline. –Areas for review.

52. Questions?