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.


LRB103 37485 RJT 67608 b

 
 
A BILL FOR
 
HB5292LRB103 37485 RJT 67608 b

1    AN ACT concerning education.
 
2    Be it enacted by the People of the State of Illinois, 
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the 
5Scholarship Displacement Act.
 
6    Section 5. Definitions. As used in this Act: 
7    "Cost of attendance" means cost of attendance as defined 
8in 20 U.S.C. 1087ll. 
9    "Expected family contribution" means expected family 
10contribution as determined pursuant to 20 U.S.C. 1087nn. 
11    "Financial need" means cost of attendance minus expected 
12family contribution. 
13    "Institutional financial aid" means need-based and 
14merit-based grants, scholarships, tuition waivers, and all 
15other forms of financial assistance provided by a public 
16institution of higher education that are not loans or 
17work-study programs. 
18    "Private scholarships" means scholarships awarded by 
19businesses, private foundations, nonprofit organizations, and 
20service groups. "Private scholarships" does not include awards 
21funded by a private organization that is affiliated with a 
22public institution of higher education and requests the 
23institution's assistance in selecting the recipients of 
 
 
HB5292- 2 -LRB103 37485 RJT 67608 b

1scholarships. 
 
2    Section 10. Scholarship displacement. 
3    (a) This Act applies beginning with the 2024-2025 academic 
4year. 
5    (b) A public institution of higher education may reduce a 
6student's institutional financial aid as a result of the 
7awarding of private scholarships to the student only under the 
8following circumstances: 
9        (1) A public institution of higher education may 
10    reduce a student's institutional financial aid if the 
11    student's total financial aid from all sources exceeds the 
12    student's financial need until the student's total 
13    financial aid no longer exceeds the student's financial 
14    need. 
15        (2) A public institution of higher education may 
16    reduce a student-athlete's institutional financial aid in 
17    order to comply with the individual or team financial aid 
18    restrictions of any athletic association, conference, or 
19    other group or organization with authority over 
20    intercollegiate athletics, including, but not limited to, 
21    the National Collegiate Athletic Association. 
 
22    Section 99. Effective date. This Act takes effect upon 
23becoming law.