Athletic Financial Aid Agreement

Terms and Conditions of Athletic Financial Aid Agreement

The following are the principle details of Article 15 of the NCAA Manual as noted on your Athletic Financial Aid Agreement.  If you have questions about any of the following, please contact Department of Intercollegiate Athletics at 503-725-4000.

Eligibility for Athletic Financial Aid

15.01.2 Improper Financial Aid
Any student-athlete who receives financial aid other than that permitted by the Association shall not be eligible for intercollegiate athletics.

15.01.5 Eligibility of Student-Athletes for Institutional Financial Aid
A student-athlete must meet applicable NCAA (see Bylaw 14), conference and institutional regulations to be eligible for institutional financial aid. If these regulations are met, the student-athlete may be awarded institutional financial aid during any term in which a student-athlete is in regular attendance [i.e., was enrolled initially in a minimum full-time program of studies as defined by the certifying institution during that term (at PSU, full-time is defined as12 units per term) (see Bylaw 14.1.6.2.1.3 for final term exception and Bylaw 15.2.7 for summer-term exception)] under the following circumstances: (Revised: 6/8/99)

(a)    The student-athlete is an undergraduate with eligibility remaining under Bylaw 14.2 (five-year rule);
(b)    The student-athlete is a graduate student eligible under Bylaw 14.1.7; or
(c)    Within six years after initial enrollment in a collegiate institution (provided the student does not receive such aid for more than five years during that period); however, after the six-year period expires, this restriction shall apply only to unearned athletics aid for which the athletics department intercedes on behalf of the student-athlete.
(Note: See Bylaw 13.1.1.3 for the financial aid implications in the prohibition against contacting student-athletes of another four-year collegiate institution without permission of that institution’s athletics director.)

Limits on Athletic Financial Aid

15.01.7 Maximum Institutional Financial Aid to Individual
An institution shall not award financial aid to a student-athlete that exceeds the cost of attendance that normally is incurred by students enrolled in a comparable program at that institution or that exceeds the limitations established by Division I, whichever is less. Any financial aid permitted by a division that would result in a student-athlete’s total financial aid exceeding the value of tuition and fees, room and board and required course-related books shall be based upon the demonstrated financial need of the individual student-athlete (see Bylaws 15.02.4, 15.2.3, 15.5.2, 15.5.3, 15.5.4 and 15.5.5).

15.1.1 Types of Aid Included in Limit
In determining whether a student-athlete’s financial aid
exceeds the value of a full grant-in-aid, all institutional financial aid (per Bylaw 15.02.4.1) and all funds
received from employment, government grants, other scholarships and grants, gifts, professional sports stipend, athletics participation compensation and loans shall be included.

General Terms and Conditions

15.3.2.2 Physical Condition of Student-Athlete
Financial aid awarded to a prospect may not be conditioned on the recipient reporting in satisfactory physical condition. If a student-athlete has been accepted for admission and awarded financial aid, the institution shall be committed for the term of the original award, even if the student-athlete’s physical condition prevents him or her from participating in intercollegiate athletics.

15.3.2.3 Written Statement Requirement
In all cases, the institutional agency making the financial aid award shall give the recipient a written statement of the amount, duration, conditions and terms of the award. The chair of the regular committee or other agency for the awarding of financial aid to students generally, or the chair’s official designee, shall sign or electronically authorize (e.g., electronic signature) the written statement. The signature of the athletics director, attesting to the committee’s award, does not satisfy this requirement.

15.3.2.4 Hearing Opportunity
The institution’s regular financial aid authority shall notify the student-athlete in writing of the opportunity for a hearing when institutional aid based in any degree on athletics ability is reduced or cancelled during the period of the award, or not renewed.  The institution shall have established reasonable procedures for promptly hearing such a request and shall not delegate the responsibility for conducting the hearing to the university’s athletics department or its faculty athletics committee.

15.3.3.1 One-Year Limit
Where a student’s athletics ability is taken into consideration in any degree in awarding financial aid, such aid shall not be awarded in excess of one academic year.

15.3.3.1.1 Financial Aid Authority Precedent 
A staff member may inform a prospect that the athletics department will recommend to the financial aid authority that the prospect’s financial aid be renewed each year for a period of four years and may indicate that the authority always has followed the athletics department’s recommendations in the past. However, the prospect must be informed that the renewal will not be automatic.

