Division I Financial Aid Part II

1. Division I Financial AidPart II Kris Richardson Alex Smith

2. Learning Objectives • Assess whether student-athletes on your campus may receive a miscellaneous expense allowance for 2012-13. • Evaluate alternatives under consideration to permit student-athletes to receive a miscellaneous expense allowance. • Discuss financial aid legislation identified for the NCAA Working Group on Collegiate Model – Rules’ review.

3. Overview • Miscellaneous expense allowance. • NCAA Proposal No. 2011-96. • Models under consideration. • Rules Working Group review of NCAABylaw 15. • Proposed action plan and timeline. • Areas for review.

4. Miscellaneous Expense AllowanceProposal No. 2011-96

5. Miscellaneous Expense Allowance • Proposal No. 2011-96. • October 27, 2011: Legislation adopted. • November 9-16, 2011: National Letter of Intent early signing period.

6. Miscellaneous Expense Allowance • Proposal No. 2011-96. • 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.

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

8. 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.

9. 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.

10. Miscellaneous Expense AllowanceProposed Models

11. 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.

12. Miscellaneous Expense Allowance • No vote by NCAA Division I Board of Directors until at least August. • Legislation would not be effective before 2013-14 academic year.

13. 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.

14. Proposed Model 1: MiscellaneousExpense Allowance

15. Proposed 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.

16. Proposed Model 1:Miscellaneous Expense Allowance • Permit up to $2,000 of “exempt aid,” not to exceed cost of attendance, when all sources ofaid countable toward individual limits, plus the Pell Grant, 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.

17. Proposed Model 1:Miscellaneous Expense Allowance • Alternative 1. • Limit miscellaneous expense allowance for an equivalency grant based on proportionality. • Example: 0.33 or less = $500 0.34 - 0.66 = $1,000 0.67 - 0.99 = $1,500 1.0 = $2,000.

18. Proposed Model 1:Miscellaneous Expense Allowance • Alternative 2. • Exempt Pell Grant from “individual limit” calculation. • Permits more Pell Grant recipients to receive the full $2,000.

19. Proposed Model 1:Miscellaneous Expense Allowance • Examples. • Cost of Attendance = $25,000. • Full Grant-in-Aid = $22,000.

20. Proposed Model 1:Miscellaneous Expense Allowance • Student-Athlete 1, Amy. • Expected Family Contribution = $0. • Athletics Grant-in-Aid = $22,000; • Pell Grant = $5,500; • Other Grants and Scholarships = $0.

21. Proposed Model 1:Miscellaneous Expense Allowance • Student-Athlete 2, Bob. • Expected Family Contribution = $10,000. • Athletics Grant-in-Aid = $7,000; • Pell Grant = $0; • Other Grants and Scholarships = $3,000.

22. Proposed Model 1:Miscellaneous Expense Allowance • Student-Athlete 3, Carol. • Expected Family Contribution = $20,000. • Athletics Grant-in-Aid = $11,400; • Pell Grant = $0; • Other Grants and Scholarships = $8,600.

23. Proposed Model 2:Unmet Need Grant

24. Proposed Model 2: Unmet Need Grant • Maintain existing definition of a full grant-in-aid. • Maintain current regulations and exemptions concerning individual financial aid limits regarding cost of attendance.

25. Proposed 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 student-athlete who receives a full or equivalency grant-in-aid.

26. Proposed Model 2: Unmet Need Grant • Determining Unmet Need. • Student-athlete shall file a FAFSA. • If not eligible to file, follow institution’s uniform policy or institutional methodology to establish expected family contribution.

27. Proposed Model 2: Unmet Need Grant • Unmet Need. • Equals cost of attendance – expected family contribution – grant-in-aid – other gift or grant aid. • Unmet Need = Cost of Attendance – Expected Family Contribution – Grant-in-Aid – (other gift/grant aid).

28. Proposed Model 2: Unmet Need Grant • Unmet Need. • Outside gift aid and exempt institutional aid is included when determining unmet need, regardless of whether the aid counts toward cost of attendance.

