scheduled academic year one size fits all borrower based academic year unique to the borrower
TRANSCRIPT
SAY No More –
A Look at BBAY
October 6, 2015
Thomas Ratliff Indiana Wesleyan University
Kristin BhaumikUniversity of Michigan
SAY v BBAY
Scheduled Academic YearOne size fits all
Borrower Based Academic Year
Unique to the borrower
SAY – Scheduled Academic Year
· 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
SAY – Scheduled Academic Year
· 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
BBAY may be…
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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Types of BBAY
• 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.
Borrower Based Academic Year (BBAY1)
· 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
Academic Years for Annual Loan Limits
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.
BBAY1 Examples
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Basic BBAY1 Academic Year Calendar
Fall Spring Summer Fall Spring Summer
Year 1: SAY or BBAY1 Year 2: BBAY1 Year 3: BBAY1
BBAY1 - Student not enrolled 2nd term of year 2
Fall Spring Summer Fall (not enrolled)
Spring Summer
Year 1: SAY or BBAY1 Year 2: BBAY1 Year 3:BBAY1
BBAY1 - Student not enrolled for beginning term, so BBAY floats
Fall Spring Summer Fall Spring (not enrolled)
Summer Fall
Year 1: SAY or BBAY1 Year 2: BBAY1
Year 3: BBAY1
Academic Years for Annual Loan Limits
Borrower Based Academic Year (BBAY2)• Credit hour programs not offered in SAY but with
Standard termsNonstandard 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
Academic Years for Annual Loan Limits
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.
BBAY2 Examples
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Basic BBAY2 Academic Year Calendar
Term 1 Term 2 Term 3 Term 4 Term 5 Term 6
Year 1: BBAY2 Year 2: BBAY2 Year 3: BBAY2
BBAY2 - Student not enrolled 2nd term of year 2
Term 1 Term 2 Term 3 Term 4 (not enrolled)
Term 5 Term 6
Year 1: BBAY2 Year 2: BBAY2 Year 3:BBAY2
BBAY2 - Student not enrolled for beginning term, so BBAY floats
Term 1 Term 2 Term 3 Term 4 Term 5 (not enrolled)
Term 6 Term 7
Year 1: BBAY2 Year 2: BBAY2
Year 3: BBAY2
Academic Years for Annual Loan Limits
Borrower Based Academic Year (BBAY3)• Required for
Clock-hours programsNonterm programsNonstandard 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
Academic Years for Annual Loan Limits
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
BBAY3 Examples
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BBAY3 Academic Year CalendarNonterm 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: BBAY3BBAY3 Academic Year CalendarNonterm 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
BBAY3 Examples
17
BBAY3 Academic Year CalendarNonterm 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
Why use BBAY for your students?
• 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.
Who do you award on BBAY?
You pick –• All students• Only students in certain programs• On a student-by-student basis
How do you identify your population(s)?
Some things to consider:• Self-identify vs. auto-package• Implications for aggregate
borrowing• Additional counseling for borrowers
How much extra work should staff expect?
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
How do you counsel students?
It can be challenging explaining a “floating” loan period. Pictures help!
How do you counsel students?
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.
How do you counsel students?
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.
What challenges should I be aware of?
• 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.
What challenges should I be aware of?
Transfer monitoring
And…
Transfer Monitoring
• 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.
CRITICAL THINKING ZONE
NOT CrossoverPeriod…barely
CRITICAL THINKING ZONE
Did this transfer student start a new BBAY on 1/06/15?
Too soon to tell!
CRITICAL THINKING ZONE – Review EVERYTHING
Look for loan periods that seem to conform to “standard” lengths. Move forward (and/or backward) from there in the history using this template.
Transfer Monitoring
• 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!
