Greg DanaKris Richardson

Learning ObjectivesRecognize 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.

OverviewMiscellaneous expense allowance.

Impact of NCAA Proposal No. 2011-97. Period of award. Aid to former student-athletes.

New legislation.

Recent interpretations.

Miscellaneous Expense AllowanceProposal 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 AllowanceEligibility 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 AllowanceMiscellaneous 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 AllowanceThree models currently under

consideration.

Miscellaneous expense allowance.

Unmet need grant.

Supplement NCAA Student Assistance Fund.

All would permit up to $2,000.

Period of AwardMinimum - 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 AwardsStudent 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 AwardsCannot 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 - RenewalsReduction 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 StudyCaitlin 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 SpringEquivalenc

y

2012-13$2,600 +

books$2,600 +

books0.60

2013-14$2,600 +

books$3,600 +

books0.70

2014-15$3,600 +

books $3,600 +

books0.80

Case StudyCoach comes to see you about Caitlin’s

renewal.

Plans to renew her for two years at 0.65 equivalency.

Is this a reduction?

Case StudyReduction 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 StudyBut, 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 AidProposal 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-AthletesProposal 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 LegislationProposal 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 LegislationProposal 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 LegislationProposal 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 student-athlete.

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

student-athlete.

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 LegislationProposal 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 BooksIf 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 AidOnce 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 AbilityCannot 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 AbilityMay certify institutional financial aid

unrelated in any degree to athletics ability if those factors:Were not specifically requested; andWere not taken into consideration in

awarding the aid.

Official interpretation (3/12/12, item 2)

Midyear Replacementof Multisport ParticipantInstitution may replace football or

women's volleyball student-athlete who:Graduates at midyear; orGraduated during the previous

academic year (including the summer) even if the student-athlete being "replaced" remains enrolled as a graduate student receiving athletically related financial aid and/or participates in another sport.

Midyear Replacementof Multisport ParticipantIn football, the replacement shall count

as an initial counter.Staff interpretation (4/22/11, Item a)

Midyear ReplacementReplaced Student-Athlete Remains Enrolled and Continues to Receive Athletics AidCounter 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 ExpensesStudent-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; andVacation-period expenses legislation.

Summer Financial Aid and Vacation Period ExpensesVacation-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)

ReviewMiscellaneous expense allowance.

Impact of Proposal No. 2011-97 Period of award. Aid to former student-athletes.

New legislation.

Recent interpretations.