The NLI is a binding agreement between a prospective student-athlete and an NLI member institution.

• A prospective student-athlete agrees to attend the institution full-time for one academic year (two semesters or three quarters).
• The institution agrees to provide athletics financial aid for one academic year (two semesters or three quarters).

The penalty for not fulfilling the NLI agreement: A student-athlete has to serve one year in residence (full-time, two semesters or three quarters) at the next NLI member institution and lose one season of competition in all sports.

An important provision of the NLI program is a recruiting prohibition applied after a prospective student-athlete signs the NLI. This prohibition requires member institutions to cease recruitment of a prospective student-athlete once an NLI is signed with another institution.