Cost of attendance stipends in college sports

One of the chapters that students like to read from the book The Economics of Public Issues is the one about the NCAA being a cartel. All the schools agree not to pay the athletes. Those athletes generate alot of revenue for the schools but get paid very little. For the best players, the difference can be a a million dollars. But at least the schools can now give them stipends to pay for incidental college costs.

See Three years in cost of attendance stipends paying off by Carter Karels of The San Antonio Express-News. It has quite a bit of information about how much Texas schools are paying and how it is affecting the athletes. Excpert:

"In January of 2015, the Power 5 conferences passed a vote to initiate COA benefits. Every Division I university has since been allowed to provide stipends to its student-athletes.

With the help of the U.S. Department of Education, financial aid offices annually determine stipend amounts. They calculate variables like transportation, tuition and fees, room and board, books and supplies and personal expenses.

“If you lived in an isolated community, it costs more to fly out of there and to get back home,” said Lisa Campos, UTSA’s athletic director. “So that’s going to drive their cost of attendance.”

COA expenses and calculations vary at each school. Off-campus or non-resident student-athletes may receive larger stipends. Full scholarship student-athletes like Hair-Griffin will receive the full amount. One on a half scholarship, however, might garner half of the amount. Any variances depend on the university.

Schools also distribute the stipend in different ways. Student-athletes at one university might receive a lump sum, whereas others could pocket a month-to-month check.

“In practice, (COA) is supposed to really correlate to your locale and your type of institution,” Campos said."

See a post from last year: How The Economics Of College Sports Might Be Distorted