Financial Aid for NCAA Student Athletes – Presenter

Report
Financial Aid for NCAA
Student-Athletes:
Update on NCAA Bylaw 15
0011 0010 1010 1101 0001 0100 1011
Kris Richardson
1
2
4
NCAA Academic and Membership Affairs
Overview
• Impact of NCAA Division I Proposal
No. 2011-97.
– Period of award.
– Aid to former student-athletes.
• New legislation.
• Miscellaneous expense allowance.
– Proposal No. 2011-96.
– Models under consideration.
• Opportunities for involvement.
Impact of NCAA Proposal
No. 2011-97
0011 0010 1010 1101 0001 0100 1011
1
2
4
Period of Award
• Minimum - one academic year.
• Maximum - student-athlete’s period of eligibility.
One-Year Awards
• Aid must be disbursed in equal amounts.
• Increase at any time for any reason.
• No change to reduction/cancellation legislation.
One-Year Awards
• Student may release institution from obligation
to provide athletics aid.
– Must be awarded institutional aid unrelated to
athletics of equal or greater value than the signed
award of athletically related aid.
Multiyear Awards
• Cannot exceed period of eligibility.
• Increase at any time for any reason.
• During the period, no change to
reduction/cancellation legislation.
• Student cannot release institution from obligation
to provide athletics aid.
Multiyear Awards - Renewals
• Reduction occurs when:
– Renewal period is for fewer years than the
original agreement.
• Unless the renewal includes the remaining years
of the student-athlete's eligibility in all sports
(e.g., five-year period of eligibility).
Multiyear Awards - Renewals
• Reduction occurs when:
– Average amount of aid provided per year in the
renewal is less than the average amount of aid
provided per year in the original agreement.
• Includes any increases during the period of the
original award.
Case Study
• Caitlin signs a three-year agreement with State
University for tuition and books.
– Valued at $6,000 per year.
– Full grant-in-aid is valued at $10,000.
– Agreement represents 0.60 equivalency.
Year
Fall
Spring
Equivalency
2012-13
$2,600 + books
$2,600 + books
0.60
2013-14
$2,600 + books
$3,600 + books
0.70
2014-15
$3,600 + books
$3,600 + books
0.80
Case Study
• Coach comes to see you about Caitlin’s
renewal.
• Plans to renew her for two years at 0.65
equivalency.
• Is this a reduction?
Case Study
• Reduction occurs if:
– Renewal period is for fewer years than the
original agreement, unless it is for the
remainder of the eligibility period.
• Original agreement was for three years.
• Renewal is for two years.
– But, renewal is for the remainder of her
eligibility period.
Case Study
• Reduction occurs if:
– Average amount of aid provided per year in
the renewal is less than the average amount of
aid provided per year in the original
agreement.
• Original agreement represented 0.60
equivalency.
• Renewal represents 0.65 equivalency.
Case Study
• But, must include any increases during the
period of the original award.
– Renewal represents 0.65 equivalency.
– Average amount of aid provided per year.
• (.60 + .70 + .80) / 3 = 0.70 equivalency.
• This is a reduction and Caitlin must be notified
of the opportunity for a hearing.
Aid to Former
Student-Athletes
Eligibility of Student-Athletes for
Institutional Financial Aid
• Proposal No. 2011-97.
– May award institutional financial aid during any
term in which a student-athlete was enrolled
initially in a minimum full-time program of
studies during the term if:
• Undergraduate with eligibility remaining under
five-year rule.
or
• Graduate student eligible under
postbaccalaureate /graduate student legislation.
Aid to Former Student-Athletes
• Proposal No. 2011-97.
– Eliminated the “five in six years” limit on
receipt of unearned athletics aid.
– Permits former student-athletes to receive
unearned aid for any term in which they are
enrolled.
• Full time or part time.
Newly Adopted Legislation
0011 0010 1010 1101 0001 0100 1011
1
2
4
Proposal Nos. M-2011-7 and
M-2012-2 Books
• If student enrolls for less than a full academic
year and receives any portion of a book
allowance, it is represented proportionately in
the numerator.
– $400 for semester schools.
– $534 or $267 for quarter schools.
