Scheduled and Borrower Based Academic Years

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Scheduled and Borrower Based Academic Years

• Linda Burkhardt
• Marianna Deeken
• U. S. Department of Education

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Annual Loan Limits

• Apply to an academic year as defined by school
• HEA minimum academic year requirements
• 30 weeks of instruction, 24 semester credits
• 30 weeks of instruction, 36 quarter credits
• 26 weeks of instruction, 900 clock hours

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Increased Borrowing Within Same Academic Year

• Has not yet borrowed full eligibility at current
  grade level
• Advances to next grade level
• Becomes independent
• Increase in COA
• Decrease in EFC
• Decrease in EFA

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Annual Loan Limits
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Dependent Loan Eligibility

• Eligible for loan amount up to grade level limit
• May be subsidized, unsubsidized, or combination
  of subsidized and unsubsidized
• Subsidized loan limited by financial need and
  grade level
• Unsubsidized loan is not need-based

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Dependent Loan Eligibility

• COA
• - EFC
• - EFA
• Loan eligibility up to grade level limit

• 8950 COA
• - 3247 EFC
• - 800 Pell Grant
• 4903 Need

• Grade level limit for first year student is
  2,625
• Student has enough need to receive 2,625 in
  subsidized loan

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Dependent Loan Eligibility

• COA
• - EFC
• - EFA
• Loan Eligibility
• up to grade level limit

• 6950 COA
• - 3694 EFC
• - 400 Pell Grant
• 2856 Need

• Grade level limit for second year student is
  3,500
• Student has need for 2,856 in subsidized funds
• Remaining 644 may be awarded as unsubsidized
  loan funds

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Additional Unsubsidized Loan Eligibility

• Eligibility for additional unsubsidized loan is
  limited to
• Independent students
• Dependent students whose parents cannot borrow a
  PLUS
• Additional unsubsidized loan eligibility is not
  need based

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Annual Loan Limits Additional Unsubsidized Loan
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Additional Unsubsidized Eligibility

• COA
• - EFA
• Loan Eligibility
• up to grade level limit

• 8950 COA
• 800 Pell Grant
• 2625 Sub Loan
• 5525 remaining eligibility

• Grade level limit for a first year student is
  4,000
• Student may receive additional unsubsidized of
  4,000

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Additional Unsubsidized Eligibility

• COA
• - EFA
• Loan Eligibility up to grade level limit

• 6950 COA
• 400 Pell Grant
• 2856 Sub loan
• 644 Unsub loan
• 3050 remaining eligibility

• Grade level limit for a 2nd year student is
  4,000
• So as not to exceed the cost of attendance,
  student may only receive 3,050 in additional
  unsubsidized loan funds

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Additional Unsubsidized Eligibility

• COA 6950
• EFA--Pell - 400
• Subsidized - 2856
• Unsubsidized - 3694
• Remaining eligibility -0-

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Scheduled Academic Year (SAY)

• For use in standard term-based programs only
• Fixed period time, usually corresponds to
  schools official academic calendar
• Generally begins at same time each year
• Example fall/winter/spring or fall/spring

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Scheduled Academic Year (SAY)

• Summer term may be header or trailer
• Summer mini-sessions may be treated as single
  term or individual terms
• Loan period may include only portion of SAY

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SAY Standard Term-based Program
2-Year Semester-Based Credit Hour
Program Academic Year 24 Credits/ 30 Weeks
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Regain Eligibility at Beginning of SAY

• Example 1 (Summer Trailer)
• First year student attends Fall Spring year
  1
• No loan in Fall, 2,625 loan in Spring
• No summer attendance
• Fall year 2 begins new SAY
• Student regains eligibility for new loan at
  appropriate grade level.

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SAY Example 1
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Regain Eligibility at Beginning of SAY

• Example 2 (Summer Trailer)
• Second year student attends Fall year 1 and
  Summer trailer
• 1,000 loan in Fall, 2,500 loan in Summer
• Fall year 2 begins new SAY
• Student regains eligibility for new loan at
  appropriate grade level

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SAY Example 2
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BBAY Term-based

• Non-standard term based programs must use
• Standard termbased programs may use
• BBAY must include same number of terms as the
  schools definition of an academic year
• Floats with students enrollment, but student
  must attend first term of BBAY
• Mini-sessions must be combined as single term
• If BBAY includes summer, may be shorter in
  weeks/hours than statutory academic year
  definition

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BBAYStandard Term-based Program
2-Year Semester-based Credit Hour
Program Academic Year 24 Credits/ 30 Weeks
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BBAY Standard Term-based Program
2-Year Semester-based Credit Hour
Program Academic Year 24 Credits/ 30 Weeks
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SAY/BBAY Combined to Maximize Borrowing
8,500
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BBAYNon-standard Term School
2-Year 8 week term-based program Academic Year 24
Credits/ 32 Weeks
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BBAYNon-standard Term School

