National Collegiate Athletic Association

The NCAA News - News and Features

July 20, 1998

III financial aid panel looks at on-, off-campus employment earnings

The Division III Financial Aid and Awards Committee addressed several deregulation issues at its meeting June 22-23 in Santa Fe, New Mexico.

All of the committee's recommendations will be forwarded to the Division III Management Council for consideration at its July 27-29 meeting in Philadelphia.

As part of its deregulation efforts, the committee recommended a legislative change related to on- and off-campus employment earnings. The committee recommended that institutions be required to count only federal work-study program assistance earnings in determining whether a student-athlete's financial aid exceeds the cost of attendance in the year in which funds are earned.

This would eliminate the current requirement that institutions must include all of student-athletes' employment earnings in the cost-of-attendance limitation during the academic year in which they are earned.

The committee agreed that most Division III institutions do not currently monitor off-campus employment since federal regulations do not require such monitoring. The committee noted that such monitoring is ultimately unnecessary since the earnings would be included in the next year's need calculation for student-athletes and thus be reflected in the student-athletes' financial aid packages.

In addition, the committee discussed the monitoring of on-campus employment earnings and determined that, with the exception of federal work-study program assistance, such earnings should not be included in the student-athletes' financial aid limitations in the academic year in which they are earned. Again, the earnings would be included in the next year's need calculation for student-athletes and thus be reflected in the student-athletes' financial aid packages.

This recommendation would not apply to federal work-study program assistance, which is monitored and which the committee still wants to count against the cost-of-attendance limitation.

In another action, the committee also recommended that a Division III discussion session be held at the 1999 NCAA Convention on issues related to financial aid from outside sources. The committee noted that current legislation permits outside sources to select award recipients based on athletics ability, and the committee questioned whether that legislation fits with the Division III philosophy.

The committee members hope to get some feedback from members regarding how institutions are monitoring outside awards and receive direction from the membership regarding deregulation in this area.

In other actions, the committee:

  • Recommended that Division III financial aid information be published on the NCAA Web site. Such information could include the newly approved Division III guide to financial aid, copies of legislative assistance columns related to Division III financial aid, minutes from financial aid committee meetings and a list of committee members.

  • Noted that as of the committee meeting date, 190 of the 397 Division III member institutions had not yet submitted awards of circumstance and nonathletics achievement awards to the Association for review. All institutions that had not previously submitted awards for approval were notified by a May 13 mailing that a response is required by August 1, 1998.