Section 2003-I. Prohibition on scholarship displacement at public institutions of higher education.
(a) General rule.--A public institution of higher education may reduce a student's institutional financial aid as a result of the awarding of scholarships to the student only under the circumstances enumerated in subsections (b) and (c). ((a) amended Nov. 12, 2025, P.L.244, No.47)
(b) When institutional financial aid exceeds cost of attendance.--If a student's total financial aid from all sources exceeds the student's cost of attendance, a public institution of higher education may reduce the student's institutional financial aid until the student's total financial aid no longer exceeds the student's cost of attendance.
(c) Student athletes.--If a student is an athlete at a public institution of higher education, the public institution of higher education may reduce the student's institutional financial aid in order to comply with the individual or team financial aid restrictions of an athletic association, conference or other group or organization with authority over intercollegiate athletics, including, but not limited to, the National Collegiate Athletic Association.
(d) As used in this section, the following words and phrases shall have the meanings given to them in this subsection unless the context clearly indicates otherwise:
"Cost of attendance." The average annual cost for a student to attend a college or university, including tuition and fees, room and board, books, supplies and other expenses and is used to calculate financial aid of an eligible student under Title IV of the Higher Education Act of 1965 (Public Law 89-329, 20 U.S.C. § 1070 et. seq.).
"Institutional financial aid." The sum of all need-based and merit-based grants, scholarships, tuition waivers and all other forms of financial assistance provided to a student by a public institution of higher education that are not loans or work-study programs.
"Private scholarship." (Def. deleted by amendment).
"Public institution of higher education." Any of the following:
(1) A community college operating under Article XIX-A.
(2) A rural regional college established under Article XIX-G.
(3) A university within the State System of Higher Education under Article XX-A.
(4) A State-related institution as defined in section 2001-C.
(5) The Thaddeus Stevens College of Technology.
(6) The Pennsylvania College of Technology.
"Scholarship."
(1) The term includes:
(i) A scholarship awarded by a business, private foundation, nonprofit organization or service group.
(ii) A tuition waiver under section 2022-A.
(iii) A grant under Subarticle D of Article XX-L.
(2) The term does not include an award funded by a private organization that is affiliated with a public institution of higher education and requests the public institution of higher education's assistance in selecting the recipient of the award.
"Student." An individual enrolled at a public institution of higher education.
((d) amended Nov. 12, 2025, P.L.244, No.47)
(2003-I added July 8, 2022, P.L.620, No.55)