financial aid; private scholarships; requirements

HB 2286, the "Arizona Ban on Scholarship Displacement Act of 2025," prohibits eligible Arizona public universities and community colleges from reducing a student's gift aid (non-loan financial aid) because they receive a private scholarship, except when the gift aid exceeds the student's actual cost of attendance. It directly affects students enrolled in associate or bachelor's degree programs at eligible institutions (like Arizona Board of Regents universities or community colleges) who receive private scholarships from companies, foundations, or nonprofits (excluding university foundations or government aid). The bill requires institutions to consider private scholarship awards separately when determining financial aid, ensuring students retain full scholarship benefits unless the gift aid already covers their full cost of attendance. Key definitions clarify "cost of attendance" (including tuition, books, living expenses) and "gift aid" as non-loan financial support.