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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 Before we talk about how much a student can get, or how often a student qualifies for a new annual loan limit, we must understand the academic year concept. The academic year is defined by the school for each program of study the school offers, but the law requires that it be, at the minimum: 24 semester or trimester credit hours over 30 weeks of instruction, 36 quarter credit hours over 30 weeks of instruction, or 900 clock hours over 26 weeks of instruction (new July 1, 2006), The school may define the academic year the same for all programs at their school, or they may define it separately for each program Once a student has completed an academic year, the student may qualify for a new annual loan limit. However, there are a lot of other considerations in determining how MUCH a student qualifies, and WHEN the student qualifies for additional loan funds which we will discuss in more depth as we move through this presentation

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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 Within an academic year there are only certain circumstances where the amount that a student qualifies for in the Stafford loan programs can be increased. This includes situations in which the student: Has not yet borrowed their full eligibility at the current grade level, Advances to a new grade level with a higher annual loan limit, Becomes independent, thus qualifying for additional unsubsidized loan funds Has an increase in the COA, a decrease in the EFC, or a decrease in the EFA, all of which could result in increased eligibility in the academic year,

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**Annual Loan Limits Dependent Independent 1st year undergraduate $2625**

($3500) 2nd year undergraduate $3500 ($4500) 3rd year and above undergraduate $5500 Grad/Professional $8500 Here you see the annual loan limits for which any dependent student may qualify. A first year undergraduate student may receive up to $2,625 in any combination of sub and unsub. A second year undergraduate student may receive up to $3,500 in any combination of sub and unsub, And, an undergraduate student who is in the third year or beyond of their program of study may receive up to $5,500 in any combination of sub and unsub. In all cases, this reflects how much a student can borrow at any given grade level, for an academic year, as defined by the institution. At term based institutions, the law does not limit the number of loans that a student may receive at a particular grade level. For example, a student attending school on a half-time basis, might not progress to the second year loan limit for two years. That student could receive the first year annual loan limit for both years, before progressing to the 2nd year annual loan limit. This is not true for a student enrolled in a non-term credit hour or clock hour program. In those types of programs, the student must complete all of the hours and weeks in the academic year in order to qualify for a new annual loan limit. Note changes that take effect July 1, 2007 highlighted in colored text

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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 Let’s begin with dependent students Keep in mind that dependent students are those who do not meet the independent criteria established in the law. A dependent student is eligible for an annual loan limit based on their grade level. A first year student qualifies for an annual loan limit that is less than a second year student. You will see the amounts on the next slide. This loan may contain subsidized, unsubsidized or any combination of subsidized and unsubsidized up to the annual loan limit. As we stated earlier, Subsidized loans must be based on need, while Unsubsidized loans are not.

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**Dependent Loan Eligibility**

COA - EFC - EFA = Loan eligibility up to grade level limit $ COA EFC Pell Grant = Need Here you see an example of how a school will determine a dependent student’s eligibility for a Stafford loan. The COA is $8,950 From this, we subtract the calculated EFC of $3,247 And any other aid, in this case a Pell Grant of $800. The remaining need for this student is $4,903 Even though the student has a “need” under this formula, the first year annual loan limit is only $2,625, so the maximum that student can receive is $2,625. But, every bit of that $2,625 will be subsidized since the student’s need exceeds the annual loan limit. 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 $ COA EFC Pell Grant = Need In this example we are looking at a 2nd year student. The COA is $6,950. From this we subtract the EFC of $3,694 and the EFA, in this case the $400 Pell Grant, And, we come up with a “need” of $2,856. The 2nd year loan limit is $3,500. In this case the annual loan limit exceeds the student’s need. The most we can give this student in Subsidized Stafford is $2,856. However, since we can replace EFC with Unsubsidized loan amounts, we can also award this student $644 in an Unsubsidized Stafford loan which brings the student up to the $3,500 second year annual loan limit 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 There are additional Unsubsidized loan amounts available to certain categories of student. This includes any independent students, And, dependent students whose parents are unable to borrow a PLUS loan Because these additional amounts are Unsubsidized, they are not need based and can be used to replace any or all of the EFC. Keep in mind, however, that we may never award funds that cause us to exceed the cost of attendance for an individual student.

