NCAA Reviews College Financial Aid Practices at 43 D3 Institutions

On Thursday, the NCAA Division III Financial Aid Committee is scheduled to review the college financial aid practices of 43 member institutions, with the results helping determine whether any schools warrant further scrutiny.

According to the November edition of the Division III Monthly Update, the agenda lists it as a Level I assessment, the first stage of the process for tracking D3 college financial aid.

Monitoring College Financial Aid

The Division III Financial Aid Reporting Program annually compares aid packages for incoming student-athletes with those of other incoming students. The Nov. 12 agenda outlines the committee’s latest round of 43 institutional reviews.

Established in 2004, the program requires every D3 institution to submit financial aid information each year. Its purpose is to assess how schools distribute institutional assistance among incoming classes, rather than to compare financial aid practices across colleges.

Academic scholarships and need-based assistance remain permissible.

Under NCAA Bylaw 15, Division III institutions can’t award college financial aid based on a student-athlete’s athletic ability, participation, leadership or performance. They must follow the same financial aid policies and packaging standards for all students, regardless of athletic involvement.

Moreover, the NCAA considers whether student-athletes receive a disproportionate share of institutional gift aid compared with other D3 programs. A difference exceeding 4% or an outlier in any of the program’s three measures may prompt further scrutiny. Neither automatically triggers a violation, as disparities can reflect factors unrelated to athletics.

The committee therefore considers additional documentation before deciding whether further action is warranted.

A Continued Financial Aid Review

The committee’s November schedule included two rounds of Level I reviews involving 78 institutions.

On Nov. 5, members conducted initial assessments of financial aid information from 35 schools that met one or more program criteria. The Nov. 12 agenda adds 43 institutions to the process, with the committee set to consider whether any cases warrant Level II reviews.

At its February 2025 meeting, the Financial Aid Committee considered 13 Level II cases, of which 10 were dismissed. The other three prompted further evaluation.

The latest inquiry comes as Division III’s financial aid model faces additional scrutiny. A lawsuit filed against the NCAA on Oct. 23 challenges the division’s prohibition on athletic scholarships, alleging that the restrictions violate federal antitrust law by preventing colleges from competing to offer athletics-based financial assistance.