Financial Aid

Financial aid for a college athlete now comes from more sources than it used to: athletic aid, need- and merit-based institutional aid, federal aid, and, since July 1, 2025, direct revenue-sharing payments from the school. Each is governed by different rules, and only some of it counts against the school’s revenue-sharing cap.

Q. How does athletic aid work now?

At schools that opted into the House settlement, sport-by-sport scholarship limits are gone. A school may provide athletic aid to every athlete on the roster if it chooses, constrained by roster limits rather than scholarship counts.

Q. Does athletic aid count against the revenue-sharing cap?

In part. Certain scholarship credits count toward the cap, which is why athletic aid and revenue-sharing budgets now have to be planned together rather than as separate line items.

Q. Is revenue sharing the same as a scholarship?

No. A scholarship covers the cost of education and is generally not taxable when applied to tuition and required fees. Revenue sharing is compensation, paid under a separate agreement, and it is taxable income.

Q. Can financial aid be reduced or cancelled?

Athletic aid cannot be cancelled during its term based on athletic performance or injury. Revenue-sharing agreements are contracts, and their cancellation terms vary from school to school.