LRB-5848/1
JAM:emw
2021 - 2022 LEGISLATURE
February 17, 2022 - Introduced by Representatives Sortwell, Moses, Wichgers
and Allen, cosponsored by Senator Jacque. Referred to Committee on
Colleges and Universities.
AB1057,1,2 1An Act to create 36.28 and 38.25 of the statutes; relating to: permissible
2financial aid reductions in higher education.
Analysis by the Legislative Reference Bureau
This bill prohibits University of Wisconsin System institutions and Wisconsin
technical colleges from reducing gift aid that the institution or technical college has
offered to a student because the student has received a private scholarship unless
certain circumstances apply. “Gift aid” is defined in the bill as all financial aid that
is not a loan or work-study program and includes grants, scholarships, tuition
waivers, and third-party payments. A UW System institution may reduce the
amount of a student's offered gift aid in order to comply with the National Collegiate
Athletic Association's individual or team financial aid restrictions, and a technical
college may reduce the amount of a student's offered gift aid in order to comply with
the National Junior College Athletic Association's individual or team financial aid
restrictions. Additionally, an institution or technical college may reduce the amount
of offered gift aid if the student's total gift aid from all sources exceeds the student's
financial need, and the institution or technical college may further reduce a student's
offered gift aid if the institution or technical college receives approval to do so from
the organization that has awarded the private scholarship that triggered the
student's total gift aid exceeding the student's financial need.

For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB1057,1 1Section 1. 36.28 of the statutes is created to read:
AB1057,2,3 236.28 Financial aid reduction restrictions. (1) Definitions. In this
3section:
AB1057,2,44 (a) “Cost of attendance” has the meaning given in 20 USC 1087ll.
AB1057,2,65 (b) “Expected family contribution” means the amount determined in
6accordance with 20 USC 1087nn.
AB1057,2,87 (c) “Financial need” means a student's cost of attendance minus the student's
8expected family contribution.
AB1057,2,109 (d) “Gift aid” means all financial aid that is not a loan or work-study program,
10including grants, scholarships, tuition waivers, and third-party payments.
AB1057,2,1211 (e) “Institutional gift aid” means gift aid that is funded by the system, the
12board, or an institution.
AB1057,2,1713 (f) “Private scholarship” means a scholarship awarded by a company, private
14foundation, nonprofit organization, or service group. “Private scholarship” does not
15include an award funded by a private organization that is affiliated with the system,
16the board, or an institution and that requests that the system, the board, or an
17institution provide assistance in selecting recipients.
AB1057,2,20 18(2) Financial aid reduction restrictions. An institution may reduce a
19student's institutional gift aid offer as a result of a private scholarship award only
20as described in one or more of the following manners:
AB1057,3,3
1(a) If a student's total gift aid from all sources exceeds the student's financial
2need, an institution may reduce the student's institutional gift aid until the student's
3total gift aid no longer exceeds the student's financial need.
AB1057,3,84 (b) In addition to the reduction authorized under par. (a), an institution may
5further reduce a student's institutional gift aid if the institution receives approval
6from the company, private foundation, nonprofit organization, or service group that
7awarded the private scholarship that triggered the reduction authorized under par.
8(a).
AB1057,3,119 (c) An institution may reduce a student athlete's institutional gift aid in order
10to comply with the National Collegiate Athletic Association's individual or team
11financial aid restrictions.
AB1057,2 12Section 2. 38.25 of the statutes is created to read:
AB1057,3,14 1338.25 Financial aid reduction restrictions. (1) Definitions. In this
14section:
AB1057,3,1515 (a) “Cost of attendance” has the meaning given in 20 USC 1087ll.
AB1057,3,1716 (b) “Expected family contribution” means the amount determined in
17accordance with 20 USC 1087nn.
AB1057,3,1918 (c) “Financial need” means a student's cost of attendance minus the student's
19expected family contribution.
AB1057,3,2120 (d) “Gift aid” means all financial aid that is not a loan or work-study program,
21including grants, scholarships, tuition waivers, and third-party payments.
AB1057,3,2322 (e) “Institutional gift aid” means gift aid that is funded by the board, a district
23board, or a technical college.
AB1057,4,324 (f) “Private scholarship” means a scholarship awarded by a company, private
25foundation, nonprofit organization, or service group. “Private scholarship” does not

1include an award funded by a private organization that is affiliated with the board,
2a district board, or a technical college and that requests that the board, a district
3board, or a technical college provide assistance in selecting recipients.
AB1057,4,6 4(2) Financial aid reduction restrictions. A technical college may reduce a
5student's institutional gift aid offer as a result of a private scholarship award only
6as described in one or more of the following manners:
AB1057,4,97 (a) If a student's total gift aid from all sources exceeds the student's financial
8need, a technical college may reduce the student's institutional gift aid until the
9student's total gift aid no longer exceeds the student's financial need.
AB1057,4,1410 (b) In addition to the reduction authorized under par. (a), a technical college
11may further reduce a student's institutional gift aid if the technical college receives
12approval from the company, private foundation, nonprofit organization, or service
13group that awarded the private scholarship that triggered the reduction authorized
14under par. (a).
AB1057,4,1715 (c) A technical college may reduce a student athlete's institutional gift aid in
16order to comply with the National Junior College Athletic Association's individual
17or team financial aid restrictions.
AB1057,4,1818 (End)
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