29. Proposed Model 2: Examples

30. Proposed Model 2: Unmet Need Grant • Examples. • Cost of Attendance = $25,000. • Full Grant-in-Aid = $22,000.

31. Proposed Model 2: Unmet Need Grant • Student-Athlete 1, Amy. • Expected Family Contribution = $0. • Athletics Grant-in-Aid = $22,000; • Pell Grant = $5,500; • Other Grants and Scholarships = $0.

32. Proposed Model 2: Unmet Need Grant • Student-Athlete 2, Bob. • Expected Family Contribution = $10,000. • Athletics Grant-in-Aid = $7,000; • Pell Grant = $0; • Other Grants and Scholarships = $3,000.

33. Proposed Model 2: Unmet Need Grant • Student-Athlete 3, Carol. • Expected Family Contribution = $20,000. • Athletics Grant-in-Aid = $11,400; • Pell Grant = $0; • Other Grants and Scholarships = $8,600.

34. Proposed Model 3:Institutional Supplement to NCAA Student-Athlete Opportunity Fund

35. Proposed Model 3:Institutional Supplement toNCAA Student-Athlete Opportunity Fund • Permit institutions to supplement NCAA Student-Athlete Opportunity Fund. • Limit is $2,000 multiplied by total number of grants-in-aid awarded.

36. Proposed Model 3:Institutional Supplement toNCAA Student-Athlete Opportunity Fund • Example:

37. Proposed Model 3:Institutional Supplement toNCAA 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 to any student-athlete.

38. Proposed Model 3:Institutional Supplement toNCAA Student-Athlete Opportunity Fund • New allocation of funds not restricted to miscellaneous expenses allowances. • May be used for other direct benefits to student-athletes as currently permitted.

39. Proposed Model 3:Institutional Supplement toNCAA 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.

40. Comparison of Proposed Models

41. Miscellaneous Expense AllowanceProposed Models • What feedback do you have on the proposed models? • What other models should be considered?

42. Rules Working Group Review of Bylaw 15

43. Rules Working Group Review of Bylaw 15 • Begins this year. • Proposed action plan and timeline. • Reviewed by Rules Working Group in April. • Will be presented to NCAA Division I Awards, Benefits, Expenses and Financial Aid Cabinet in June. • Information available on NCAA Working Group on Collegiate Model – Rules page at ncaa.org.

44. Rules Working Group Review of Bylaw 15 • Need feedback. • Surveys will be distributed. • Focus group and subgroup participation. • Key Dates. • July 2012. • Action plan finalized by Rules Working Group. • Action plan published for membership.

45. Rules Working Group Review of Bylaw 15 • Key Dates. • Fall/Winter 2012. • Administer Phase I survey. • February 2013. • Cabinet: review Phase I survey results. • June 2013. • Cabinet: develop Phase I commitments and concepts. • August 2013. • Board of Directors review of Phase I commitments and concepts.

46. Rules Working Group Review of Bylaw 15 • Key Dates. • September 2013. • Begin Phase II review. • February 2014. • Development of commitments and concepts for Phase II. • April 2014. • Board of Directors review of Phase II commitments and concepts.

47. Rules Working Group Review of Bylaw 15 • Areas for review – Phase I. • Equivalency computation method; • Team maximum financial aid limitations; • Head count and equivalency sports • Number of grants-in-aid in each sport and • Terms and conditions of awarding institutional financial aid.

48. Rules Working Group Review of Bylaw 15 • Areas for review – Phase II. • Role of recruited status on financial aid; • Period of award; • Summer financial aid; and • Retroactive financial aid.

49. Rules Working Group Review of Bylaw 15 • Areas for review – Phase II. • Role of recruited status on financial aid; • Period of award; • Summer financial aid; and • Retroactive financial aid.

50. Rules Working Group Review of Bylaw 15 • What other topics should be part of the review? • What commitments should govern financial aid legislation?