NIL glossary
What is an athletic scholarship?
An athletic scholarship is financial aid, such as tuition, fees, housing and books, that a college gives an athlete for competing on a team, and NIL earnings generally cannot be a reason to reduce or revoke it.
On this page
In detail
Many state NIL laws, including California's, New York's and Virginia's, bar schools from revoking a scholarship because an athlete earns NIL money or hires representation. Under the House settlement, scholarship limits were replaced by roster limits, so participating schools may give scholarships to every athlete on a roster; scholarships generally do not count against the revenue sharing cap.
Frequently asked questions
Can a school take away a scholarship because of NIL?
Many state laws forbid it, and NCAA rules allow NIL activity. Check your state's law.
Sources
- California Education Code § 67456 — FindLaw (California Code)
- New York Education Law § 6438-C — The New York State Senate
- Code of Virginia § 23.1-408.1 — Virginia General Assembly
- Frequently Asked Questions — College Sports Commission
This is general information, not legal advice. NIL rules differ by state, school, association and sport, and they change often. Check the official sources linked on this page and talk with your school's compliance office, your state association or a licensed attorney before you sign anything.

