# Presentation: 243252

## Delivering Aid in the 21st Century:Beyond Standard Terms

**Fred Sellers**
**Office of Postsecondary Education**
**U.S. Department of Education**

***Session 15***

## Overview

**  ****Getting Started**
**  ****Pell and Loan Basic Requirements**
**  ****Case Studies**
** ****Standard Terms**
** ****Nonstandard Terms**
** ****Nonterm **
**  ****Additional handouts:  **
** ****Toolbox**
** ****Additional Case Studies**

## Overview

**Focus**
**  ****Federal Pell Grant Program**
** **
**  ****Loan Programs:  FFEL and DL**
**  ****How to determine payment amounts and **
**    ****when to make disbursements**

## Overview

**Expectations/Frustrations**
**  ****What can you expect from this session?**
**  ****Is there information that you may not get**
**    ****from this session?**
**  ****What you can expect from me and other ED**
**    ****personnel?**

## Getting Started

## Getting Started

**For Each Academic Program**
**Academic calendar**
**Program’s weeks of instructional time**
**Definitions for Title IV**
**Payment periods**
**Loan periods**
**  **

**Getting Started**

## Getting Started

**For Each Academic Program**
**Academic calendar**
**      ******** ****Term using credit hours**
** ****Standard Term**
** ****Nonstandard Term**
**      ******** ****Nonterm credit hour**
**      ******** ****Clock hour – term and nonterm **
**  **

## Getting Started

**For Each Academic Program**
**Program’s weeks of instructional time**
**     ********  ****Definition of a week of instructional time**
**     ********  ****Relationship to calendar time**
**  **

**Getting Started**

## Getting Started

**For Each Academic Program**
**Definitions for Title IV**
**     ********  ****Academic year**
**                ****Weeks of instructional time**
**                ****Hours (for undergraduate) – clock or credit**
**    ********  ****Full-time for terms or program **
**    **
**  **

**Getting Started**

## Getting Started

**For Each Academic Program**
**Payment periods**
**     ********  ****Terms using credit hours**
**     ********  ****Nonterm with credit hours **
**     ********  ****Clock-hours**
**  **

**Getting Started**

## Getting Started

**For Each Academic Program**
**Loan periods – with terms as payment periods**
**    ******** ****Standard-term programs **
**    ******** ****Nonstandard-term programs with terms substantially**
**         ****equal in length (all terms within two weeks of**
**         ****instructional time in length)**
**Loan periods – without payment periods**
**    ******** ****Nonstandard-term programs with terms unequal in**
**         ****length**
**   **** ******** ****Nonterm credit-hour programs**
**    ******** ****Clock-hour programs**

**Getting Started**

## Pell and Loan

**Basic Requirements**

## Program Requirements

**Federal Pell Grant Program**
**  ****Use Scheduled Award as basis for student’s **
**    ****Pell for an award year**
**  ****Calculate payments of a student’s award by**
**    ****payment period**
**  ****Disburse payments by payment period**
**     **

## Program Requirements

**Pell Formulas**
**   ****Calculate payments for payment periods**
**   ****Award a grant “evenly” across defined academic **
**     ****year – both measures**
**   ****Consider weeks then hours in determining **
**     ****payments for payment periods**
**   ****Encourage educational programs offered in **
**     ****reasonable timeframes **
**     **
**     **

## Program Requirements

**Pell Formulas**
_**1**_** ****&**** **_**2**_**  **** Standard term – traditional school calendars**
_**3**_**  Any term-based credit-hour program**
_**4**_** **** Clock-hour and nonterm credit-hour programs**
_**5**_** **** Correspondence programs**
**                                                                       **
**      **

**Program Requirements**

## Program Requirements

**Loan Programs - FFEL and DL**
**    ****Consider **
**  ****Payment periods**
**  ****Weeks of instructional time**
**  ****Calendar time**
**  ****Credit or clock hours**** **
**    ****May determine**
**  ****Loan period**
**  ****Delivery of proceeds**
**  ****Loan maximums**
**          **

## Program Requirements

**Loan Programs -  FFEL and DL:  loan periods**
**  ****Award loans based on loan periods.**
**  ****Scheduled Academic Year:  traditional-calendar**
**    ****standard-term programs may use. **
** **
**  ****Borrower-based Academic Year:  all others must**
**    ****use.  **

**Program Requirements**

## Program Requirements

**Loan Programs - FFEL and DL:  payment amounts**
**Traditional standard term programs and credit-hour programs with terms substantially equal in length**
**  ******** ****Divide loan proceeds evenly by the payment periods (the**
**       ****terms) in the loan period**
**Clock-hour programs, nonterm credit-hour programs, or programs with unequal nonstandard terms**
-         ** ****Schedule loan proceeds to be disbursed in substantially**
**             ****equal disbursements**

