NCAA Financial Aid Basics _______________________________ *The first tool to help you understand the NCAA and how it works regarding financial aid, is Bylaw 15 in the NCAA Manual. _______________________________ 15.01 – General Principles 15.01.1: Institutional Financial Aid Permitted. A student-athlete may receive scholarships or educational grants-in-aid administered by an educational institution that do not conflict with the governing legislation of this Association. 15.01.2: Improper Financial Aid. Any student-athlete who receives financial aid other than that permitted by the Association shall not be eligible for intercollegiate athletics. 15.01.4: Contributions by Donor. An individual may contribute funds to finance a scholarship or grant-in-aid for a particular sport, but the decision as to how such funds are to be allocated in the sport shall rest exclusively with the institution. It is not permissible for a donor to contribute funds to finance a scholarship or grant-inaid for a particular student-athlete. 15.01.6 Maximum Institutional Financial Aid to Individual. An institution shall not award financial aid to a student-athlete that exceeds the cost of attendance that normally is incurred by students enrolled in a comparable program at that institution. 15.02 – Definitions and Applications 15.02.3: Counter. A “counter” is an individual who is receiving institutional financial aid that is countable against the aid limitations in a sport. 15.02.4.1: Institutional Financial Aid. Scholarships Grants Tuition Waivers Employee dependent tuition benefits, unless the parent or legal guardian of student-athlete has been employed as a full-time faculty/staff member for a minimum of five years Loans 15.02 – Definitions and Applications 15.02.4.2: Other Permissible Financial Aid. Financial aid received from anyone upon whom the student-athlete is naturally or legally dependent. Financial aid awarded solely on basis having no relationship to athletics ability. Financial aid awarded through an established and continuing outside program. Educational expenses awarded by the U.S. Olympic Committee. 15.02.5: Full Grant-in-Aid. A full grant-in-aid is financial aid that consists of tuition and fees, room and board, and required course related books. 15.1 – Maximum Limit on Financial Aid – Individual A student –athlete shall not be eligible to participate in intercollegiate athletics if he or she receives financial aid that exceeds the value of cost of attendance as defined in Bylaw 15.02.2. A student-athlete may receive institutional financial aid based on athletics ability and educational expenses awarded per Bylaw 126.96.36.199 up to the value of a full grant-in-aid, plus any other financial aid up to the cost of attendance. 15.1.1: Exception for Pell Grant. A studentathlete who receives a Pell Grant may receive financial aid equivalent to the limitation set forth in Bylaw 15.1 or the value of a full grant-in-aid plus the Pell Grant, whichever is greater. 15.2 – Elements of Financial Aid 188.8.131.52: (Financial Aid from Outside Sources.) No Relationship to Athletics Ability. A student-athlete may receive financial aid awarded solely on bases having no relationship to athletics ability. 184.108.40.206: (Financial Aid from Outside Sources.) Financial Aid From an Established and Continuing Program. (In other words, athletically related.) A student-athlete may receive financial aid through an established and continuing program to aid students, provided: The recipient’s choice of institutions is not restricted by the donor of the aid. There is no direct connection between the donor and the studentathlete’s institution. 15.2.8: Summer Financial Aid. Summer financial aid may be awarded only to attend the awarding institution’s summer term, summer school or summer-orientation program. 15.3 – Terms and Conditions of Awarding Institutional Financial Aid 220.127.116.11.1: One Year Period. An institution may award athletically related financial aid to a student-athlete for a period of less than one academic year only under the following circumstances: Midyear Enrollment Final Semester/Quarter Graduated During Previous Academic Year and Will Exhaust Eligibility During the Following Fall Term. One Time Exception. Eligibility Exhausted/Medical Noncounter. 18.104.22.168: Increase Permitted. Institutional financial aid may be increased for any reason prior to the commencement of the period of the award. Once the period of the award begins, institutional aid may only be increased if the institution can demonstrate that such an increase in unrelated in any manner to an athletics reason. 