RELATED TO
MANAGEMENT COUNCIL
SUPPLEMENT NO. 9

 

NCAA DIVISION III FINANCIAL AID REVIEW TASK FORCE

 

Summary of Recommendations

 

INFORMATIONAL ITEMS

 

1.  ISSUE:

Review of Financial Aid Pre-Pilot Results.

Task Force Action:

 

1.      Availability and Relevance of Data Elements.  The committee and task force met on December 9, 2003 in Chicago, Illinois, and reviewed the results from the pre-pilot conducted between October 15 and November 15.  The pre-pilot consisted of 26 institutions, with 19 reporting.  [Attachment]  The committee addressed key questions to be resolved regarding the availability and relevance of data items, and the reporting process.

 

(a)    Demographics and Academic Variables.  The requested demographics included:  sport; gender; and race/ethnicity.  The requested academic variables included:  high-school grade-point average; ACT or SAT; and class rank.  The committee and task force concluded that much of the demographic and academic data either were unavailable or had limited relevancy.  To reduce burden, sport will be the only nonfinancial data element requested for the division-wide pilot.  The committee and task force noted that institutions may use demographics and academic variables to help justify a variance. 

 

(b)    Sport Breakdown.  The committee and task force determined that institutions must provide a breakdown of financial aid awarded to student-athletes per sport.  The committee and task force also agreed that institutions must compile and submit data for all NCAA sports for which there is an NCAA championship, and those sports that the institution sponsors for membership purposes. 

 

(c)    Definition of Student-Athlete.  The committee and task force reviewed the pre-pilot results and found that the participating institutions used different definitions of a student-athlete when compiling financial aid data.  The committee and task force agreed to use one standard to determine which individuals are student-athletes:  A student-athlete is an individual who, as of the day of the varsity team’s first regularly scheduled contest or date of competition in the championship segment, is listed on the roster.

 

 

 

(d)    Multisport Student-Athletes.  The committee and task force agreed that institutions must count multisport student-athletes in each sport, consistent with other reporting processes for athletics.

 

(e)    Aggregate Report and Student-Athletes.  The committee and task force agreed that each institution should include all incoming freshmen and transfer student-athletes and all incoming students in the report.  The committee and task force determined that the burden would be lessened and the data more relevant if they include all incoming student-athletes instead of a random number of student-athletes.

 

(f)     Financial Need Calculation.  The committee and task force reviewed the requested data elements the pre-pilot participants were required to calculate to determine the financial need of students:  cost of attendance; expected family contribution; federal methodology; and institutional methodology.  The committee and task force recommended maintaining all financial aid data elements.  The committee and task force also reviewed issues regarding federal and institutional methodology, and the committee and task force determined that institutions should continue to report federal and institutional methodologies.  The committee and task force were provided an overview regarding financial need that is reported as zero or missing and agreed that, in both situations, the financial need would be reported as no need.

 

(g)    Grants and Scholarships.  The committee and task force reviewed NCAA Bylaw 15.4.1 and 2004 Convention Proposal No. 56 and concluded that, in order to comply, institutions must provide the total amount of each student’s financial aid package.  The following grants and scholarships must be reported:  Pell Grant; Federal Supplemental Educational Opportunity Grant; total state grants and scholarships; total institutional grants and scholarships; total private grants and scholarships; and other resources.

 

(h)    Loan Programs.  The committee and task force requested data on the following loan programs:  Federal Stafford Loan; Federal Perkins Loan Program; Federal Parent Loan for Undergraduate Students; and alternative loan programs and agreed to eliminate all data from loan programs to reduce the burden. 

 

(i)     Work Study.  The committee and task force agreed to request information on whether work study was granted in a "yes or no" format.  The committee and task force noted that institutions may use work study data as a justification for a variance.

 

 

2.      Findings Based on Feedback.  The committee and task force were presented with the pre-pilot findings and feedback on such issues as the electronic data submission; burden; consent and confidentiality; and packaging methodologies. 

 

(a)    Electronic Data Submission and Analysis.  The committee and task force reviewed the pre-pilot findings regarding the electronic data submission process through a data file versus the Compliance Assistant Internet, and concluded that, to reduce the burden for the financial aid, information technology, athletics and admissions staffs, institutions will compile and submit data through the submission of an electronic data file.  The committee and task force agreed that they will create a standard electronic report and supply it to the institution.  The committee and task force further agreed to provide detailed instructions to enable institutions to create their own reports for self-analysis, if desired. 

 

(b)    Burden.  The committee and task force decided to significantly reduce the requested data elements to lessen the burden.  The committee and task force further determined that it must provide institutions with as much prior notice as possible regarding the submission deadline to allow institutions to prioritize the report with other projects.  The committee and task force discussed grant money that will be available to institutions to implement the start-up program for the division-wide pilot in 2004.  The committee and task force agreed there should be no need for an annual budget allocation beyond 2004, noting it will be necessary to establish more formal policies and procedures related to accessing the grant money. 

 

(c)    Consent and Confidentiality.  The committee and task force discussed that consent of student-athletes is granted through the NCAA Division III Student-Athlete Statement (Bylaw 3.2.4.5).  The committee and task force agreed that due to the depth of the record-level data and the small number of individuals in certain need brackets or sports, the data could be aggregated over a period of time so that individuals will not be identifiable.  The committee and task force eliminated data elements such as gender, race/ethnicity, and academic variables that would increase the likelihood of identification.  The committee and task force agreed to submit the procedures of the reporting process to the NCAA Research Review Board to ensure the subjects’ privacy.

 

(d)    Packaging Methodologies.  The committee and task force reviewed the various methods of packaging financial aid (e.g., matrix system, need-based, gapping and concluded that the reporting process provides institutions with the opportunity to analyze its own financial aid awarding practices without comparing packages among institutions; therefore, the various methodologies will not be

an issue.  The committee and task force concluded that this area should not be identified as a burden.

 

Management Council Action:

 

Accepted the information.

 

2.  ISSUE:

Variance. 

Task Force Action:

 

The committee and task force noted that the pre-pilot results could not establish an acceptable variance due to the small size of the sample and the parameters and goals for which the pre-pilot was designed.  The committee and task force noted that the division-wide pilot in 2004-05 is expected to produce further data for use in establishing an acceptable variance. 

 

Management Council Action:

 

Accepted the information.

 

3.  ISSUE:

Random Analysis by the Committee. 

Task Force Action:

 

The committee and task force agreed that the committee should review the reports of randomly selected institutions each year; however, determining the exact number or limit would be premature until the completion of the division-wide pilot.

 

Management Council Action:

 

Accepted the information.

 

4.  ISSUE:

Reports of the Pre-Pilot Institutions. 

Task Force Action:

 

The committee and task force directed the research staff to prepare detailed anonymous reports of the 19 institutions that submitted data for the pre-pilot. 

 

Management Council Action:

 

Accepted the information.

 

 

5.  ISSUE:

Education of the Membership. 

Task Force Action:

 

The committee and task force directed the staff to develop a training session for financial aid administrators and conference administrators to facilitate the implementation of the division-wide pilot and the new reporting process if 2004 NCAA Convention Proposal No. 56 is adopted. 

 

Management Council Action:

 

Accepted the information.

 

6.  ISSUE:

Composition of the Committee. 

Task Force Action:

 

The committee and task force agreed that Proposal No. NC-28 should be amended if Proposal No. 56 is adopted to increase from four to five the number of financial aid administrators to serve on the Division III Financial Aid and Awards Committee.

 

Management Council Action:

 

Accepted the information.