HB5311 102ND GENERAL ASSEMBLY

LRB102 25431 CMG 34717 b

102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB5311

Introduced 1/31/2022, by Rep. Joyce Mason

SYNOPSIS AS INTRODUCED:

New Act

Creates the Scholarship Displacement Act. Defines "cost of attendance", "expected family contribution", "financial need", "institutional financial aid", and "private scholarships". Provides that the Act applies on and after the 2022-2023 school 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: if a 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; if the institution receives approval from the organization that awarded the private scholarship that caused the reduction authorized by the provisions; and 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. 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 on and after the 2022-2023 school 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 circumstances enumerated in the following subsections of this Section.

(c) A public institution of higher education may reduce the student's institutional financial aid if a 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.

(d) A public institution of higher education may reduce a student's institutional financial aid if the institution receives approval from the organization that awarded the private scholarship that caused the reduction authorized pursuant to subsection (c) of this Section.

(e) 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.