NCAA Division III Secondary Case Review: Athletics as a Criterion in the Financial Aid Awarding Process

The Michael L. Buckner Law Firm continues its educational series on NCAA Division III legislation through a review of selected cases involving secondary rules-violations. Today’s post reviews a secondary case involving a violation of NCAA Division III Bylaw 15.4.1. The rule provides:

NCAA Bylaw 15.4.1: Consistent Financial Aid Package

The composition of the financial aid package offered to a student-athlete  shall be consistent with the established policy of the institution’s financial  aid office, regular institutional agency, office or committee for all students and  shall meet all of the following criteria:

(a) A member institution shall not consider athletics leadership, ability, participation or performance as a criterion  in the formulation of the financial aid package;

(b) The financial aid procedures used for a student-athlete are the same as the  existing official financial aid policies of the institution;

(c) The financial aid package for a particular student-athlete cannot be clearly distinguishable from the general pattern of all financial aid for all recipients at the institution; and

(d) The percentage of the total dollar value of institutionally administered grants and scholarships (or gift aid) awarded to student-athletes shall be closely equivalent to the percentage of student-athletes within the student body. A differential is defensible if it can be demonstrated that the average need of the student-athletes at the institution is equivalently greater than the average need of other students.

Facts: The institution included athletics as a criterion in the financial aid awarding process.  Specifically, the institution’s justification to the Division III Financial Aid Committee indicated that participation and leadership in high school athletics is considered along with participation and leadership in other non-athletic activities in the awarding of the a certain scholarship.

Institution Action: N/A

Enforcement Action: It was determined that the case should be classified as secondary and that the institution should be required to take the following actions prior to September 30, 2011:  (1) Submission to this office of an outline of the institution’s review and changes made to the financial aid process, including any relevant documentation; and (2)  Participation by institutional representatives in an educational session with the NCAA Division III Financial Aid Committee staff liaisons to discuss Division III financial aid legislation.

Eligibility Action: STAFF: N/A

Rationale: STAFF: N/A