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**Annual Loan Limits Additional Unsubsidized Loan**

Undergraduate 1st year $ 4,000 Undergraduate 2nd year Undergraduate 3rd year+ $ 5,000 Graduate/Professional $10, ($12,000) Here you see the additional amount of unsubsidized Stafford loan funds available to those categories we just discussed. An additional $4,000 is available for undergraduate students at the first and second year grade level, $5,000 for undergraduate students at the 3rd year and beyond, And an additional $10,000 for students at the Graduate/Professional level

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**Additional Unsubsidized Eligibility**

COA - EFA = Loan Eligibility up to grade level limit $ 8950 COA 800 Pell Grant 2625 Sub Loan = remaining eligibility Here we see an example of how we determine the eligibility of a first year undergraduate student for the additional unsubsidized loan amount. We have a COA of $8,950, and a Pell Grant of $800. Also, we have determined that the student qualifies for the full Subsidized Stafford loan of $2,625. If this student qualifies for the additional amount, we subtract the Pell and the Subsidized Loan from the COA to determine how much additional the student can receive in Unsubsidized Stafford loan funds. Here we have a remaining eligibility of $5,525. However, the most this student can receive with the additional unsubsidized eligibility is $4,000 based on the student’s first year grade level. 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 $ COA 400 Pell Grant 2856 Sub loan 644 Unsub loan = remaining eligibility This example shows determining the eligibility for a second year student who has received $2,856 in Subsidized loan funds and $400 in Pell Grant. First, as we showed earlier, we can award up to the $3,500 basic eligibility by adding $644 in Unsubsidized loan to the $2,856 Subsidized loan, bring us to $3,500. If the student qualifies for the additional amount of unsubsidized, the student can borrow up to an additional $4,000 in Unsubsidized loan funds. In this case the student cannot borrow the full $4,000 because all other sources of aid already awarded applied to the $6,950 COA only leave us a remaining eligibility of $3,050. The maximum the student can borrow in additional loan funds is $3,050. 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 Subsidized Unsubsidized Remaining eligibility The student’s final package will look like this: $400 in Pell $2,856 in Subsidized Stafford $3,694 in Unsubsidized Stafford All sources of aid combined have fully met need (met with the Pell Grant and the Subsidized Stafford Loan), and with the addition of the unsubsidized loan we have full met the cost the of attendance

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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 For schools using the SAY, the summer term is treated as either a “header” or a “trailer.” In other words, summer will be the first period in the SAY, or the last period in the SAY. At the fixed end date of the SAY, a student qualifies for a new annual loan limit, regardless of how much of the previous SAY the student attended, or how much Stafford loan was received during that period. A school that offers mini-sessions during the summer period may treat this period as a single term, or as individual terms. And, if they want to, they can say that some of the mini-sessions apply as a header, and others as a trailer, as long as they don’t overlap into both periods. We need a fixed date at which point the student regains eligibility for a new loan, so terms may not lap over this date. Also, a student does not have to attend for the whole SAY in order to qualify for that SAY annual loan limit. The annual loan limit may apply to any portion of the SAY that the student otherwise qualifies for.

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**SAY: Standard Term-based Program**

2-Year Semester-Based Credit Hour Program Academic Year 24 Credits/ 30 Weeks Spring Fall 1st SAY 2nd SAY $2,625 $3,500 Here you see an example of a traditional semester based school. Notice that in this example summer is not included. Many schools consider summer an optional part of their academic schedule. Summer may be included either at the end of the Fall/Spring calendar, or at the beginning of the Fall/Spring calendar. Whichever configuration the school uses, it must be careful not to include summer as both a header and a trailer for any one student. However, the school may choose to apply the SAY summer trailer to one student or group of students, and the SAY summer header to a different student or group of students. These are not requirements, rather they are options and flexibilities given to schools when determining annual loan limits, not requirements.

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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. Now, remember that a student always regains eligibility at the beginning of the next SAY as defined by the school. Let’s look at an example where the school considers Summer to be the trailer of their SAY: A first year student attends Fall and Spring. The SAY in this situation is Fall/Spring/Summer. The student, however, only requests a loan for Spring and qualifies for $2,625 for the Spring period. The student does not attend Summer. Fall is the beginning of a new SAY. At that point the student regains eligibility for a new loan at whatever grade level the student is at when the Fall term commences.

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**SAY Example 1 Loan period 1 Loan period 2 $2,625 $3,500 Spring Fall**

1st SAY 2nd SAY $2,625 $3,500 Here you see how this scenario might look in the certification of the loan.

