March 1, 2023 - Introduced by Senator Cabral-Guevara, cosponsored by Representatives Sortwell, Allen, Armstrong, Behnke, Edming, Gustafson and Rozar. Referred to Committee on Universities and Revenue.
SB95,,22An Act to create 36.28, 38.25 and 39.55 of the statutes; relating to: permissible financial aid reductions in higher education. SB95,,33Analysis by the Legislative Reference Bureau This bill prohibits higher education institutions (University of Wisconsin System institutions, Wisconsin technical colleges, and private, nonprofit institutions that are members of the Wisconsin Association of Independent Colleges and Universities) from reducing gift aid that the higher education institution has offered to a student because the student has received a private or external “last-dollar scholarship” from a Wisconsin-based entity unless certain circumstances apply. “Gift aid” is defined in the bill as all financial aid that is not a loan or work-study program and includes grants, scholarships, tuition waivers, and third-party payments. “Last-dollar scholarship” is defined as gift aid awarded to a student to meet any of the student’s financial need not met by federal, state, or institutional gift aid.
Under this bill, a higher education institution may reduce the amount of a student’s offered gift aid in order to comply with the individual or team financial aid restrictions of a governing national intercollegiate athletic association. Additionally, under the bill a higher education institution may reduce the amount of offered gift aid if the student’s total gift aid from all sources exceeds the student’s financial need, and the higher education institution may further reduce a student’s offered gift aid if the higher education institution receives approval to do so from the organization that has awarded the private or external scholarship that triggered the student’s total gift aid exceeding the student’s financial need.
For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.
SB95,,44The people of the state of Wisconsin, represented in senate and assembly, do enact as follows: SB95,15Section 1. 36.28 of the statutes is created to read: SB95,,6636.28 Financial aid reduction restrictions. (1) Definitions. In this section: SB95,,77(a) “Cost of attendance” has the meaning given in 20 USC 1087ll. SB95,,88(b) “Expected family contribution” means the amount determined in accordance with 20 USC 1087nn.