Calculation of Equivalencies for Lump Sum Financial Aid Awards (I)
Date Published: August 20, 2009
Type: Staff Interpretation
The academic and membership affairs staff determined that an institution that awards financial aid in terms of dollars that is not assigned to any element (i.e., lump sum amount), rather than units of aid or a fraction that represents an element of a full grant, may use the amount received by the student-athlete (numerator) and either the actual or the average cost of a student-athlete's full grant-in-aid (denominator) in calculating that student-athlete's equivalency. However, the staff determined that an institution whose policies require payment in a specific order (e.g., hierarchy of elements) for dollar awards is considered to be awarding aid assigned to an element(s) and, therefore, must use the same cost (i.e., actual or average) in both the numerator and denominator. [References: NCAA Division I Bylaw 15.5.3.2 (equivalency computations) and an official interpretation (4/23/08, Item No. 4)]
I wonder how prevalent this is.