**Program Requirements**

## Program Requirements

**Loan Programs -  FFEL and DL:  delivery**
**Traditional standard term programs and credit-hour programs with terms substantially equal in length**
**        ******** ****Deliver loan proceeds by payment period**
**Clock-hour programs, nonterm credit-hour programs, or programs with unequal nonstandard terms **
**        ******** ****Deliver no more than one-half of loan until student **
**             ****reaches (1) the calendar midpoint between the first and**
**             ****last scheduled days of the loan period and (2) completes**
**             ****half the coursework of the loan period**

**Program Requirements**

## Program Requirements

**Loan Programs -  FFEL and DL:  delivery**
**Multiple disbursements**
**30-calendar-day delay of the first disbursement**
**       ****for first-time, first-year undergraduate borrower**

**Program Requirements**

## Program Requirements

**Issues for Standard Term, Nonstandard Term,**
**and Nonterm Programs**
**Measures of academic progress**
**Payment period**
**Enrollment status**
**Pell payments and disbursements**
**Loan periods, loan limits, and delivery**
**  **

**Program Requirements**

## Standard Terms

## Standard Terms

**Academic Progress **
**  ****The number of credit hours attempted**
**Payment Period **
**  ****Quarter, trimester, or semester**

**Standard Terms**

## Standard Terms

**Enrollment Status**
-   **Pell****  **
**  ****Must recalculate if student does not begin attendance in**
**      ****all classes**
**  ****Loans **** **
**  ****Are not required to recalculate loan need based on a **
**      ****change in enrollment status after loan certification**
**  ****May not deliver undisbursed proceeds if the student**
**      ****drops below half-time **

**Standard Terms**

## Standard Terms

**  ****Pell formula **_**3**_** – ****nontraditional**
**                                ****calendars must use**

**Standard Terms**

## Standard Terms

**FFEL and DL – Loan Period**
-   **The minimum loan period generally is a term.**
**  ****A loan period may not exceed 12 calendar months.**

**Standard Terms**

## Standard Terms

**FFEL and DL – Delivery**
**  ****If a loan period is more than one payment period, **
**    ****deliver loan proceeds at least once in each payment **
**    ****period. **
**  ****If a loan period is one payment period, must be**
**    ****at least two deliveries of loan proceeds during that **
**    ****payment period.  No second delivery until the **
**    ****calendar midpoint between the first and last**
**    ****scheduled days of class of the loan period.  **

**Standard Terms**

## Standard Terms

**  ****A two-semester certificate program.**
**  ****The first term has **_**16**_** weeks of instructional time, and **
**    ****the second term has **_**15**_** weeks of instructional time.**
**  ****A new cohort of students starts on the first weekday of**
**    ****each month.**** **

**Standard Terms**

**Example – nontraditional semester program**

## Standard Terms

**    ****instructional time**
**  ****Full-time = 12 semester hours**** **

**Standard Terms**

**Example – nontraditional semester program**

## Standard Terms

**  ****Student enrolls for 12 semester hours in each**
**    ****term.**
**  ****Student has $1,000 Pell Scheduled Award.**
** **

**Standard Terms**

**Example – nontraditional semester program**

## Standard Terms

**Payment for payment period = **
**       ****16/30 ******** Scheduled Award (1****st**** term)**
**              ****$533 – at least two disbursements required: $500 and $33**
**       ****15/30 ******** Scheduled Award (2****nd**** term)**
**              ****$500 – disburse only $467 of Scheduled Award remaining**

**Standard Terms**
**Pell**

**Example – nontraditional semester program**

**Start date**** 1****st**** Pell**

** ****2****nd**** term**** 3****rd****  Pell**

**Week 16 ****2****nd**** Pell**

## Standard Terms

**Loan period = two terms**
**One-half of loan proceeds for each term**
**   **

**Standard Terms**
**Loans**

**Example – nontraditional semester program**

**Start date**** 1****st**** Loan**

**2****nd**** term**** 2****nd**** Loan**

## Standard Terms

**Standard Terms**
**Pell and Loans**

**  ****Pell and loan disbursements do not all coincide.**
**  ****Pell disbursements are unequal. **

**Example – nontraditional semester program**

**Start date**** 1****st**** Pell  ****1****st**** Loan**

**2****nd**** term****   3****rd**** Pell      ****2****nd**** Loan**

**Week 16 ****2****nd**** Pell**

## Nonstandard Terms

## Nonstandard Terms

**Academic Progress**
**  ****The number of credit hours attempted**
**     ****(for loans, only for nonstandard terms that are **
**      ****substantially equal in length)**
**Payment Period **
**  ****A term**

