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Senate backs bill to bar colleges from displacing outside scholarships
Summary
Lawmakers unanimously approved a bill that prevents colleges from reducing a student’s institutional aid when that student receives outside scholarships, with an implementation delay of one year to accommodate institutional changes.
The Connecticut Senate unanimously passed legislation Wednesday intended to ensure that outside scholarships benefit the recipient and reduce families’ out‑of‑pocket costs rather than being absorbed by institutions.
Senator Will Slapp summarized Senate Bill 1112 as a response to testimony from students and local philanthropies. He explained that many colleges currently reduce institutional aid when outside scholarships arrive, effectively displacing the new funds from the student. "Scholarship displacement ... means the student does not ultimately end up benefiting from that scholarship," Slapp said, describing the practice as demoralizing for students and discouraging for civic groups that award scholarships.
An amendment adopted on the floor delays implementation by one year at the request of independent colleges to allow administrative practices to conform to the new rule. Slapp said the bill does not require schools to issue rebate checks when cost of attendance is already met; instead it protects students by ensuring outside scholarships reduce family contribution to cost of attendance unless the total award would exceed that cost.
The vote: The Senate adopted the amendment and passed the bill by a roll call; the clerk recorded the journaled tally.
What’s next: The measure passed the Senate and will continue through legislative transmittal and whatever House or enrollment steps are required.
