Financial Aid for NCAA StudentAthletes Update on NCAA

Financial Aid for NCAA Student-Athletes: Update on NCAA Bylaw 15 Kris Richardson 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

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 0. 60 2013 -14 $2, 600 + books $3, 600 + books 0. 70 2014 -15 $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

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

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 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 • 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 • 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 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 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 Student. Athlete 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

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?