TRANSFER STUDENTS AND THE OVERLAPPING ACADEMIC YEAR The Dilemma Phil LeBlanc and Diana Mateer.

TRANSFE

R STU

DENTS

AND T

HE

OVERLA

PPIN

G ACADEM

IC Y

EAR

The DilemmaPhil Le

Blanc

and D

iana

Mat

eer

DESCRIBING THE DILEMMA

Students attending multiple institutions + students incurring loan debt at each =

THE DILEMMA!

THE RULE:

--One academic year for each annual loan limit

--School defines academic year

a) scheduled (SAY)

b) borrower based (BBAY)

--Grade level determines annual loan limit

--The Rule Affects Term-Based and Non-Term Based Schools Differently

Page 3© 2011 University of Phoenix | All rights reserved

NON-TERM &

CLO

CK HOUR:

THE R

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PH

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STRAIGHT FROM THE FSA HANDBOOK

If a student who enrolls in a clock-hour or non-term program (or a program with nonstandard terms that are not SE9W) after already having taken out a loan at another school with an academic year that overlaps the academic year at the second school, then the student is restricted to the original annual loan limit until the completion of the first academic year at the new school.

The new school may originate a loan for the remaining portion of the program or academic year regardless of whether or not the new school accepts transfer hours from the prior school. After this is completed, the student would progress to a new loan period and a new annual loan limit.

EXTERNAL TRANSFERS

• Loans first certified on or after July 1, 2014, are subject to the new external transfer process

• Using the Academic Year (AY) information from the student’s prior school

– 150% Reporting requirements

– AY End date is determined by projecting a full AY from EOP Start

» EOP LP = Actual weeks and credits

» EOP AY = Projected full AY of weeks and credits

• Using the AY dates from the prior school we must determine how many courses the student can begin prior to the AY end date

– Student is eligible for remaining loan limit eligibility up to COA

EXTERNAL TRANSFERS

Prior School AY Start Date

Prior School AY End Date

New LP Start Date New LP End Date

August 14, 2014 May 14, 2014

November 1, 2014 June 16, 2014

Prior School LP Start Date

August 14, 2014 October 1, 2014

Prior School LP End Date

EXTERNAL TRANSFERS

Process

• PeopleSoft users do not have AY dates visible in the NSLDS page

– Only LP dates

• Need to navigate to NSLDS to retrieve the AY dates to determine if there is an overlap

• NSLDS may be updated by prior school as they update the student’s AY to reflect how long it would have taken the student to complete the full AY after the student withdraws

– Need to watch for changes to AY end dates

ADVANCING PROGRAMS

• Additional impacts to the process resulting from other 150% related changes:

– Overlapping AY when student completes an one program and advances into another program

– Minimum definition of 30 weeks vs. projecting a full AY using a normal schedule

Page 9© 2011 University of Phoenix | All rights reserved

TERM-B

ASED: TH

E

RULE

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A M

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STRAIGHT FROM THE FSA HANDBOOK

If a student enrolls in a program with standard terms (or nonstandard SE9W terms) after already having taken out a loan at another school with an overlapping academic year, the student initially may not receive more than the annual loan limit minus the amount received at the prior school.

However, the student may borrow again for a subsequent term within the same academic year at the new school if the term begins after the end of the academic year at the prior school. For a subsequent term that begins after the end of the prior school’s academic year, but within the initial academic year at the new school, the student may borrow up to the difference between the applicable annual loan limit and the amount already received for the new school’s academic year, if the student’s COA supports that amount

BUT WHAT DOES THAT MEAN?

If student is eligible for $3500 subsidized loan:

AY from previous school FEB14 – OCT14

Student received $2500 subsidized loan

SEPT term JAN term

Student is eligible for: Student is eligible for:

$1000 $2500

New School AY starts SEP14 ends MAY15

• There is an overlap between academic years at old and new school

• Student did not reach annual loan limit at prior school

• Until he earns that loan limit in the overlapping term at new school, NO NEW ANNUAL LOAN LIMIT

• In the final analysis, student still qualifies for full annual loan limit for new school’s AY

Page 12© 2011 University of Phoenix | All rights reserved

RULES F

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HOW DO YOU KNOW THERE IS AN OVERLAP?

Again, straight from the FSA Handbook:

You may obtain documentation from the prior school of the specific beginning and ending dates for the prior academic year or look for the academic year dates of Direct Loans originated by the prior school on the “award detail information page” in the Common Origination and Disbursement (COD) Web interface.*

*No more assumptions based on 30 weeks from loan period start date!

EFFECT ON 150% SUBSIDIZED RULE

• AY Established with the prior school

• AY is inherited by the receiving school

• Loan status reporting will show 1 Academic Year with a 2 Loan Periods from 2 different schools

• Between the 2 LPs, the student will have used 1 AY worth of funding

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