15.3.3.1.2 Injury or Illness Policy
It is not permissible for an institution to assure the prospect that it automatically will continue a grant-in-aid past the one-year period if the recipient sustains an injury that prevents him or her from competing in intercollegiate athletics, but an institutional representative may inform the prospect of the regular institutional policy related to renewal or continuation of aid past the one-year period for recipients who become ill or injured during their participation.

15.3.4.1 Reduction or Cancellation Permitted
Institutional financial aid based in any degree on athletics ability may be reduced or canceled during the period of the award if the recipient: (Revised:1/11/94, 1/10/95)

(a)     Renders himself or herself ineligible for intercollegiate competition; or
(b)    Fraudulently misrepresents any information on an application, letter of intent or financial aid agreement (see Bylaw 15.3.4.1.1); or
(c)     Engages in serious misconduct warranting substantial disciplinary penalty (see Bylaw 15.3.4.1.2); or
(d)     Voluntarily withdraws from a sport at any time for personal reasons; however, the recipient’s financial aid may not be awarded to another student-athlete in the academic term in which the aid was reduced or cancelled. (Revised: 1/10/92, 1/11/94, 1/10/95, 1/9/96)

15.3.4.1.1 Fraudulent Misrepresentation
If a student-athlete is awarded institutional financial aid on the basis of declaring intention to participate in a particular sport by signing a letter of intent, application or tender, action on the part of the grantee not to participate (either by not reporting for practice or after making only token appearances as determined by the institution) would constitute fraudulent misrepresentation of information on the grantee’s application, letter of intent or financial aid agreement and would permit the institution to cancel or reduce the financial aid.  (Revised:1/11/94)

15.3.4.1.2 Misconduct
An institution may cancel or reduce the financial aid of a student-athlete who is found to have engaged in misconduct by the university’s regular student disciplinary authority, even if the loss-of-aid requirement does not apply to the student body in general. 

15.3.4.2 Increase Permitted
Institutional financial aid may be increased as follows: (Adopted:1/11/94)

(a)     Between the period of time when the student-athlete signs the financial aid award letter and the beginning of the period of the award; and
(b)     Subsequent to the date on which the student-athlete receives any benefits as part of the student’s financial aid grant (which is determined on the first day of classes for a particular academic term or the first day of practice, whichever is earlier), an institution may increase the student-athlete’s financial aid if the institution can demonstrate that such an increase is unrelated in any manner to an athletics reason (see Bylaw 15.3.4.3).

15.3.4.3 Reduction or Cancellation Not Permitted
Institutional financial aid based in any degree on athletics ability may not be increased, decreased or canceled during the period of its award: 

(a)     On the basis of a student’s athletics ability, performance or contribution to a team’s success; or
(b)     Because of an injury that prevents the recipient from participating in athletics; or
(c)    For any other athletics reason.

15.3.4.3.1 Athletically Related Condition Prohibition
An institution may not set forth an athletically related condition (e.g., financial aid contingent upon specified performance or playing a specific position) that would permit the institution to reduce or cancel the student-athlete’s financial aid during the period of the award if the conditions are not satisfied. 

15.3.4.3.2 Decrease Not Permitted
An institution may not decrease a student-athlete’s financial aid from the time the student-athlete signs the financial aid award letter until the conclusion of the period set forth in the financial aid agreement, except under the conditions set forth in Bylaw 15.3.4.1.  
                            
15.3.5.1 Institutional Obligation
The renewal of institutional financial aid based in any degree on athletics ability shall be made on or before July 1 prior to the academic year in which it is to be effective. The institution shall promptly notify in writing each student-athlete who received an award the previous academic year and who has eligibility remaining in the sport in which financial aid was awarded the previous academic year (under Bylaw 14.2) whether the grant has been renewed or not renewed for the ensuing academic year. Notification of financial aid renewals and nonrenewals must come from the institution’s regular financial aid authority and not from the institution’s athletics department. (Revised: 1/10/95)

15.3.5.2 Reconsideration of Nonrenewal
It is permissible for an institution that has notified a student-athlete that he or she will not be provided institutional financial aid for the next academic year subsequently to award financial aid to that student-athlete.

Errors
Any errors made by you or PSU in determining your aid amount must be corrected.  Such correction may result in the reduction, cancellation or repayment of scholarship funds.

We encourage all student-athletes to apply for Federal Student Aid (https://studentaid.gov/).