A federal judge has approved a class action settlement between the NCAA and Division 1 football and men's basketball players arising out of a lawsuit in which the athletes alleged that the organization limited the amount of financial aid available to them as college students.
As part of the settlement, the NCAA has agreed to provide an additional $218 million in financial aid for student athletes to NCAA Division 1 member institutions during academic years beginning in 2007-08 through 2012-13, according to a press release issued by Houston's Susman Godfrey, the law firm representing the plaintiffs.
Class members could receive up to $2,500 per year for three years of expenses incurred while they were obtaining an undergraduate, graduate or professional degree or were enrolled in a professional certification program. They also could receive a $500 payment toward career development programs. Also in the settlement, the NCAA agreed to provide health insurance to student athletes in Division 1 schools, arrange for accident insurance for injuries of student athletes at Division 1 schools and look into offering student athletes scholarships through graduation.
The attorneys will be paid $8.6 million, plus interest.