1. NCAA Bylaw 15: An Introduction to Athletics Financial Aid PRESENTED BY: CHARLIE BRUNETTE, UNIVERSITY OF MISSOURI TESSI TAYLOR, UNIVERSITY OF ILLINOIS

2. Overview  General principles.  Elements of athletics aid (and other benefits).  Terms and conditions of awarding athletics aid.  Individual and team limits.  Interaction with other aid.

3. General Principles

4. What is athletics aid?  Financial aid that is awarded on any basis that is related to athletics ability, participation or achievement.  NCAA Bylaws15.02.4.1 (DI); 15.2.1 (a) (DII)  Division III precludes the receipt of financial aid based on athletics leadership, ability, participation or performance.  NCAA Bylaw 15.4.1 (DIII)

5. Eligibility for Athletics Aid  Division I (15.01.5)  Meet applicable NCAA (Bylaw 14), conference and institutional regulations.  Initial enrollment in a minimum full-time program of studies, unless enrolled in hours required for graduation.  Is an undergraduate or graduate student with eligibility remaining in 5 year clock.  Exceptions:  Post-eligible student-athletes.  Former student-athletes.

6. Eligibility for Athletics Aid  Division II (15.1)  Meet applicable NCAA (Bylaw 14), conference and institutional regulations.  Athletics aid may be granted for a maximum of 10 semesters/15 quarters.  Initial enrollment in a minimum full-time program, unless enrolled in hours required for graduation.  Exception:  Institutional aid provided after 10 semester/quarters is left to discretion of institution.

7. Elements of Athletics Aid (and Other Benefits)

8. Traditional Elements  Division I (15.2) and Division II (15.3.2)  Tuition and Fees.  Expenses associated with fees for courses in which student-athlete is enrolled and the institution pays such fees for other students receiving grant-in-aid.  Room and Board.  On- or off-campus living expenses.  Books (and supplies).  Course-related books and supplies.

9. Hot Topic: Meals and Snacks  Meals and snacks provided as benefits incidental to participation in intercollegiate athletics need not be deducted from the student-athlete’s board allowance.  Such meals may be received by a student- athlete who is not receiving athletics aid.  NCAA directive clear that regular replacement of meals is discouraged.  Division I may provide “snacks” at any time.

10. Other Expenses Related to Attendance  Division I Autonomy Legislation  Cost-of-attendance items other than “traditional” grant-in-aid elements.  Transportation, miscellaneous personal expenses, etc.  Funds inclusive of such expenses may be disbursed at institution’s discretion.  (i.e. per semester, per month)  Other DI – non-autonomy institutions may opt-in.

11. Student Assistance Fund  Provision of funds from the NCAA for the purpose to assist Division I student-athletes with special financial needs.  May NOT be used to finance salaries, grants-in-aid (other than summer school), capital improvements, stipends and outside athletics development opportunities.  Per NCAA rule, not required to count toward individual or team limits.  Exception: May be used to provide other expenses related to attendance as part of SA financial aid agreement, but must be counted under this circumstance.

12. Other Benefits Available to Student-Athletes  Bylaw 16: Awards, Benefits and Expenses  Awards  Complimentary Admissions and Tickets  Academic and Other Support Services  Medical Expenses  Practice and Competition  Such benefits may or may not be included within financial aid calculations.

13. Terms and Conditions of Awarding Athletics Aid

14. Awarding Athletics Aid  Student-athlete must be provided with written statement detailing the amount, duration, conditions and terms of the award (15.3.2.2 (DI), 15.6.2.3 (DII)).  The financial authority must authorize award by providing signature on written statement.  Yearly awards shall be awarded in equal amounts for each term of the academic year  Division I:  Financial aid offers may include a period between one and five years.  Division II:  Financial aid offers are limited to a one-year period.

15. Letter of Intent Programs and Financial Aid Agreements  Division I:  Written offer of aid prior to signing date. May occur on or after August 1 of prospective student-athlete’s senior year. (NOT FAA)  Financial Aid Agreements (and National Letter of Intent (NLI) may be provided during designated early and regular signing periods.  Exception: Midyear high school enrollee, midyear JC transfer.  Division II:  Written offer of aid prior to signing date. (NOT FAA)  Financial Aid Agreements (and National Letter of Intent (NLI) may be provided during designated early and regular signing periods.