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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 Now, let’s throw Summer into the mix. A second year student begins Fall term but advises the school that he will not be attending in the Spring. The student only qualifies for $1,000 for the Fall term based on other aid that the student is receiving. The student takes Spring off, and returns for the Summer term. Based on COA and other aid the student is eligible to received, the student has enough eligibility to receive the balance of the 2nd year loan level limit within the SAY. Fall begins a new SAY, and the student regains eligibility for a new annual loan limit at whatever grade level he is at when he commences Fall attendance.

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**SAY Example 2 Spring Fall 1st SAY $3,500 2nd SAY $5,500 Loan period 3**

$1,000 Summer $2,500 Loan period 2 And here you can see that we have covered the student’s annual SAY loan limits, but we did it in three separate loans. Because Summer is the trailer, we would never want to include that period into the SAY that begins with Fall. And, because the student did not attend Spring, we can’t do a single loan for the first full SAY, but we can give the student any remaining eligibility in a separate loan within that first SAY.

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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 Let’s now talk about the Borrower Based Academic Year or the BBAY. As said previously, standard term based programs may base annual loan limits on either the SAY or the BBAY. The difference here is that the BBAY frequency is based on the student’s attendance. The BBAY must include the same number of terms as the school’s definition of an academic year. This is 2 semesters for a semester school, or 3 quarters for a quarter school. The BBAY must always begin with a student’s attendance in a term. You cannot say, for example, that a BBAY started in the Fall term if the student did not attend in the Fall. Once the BBAY has been established, the student regains eligibility for a new loan at the end of each BBAY. If a school offers mini-sessions within a term, all mini-sessions must be combined as a single term for BBAY purposes. And, if the BBAY includes a period of Summer attendance, Summer is considered a full term, even if it results in an academic year that contains less than the hours or weeks in the school’s definition of an academic year. For example, let’s look at a semester school that defines their academic year as 24 semester hours, over 2 semesters; each semester is 15 weeks in length so that there are 30 weeks in the academic year. Summer term, however, that contains 3 overlapping mini-sessions, is only 10 weeks in length. The BBAY, depending on when the student commenced attendance for that BBAY, could be either Spring/Summer, or Summer/Fall, even though neither of those periods contains 30 weeks.

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**BBAY: Standard Term-based Program**

2-Year Semester-based Credit Hour Program Academic Year 24 Credits/ 30 Weeks Spring-15 wks Summer-10wks Fall-15 wks Fall-15wks 1st BBAY 2nd BBAY $2,625 $3,500 Here you see how a BBAY might look for a student who commences in the Fall and attends school year round. In this scenario Summer begins the 2nd BBAY. Summer would not begin the 2nd BBAY if the student did not attend in the Summer

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**BBAY: Standard Term-based Program**

2-Year Semester-based Credit Hour Program Academic Year 24 Credits/ 30 Weeks Summer Fall Spring 1st BBAY 2nd BBAY $2,625 $3,500 Here is the same student who starts in the Spring. Notice that in this scenario, Summer is the end of the BBAY. If the student does not attend in the Summer, Fall is still the beginning of the next BBAY. So, you can see that a term of non-attendance can be the end of a BBAY, but never the beginning of a BBAY. Now, if a student attended a standard term-based institution, and attended only during the scheduled academic calendar (Fall/Spring at a semester school or Fall/Winter/Spring at a quarter school), the student’s loan eligibility would be exactly the same under the SAY or the BBAY. The ability to apply a BBAY with Summer included increases a student’s borrowing potential if that student continues to attend Summer throughout their educational program.

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**SAY/BBAY Combined to Maximize Borrowing**

$8,500 Summer Fall 3rd period BBAY Loan period 3 Spring 1st period SAY Loan period 1 2nd period BBAY Loan period 2 On the other hand, use of a SAY might benefit students in particular situations where Summer is the first term of a student’s attendance, and you want the student to receive maximum benefit for that period and still have additional loan funds available for the Fall term. For example, let’s say a school has a graduate medical program that begins for all new students in the Summer term (semester). The school could say that Summer is the end of a SAY that commenced the previous Fall. Then a new SAY begins with the beginning of the Fall term. I am assuming in this example that no other Stafford borrowing occurred at any other school during the SAY that the school is using when that student commenced attendance. Also, it is important to note that for a student enrolled in a standard term program there is no requirement to complete the number of credit hours in the academic year before qualifying for the next loan. It is only necessary pass beyond the number of terms that make up the school’s definition of an academic year to qualify for the next annual loan limit, regardless of what the student’s enrollment status was, or how many credits were completed. $8,500

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**BBAY: Non-standard Term School**

