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

Dependent Independent

1st year undergraduate

$2625

($3500)

$2625

($3500)

2nd year undergraduate

$3500

($4500)

$3500

($4500)

3rd year and above undergraduate

$5500 $5500

Grad/Professional $8500

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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

Undergraduate 1st year $ 4,000

Undergraduate 2nd year $ 4,000

Undergraduate 3rd year+ $ 5,000

Graduate/Professional $10,000 ($12,000)

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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 Program2-Year Semester-Based Credit Hour Program

Academic Year 24 Credits/ 30 Weeks

Spring FallFall Spring

1st SAY 2nd SAY$2,625 $3,500

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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

Spring FallFall Spring

1st SAY 2nd SAY$2,625 $3,500

Loan period 1 Loan period 2

$2,625 $3,500

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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

SpringFall

1st SAY$3,500

Fall Spring

2nd SAY$5,500

Loan period 3Loan period 1

$1,000 $5,500

Summer

$2,500

Loan period 2

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BBAY Term-based

• Non-standard term based programs must use– Standard term–based programs may use

• BBAY must include same number of terms as the school’s definition of an academic year

• Floats with student’s 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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BBAY:Standard Term-based Program

2-Year Semester-based Credit Hour ProgramAcademic Year 24 Credits/ 30 Weeks

Spring-15 wks Summer-10wksFall-15 wks Fall-15wks

1st BBAY 2nd BBAY

$2,625 $3,500

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BBAY: Standard Term-based Program

2-Year Semester-based Credit Hour ProgramAcademic Year 24 Credits/ 30 Weeks

Summer FallSpring Spring

1st BBAY 2nd BBAY

$2,625 $3,500

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SAY/BBAY Combined to Maximize Borrowing

$8,500

$8,500

Summer Fall

3rd period BBAY

Loan period 3

$8,500

SpringFall

1st period SAY

Summer

$8,500

Loan period 1

Fall Spring

2nd period BBAY$8,500

Loan period 2

$8,500

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BBAY:Non-standard Term School

2-Year 8 week term-based programAcademic Year 24 Credits/ 32 Weeks

Spring 1 Spring 2Fall 2 Summer

2nd BBAY$3,500

Spring 2 SummerSpring 1 Fall 1

1st BBAY$2,625

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BBAY:Non-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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BBAY:Non-standard Term School

2-Year 8 week term-based programAcademic Year 24 Credits/ 32 Weeks

Student only attends ½ time in each Spring term

Fall 2 (6)

Spring 2 (3) Summer (6)Spring 1(3) Fall 1 (6)

1st BBAY

Spring 1 Spring 2 Summer

2nd BBAY

Fall 1

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 student’s 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

Pay Period 1

12 hours/16 weeks

Pay Period 2

12 hours/16 weeks

$1,750

$3,500

First Loan Period 9/1 to 5/15

Pay Period 1

12 hours/15 weeks

Pay Period 2

12 hours/15 weeks

$438 $437

$2,625 - $1,750 = $875

Second Loan Period 11/28 to 6/27

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BBAY - Clock Hour Program1200 Clock Hour Program with

900 Clock Hour, 26 week Academic Year

450 450 300

1st BBAY includesboth 900 hours & 26 weeks

Remaining Portionof 2nd BBAY

$2,625 $3,500 x 300 = $1167 900

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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 student’s program of study• Program’s academic year as defined by school, or • Remaining portion of student’s 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 school’s 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 A’s 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 school’s 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 school’s academic year• 26 weeks minimum

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Transfer Student

• Withdraws from School A’s 900 clock hour program after completion of 440 clock hours– Had Stafford Loan for 900 clock hour program

• Enrolls in your school’s 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@ed.gov

(206) 615-2174

Marianna Deeken

marianna.deeken@ed.gov

(206) 615-2583