16. Hot Topic: Multiyear Agreements  At the DI level, an athletics grant-in-aid shall neither be awarded for a period less than one academic year nor for a period that would exceed the student-athlete’s fiver year period of eligibility.  NCAA Bylaw 15.02.7 (DI)  Multiyear agreements may include any combination (including no aid) of athletics aid for a designated period (DI O.I. 7/23/15):  1 year award: 0% 1 st year, 25% 2 nd year  No NLI and period of award begins in 2 nd year  3 year award: 25% 1 st year, 0% 2 nd year, 75% 3 rd year  5 year award: 100% 1 st year, 0% 2 nd – 5 th years

17. Financial Aid Exceptions – Less Than One Academic Year  Division I Exceptions (15.3.3.1.1):  Midyear enrollment  Final semester/quarter  Graduated during previous year and will exhaust eligibility in Fall term  One-time exception  Post-eligible/Medical noncounter  Division II Exceptions (15.1.1):  Final semester/quarter  Initial award of athletics aid (15.6.4.2.1)

18. Summer Athletics Aid  Divisions I (15.2.8)  Considered a separate award.  May be awarded to both incoming and current student-athletes.  Current students: no minimum enrollment restrictions.  Incoming student-athletes (new and transfer students) must be enrolled in 6 hours of coursework.  Division II (15.2.1.1)  Athletics aid may be awarded to attend a summer term (or other optional terms).  May be awarded to both incoming and current student-athletes.

19. During the Period of Award: Increases  Division I (15.3.4):  Increases may occur at any time and for any reason.  Must be prorated and may not be made retroactive (15.3.1.3).  Division II (15.6.4.2)  Increases may occur for any reason prior to the period of award. Once period begins, athletics aid may only be increased if the institution can demonstrate that such an increase is unrelated in any manner to an athletics reason.  Must be prorated and may not be made retroactive (15.1.1.3).

20. During the Period of Award: Reduction or Cancellation  Divisions I (15.3.4.3) and II (15.6.4.3):  Reduction or cancellation during the period of award may not occur:  On the basis of a student’s athletics ability, performance or contribution to a team’s success.  Because of an injury, illness or physical or mental condition.  For any other athletics reason.

21. During the Period of Award: Reduction or Cancellation  Divisions I (15.3.4) and II (15.6.4):  Reduction or cancellation during the period of award may only occur:  SA rendered ineligible for intercollegiate competition.  Fraudulent misrepresentation.  Engages in serious misconduct by regular student disciplinary authority.  Nonathletically related conditions (i.e. team, departmental and/or institutional policies).  Voluntarily withdraws from the sport for personal reasons.

22. Renewals, Reductions and Nonrenewals  Institutional Obligation (15.3.7.1 (DI), 15.6.5.1 (DII):  Institution must notify all athletics aid recipients, after the period of award, whether athletics aid will be renewed, reduced or nonrenewed.  Notification must be in writing and occur no later than July 1 prior to the upcoming academic year.  Notification must be issued by the institution’s regular authority for awarding financial aid.  An institution is not required to notify multiyear award recipients of athletics aid status until period of award expires.

23. Reductions and Nonrenewals  Division I Non-Autonomy Institutions and Division II:  At the end of the period of award, athletics financial aid may be reduced or nonrenewed for any reason, including athletics reasons.  Division I Autonomy (and opt-in) Institutions (15.3.5.3):  Reduction or nonrenewal after the period of award may not occur:  On the basis of a student’s athletics ability, performance or contribution to a team’s success.  Because of an injury, illness or physical or mental condition.  For any other athletics reason.

24. Release of Obligation to Provide Athletically- Related Aid – One Year Award  Division I (15.3.4.2.5, 15.3.5.1.3)  Prior to the beginning of the academic year; and for single year awards only, a student-athlete who is awarded institutional financial aid of equal or greater value than his or her athletics aid may release the institution of its obligation to provide athletics aid.

25. Hearing Opportunity  Divisions I (15.3.2.3) and II (15.6.2.4)  Prior to any reduction, cancellation or nonrenewal of athletics aid, the student-athlete must be provided, by the regular financial aid authority, with a written notice of the decision and a written notice of an opportunity for an appeal hearing.  Written notice shall include the institution’s established policies and procedures for conducting a hearing and the deadline by which a student-athlete must request such a hearing.  The institution shall have established reasonable procedures for promptly conducting such a hearing.  Responsibility for the hearing shall not be delegated to the athletics department or faculty athletics committee.