2-Year 8 week term-based program Academic Year 24 Credits/ 32 Weeks Spring 2 Summer Spring 1 Fall 1 1st BBAY $2,625 Not standard terms must be treated differently. Here you can see a non-standard term structure in a 2 academic year program Each academic year consists of 4 8-week terms If a student is attending full-time, the student will progress to the next annual loan limit at the end of 4 terms Spring 1 Spring 2 Fall 2 Summer 2nd BBAY $3,500

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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 However, in a non-standard term structure, in order to advance to the next annual loan limit, the student must complete all of the weeks AND the hours in order to advance to the next annual loan limit So, a student who is attending less than full-time may not receive another loan limit at the end of the 4 terms It may take longer

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**BBAY: Non-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 Spring 2 (3) Summer (6) Spring 1(3) Fall 1 (6) 1st BBAY In this example you can see the same 8-week terms in a situation where the student attends full-time except for the two Spring terms in which the student is enrolled as a ½ time student As you can see, the student has not completed 24 credits at the end of 4 terms Instead, the credits completed at the end of the 4th term is only 18 The student must complete 6 additional hours before eligible for another annual loan limit In this example the student will not be able to receive a loan for the Fall 2 8-week term The next BBAY can begin for this student beginning with the Spring 1 term. Fall 2 (6) 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 Non-term credit hour and clock hour programs also do not have the same flexibility as standard term based. Schools must use the BBAY to determine when a borrower is eligible for another annual loan limit. Like the term based BBAY, the BBAY floats with the student’s enrollment. But, unlike the BBAY rules for standard term based programs, in order to get another loan, the student has to complete both the hours and the weeks in the 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 Let’s look at this example where a second year student has a loan period that extends from September 1 to May 15 which is 32 weeks in length. That 32 week period includes 24 semester hours. The school defines their academic year as 24 semester hours over 30 weeks. The school awards the student a second year loan of $3,500. The student withdraws on November 1 after receiving the first disbursement of $1,750. Then, the student re-enrolls on November 28 in a new program as a first year student. Because the first loan period (academic year) has not been completed, the student is only eligible to borrower the difference between the first year annual loan limit of $2,625 and the $1,750 the student has already received. The new loan amount of $875 is certified for the 30 week period beginning November 28 and ending June 27. Provided this new program is more than one year in length, the student will be eligible for another loan beginning June 28. This, of course, assumes that the student has completed all 24 semester hours in the new program by that date.

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**Example of BBAY Non-Term Credit Hour Program**

Pay Period 1 12 hours/16 weeks Pay Period 2 $1,750 $3,500 First Loan Period 9/1 to 5/15 Pay Period 1 12 hours/15 weeks Pay Period 2 $438 $437 $2,625 - $1,750 = $875 Second Loan Period 11/28 to 6/27 Here, you can clearly see that the loan period for the first program overlaps with the loan period for the second program. Anything received during an overlapping loan period must be considered when determining the eligibility for the annual loan limit for that student for that second period. The student only qualifies for additional funding when all of the hours and the weeks have been completed in the second period.

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**BBAY - Clock Hour Program**

1200 Clock Hour Program with 900 Clock Hour, 26 week Academic Year 450 300 1st BBAY includes both 900 hours & 26 weeks Remaining Portion of 2nd BBAY $2,625 $3,500 x 300 = $ This slide shows how the BBAY applies in a clock hour program that is longer than one academic year in length. Remember that, as with the non-term credit hour programs, a student must complete all of the hours and the weeks in order to qualify for another annual loan limit. Also, remember that the BBAY corresponds to the definition of the academic year and that is 900 hours and 26 weeks in this example. So, let’s assume the student finishes the 900 hours and 26 weeks at the first year loan level of $2,625. At this point the student only has 300 hours left to complete the 1200 hour program. The BBAY is still 900 hours and 26 weeks, but the remaining portion of the program is less than an academic year so the loan must be pro-rated for that remaining period. Because the student has progressed to the 2nd year loan limit of $3,500, the pro-ration is applied to that annual loan limit. Pro-ration for any remaining period in a program that is greater than one year is based only on hours remaining to be completed divided by hours in the academic year. So, the $3,500 annual loan limit is multiplied by the 300 remaining hours divided by the 900 hours in the academic year resulting in a pro-rated loan amount of $1,167.