15.3 – Terms and Conditions of Awarding Institutional Financial Aid 22.214.171.124 Reduction or Cancellation Permitted. . Institutional financial aid based in any degree on athletics ability may be reduced or canceled during the period of the award if the recipient: Renders himself or herself ineligible for intercollegiate competition. Fraudulently misrepresents any information on an application, letter of intent or financial aid agreement. Engages in serious misconduct warranting substantial disciplinary penalty. Voluntarily (on his or her own initiative) withdraws from a sport at any time for personal reasons. 15.3 – Terms and Conditions of Awarding Institutional Financial Aid 126.96.36.199; (Renewals and Nonrenewals) Institutional Obligation. The renewal of institutional financial aid based in any degree on athletics ability shall be made on or before July 1 prior to the academic year in which it is to be effected. The institution shall promptly notify in writing each studentathlete who received an award the previous academic year and who still has eligibility remaining in the sport in which financial aid was awarded the previous academic year whether the grant has been renewed or not renewed for the ensuing academic year. Notification of financial aid renewals must come from the institution’s regular financial aid authority and not from the institution’s athletics department. 15.5 – Maximum Institutional GrantIn-Aid Limitations by Sports 188.8.131.52: No Athletics Aid – Certification Required. A student-athlete (except for a recruited Football or Basketball student-athlete) who does not receive athletically related financial aid but receives institutional financial aid shall not be a counter if the faculty athletics representative and the director of financial aid have certified that the student-athlete’s financial aid was granted without regard in any degree to athletics ability. The certification shall be kept on file in the office of the athletics director. 15.5 – Maximum Institutional GrantIn-Aid Limitations by Sports Headcount Sports vs Equivalency Sports. 15.5.2: Headcount Sports and Their Limitations: Football(85) Men’s Basketball(13) Women’s Basketball(15) Women’s Gymnastics(12) Women’s Tennis(8) Women’s Volleyball(12) 15.5 – Maximum Institutional GrantIn-Aid Limitations by Sports 15.5.3: Equivalency Sports and Their Limitations: Men’s Golf(4.5) Men’s Swimming(9.9) Men’s Tennis(4.5) Men’s Track(12.6) Men’s Volleyball(4.5) Women’s Golf(6) Women’s Soccer(14) Women’s Softball(12) Women’s Swimming(14) 15.5 – Maximum Institutional GrantIn-Aid Limitations by Sports 15.5.4: Baseball Limitations: 11.7 Limit of 27 student-athletes on aid. Minimum of .25 equivalency per student-athlete. 15.5.6: Football Limitations: Can have no more than 25 initial counters in a given year. Case Studies & Best Practices Case Study #1 Student A was recruited to play offensive tackle for the football team. His financial aid package is as such: $13,704 – Athletic Scholarship $5,550 – Pell Grant $2,280 – Parent Tuition Benefit $21,534 – Total Is this permissible? Why or why not? Case Study #2 Student B is a diver for the women’s diving team. Her financial aid package is as such: $4,560 – Off-Campus Scholarship $5,550 – Pell Grant $2,280 – School Grant (Need based) $12,390 – Total Is this permissible? Why or why not? Case Study #3 Student C was recruited as a kicker for the football team. His financial aid package is as such: $5,550 – Pell Grant $2,280 – School Grant (need based) $7,830 – Total Is this permissible? Why or why not? Case Study #4 Student D is a pole vaulter for the women’s track team. Her financial aid package is as such: $400 – Athletics Aid (Books) $1,000 – Off-Campus Scholarship $2,280 – School Grant (need based) $3,680 – Total Is this permissible? Why or why not? Case Study #5 Student E is a member of the women’s gymnastics team. Her financial aid package is as such: $12,184 – Athletics Scholarship $2,280 – Parent Tuition Benefit $14,464 – Total Is this permissible? Why or why not? Best Practice #1 How do you monitor your off-campus scholarships? Best Practice #2 How do you monitor your department (non-athletic) scholarships? Best Practice #3 How do you monitor your PELL Grants? Best Practice #4 How do you build and maintain mutually beneficial relationships with your contacts in athletics? Best Practice #5 How do you avoid overawards when giving special assistant/opportunity funds late in the year?