Acting for the Division I Management Council, the Academics/
Eligibility/Compliance Cabinet Subcommittee on Legislative Review/Interpretations issued the following interpretations:

Financial Aid/Prepaid Tuition Plans

1. Prepaid College Tuition Plans. Tuition funds from a state-sponsored or private prepaid college tuition plan, purchased by a family member and paid to an institution on behalf of a student-athlete, are considered to be aid from an outside source (as opposed to aid from a parent or legal guardian). The subcommittee noted that in accordance with federal guidelines, a prepaid tuition plan is considered to be a resource as opposed to a family asset, and benefits received from such tuition plans reduce an individual's eligibility for federal student aid.

As a result of such information, the subcommittee determined that such aid should be considered outside aid unrelated to athletics ability. Thus, such aid is countable against an individual's financial aid limits, but is exempt from institutional team limits in the applicable sport. [References: NCAA Bylaws 15.2.5.1 (financial aid from outside sources -- parents and legal guardians) and 15.2.5.2 (financial aid from outside sources -- no relationship to athletics ability).]

Financial Aid/Educational Expenses

2. Educational Expenses Received as a Part of an Employment Contract. An individual who receives educational expenses from a professional sports organization as part of an employment contract does not jeopardize intercollegiate eligibility in all sports since such educational expenses are considered to be employment compensation as opposed to financial aid from an impermissible outside source. [References: NCAA Bylaws 15.01.3 (financial aid not administered by institution), 15.2.5.4.2 (eligibility effects of improper aid from outside organization) and 15.3.1.4 (institutional financial aid to a professional athlete).]