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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 It is important to define the period of enrollment or the student’s loan period. This determines the timing and the amount of the loan disbursements. A school certifies or originates a loan for this specific period of time, certifying that the loan funds are needed to help pay for educational expenses incurred during that period of time. If your school uses standard academic terms, the loan period must coincide with a bona fide academic term or terms. In a standard term-based program of study, the minimum loan period is a single academic term, such as a semester, quarter, or trimester. The maximum loan period is the school’s academic year, not to exceed 12 months. If your school uses a non-standard term based structure, the loan period must be the lesser of: Length of the student’s program of study Program’s academic year as defined by the school, or Remaining portion of a student’s program of study if that is less than an academic year in length In a non-term program of study, the loan period consists of a specific number of credit or clock hours and must use the same standard as non-standard term programs when determing the loan period. Also, in this scenario, the maximum loan period is the school’s 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 Remember that our annual loan limits are applicable for a full academic year of study. When a student begins a new program of study at your school, or transfers to your school after prior attendance at another the school, you are responsible for determining the student’s eligibility for a new loan. To determine the student’s eligibility, you must know what the student had received at the previous school, and what the academic year was for the most recent loan borrowed. If the student begins attendance at your school prior to the end of the previous school’s academic year, you will have to adjust the student’s loan amount at your school to ensure that the student does not exceed his or her annual loan limit. Lets look at a few examples.

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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 Our first example is a student who transfers from one term-based school to another term-based school. At School A, the student was awarded 2625 for the scheduled academic year of fall and spring semesters. The loan period was September 7, 2005 to May 6, 2006. The student transfers to School B after completing the fall semester at School A, having received half of the loan, or 1313. School B is on a quarter schedule. The student enrolls at School B for the winter quarter, which begins on January 10, 2005. Because School A’s academic year does not end until May 6, 2005, we have overlapping academic years. This means that the student’s eligibility is only the difference between his annual loan limit at School B and the 1313 he received at School A. The student is not eligible to borrow another full annual loan limit until the end of School A’s academic year, which we said was May 6, 2005. Assuming winter quarter ends March 12, 2005, and Spring quarter begins March 28, 2005 and ends June 3, 2005, the student would next be able to borrow for the Summer term, or Fall if the student will not be attending Summer.

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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 Our second example is a student completing a credit hour non-term program of study and enrolling in a program of study based upon a semester calendar. The student was enrolled in a credit hour non-term program that had a final period of study of 18 weeks and 24 semester credit hours. As a second year student, she received 3500 for that 18 week loan period of March 15, 2006 to July 17, 2007. Fall semester begins at School C, on September 8, 2004. The loan period at the previous school has elapsed, but we must remember that it was a remaining period of study, so it was not a full academic year. Because an academic year in the law is defined as a minimum of 30 weeks, the student does not become eligible for a new annual loan limit until 30 weeks have elapsed from the beginning of the previous school’s loan period weeks from March 15, 2004 would be October 8, 2004. Since student is enrolling at School C as a second year student and he has already borrowed the 3500 annual loan limit for a second year student, the student has no eligibility for a loan for the fall semester at School C. Even though the 30 weeks ends prior to the completion of School C’s fall semester, the minimum loan period is an academic term. It would not be possible to certify a loan that begins October 8 because that is not the beginning of an actual term at School C. Beginning with the spring semester, the student would be eligible for a new annual loan limit, based on his grade level.

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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 This example deals with programs of study on a clock hour calendar. The student withdraws from School A after completing 750 clock hours in an 1800 clock hour program of study. The student received $2625 in Stafford Loan funds for the first academic year of the program of study, July 12, to February 11, 2005. The student enrolls in a similar program of study at your school, beginning on January 10, 2005.

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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 Because the student’s period of enrollment at your school begins prior to the end of School A’s academic year, February 11, 2005, we have an overlapping loan period. Assuming that the student begins at your school as a first year undergraduate, the student has no eligibility for a new loan until the completion of his first academic year at your school.

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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? NSLDS will give you loan period and amount If 30 weeks have elapsed, student is in new academic year and eligible for new loan If 30 weeks have not elapsed, student is only eligible for difference between 2625 and what received at School A. Your loan period would be for remainder of student’s program – 460 hours

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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 900 hours in 26 weeks is 35 hours per week Wait until 30 weeks elapsed before second loan 4 more weeks at 35 hours each is 140 hours Student will be at 1040 when 30 weeks have elapsed. Second loan is only for 460 hours. ( )

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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 = 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 Academic year must have elapsed to get New loan.

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**Questions?? Linda Burkhardt linda.burkhardt@ed.gov (206) 615-2174**

Marianna Deeken (206)

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