AZ HB2286

Prohibits eligible postsecondary institutions from reducing a student's gift aid based on receipt of private scholarships, effective beginning the 2026-2027 school year, except reductions are allowed if gift aid exceeds the student's actual cost of attendance.

Prohibits institutions from considering private scholarship awards when determining financial aid packages for students.

Allows institutions to consult with students and private scholarship providers to identify instances where scholarships and gift aid are restricted to specific purposes.

Applies to Arizona Board of Regents universities and community colleges, and only to in-state students enrolled in associate or baccalaureate degree programs.

Defines "private scholarship award" as financial assistance from private companies, foundations, nonprofits, or charities, excluding assistance from university foundations or government entities.