Transcript Division I Financial Aid: Part I

Greg Dana
Kris Richardson
Learning Objectives
 Recognize eligibility for financial aid issues.
 Describe changes implemented by financial aid
reform.
 Apply recent changes in period of award and
terms and conditions legislation to financial aid
agreements and student-athletes on your campus.
Overview
 Miscellaneous expense allowance.
 Impact of NCAA Proposal No. 2011-97.
 Period of award.
 Aid to former student-athletes.
 New legislation.
 Recent interpretations.
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 two-year 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 grantin-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.
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.
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 fiveyear 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 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.
Case Study
 Charlie, nonrecruited, walk-on football studentathlete.
 June: Receives summer aid to take two
prerequisites for his anticipated degree program.
 August: Enrolls full time.
 Is Charlie a counter for 2012-13?
 Yes. Initial counter and overall counter.
Case Study
 Sean, recruited, walk-on football studentathlete.

June: Receives summer aid to attend bridge
program.

July: Certified as a nonqualifier.

August: Does not enroll.
 Is Sean a counter for 2012-13?
 Yes. Initial counter and overall counter.
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.
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.
Student-Athlete's Voluntary Release of
Institution's Obligation to Provide
Athletically Related Financial Aid
 Once signed by student, not permissible to
voluntarily release the institution's obligation to
provide athletically related financial aid.
 Except under conditions set forth in release of
obligation to provide athletically related financial
aid legislation.
Staff interpretation (9/21/11, Item a)
Certification of Institutional Aid
Unrelated to Athletics Ability
 Cannot certify institutional financial aid unrelated
in any degree to athletics ability if athletics
participation or achievements specifically
requested as part of application process.
Certification of Institutional Aid
Unrelated to Athletics Ability
 May certify institutional financial aid unrelated in
any degree to athletics ability if those factors:
 Were not specifically requested; and
 Were not taken into consideration in awarding the
aid.
Official interpretation (3/12/12, item 2)
Midyear Replacement
of Multisport Participant
 Institution may replace football or women's
volleyball student-athlete who:
 Graduates at midyear; or
 Graduated during the previous academic year
(including the summer) even if the studentathlete being "replaced" remains enrolled as a
graduate student receiving athletically related
financial aid and/or participates in another
sport.
Midyear Replacement
of Multisport Participant
 In football, the replacement shall count as an
initial counter.
Staff interpretation (4/22/11, Item a)
Midyear Replacement
Replaced Student-Athlete Remains
Enrolled and Continues to Receive
Athletics Aid
 Counter replaced at midyear may remain enrolled
at the same institution as a graduate student (or as
an undergraduate student seeking a second
baccalaureate degree) and continue to receive
athletically related financial aid.
Staff interpretation (7/1/11, Item a)
Summer Financial Aid and Vacation
Period Expenses
 Student-athlete enrolled in an institution's
summer term and required to remain on campus
for organized practice sessions, may receive
financial aid in accordance with:
 Summer financial-aid legislation; and
 Vacation-period expenses legislation.
Summer Financial Aid and Vacation
Period Expenses
 Vacation-period expenses, in combination with
any room and board financial aid, cannot exceed
full cost of room and board during the time in
which the student-athlete is required to remain on
campus.
Staff interpretation (5/13/11, Item a)
Calculating Average Number of Grants-in-Aid
Football Championship Subdivision Opponent
 When calculating the number of grants-in-aid
averaged over a rolling two-year period,
permissible to count greater of:
 Number of grants-in-aid awarded as of the first day
of classes for the academic year.
or
 Number of grants-in-aid awarded by the conclusion
of the academic year.
Calculating Average Number of Grants-in-Aid
Football Championship Subdivision Opponent
 Financial aid that could otherwise be exempted
from an institution's equivalency computation
may be included when calculating this average,
provided the full amount of the aid is also counted
toward:
 Student-athlete's equivalency; and
 Institutional grant-in-aid limitation.
Calculating Average Number of Grants-in-Aid
Football Championship Subdivision Opponent
 Cannot exempt financial aid to meet institutional
limitations and count the same aid for purposes of
the rolling two-year average.
Staff interpretation (9/9/11, Item a)
Review
 Miscellaneous expense allowance.
 Impact of Proposal No. 2011-97
 Period of award.
 Aid to former student-athletes.
 New legislation.
 Recent interpretations.