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Scheduled and Borrower Based Academic Years

Scheduled and Borrower Based Academic Years. Linda Burkhardt Marianna Deeken U. S. Department of Education. Annual Loan Limits . Apply to an academic year as defined by school HEA minimum academic year requirements 30 weeks of instruction, 24 semester credits

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Scheduled and Borrower Based Academic Years

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

  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. 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. Annual Loan Limits

  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. COA - EFC - EFA = Loan eligibility up to grade level limit $ 8950 COA - 3247 EFC - 800 Pell Grant = 4903 Need Dependent Loan Eligibility • Grade level limit for first year student is $2,625 • Student has enough need to receive $2,625 in subsidized loan

  7. COA - EFC - EFA = Loan Eligibility up to grade level limit $ 6950 COA - 3694 EFC - 400 Pell Grant = 2856 Need Dependent Loan Eligibility • 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. 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. Annual Loan Limits Additional Unsubsidized Loan

  10. COA - EFA = Loan Eligibility up to grade level limit $ 8950 COA 800 Pell Grant 2625 Sub Loan = 5525 remaining eligibility Additional Unsubsidized Eligibility • Grade level limit for a first year student is $4,000 • Student may receive additional unsubsidized of $4,000

  11. COA - EFA = Loan Eligibility up to grade level limit $ 6950 COA 400 Pell Grant 2856 Sub loan 644 Unsub loan = 3050 remaining eligibility Additional Unsubsidized 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

  12. Additional Unsubsidized Eligibility COA $ 6950 EFA--Pell - 400 Subsidized - 2856 Unsubsidized - 3694 Remaining eligibility -0-

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

  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. Loan period 1 Loan period 2 $2,625 $3,500 Fall Spring Fall Spring 1st SAY 2nd SAY $2,625 $3,500 SAY Example 1

  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. Loan period 1 Loan period 2 Loan period 3 $5,500 $1,000 $2,500 Fall Spring Summer Fall Spring 2nd SAY 1st SAY $5,500 $3,500 SAY Example 2

  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 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

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

  22. Spring Summer Fall Spring 1st BBAY 2nd BBAY $2,625 $3,500 BBAY: Standard Term-based Program 2-Year Semester-based Credit Hour Program Academic Year 24 Credits/ 30 Weeks

  23. Loan period 1 Loan period 2 $8,500 $8,500 Fall Spring Summer Fall Spring 2nd period BBAY 1st period SAY $8,500 $8,500 Loan period 3 $8,500 Summer Fall 3rd period BBAY SAY/BBAY Combined to Maximize Borrowing $8,500

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

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

  27. 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

  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. First Loan Period 9/1 to 5/15 $3,500 Pay Period 1 12 hours/16 weeks Pay Period 2 12 hours/16 weeks $1,750 Second Loan Period 11/28 to 6/27 $2,625 - $1,750 = $875 Pay Period 1 12 hours/15 weeks Pay Period 2 12 hours/15 weeks $438 $437 Example of BBAYNon-Term Credit Hour Program

  30. 450 450 300 1st BBAY includes both 900 hours & 26 weeks Remaining Portion of 2nd BBAY $2,625 $3,500 x 300 = $1167 900 BBAY - Clock Hour Program 1200 Clock Hour Program with 900 Clock Hour, 26 week Academic Year

  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 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

  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 school’s academic year

  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. 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. 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

  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 school’s academic year • 26 weeks minimum

  37. 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?

  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. 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

  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. Linda Burkhardt linda.burkhardt@ed.gov (206) 615-2174 Marianna Deeken marianna.deeken@ed.gov (206) 615-2583 Questions??

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