• Remains $800 in the denominator.
Newly Adopted Legislation
• Proposal No. 2011-43.
– Football Bowl Subdivision only.
• Reduces limit of signees from 28 to 25.
• Limit applies from December 1 through May 31.
• Student who becomes a counter for the academic
year during which signing occurs is not included
in limit.
– Effective August 1, 2012.
Newly Adopted Legislation
• Proposal No. 2011-74.
– Summer athletics aid not required to be in
proportion to academic year aid if:
• Student-athlete has exhausted eligibility; and
• Is enrolled in degree courses.
– Not required to graduate at end of summer
term.
– Not required to be enrolled in all degree
courses offered.
– Effective Immediately.
Newly Adopted Legislation
• Proposal No. 2011-75.
– In football, prospective student-athlete who
receives athletically related financial aid during
a summer term is an initial and overall counter
for the next academic year.
– Applies even if prospective student-athlete is a
nonqualifier or does not enroll.
– Effective Immediately.
Newly Adopted Legislation
• Proposal No. 2011-77.
– Exception to baseball’s minimum equivalency
requirement.
• Final year of eligibility; and
• Never received athletically related aid in
baseball.
– Effective August 1, 2012.
Miscellaneous Expense
Allowance
0011 0010 1010 1101 0001 0100 1011
1
2
4
Miscellaneous Expense Allowance
• Proposal No. 2011-96.
– October 27, 2011: Legislation adopted.
– November 9-16, 2011: National Letter of
Intent early signing period.
– 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 twoyear college transfers.
– January 14: Legislation defeated.
Miscellaneous Expense Allowance
• Financial aid agreements issued before
December 20, 2011, could include a
miscellaneous expense allowance.
• No miscellaneous expense allowances for
summer terms.
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.
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.
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.
Miscellaneous Expense Allowance
• No vote on this initiative before August 2
meeting of NCAA Division I Board of
Directors.
• Legislation would not be effective before
2013-14 academic year.
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.
Miscellaneous Expense Allowance
Model 1: Miscellaneous Expense
Allowance
• Maintain current definition of a full grant-in-aid.
• Maintain current regulations and exemptions
concerning individual financial aid limits
regarding cost of attendance.
Miscellaneous Expense Allowance
Model 1: Miscellaneous Expense
Allowance
• Permit up to $2,000 of “exempt aid,” not to
exceed cost of attendance, when all sources of aid
countable toward individual limits 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.
Miscellaneous Expense Allowance
Model 1: Miscellaneous Expense
Allowance
• Alternative 1.
– Limit miscellaneous expense allowance for an
equivalency grant based on proportionality.
– Example:
• 0.33 or less = $500
• 0.67 - .99 = $1,500
0.34 - 0.66 = $1,000
1.0 = $2,000.
Miscellaneous Expense Allowance
Model 1: Miscellaneous Expense
Allowance
• Alternative 2.
– Exempt Pell Grant from counting toward
individual limit.
– Would permit more Pell Grant recipients to
receive the full $2,000.
Miscellaneous Expense Allowance
Model 2: Unmet Need Grant
• Maintain existing definition of a full grant-inaid.
• Maintain current regulations and exemptions
concerning individual financial aid limits
regarding cost of attendance.
Miscellaneous Expense Allowance
Model 2: Unmet Need Grant
• 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 studentathlete who receives a full or equivalency grantin-aid.
Miscellaneous Expense Allowance
Model 2: Unmet Need Grant
• Determining Unmet Need.
– Student-athlete shall file a FAFSA.
– If not eligible to file, shall follow institution’s
uniform or institutional methodology to establish
expected family contribution.
• Unmet Need.
– Equals cost of attendance – expected family
contribution – grant-in-aid – other gift or grant aid.
– Outside gift aid and exempt institutional aid that
does not count toward cost of attendance is included
when determining unmet need.
Miscellaneous Expense Allowance
Model 2: Unmet Need Grant
• Examples.
• Cost of Attendance = $25,000 and Full Grantin-Aid = $19,000.
• Student-Athlete 1. Expected Family
Contribution = $0.
–
–
–
–
–
Athletics Grant-in-Aid = $19,000;
Pell Grant = $5,500;
Other Grants = $0.
