Justice Dept. looking into why college scholarships are awarded on annual basis

Justice Dept. questions awarding of scholarships

INDIANAPOLIS — The Justice Department’s antitrust division is looking into how NCAA schools award scholarships.

The NCAA confirmed the inquiry by releasing a statement on its website Thursday. It said the Justice Department wants to know why universities award scholarships on a year-to-year basics. The NCAA said it is because they are merit awards.

A spokeswoman for the Justice Department could not respond immediately to the NCAA statement.

NCAA spokesman Bob Williams said the federal agency contacted its office last week, and then asked if it could contact member schools. Williams said NCAA officials told the Justice Department to go ahead.