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Scheduled and Borrower Based Academic Years Linda Burkhardt Marianna Deeken U. S. Department of Education.

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Presentation on theme: "Scheduled and Borrower Based Academic Years Linda Burkhardt Marianna Deeken U. S. Department of Education."— Presentation transcript:

1 Scheduled and Borrower Based Academic Years Linda Burkhardt Marianna Deeken U. S. Department of Education

2 2 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

3 3 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

4 4 Annual Loan Limits DependentIndependent 1 st year undergraduate $2625 ($3500) $2625 ($3500) 2 nd year undergraduate $3500 ($4500) $3500 ($4500) 3 rd year and above undergraduate $5500 Grad/Professional$8500

5 5 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

6 6 Dependent Loan Eligibility COA - EFC - EFA = Loan eligibility up to grade level limit $ 8950 COA EFC 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

7 7 Dependent Loan Eligibility COA - EFC - EFA = Loan Eligibility up to grade level limit $ 6950 COA EFC 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

8 8 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

9 9 Annual Loan Limits Additional Unsubsidized Loan Undergraduate 1 st year $ 4,000 Undergraduate 2 nd year $ 4,000 Undergraduate 3 rd year+ $ 5,000 Graduate/Professional $10,000 ($12,000)

10 10 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

11 11 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 2 nd 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

12 12 Additional Unsubsidized Eligibility COA $ 6950 EFA--Pell- 400 Subsidized Unsubsidized Remaining eligibility -0-

13 13 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

14 14 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

15 15 SAY: Standard Term-based Program 2-Year Semester-Based Credit Hour Program Academic Year 24 Credits/ 30 Weeks SpringFall Spring 1st SAY2nd SAY $2,625$3,500

16 16 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.

17 17 SAY Example 1 SpringFall Spring 1st SAY2nd SAY $2,625$3,500 Loan period 1Loan period 2 $2,625$3,500

18 18 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

19 19 SAY Example 2 SpringFall 1st SAY $3,500 FallSpring 2nd SAY $5,500 Loan period 3Loan period 1 $1,000 $5,500 Summer $2,500 Loan period 2

20 20 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 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

21 21 BBAY: Standard Term-based Program 2-Year Semester-based Credit Hour Program Academic Year 24 Credits/ 30 Weeks Spring-15 wksSummer-10wksFall-15 wks 1st BBAY2nd BBAY $2,625$3,500

22 22 BBAY: Standard Term-based Program 2-Year Semester-based Credit Hour Program Academic Year 24 Credits/ 30 Weeks SummerFallSpring 1st BBAY2nd BBAY $2,625$3,500

23 23 SAY/BBAY Combined to Maximize Borrowing $8,500 SummerFall 3rd period BBAY Loan period 3 $8,500 SpringFall 1st period SAY Summer $8,500 Loan period 1 FallSpring 2nd period BBAY $8,500 Loan period 2 $8,500

24 24 BBAY: Non-standard Term School 2-Year 8 week term-based program Academic Year 24 Credits/ 32 Weeks Spring 1Spring 2Fall 2Summer 2nd BBAY $3,500 Spring 2SummerSpring 1Fall 1 1st BBAY $2,625

25 25 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

26 26 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 Fall 2 (6) Spring 2 (3)Summer (6)Spring 1(3)Fall 1 (6) 1st BBAY Spring 1Spring 2Summer 2nd BBAY Fall 1 No loan

27 27 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

28 28 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

29 29 Example of BBAY Non-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

30 30 BBAY - Clock Hour Program 1200 Clock Hour Program with 900 Clock Hour, 26 week Academic Year st BBAY includes both 900 hours & 26 weeks Remaining Portion of 2nd BBAY $2,625 $3,500 x 300 = $

31 31 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

32 32 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

33 33 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

34 34 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

35 35 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

36 36 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

37 37 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?

38 38 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

39 39 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

40 40 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

41 41 Questions?? Linda Burkhardt (206) Marianna Deeken (206)


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