Scheduled and Borrower Based Academic Years Linda Burkhardt Marianna Deeken U. S. Department of Education
Mar 28, 2015
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
(206) 615-2174
Marianna Deeken
(206) 615-2583