**Nonstandard Terms**

## Nonstandard Terms

**Enrollment**** ****Status**

**Enrollment status for an undergraduate program must be calculated for each term based on—**
**     **** ********  ****Academic year in weeks and hours, and**
**       ********  ****Weeks of instructional time in the term.**
**In calculating full-time and other enrollment statuses, all fractions are rounded up (even if less than 1⁄2).**** **

**Nonstandard Terms**

## ÷

**Enrollment Status**

**Step 1**  **Full-time**
** **

**       ****Credit hours in**
**         ****the academic year**

****

**      ****Credit hours**
**       ****taken by student **
**       ****in the term**

**÷**

**  ****Credit hours required**
**   ****for full-time status for the **
**   ****term (as determined above)**

**   ****Step 2****  ****Determining less-than-full-time enrollment status**

**Nonstandard Terms**

## Nonstandard Terms

**Enrollment Status**
-   **Pell  **
**  ****Must recalculate if student does not begin attendance in**
**      ****all classes**
**  ****Loans  **
**  ****Are not required to recalculate loan need based on a **
**      ****change in enrollment status after loan certification**
**  ****May not deliver undisbursed proceeds if the student**
**      ****drops below half-time **

**Nonstandard Terms**

## Nonstandard Terms

**Pell Formula **
**  ****Pell formula 3**
** **

**Nonstandard Terms**

## Nonstandard Terms

**FFEL and DL – Loan Period**
**  ****The minimum loan period is generally the lesser of**
**    ****the academic year or program.  May be greater than**
**    ****an academic year.**
**  ****If the terms are substantially equal, the loan period **
**    ****may be a term.**
**  ****A loan period may not exceed 12 calendar months.**

**Nonstandard Terms**

## Nonstandard Terms

**FFEL and DL – Delivery**
**  ****If terms are **_**substantially**_** **_**equal**_** in length, delivery**
**    ****is in substantially equal amounts by payment**
**    ****period, i. e., by term.**
**  ****If a loan period is one payment period, there must**
**    ****be at least two deliveries of loan proceeds.**
**    ****Second delivery is after the calendar midpoint**
**    ****between the loan period’s first and last scheduled**
**    ****days of class. **

**Nonstandard Terms**

## Nonstandard Terms

**FFEL and DL – Delivery**
**  ****If terms are **_**not**_** **_**substantially**_** **_**equal**_** in length, **
**   ****delivery is not by payment period.**
**  ****Delivery of the second half of the loan proceeds**
**    ****after the **_**later**_** of--**
** ****The calendar midpoint between the first and last**
**     ****scheduled days of the loan period; or**
****** ****The date that the student has completed half of the**
**            ****academic coursework in the loan period.**

**Nonstandard Terms**

## Nonstandard Terms

**  **

**  ****Academic calendar = 24 weeks of instructional time**
**    ****and 22 semester hours offered over 3 nonstandard**
**    ****terms **
**  ****Academic calendar has a two-calendar-week holiday**
**    ****between the first two terms.**

**Nonstandard Terms**

## Nonstandard Terms

**     **
**    **

**  ****Payment periods =**
**   ********   ****9-week term   -  9 credits **
**                                                       **
**   ********   ****9-week term   -  9 credits**
**   ********   ****6-week term   -  4 credits     **
**  ****Academic year = 24 semester hours and 30 weeks of **
**   ****instructional time **

**Nonstandard Terms**

**Example – Undergraduate Certificate Program**

**Three 3-credit, 3-week courses**
**taken sequentially in each term**

## Nonstandard Terms

** ****Example – Undergraduate Certificate Program **

**24 semester hours (in the defined academic year)**

****

**Nonstandard Terms**

**  ****Calculate full-time enrollment status for each term**

## Nonstandard Terms

**Nonstandard Terms**

**Round up to ****8**** semester**
**hours required for full-time**

** ****Example – Undergraduate Certificate Program **

**  ****Full-time enrollment status for each term**

**Round up to ****8 ****semester**
**hours required for full-time**

**Round up to ****5 ****semester**
**hours required for full-time**

**Note:  Only 4**** ****semester hours in the third term.**
**           ****4 (hours attending) /5 (hours for full-time) = .8.**
**           ****Student is three-quarter time for the third term.**

## Nonstandard Terms

**  ****Pell payment for a payment period**
**Annual       Weeks of instructional time**
**Award         **_**in the payment period         **_**    =   Payment for the **
**                    ****Weeks of instructional time         payment period**
**                    ****in the academic year **

