HB5311 Summary

• Creates the Scholarship Displacement Act, effective on and after the 2022-2023 school year for public institutions of higher education.

• Defines key terms including "cost of attendance," "expected family contribution," "financial need," "institutional financial aid," and "private scholarships" (scholarships from businesses, foundations, nonprofits, and service groups).

• Permits public institutions to reduce a student's institutional financial aid when total financial aid from all sources exceeds the student's financial need, but only until aid no longer exceeds the need.

• Allows institutional financial aid reductions if the scholarship-awarding organization provides approval or if necessary to comply with athletic association, conference, or NCAA financial aid restrictions.

• Takes effect immediately upon becoming law.