The NCAA News - News and Features

June 22, 1998

Legislative assistance

1998 Column No. 25

Bylaw 15.1
Nonresident alien withholding tax

NCAA Divisions I and II institutions should note that the Internal Revenue Service requires that educational institutions must withhold tax from the taxable portion of scholarship payments made to nonresident alien (foreign) students. Further, per Bylaw 15.1, a student-athlete is not eligible to participate in intercollegiate athletics if he or she receives financial aid that exceeds the value of a full grant-in-aid, which consists of tuition and fees, room and board, and required course-related books. In addition, an institution may not provide a student-athlete financial aid that exceeds the full value of any one of the elements (i.e., tuition and fees, room and board, and books).

Accordingly, it would not be permissible for a Division I or II institution to provide a foreign student-athlete with a full grant-in-aid and, in addition, pay the nonresident withholding tax. Such an arrangement would result in the student-athlete receiving financial aid from his or her institution that exceeds the value of a full grant and, thus, would jeopardize that student's remaining eligibility. Therefore, a nonresident alien (foreign) student who is receiving a full grant-in-aid would be required to reimburse the institution the value of the nonresident alien withholding tax.

Employment of prospects/no free or reduced admission

Division I institutions should note that pursuant to NCAA Bylaw 13.13.1.5.1, members of a Division I institution's staff or representatives of its athletics interests shall not employ or give free or reduced-admission privileges to a high-school, preparatory school or two-year college athletics award winner. For purposes of this rule, a high school includes the ninth-grade level, regardless of whether the ninth grade is part of a junior high-school system.

Further, Divisions II and III institutions should note that pursuant to NCAA Bylaw 13.13.1.5.2, in operating a sports camp or clinic, an institution, members of its staff or a representative of its athletics interests shall not employ or give free or reduced-admission privileges to any individual who has started classes for the ninth grade.

Finally, during its November 17, 1993, telephone conference, the former Interpretations Committee determined that it is permissible for an institution to have a policy that permits free admission only to the children of athletics department staff members to attend the institution's camps or clinics.

Clarification -- summer practice

In Legislative Assistance Column No. 23, it was stated that in Divisions I and II, a coach may participate in individual workout sessions with student-athletes from the coach's team during the summer, provided the request for such assistance is initiated by the student-athlete. Please be advised that this legislation is applicable to participants in individual sports only.

This material was provided by the membership services staff as an aid to member institutions. If an institution has a question or comment regarding this column, such correspondence should be directed to Kristen L. Davis or Lisa Roesler, membership services representatives, at the NCAA national office. This information is available on the College Sports Network.