Understanding Changes to Your Athletic Scholarship After the House Settlement

The Following Is for Division I Student-Athletes:

How Will the House v. NCAA Settlement and Roster Limits Affect My Athletic Scholarship?

On June 6, 2025, Judge Claudia Wilken granted final approval of the House settlement agreement. The NCAA and its major conferences agreed to pay nearly $2.8 billion in back damages over the next decade to athletes who competed in college athletics at any time from 2016 through the present day. The settlement also allows schools to directly compensate student-athletes for the use of their name, image and likeness (NIL) up to a cap (based on a percentage of a defined set of Power Four athletics department revenues) beginning in the 2025-2026 academic year.

Any school that opts into the settlement and elects to pay student-athletes out of their NIL cap (which is not required) will no longer be bound by scholarship limits, but rather by a new sport-by-sport roster limit system. If a school opts in, roster limits apply to all NCAA-sponsored teams at that school.

To ease the transition to the new system, the settlement includes a one-time exemption for certain athletes under a Designated Student-Athlete (DSA) provision. This means you may be protected from the new roster limits even if your school opts into the settlement. Athletes who were on a team’s roster in 2024-2025 or were recruited before April 7, 2025, can be designated as DSAs. These athletes do not count towards a team’s roster limit and can continue participating fully in athletics, provided they have eligibility remaining. DSAs will keep their status for the duration of their eligibility, meaning once a student-athlete is designated, they will be exempted from roster limits for the remainder of their eligibility (i.e., the remaining years you’re allowed to play under NCAA rules). Schools must submit their DSA lists to the NCAA by July 6, 2025, and may not add to them later. Institutions that opt in to the settlement after 2025–2026 cannot use the DSA exemption to roster limits.

Regardless of how institutions choose to manage their roster limits, they are still required to honor athletic scholarships. Schools cannot reduce, cancel or fail to renew athletic scholarships due to the roster limit. The reasons a school can reduce, cancel or not renew an athletic scholarship are specified below. This obligation remains in place until the student-athlete either graduates or chooses to transfer.

The institutions still have an obligation to decide on renewal of athletic financial aid on or before July 1, 2025, and notify the student-athlete in writing of the decision.

Question and Answer: Implementation of the House Settlement (June 13, 2025); NCAA Bylaw 15.3.6 (2024-25 NCAA Division I Manual)

When Can a University Reduce or Cancel an Athletic Scholarship?

Generally, under NCAA Bylaws, once a student-athlete’s athletic scholarship is awarded for a term or academic year, it cannot be reduced or canceled during that period. The NCAA specifically prohibits cancellation/reduction of an athletic scholarship based on athletic ability, athletic performance or how much an athlete contributes to the team. Schools also cannot take away aid simply because an athlete gets injured, sick or has a physical or mental health condition—unless a specific exception in the NCAA rules applies. Finally, scholarships cannot be reduced or canceled for any other reason related to athletics.

Schools may only cancel/reduce athletic scholarships if at least one of the following conditions apply:

1. Ineligibility:

The student-athlete is no longer eligible under NCAA or institutional rules because of something the student-athlete did or failed to do under NCAA or school rules.

2. Fraud:

The student-athlete commits fraud or misrepresents information on an application, letter of intent or financial aid agreement.

3. Misconduct:

The student-athlete engages in serious misconduct warranting disciplinary action by their school’s disciplinary authority.

4. Voluntary Withdrawal/Transfer Notice:

The student-athlete chooses to stop participating in the sport or gives written notice of transfer.

5. Violation of Conditions:

The student-athlete violates written non-athletic conditions outlined in their financial aid agreement or violates a documented institutional rule or policy (e.g., academic requirements or institutional conduct rules).

NCAA Bylaw 15.3.4.1 (2024-25 NCAA Division I Manual)

University Obligations When Reducing or Canceling Athletic Financial Aid

If a school decides to not renew, reduce or cancel a student’s athletic financial aid for an upcoming academic year, they are required to provide the following:

1. Written Notification of Aid Change:

The school must provide the student-athlete with a written notification of the decision to cancel or reduce their athletic financial aid for the subsequent academic year by July 1 prior to the start of that academic year.

2. Written Explanation of Appeal Rights:

The written notification of aid change must be accompanied by a written explanation of the procedure and process for appealing the decision to cancel or reduce aid and must also include the deadline by which a student-athlete must request an appeal.

3. Appeal Hearing Opportunity:

The NCAA mandates that schools provide an independent hearing opportunity before a committee to appeal a decision to cancel or reduce aid. The committee cannot include any members of the school’s athletics department or its faculty athletics committee.

NCAA Bylaw 15.3.2.3; NCAA Bylaw 15.3.4.1.1 (2024-25 NCAA Division I Manual)

What Should I Do If My Athletic Financial Aid is Reduced or Canceled?

If your athletic scholarship is reduced or canceled, take these steps:

1. Review your financial aid agreement.
2. Gather all communications from the school.
3. Identify the reason given for the aid change.
4. Check NCAA, conference and school rules.
5. Consider whether an appeal is appropriate.
6. Request a hearing before the deadline.

NCAA Bylaw 15.3.2.3; NCAA Bylaw 15.3.4.1 (2024-25 NCAA Division I Manual)

What If I Want To Transfer?

Regardless of what step of the process you are in, once you notify the school in writing or enter the transfer portal, they can stop your aid at the end of the current term.

NCAA Bylaw 15.3.4.1(f) (2024-25 NCAA Division I Manual)