Pennsylvania Statutes Title 24 P.S. Education § 20-2003-I. Prohibition on scholarship displacement at public institutions of higher education

(a) General rule.--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 subsections (b) and (c).

(b) When institutional financial aid exceeds cost of attendance.--If a student's total financial aid from all sources exceeds the student's cost of attendance, a public institution of higher education may reduce the student's institutional financial aid until the student's total financial aid no longer exceeds the student's cost of attendance.

(c) Student athletes.--If a student is an athlete at a public institution of higher education, the public institution of higher education may reduce the student's institutional financial aid in order to comply with the individual or team financial aid restrictions of an athletic association, conference or other group or organization with authority over intercollegiate athletics, including, but not limited to, the National Collegiate Athletic Association.

(d) As used in this section, the following words and phrases shall have the meanings given to them in this subsection unless the context clearly indicates otherwise:

“Cost of attendance.”The average annual cost for a student to attend a college or university, including tuition and fees, room and board, books, supplies and other expenses and is used to calculate financial aid of an eligible student under Title IV of the Higher Education Act of 1965 (Public Law 89-329, 20 U.S.C. § 1070 et. seq.).

“Institutional financial aid.”The sum of all need-based and merit-based grants, scholarships, tuition waivers and all other forms of financial assistance provided to a student by a public institution of higher education that are not loans or work-study programs.

“Private scholarship.”A scholarship awarded by a business, private foundation, nonprofit organization or service group. The term does not include an award funded by a private organization which is affiliated with a public institution of higher education and requests the public institution of higher education's assistance in selecting the recipient of the award.

“Public institution of higher education.”Any of the following:

“Student.” An individual enrolled at a public institution of higher education.