26. Individual and Team Limits

27. Individual Limit  Divisions I (15.1) and II (15.3)  An institution shall not award financial aid to a student-athlete, including athletics aid and any other financial aid, that exceeds the cost-of-attendance  Exception – A student-athlete may receive a Pell Grant in addition to athletics aid without any regard for NCAA cost-of-attendance limitations (15.1.1 (DI), E.C. 2/9/98 (DII).  Types of aid included in NCAA cost-of-attendance limitation:  Government grants  Other scholarships  Gifts  Professional sports stipend  Athletics participation compensation  Loans

28. Team Limits  Counter (15.5.1 (DI), 15.4.1 (DII).  A student-athlete who receives financial aid based in any degree upon athletics ability and must be included in the maximum award limitations by sport.  Team limits may be based on maximum award allowance as well as number of student-athletes receiving aid.  Division I (15.5.2, 15.5.3, 15.5.5, 15.5.6)  Equivalency (percentage based) v. Head Count Sports (all or nothing)  Slight differences between FBS (85 counters) and FCS (85 counters, 63 equivalencies) football.  Division II (15.4.2)  Equivalency Sports (percentage-based)

29. Division I Team Limits

30. Equivalency Computation  In equivalency sports, once a student-athlete becomes a counter (15.5.3.2 (DI), 15.4.2.2 (DII):  The institution shall count all institutional aid received during the academic year for tuition and fees, room and board, books ($800) and other expenses associated with attendance (autonomy conferences only) received up to a full grant-in-aid.  Exempted government grants, outside scholarships and institutional aid may be excluded from the total amount of aid received.  A fraction is created, with the amount received by the student- athlete as the numerator and the full grant-in-aid value as the denominator.  Institutions may use the actual or average cost of a full grant-in-aid for all students as the denominator.

31. Equivalency Computation  Example:  DI Men’s Golf student-athlete receives a $20,000 athletics aid award for the academic year.  Institution’s average full grant-in-aid costs for all students is $40,000 for the academic year.  The maximum number of scholarships allowed for the men’s golf program is 4.5 equivalencies.  Equivalency Computation:  $20,000 / $40,000 =.50 or 50%  This student-athlete’s award would count as.50 toward the 4.5 limit.

32. Interaction with Other Aid

33. Institutional Academic Aid  Institutional academic aid may be accepted by student-athletes in addition to athletics aid provided:  Academic aid meets exemption criteria per NCAA bylaw 15.5.3.2.4 (DI) or 15.5 (DII)  Division I academic honor award exemption:  New student: top 10%, 3.5 GPA, 105 ACT or 1200 SAT Sum  Renewal: 3.0 GPA  Also applies to state awards based solely on academic criteria (Bright Flight)  Division II academic award exemption:  New student: top 20%, 3.5 GPA, 100 ACT or 1140 SAT Sum  Renewal: 3.3 GPA  If the student fails to meet these criteria, aid is considered countable toward team limit.

34. Honorary Academic Award  A student-athlete may receive an honorary award for academic achievement or a research grant without counting toward team limits so long as (15.02.6 (DI), 15.5 (DII)):  The award or grant is a standing and established scholarship or grant.  Basis of the award is the candidate’s academic record at awarding institution.  The grant was awarded based on competition among students of a particular class or college (may include other criteria, e.g. race, gender, financial need, etc.)

35. Outside Scholarships  Student-athletes may receive aid from established outside source, even if related to athletics ability, without counting toward team limits so long as (15.2.6.3 (DI), 15.2.2.3 (DII)  The recipient’s choice of institution is not restricted by the donor.  There is no direct connection between the donor and the student-athlete’s institution.  The financial aid is not provided by an outside sports team or organization that conducts a competitive sports program to an individual who is or has been a member of that team or organization (DI clarification 4/23/15).

36. Other Grants and Loans  Student-athletes may receive additional grants and loans, however, the type determines whether the aid is considered countable toward individual and team limits.  Need based government grants.  Parent or legal guardian contributions.  Loans.  Military and other service benefits.  Dependent tuition assistance.  Receipt of countable aid or aid beyond COA may necessitate a reduction in athletics or other aid types.  Written in to financial aid agreements.

37. Questions?