• Student must complete the hours and the weeks in
  order to advance to next grade level
• Student may still receive loan disbursement as
  long as at least ½ time
• May result in a delay of receipt of next annual
  loan limit

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BBAYNon-standard Term School
2-Year 8 week term-based program Academic Year 24
Credits/ 32 Weeks Student only attends ½ time in
each Spring term
Fall 2 (6)
No loan
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BBAY Credit Hour Non-Term Clock Hour

• Must use BBAY
• BBAY must meet minimum statutory definition of
  academic year
• Floats with students enrollment
• Eligibility for new annual loan limit is not
  regained until student completes both weeks
  hours in statutory definition of academic year

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BBAY Credit Hour Non-Term Clock Hour

• Example 1
• Second year student loan period 9/1 to 5/15,
  includes 24 semester hours
• Withdraws from program on 11/1 after receiving
  1,750
• Starts new program 11/28, as first year student
• May only borrow 875 until end of new academic
  year

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Example of BBAYNon-Term Credit Hour Program
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BBAY - Clock Hour Program
1200 Clock Hour Program with 900 Clock Hour, 26
week Academic Year
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Loan Period Lengths

• Standard term-based
• Minimum is a single academic term
• Non-standard terms, Credit hour non-term and
  Clock hour
• Lesser of
• Length of students program of study
• Programs academic year as defined by school, or
• Remaining portion of students program of study
• In all programs, maximum loan period is schools
  academic year, not to exceed 12 months

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Monitoring Frequency of Annual Loan Limits

• Schools are responsible for determining student
  eligibility for new annual loan limit
• Must adjust loan for any amounts received at
  previous school if loan period overlaps new
  schools academic year

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Transfer Student Term-based to Term-based

• Student borrows 2,625 for fall/spring semesters
  at School A
• Loan period is 09/07/05 to 05/06/06
• Student transfers to School B for winter quarter,
  beginning 01/10/06, after receiving 1,313 at
  School A
• Student may borrow the difference between his
  annual loan limit at School B and 1,313 received
  at School A

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Transfer Student Non-term to Term-based

• Credit hour non-term program has final period of
  study of 18 weeks, 24 credits
• Student borrows 3,500
• Loan period is 3/15/06 to 7/17/06
• Student begins fall semester at School C on
  9/08/06 as a second year student
• Since 30 weeks from 3/15/06 ends 10/08/06, you
  have overlapping academic year
• Until academic year ends, student has no loan
  eligibility for fall term at School C

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Transfer Student Clock Hour To Clock Hour

• Withdraws from School As 1800 hour program after
  completion of 750 hours
• Received 2,625 Stafford Loan funds for first
  academic year of 900 hours
• Loan period of 7/12/05 to 02/11/06
• Enrolls in your schools 1800 hour program with
  1050 hours to complete, beginning on 1/10/06

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Transfer Student Clock Hour To Clock Hour

• Overlapping loan periods
• Student begins at your school prior to end of
  academic year at first school
• Since student is a first year student at your
  school, and has already borrowed 2,625 in the
  academic year
• Student has no loan eligibility at your school
  until completion of your schools academic year
• 26 weeks minimum

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Transfer Student

• Withdraws from School As 900 clock hour program
  after completion of 440 clock hours
• Had Stafford Loan for 900 clock hour program
• Enrolls in your schools 900 hour program with
  460 hours to complete
• Can you give the student a Stafford loan at your
  school?

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Student Wants 2nd Loan For Remaining Period

• Program is 1500 clock hours
• Academic year is 900 clock hours and 30 weeks
• Completes 900 clock hours in 26 weeks
• 900 hours in 26 weeks is 35 hours per week
• Must wait for 30 weeks prior to awarding new loan
• Student will have completed an additional 140
  clock hours in 4 more weeks, for a total of 1040
  clock hours
• Second loan will be for loan period of 460 clock
  hours, approximately 14 weeks

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Answer

• Second loan when 30 weeks have elapsed
• 460 clock hours
• 900/26 35
• 30 26 4
• 4 X 35 140
• 900 140 1040
• 1500 1040 460
• After student has completed 230 hours AND reached
  calendar midpoint of loan period, second
  disbursement may be made

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Student Changes Programs At Your School

• When the student leaves the first program, do
  R2T4 calculation
• Student begins second program as new student
• Look at prior loan period
• Look at loan dollars already received

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Questions??

• Linda Burkhardt
• linda.burkhardt_at_ed.gov
• [phone]

• Marianna Deeken
• marianna.deeken_at_ed.gov
• [phone]