Teleconference No. 7
May 5, 2003

The Interpretations subcommittee of the Division II Legislation Committee issued the following interpretation:

Financial Aid -- State Government Grants

Financial Aid -- 2003 Proposal No. 33 -- State Government Grants. State government grants received by a student-athlete as part of a program in which academic ability and/or financial need are the primary criteria and which have no relationship to athletics ability may be exempt from both individual and institutional financial aid limits. Further, in states in which the institution is the entity responsible for administering the state grant to students, the state grant may be exempt from both individual and institutional financial aid limits, provided the institution has no control in selecting or determining the recipients other than ensuring the recipients who have satisfied the requirements of the state statute receive the grant. [Reference: NCAA Bylaw 15.02.1 (administered by), 2003 Proposal No. 33 (financial aid -- exempted -- government grants - state grants).]