Unmet Need is $500.
Unmet Need Grant of up to $500 may be provided.
Miscellaneous Expense Allowance
Model 2: Unmet Need Grant
• Cost of Attendance = $25,000 and Full Grantin-Aid = $19,000
• Student-Athlete 2. Expected Family
Contribution = $10,000
–
–
–
–
–
Athletics Grant-in-Aid = $2,000
Pell Grant = $0
Other Grants = $3,000
Unmet Need is $10,000.
Unmet Need Grant of up to $2,000 may be
provided.
Miscellaneous Expense Allowance
Model 2: Unmet Need Grant
• Cost of Attendance = $25,000 and Full
Grant-in-Aid = $19,000
• Student-Athlete 3. Expected Family
Contribution = $20,000
– Athletics Grant-in-Aid = $19,000
– Pell Grant = $0
– Other Grants = $0
– Unmet Need is $0.
– Unmet Need Grant not permissible.
Miscellaneous Expense Allowance
Model 3: Institutional Supplement to
NCAA Student-Athlete Opportunity Fund
• Permit institutions to supplement NCAA StudentAthlete Opportunity Fund by up to the total of
$2,000 multiplied by total number of grant-in-aid
awarded.
– Example:
• Head count awards = 130
• Equivalency awards = 80
• Permitted Student-Athlete Opportunity Fund
supplement
• (130+80)*$2,000 = $420,000.
Miscellaneous Expense Allowance
Model 3: Institutional Supplement to
Student-Athlete Opportunity Fund
• Continue to prohibit use of Student-Athlete
Opportunity Fund toward “countable” athletics
aid, except summer school.
• Continue to permit institutions to use StudentAthlete Opportunity Fund funds for direct
benefits to student-athletes.
Miscellaneous Expense Allowance
Model 3: Institutional Supplement to
Student-Athlete Opportunity Fund
• 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 any student-athlete.
Miscellaneous Expense Allowance
Model 3: Institutional Supplement to
Student-Athlete Opportunity Fund
• New allocation of funds not restricted to
miscellaneous expenses allowances.
– May be used for other direct benefits to studentathletes as currently permitted.
Opportunities for Involvement
0011 0010 1010 1101 0001 0100 1011
1
2
4
Opportunities for Involvement
• Review of miscellaneous expense allowance
models is underway.
• Participate in the discussion.
– Talk with president or chancellor.
– Talk with faculty athletics representative.
– Talk with athletics.
• Provide feedback via ncaa.org.
Opportunities for Involvement
• Review of Bylaw 15 begins this year.
– Plan will be presented to cabinet in June.
• Areas for review.
– Phase I
• Equivalency computation method;
• Team maximum financial aid limitations (head
count and equivalency, as well as number of
grants-in-aid); and
• Terms and conditions of awarding institutional
financial aid.
Opportunities for Involvement
• Areas for review.
– Phase II
• Role of recruited status on financial aid;
• Period of award;
• Summer financial aid; and
• Retroactive financial aid.
Opportunities for Involvement
• Surveys will be distributed.
– Need feedback from financial aid officials.
• Focus group and subgroup participation
opportunities.
• Information available on NCAA Working
Group on Collegiate Model – Rules page at
ncaa.org.
Opportunities for Involvement
• Participation on NCAA Division I Awards,
Benefits, Expenses and Financial Aid Cabinet.
– Two seats for financial aid officers.
• Private – Mike Scott, Texas Christian University.
• Public – Brian Quisenberry, Virginia Military
Institute.
– Four-year terms.
– Three in-person meetings per academic year.
Opportunities for Involvement
• Participation on Awards, Benefits, Expenses
and Financial Aid Cabinet.
– Accepting nominations from private institutions.
– Deadline is May 11.
– Term begins in July.
Review
• Impact of NCAA Proposal No. 2011-97.
– Period of award.
– Aid to former student-athletes.
• New legislation.
• Miscellaneous expense allowance.
– Proposal No. 2011-96.
– Models under consideration.
• Opportunities for involvement.
Questions?
0011 0010 1010 1101 0001 0100 1011
1
2
4

similar documents