Scheduled Academic Year One size fits all Borrower Based Academic Year Unique to the borrower

· Generally begins and ends at same time annually. · The student does not have to be enrolled in the first term. · Must meet the program’s FSA academic year in weeks and hours · Total of all loans received within a SAY (including summer) cannot exceed the annual loan limit · Student becomes eligible for a new annual loan limit after SAY calendar period has elapsed

· After the original loan, student may receive additional loans during same SAY if: Student did not receive maximum annual loan amount and has remained eligible; Student progresses to a grade level with higher loan limits; or Student changes from dependent to independent · Summer term may be “trailer” or “header” per: Strict policy; By program; or Case by case, by student

Borrower-Based Academic Year (BBAY) may be used as an alternative to an SAY for programs also offered in an SAY BBAY must be used for clock-hour, non-term, and nonstandard-term programs, and for standard-term credit-hour programs without an SAY - FSA Handbook p. 3-87

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BBAY 1 – credit-hour programs using Scheduled Academic Year with standard terms or nonstandard SE9W terms. BBAY 2 – credit-hour programs not using SAY, with standard terms or nonstandard SE9W terms. BBAY 3 – clock-hour programs, non-term programs, any nonstandard-term program or a program with standard and nonstandard terms not described above.

· Corresponds to traditional academic calendar · “Floats” with student’s enrollment · Student must be enrolled in first term of the BBAY1 · Length must equal number of terms in SAY (excluding summer header/trailer) · Number of weeks & hours need not meet regulatory requirements for academic year if it includes summer terms · May include terms student does not attend if student could have enrolled at least ½ time. · Total of all loans cannot exceed annual limit · Student becomes eligible for new annual loan limit after BBAY1 calendar period has elapsed

Borrower Based Academic Year (BBAY1) Student may receive additional loans during same BBAY1 when student progresses to grade level with higher annual loan limit Minisessions (Modules) must be combined with each other or with other terms and treated as a single standard or nonstandard term Student need not enroll in each minisession (module), but must have been able to enroll at least ½ time in the combined term.

10 Basic BBAY1 Academic Year Calendar FallSpringSummerFallSpringSummer Year 1: SAY or BBAY1Year 2: BBAY1Year 3: BBAY1 BBAY1 - Student not enrolled 2nd term of year 2 FallSpringSummer Fall (not enrolled) SpringSummer Year 1: SAY or BBAY1Year 2: BBAY1Year 3:BBAY1 BBAY1 - Student not enrolled for beginning term, so BBAY floats FallSpringSummerFall Spring (not enrolled) SummerFall Year 1: SAY or BBAY1Year 2: BBAY1 Year 3: BBAY1

Borrower Based Academic Year (BBAY2) Credit hour programs not offered in SAY but with Standard terms Nonstandard SE9W terms “Floats” with student’s enrollment Student must be enrolled in first term of the BBAY2 May include terms student is not enrolled in but could have enrolled at least ½ time Length must meet at least the minimum requirements for hours & weeks of the programs FSA academic year

Borrower Based Academic Year (BBAY2) Total of all loans cannot exceed annual limit Student becomes eligible for new annual loan limit after BBAY2 calendar period has elapsed Student may receive additional loans during same BBAY2 when student progresses to grade level with higher annual loan limit Minisessions (Modules) must be combined with each other or with other terms and treated as a single standard or nonstandard term Student need not enroll in each minisession (module), but must have been able to enroll at least ½ time in the combined term.

13 Basic BBAY2 Academic Year Calendar Term 1Term 2Term 3Term 4Term 5Term 6 Year 1: BBAY2Year 2: BBAY2Year 3: BBAY2 BBAY2 - Student not enrolled 2nd term of year 2 Term 1Term 2Term 3 Term 4 (not enrolled) Term 5Term 6 Year 1: BBAY2Year 2: BBAY2Year 3:BBAY2 BBAY2 - Student not enrolled for beginning term, so BBAY floats Term 1Term 2Term 3Term 4 Term 5 (not enrolled) Term 6Term 7 Year 1: BBAY2Year 2: BBAY2 Year 3: BBAY2

