IL HB5292

Creates the Scholarship Displacement Act, effective beginning with the 2024-2025 academic year and immediately upon passage.

Prohibits public institutions of higher education from reducing a student's institutional financial aid due to private scholarships, except when total financial aid from all sources exceeds the student's financial need.

Allows reductions in institutional financial aid only until total financial aid no longer exceeds the student's calculated financial need (cost of attendance minus expected family contribution).

Permits reduction of institutional financial aid for student-athletes to comply with individual or team financial aid restrictions imposed by athletic associations, conferences, or organizations with authority over intercollegiate athletics, including the NCAA.

Defines "private scholarships" as awards from businesses, private foundations, nonprofit organizations, and service groups, excluding awards from organizations affiliated with the institution that request assistance in selecting recipients.