Maintained for Historical Purposes

This resource is being maintained for historical purposes only and is not currently applicable.

William D. Ford Federal Direct Loan Program - Appendix: Type of Academic Year/Frequency for Annual Loan Limits

AwardYear: 1997-1998
EnterChapterNo: 11
EnterChapterTitle: William D. Ford Federal Direct Loan Program
SectionNumber:
SectionTitle: Appendix: Type of Academic Year/Frequency for Annual Loan Limits
PageNumbers: 83-87


Appendix: Type of Academic Year/Frequency for Annual Loan
Limits

In determining the frequency for annual Direct Loan limits, the type
of academic year a school uses is important: a standard academic
year (SAY) or a borrower-based academic year (BBAY). Only term-
based programs can use SAYs. Nonterm programs must use BBAYs.
If a program at a term-based school contains fewer than 30 weeks of
instructional time (unless the Department grants a waiver for an
academic year of less than 30 weeks), the school must use only
SAYs for borrowers in that program.

STANDARD ACADEMIC YEAR

An SAY is a fixed period of time that generally begins and ends at
the same time each calendar year (for example, beginning on the first
day of the fall semester and ending on the last day of the spring
semester). An SAY must meet the statutory requirements of an
academic year, as described in Chapter 2.

For a program that uses SAYs, a summer term may be part of the
academic year that preceded that term (that is, it may be a "trailer"),
or it may be part of the academic year that follows that term (that is,
it may be a "leader"). The school can

- use a strict policy that summer terms are always trailers or leaders,

- determine whether a summer term is a trailer or leader on a
program-by-program basis, or

- determine whether a summer term is a trailer or leader on a case-
by-case basis.

Summer mini-sessions can be grouped as a trailer or leader, or they
can be treated separately and assigned to different SAYs. If the
summer mini-sessions are grouped and treated as a single term, the
summer cost of attendance cannot include costs for a mini-session
for which the student was not enrolled.

Making Loans for Standard Academic Years

A student's loan period does not have to include all academic terms
in an SAY. The total of all loans borrowed within an SAY cannot
exceed the student's annual loan limit for his or her grade level.

A student may receive more than one loan during an SAY if

- after receiving the first loan, he or she has loan eligibility
remaining for that SAY,

- he or she progresses to a grade level with a higher annual loan
limit, or

- his or her dependency status changes from dependent to
independent during the academic year.

BORROWER-BASED ACADEMIC YEAR

A school must use a BBAY for a nonterm program.

For a term program

- a school may choose to use a BBAY if the school's defined
academic year meets the minimum statutory requirements of an
academic year, as described in Chapter 2;

- a school may use BBAYs for all its students or just for students
enrolled in certain programs, or it may use BBAYs on a student-
by-student basis;

- a school may alternate BBAYs with SAYs for a student if the
academic years do not overlap;

- the starting date of the BBAY depends on a student's attendance
and progression in his or her degree or certificate program;

- the BBAY's length must equal the number of terms in the school's
defined academic year (not including any summer trailer or
leader);

- the number of hours or weeks in the BBAY does not have to meet
the 30-week minimum academic year if the BBAY includes a
summer term;

- the BBAY may include terms and/or mini-sessions the student
does not attend if the student could have enrolled at least half time
in those terms or mini-sessions;

- mini-sessions (summer or otherwise) that run consecutively must
be combined and treated as a single term.

If a school has a choice of academic year standards for its term-based
programs, it must have a written policy that explains how it applies
these options when calculating loan eligibility.

Making Loans for Borrower-Based Academic Years

For a nonterm program, a student may not receive an additional loan
until he or she completes the minimum number of weeks and credit
or clock hours in an academic year.

For a term program, the total of all loans a student receives during a
BBAY cannot exceed the annual loan limit for the student's grade
level.

A student may receive more than one loan during a BBAY if

- after receiving the first loan, he or she has loan eligibility
remaining for that BBAY,

- he or she progresses to a grade level with a higher annual loan
limit, or

- his or her dependency status changes from dependent to
independent during the academic year.

Last Modified: 07/21/1998