Is it permissible for an institutional administrator to provide a personal loan to a prospective student-athlete?

The regulations governing the conduct of institutional administrators regarding transactions with prospective student-athletes are established to maintain the integrity of the recruiting process. Providing a personal loan to a prospective student-athlete could create an impermissible benefit and compromise the fairness of the recruiting environment. Such practices are prohibited because they could be construed as an attempt to influence the athlete's decision in favor of the institution.

The prohibition is rooted in the NCAA's mission to ensure that student-athletes are treated equitably and that institutions compete on a level playing field. Allowing personal loans could lead to unethical practices and favoritism, ultimately undermining the integrity of the sport and the recruiting process.

Hence, it is clear that institutional administrators are not allowed to provide personal loans to prospective student-athletes, ensuring that all recruits are evaluated based on their abilities and potential, rather than outside financial assistance.