scheduled and borrower based academic years linda burkhardt marianna deeken u. s. department of...
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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
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
Dependent Independent
1st year undergraduate
$2625
($3500)
$2625
($3500)
2nd year undergraduate
$3500
($4500)
$3500
($4500)
3rd year and above undergraduate
$5500 $5500
Grad/Professional $8500
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
Dependent Loan Eligibility
COA
- EFC
- EFA
= Loan eligibility up to grade level limit
$ 8950 COA
- 3247 EFC
- 800 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
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Dependent Loan Eligibility
COA
- EFC
- EFA
= Loan Eligibility
up to grade level limit
$ 6950 COA
- 3694 EFC
- 400 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
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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
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Annual Loan Limits Additional Unsubsidized Loan
Undergraduate 1st year $ 4,000
Undergraduate 2nd year $ 4,000
Undergraduate 3rd year+ $ 5,000
Graduate/Professional $10,000 ($12,000)
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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
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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 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 - 400
Subsidized - 2856
Unsubsidized - 3694
Remaining eligibility -0-
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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
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
SAY: Standard Term-based Program2-Year Semester-Based Credit Hour Program
Academic Year 24 Credits/ 30 Weeks
Spring FallFall Spring
1st SAY 2nd SAY$2,625 $3,500
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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.
17
SAY Example 1
Spring FallFall Spring
1st SAY 2nd SAY$2,625 $3,500
Loan period 1 Loan period 2
$2,625 $3,500
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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
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SAY Example 2
SpringFall
1st SAY$3,500
Fall Spring
2nd SAY$5,500
Loan period 3Loan period 1
$1,000 $5,500
Summer
$2,500
Loan period 2
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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
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BBAY:Standard Term-based Program
2-Year Semester-based Credit Hour ProgramAcademic Year 24 Credits/ 30 Weeks
Spring-15 wks Summer-10wksFall-15 wks Fall-15wks
1st BBAY 2nd BBAY
$2,625 $3,500
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BBAY: Standard Term-based Program
2-Year Semester-based Credit Hour ProgramAcademic Year 24 Credits/ 30 Weeks
Summer FallSpring Spring
1st BBAY 2nd BBAY
$2,625 $3,500
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SAY/BBAY Combined to Maximize Borrowing
$8,500
$8,500
Summer Fall
3rd period BBAY
Loan period 3
$8,500
SpringFall
1st period SAY
Summer
$8,500
Loan period 1
Fall Spring
2nd period BBAY$8,500
Loan period 2
$8,500
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BBAY:Non-standard Term School
2-Year 8 week term-based programAcademic Year 24 Credits/ 32 Weeks
Spring 1 Spring 2Fall 2 Summer
2nd BBAY$3,500
Spring 2 SummerSpring 1 Fall 1
1st BBAY$2,625
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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
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BBAY:Non-standard Term School
2-Year 8 week term-based programAcademic 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 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
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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
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Example of BBAYNon-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
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BBAY - Clock Hour Program1200 Clock Hour Program with
900 Clock Hour, 26 week Academic Year
450 450 300
1st BBAY includesboth 900 hours & 26 weeks
Remaining Portionof 2nd BBAY
$2,625 $3,500 x 300 = $1167 900
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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
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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
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
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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
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
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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– 900 + 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
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Questions??
Linda Burkhardt
linda.burkhardt@ed.gov
(206) 615-2174
Marianna Deeken
marianna.deeken@ed.gov
(206) 615-2583
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