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Financial Aid for NCAA Student-Athletes: Update on NCAA Bylaw 15 Kris Richardson NCAA Academic and Membership Affairs.

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Presentation on theme: "Financial Aid for NCAA Student-Athletes: Update on NCAA Bylaw 15 Kris Richardson NCAA Academic and Membership Affairs."— Presentation transcript:

1 Financial Aid for NCAA Student-Athletes: Update on NCAA Bylaw 15 Kris Richardson NCAA Academic and Membership Affairs

2 Overview Impact of NCAA Division I Proposal No –Period of award. –Aid to former student-athletes. New legislation. Miscellaneous expense allowance. –Proposal No –Models under consideration. Opportunities for involvement.

3 Impact of NCAA Proposal No

4 Period of Award Minimum - one academic year. Maximum - student-athlete’s period of eligibility.

5 One-Year Awards Aid must be disbursed in equal amounts. Increase at any time for any reason. No change to reduction/cancellation legislation.

6 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.

7 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.

8 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).

9 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.

10 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. YearFallSpringEquivalency $2,600 + books $2,600 + books$3,600 + books $3,600 + books 0.80

11 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?

12 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.

13 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.

14 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. ( ) / 3 = 0.70 equivalency. This is a reduction and Caitlin must be notified of the opportunity for a hearing.

15 Aid to Former Student-Athletes

16 Eligibility of Student-Athletes for Institutional Financial Aid Proposal No –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.

17 Aid to Former Student-Athletes Proposal No –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.

18 Newly Adopted Legislation

19 Proposal Nos. M and M 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.

20 Newly Adopted Legislation Proposal No –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.

21 Newly Adopted Legislation Proposal No –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.

22 Newly Adopted Legislation Proposal No –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.

23 Newly Adopted Legislation Proposal No –Exception to baseball’s minimum equivalency requirement. Final year of eligibility; and Never received athletically related aid in baseball. –Effective August 1, 2012.

24 Miscellaneous Expense Allowance

25 Proposal No –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 two- year college transfers. –January 14: Legislation defeated.

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

27 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.

28 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.

29 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.

30 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 academic year.

31 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.

32 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.

33 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

34 Alternative 1. –Limit miscellaneous expense allowance for an equivalency grant based on proportionality. –Example: 0.33 or less = $ = $1, = $1, = $2,000. Miscellaneous Expense Allowance Model 1: Miscellaneous Expense Allowance

35 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 1: Miscellaneous Expense Allowance

36 Maintain existing 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 2: Unmet Need Grant

37 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. Miscellaneous Expense Allowance Model 2: Unmet Need Grant

38 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

39 Examples. Cost of Attendance = $25,000 and Full Grant- in-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

40 Cost of Attendance = $25,000 and Full Grant- in-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

41 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 2: Unmet Need Grant

42 Permit institutions to supplement NCAA Student- Athlete 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 NCAA Student-Athlete Opportunity Fun d

43 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. Miscellaneous Expense Allowance Model 3: Institutional Supplement to Student-Athlete Opportunity Fund

44 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

45 New allocation of funds not restricted to miscellaneous expenses allowances. –May be used for other direct benefits to student- athletes as currently permitted. Miscellaneous Expense Allowance Model 3: Institutional Supplement to Student-Athlete Opportunity Fund

46 Opportunities for Involvement

47 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

48 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

49 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

50 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

51 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

52 Participation on Awards, Benefits, Expenses and Financial Aid Cabinet. –Accepting nominations from private institutions. –Deadline is May 11. –Term begins in July. Opportunities for Involvement

53 Review Impact of NCAA Proposal No –Period of award. –Aid to former student-athletes. New legislation. Miscellaneous expense allowance. –Proposal No –Models under consideration. Opportunities for involvement.

54 Questions?


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