HB5292 103RD GENERAL ASSEMBLY

LRB103 37485 RJT 67608 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB5292

Introduced 2/9/2024, by Rep. Nabeela Syed

SYNOPSIS AS INTRODUCED:

New Act

Creates the Scholarship Displacement Act. Provides that the Act applies beginning with the 2024-2025 academic year. Provides that a public institution of higher education may reduce a student's institutional financial aid as a result of the awarding of private scholarships to the student only if the student's total financial aid from all sources exceeds the student's financial need until the student's total financial aid no longer exceeds the student's financial need or only if the student is a student-athlete and the institution is complying with the individual or team financial aid restrictions of any athletic association, conference, or other group or organization with authority over intercollegiate athletics. Effective immediately.

A BILL FOR

AN ACT concerning education.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Scholarship Displacement Act.

Section 5. Definitions. As used in this Act:

"Cost of attendance" means cost of attendance as defined in 20 U.S.C. 1087ll.

"Expected family contribution" means expected family contribution as determined pursuant to 20 U.S.C. 1087nn.

"Financial need" means cost of attendance minus expected family contribution.

"Institutional financial aid" means need-based and merit-based grants, scholarships, tuition waivers, and all other forms of financial assistance provided by a public institution of higher education that are not loans or work-study programs.

"Private scholarships" means scholarships awarded by businesses, private foundations, nonprofit organizations, and service groups. "Private scholarships" does not include awards funded by a private organization that is affiliated with a public institution of higher education and requests the institution's assistance in selecting the recipients of scholarships.

Section 10. Scholarship displacement.

(a) This Act applies beginning with the 2024-2025 academic year.

(b) A public institution of higher education may reduce a student's institutional financial aid as a result of the awarding of private scholarships to the student only under the following circumstances:

(1) A public institution of higher education may reduce a student's institutional financial aid if the student's total financial aid from all sources exceeds the student's financial need until the student's total financial aid no longer exceeds the student's financial need.

(2) A public institution of higher education may reduce a student-athlete's institutional financial aid in order to comply with the individual or team financial aid restrictions of any athletic association, conference, or other group or organization with authority over intercollegiate athletics, including, but not limited to, the National Collegiate Athletic Association.

Section 99. Effective date. This Act takes effect upon becoming law.