NCAA Abolishes National Letter of Intent Program, Ushering in New Financial Aid Agreements

In a significant shift for college athletics, the NCAA Division I Council has officially approved the elimination of the national letter of intent (NLI) program, marking the end of an era in recruiting. The NLI, established in 1964, has served as the binding agreement between prospective athletes and college programs for the past 60 years. It will now be replaced by a new financial aid agreement, which will retain many of the NLI’s core functions while potentially integrating elements of an upcoming revenue-sharing model for college athletes.

Under the newly implemented rules, athletes transferring between schools can now sign with a new institution immediately after entering the transfer portal. Once a written offer of athletic aid is signed, competing schools will be barred from making recruiting communications with that athlete, according to NCAA guidelines.

This decision comes at a time of major upheaval within college sports, with the impending House settlement set to award nearly $2.8 billion in damages to current and former student-athletes. This settlement is also expected to pave the way for college programs to start compensating athletes significantly, with some teams projected to pay upwards of $20 million per year starting as soon as next fall. A hearing to finalize the settlement is scheduled for April 2025.

This development follows a year of growing discontent with the NLI system. In 2023, the Collegiate Commissioners Association—the body that oversaw the NLI program—made it easier for athletes to back out of their NLI agreements in response to coaching changes or other extraordinary circumstances. Now, with the formal elimination of the NLI program, attention could shift to potential changes to the NCAA recruiting calendar, particularly in football. A possible June signing period for high school athletes was debated earlier this year but was ultimately not voted on. The next early signing period begins in December 2024, followed by the traditional signing period in February 2025.

As the NCAA moves toward more athlete-centric reforms, the end of the NLI program represents just one piece of the broader transformation in how student-athletes engage with college programs and manage their athletic careers.