AN ACT PROHIBITING SCHOLARSHIP DISPLACEMENT.

SB 1112 prohibits public and private higher education institutions in the state from reducing a student’s financial aid package when they receive an outside scholarship (from private or public sources). This directly affects students who receive scholarships and the institutions that manage financial aid. Exceptions allow aid reductions only if a student’s total aid already meets or exceeds their cost of attendance, or if a student athlete needs to comply with NCAA financial aid limits. The law takes effect July 1, 2025, and aims to prevent institutions from offsetting scholarship funds by cutting other aid.