Borrower Based Academic Year (BBAY3) Required for Clock-hours programs Nonterm programs Nonstandard terms that are not SE9W “Floats” with student’s enrollment BBAY3 begins with student enrollment on at least ½ time basis Length must meet at least the minimum requirements for hours & weeks of the programs FSA academic year Total of all loans cannot exceed annual limit

Borrower Based Academic Year (BBAY3) Student becomes eligible for new annual loan limit only after successfully completing both the clock/credit hours AND weeks of instruction Student may progress to next grade level/annual loan limit after the successful completion of a BBAY3

16 BBAY3 Academic Year Calendar Nonterm with sequential classes (6 weeks long, 3 credit hours) Academic Year Definition 24 credits/30 weeks Class1 (3 cr/6 wks) Class2 (3 cr/6 wks) Class3 (3 cr/6 wks) Class4 (3 cr/6 wks) Class5 (3 cr/6 wks) Class6 (3 cr/6 wks) Class7 (3 cr/6 wks) Class8 (3 cr/6 wks) Payment Period 1 (12 cr/24 wks) Payment Period 2 (12 cr/24 wks) Year 1: BBAY3 BBAY3 Academic Year Calendar Nonterm with sequential classes (varying course hours and weeks) Academic Year Definition 24 credits/30 weeks Class1 (3 cr/5 wks) Class2 (3 cr/5 wks) Class3 (3 cr/6 wks) Class4 (3 cr/6 wks) Class5 (4 cr/8 wks) Class6 (3 cr/6 wks) Class7 (3 cr/6 wks) Class8 (3 cr/5 wks) Payment Period 1 (16 cr/30 wks) Payment Period 2 (9 cr/17 wks) Year 1: BBAY3

17 BBAY3 Academic Year Calendar Nonterm with courses overlapping (varying course hours and weeks) Academic Year Definition 24 credits/30 weeks Class1 (3 cr/5 wks) Class3 (3 cr/5 wks) Class4 (3 cr/5 wks) Class6 (4 cr/10 wks) Class8 (3 cr/6 wks) Class2 (4 cr/10 wks - 3 wk overlap w/ each course) Class5 (4 cr/10 wks - all overlap) Class7 (3 cr/6 wks - 3 wks overlap) Payment Period 1 (13 cr/19 wks) Payment Period 2 (11 cr/16 wks) Year 1: BBAY3

Flexibility. “Float” borrowing with a student’s (or group of students’) attendance and progression. Summer assistance. Many awards are fully utilized in the scheduled academic year, leaving students with limited resources to accelerate degree progress or engage in co-curricular activities (like studying abroad) during summer. “Butts in seats” effect. Additional resources in summer could increase enrollment during that period of time.

You pick – All students Only students in certain programs On a student-by-student basis

Some things to consider: Self-identify vs. auto-package Implications for aggregate borrowing Additional counseling for borrowers

It can be significant, depending on the time of year, the size of the population, the customization of the borrowing and the number of staff you have working on these loans. Identify some “experts” in your office

It can be challenging explaining a “floating” loan period. Pictures help!

Borrowers should fully understand long-term implications of additional borrowing during their degree. They may reach aggregate limits before they complete their program. Counseling is key to borrowing to the minimum needed.

Additional explanation of award notices may be necessary. If a dependent, undergraduate borrower going into their senior year receives $3750 subsidized direct loans in summer, their maximum fall term eligibility would likely be $1750. This uneven split of subsidized loans in particular can cause confusion.

A clearly defined (and documented) loan period is key. PLUS loans must follow the same BBAY period used for Direct Subsidized/Unsubsidized Loans. Loan proration reviews need to be done year-round. Errors happen, both by the computer and by us. Calculating the “floating” loan period and borrowing eligibility can be tricky all around.

Transfer monitoring And…

It is important with transfer students to identify how the other school awards loans to ensure a student does not exceed limits at your school. Be aware of overlapping academic year loan periods. Holistic review of borrowing history.

NOT Crossover Period…barely

Did this transfer student start a new BBAY on 1/06/15? Too soon to tell!

Look for loan periods that seem to conform to “standard” lengths. Move forward (and/or backward) from there in the history using this template.

It is important with transfer students to identify how the other school awards loans to ensure a student does not exceed limits at your school. Be aware of overlapping academic year loan periods. Holistic review of borrowing history. If in doubt, call a friend!