National Collegiate Athletic Association

The NCAA News - News and Features

March 10, 1997

Financial aid committee continues study of earnings cap

The NCAA Committee on Financial Aid and Amateurism will continue to study an alternative to the cost-of-attendance limit on earnings that was established by the recently adopted student-athlete work legislation.

Division I institutions adopted legislation at the 1997 Convention that permits student-athletes to work during the school year and receive earnings up to the cost of attendance.

The committee, which proposed an alternative last fall but was unable to obtain NCAA Council sponsorship of the proposal, continues to be concerned about potential and/or perceived recruiting advantages that may result from differing cost-of-attendance limits among institutions.

It agreed during its February 20-21 meeting in Naples, Florida, that it will compile data regarding differences in cost of attendance at institutions. That data ultimately may be used to recommend an appropriate alternative cap on earnings.

The Committee on Financial Aid and Amateurism recommended last fall that the limit on earnings be set either at the cost of attendance or $1,500 -- whichever is less. The committee recommended the alternative cap as a proposed amendment for 1997 Convention Proposal No. 62, but the Council declined to sponsor the amendment-to-amendment.

To determine whether that or another alternative limit may be appropriate, the committee directed the NCAA staff to collect cost-of-attendance data from Division I conferences. The staff will seek to identify institutions' costs of attendance based on varying criteria, including differences in types of institutions and in costs for in-state and out-of-state students.

The committee believes the survey will reveal a significant disparity in costs of attendance, but it acknowledges that data are needed before forming conclusions or recommending an alternative limit.

Other highlights

Committee on Financial Aid and Amateurism
February 20-21/Naples, Florida

Discussed the feasibility of making permissible the receipt of certain extra benefits that are incidental to a student-athlete's participation in competition (for example, permitting free parking for families of student-athletes, or providing transportation for safety reasons from a site of competition directly to a student-athlete's residence). The committee directed the NCAA staff to investigate methods of extending such benefits to student-athletes, including through the NCAA interpretations process or through proposed legislation.

Recommended to the new Division I Academics/Eligibility/Compliance Cabinet that it modify current legislation to give student-athletes who are recipients of permissible outside financial awards the option of receiving an award directly from the granting agency, provided that the agency submits documentation of the award to the institution. Current legislation requires that such awards must be administered by and distributed through the institution. The committee is seeking to eliminate requirements that could discourage the granting of permissible outside awards and to reduce paperwork.

Reaffirmed its earlier recommendations to the NCAA Council that committee members be involved in an anticipated study of amateurism issues, including such issues as benefits to student-athletes, financial aid awards and issues pertaining to foreign student-athletes.

Reviewed data collected by the national office staff on methods used by institutions to calculate financial aid expenditures, and recommended that each Division I institution be required in the athletics certification program to prepare a report on the method it uses for the calculation of financial aid.

During discussion of the special assistance fund, asked the NCAA staff to seek clarification of whether the determination of a student-athlete's need basis for purposes of fund disbursement is determined before or after an institution has determined the student-athlete's financial aid package. The committee, which favors expanding access to the special assistance fund, believes that a student-athlete should have access to the fund if that student-athlete establishes need prior to financial aid packaging or when a student-athlete's circumstances have changed, resulting in need.

Recommended that the division committees responsible for financial aid issues in the new governance structure hold concurrent meetings at least once a year at a common site, to enable the committees to participate as needed in joint discussion of common issues

Noted that the Council declined last year to sponsor an NCAA Eligibility Committee proposal that would have eliminated ineligibility as a consequence of an NCAA rules violation resulting from a student-athlete's receipt of a small, inconsequential benefit. The committee expressed support for the concept and agreed to support the Eligibility Committee if it again presents that recommendation to the Council.