**Example – Undergraduate Certificate Program**

**Nonstandard Terms**
**Pell**

- 

## Nonstandard Terms

**Nonstandard Terms**
**Pell**

**Example – Undergraduate Certificate Program**

**  ****For Pell, **_**Student A**_** has a $4,000 Scheduled Award**
**    ****and attends all classes in each term.**

## Nonstandard Terms

**  ****Pell disbursements are for each nonstandard term.**
**  ****Student A**** completes the program and receives**
**    ****$3,000 of the $4,000 Scheduled Award **
**    ****($1,200 + $1,200  + $600 for each payment period)**

**Nonstandard Terms**
**Pell**

**Start date**** **

**Week 10      2****nd**** Pell disbursement**

** ****Example – Undergraduate Certificate Program**

**Week 19     3****rd**** Pell  disbursement**

**1****st**** Pell disbursement**

## Nonstandard Terms

**Nonstandard Terms**
**Pell**

**Start date****    1****st**** Pell disbursement**

**Week 10     2****nd**** Pell disbursement**

** ****Example – Undergraduate Certificate Program**

**Week 19       3****rd**** Pell disbursement**

**  ****In each payment period, an institution may use**
**    ****multiple disbursements to best meet the student’s**
**    ****need.**
**  ****Disbursements within a payment period may be**
**    ****unequal.**

## Nonstandard Terms

**  **

**  ****The loan period is the length of the program.**
**  ****The loan limit is prorated by the lesser of: **
**                                         ****or**
**  ****24/30 is the lesser fraction. **

**Nonstandard Terms**
**Loans**

## Nonstandard Terms

**  ****Student A’s ****second disbursement after **
**    ****earning half the hours in the program (11 credit**
**    ****hours) and passing calendar midpoint:  **
**    ******** ****12 credits after 1****st**** module of 2****nd**** term**
**    ********  ****Passes calendar midpoint (after 13 calendar weeks **
**          ****from the start date) during 2****nd**** module of 2****nd **** term**

**Nonstandard Terms**
**Loans**

** ****Example – Undergraduate Certificate Program**

**Start date****     1****st**** Loan disbursement**

**Midpoint         2****nd**** Loan disbursement**

## Nonstandard Terms

**  ****Pell and loan disbursements do not coincide. **

**Nonstandard Terms**
**Pell and Loans**

** ****Example – Undergraduate Certificate Program**

**Start date****      1****st**** Pell disbursement ****1****st**** Loan disbursement**

**Week 10  2****nd**** Pell disbursement**

**Week 19     3****rd**** Pell disbursement**

**Midpoint      2****nd**** Loan disbursement**

## Nonstandard Terms

**Nonstandard Terms**

**Example – Undergraduate Certificate Program**

** **_**Student B**_** also is expected to attend all classes in **
**   ****each term.  The student also has a $4,000 **
**   ****Scheduled Award and is receiving a loan.**
** ****Student B ****completes first module, then drops the**
**   ****last two of the 2****nd**** term.**

**Drops last two modules **

## Nonstandard Terms

**    ****the beginning of the 2****nd**** term. **** **
**  ****Must recalculate payment for 2****nd**** payment period**
**    ****as a less-than-half-time student.**
**  ****Payment is now $300:****      ****$1,000         **_**  9**_**    =   $300**
**                                                                                 ****30****	**

**Nonstandard Terms**
**Pell**

**Example – Undergraduate Certificate Program**

**Start date**** **
**1****st**** Pell**
**disbursement**

- 

**Week 10**
**  ****2****nd**** Pell disbursement**

**Drops last two modules **

## Nonstandard Terms

**Nonstandard Terms**
**Loans**

**Example – Undergraduate Certificate Program**

**  ****Student B ****does **_**not**_** receive 2****nd**** loan disbursement.**

**Midpoint**

**Start date**** **
**1****st**** Loan**
**disbursement**

**Drops last two modules **

## Nonstandard Terms

**    ****must confirm student eligibility, e.g., half-time**
**    ****enrollment status for loans.**
**  ****No return of title IV; student completed a course.   **

**Nonstandard Terms**
**Pell and Loans**

**Example – Undergraduate Certificate Program**

**Week 10**
**  ****2****nd**** Pell disbursement**

**Midpoint**

**Drops last two modules **

**Start date****      1****st**** Pell disbursement ****1****st**** Loan disbursement**

## Nonterm Programs

**Nonterm Programs**

## Nonterm

**Academic Progress **
**  ****Progress is measured by the number of credit **
**    ****hours or clock hours **_**successfully completed**_**.**
** **
**Payment Period **
**  ****Payment periods are divisions of the academic**
**    ****program based on hours and, if credit hours,**
**    ****weeks of instructional time.**

**Nonterm**

## Nonterm

**Enrollment**** ****Status**

**Full-time = academic year definition**
**Pell:  **_**less-than-half-time**_** for cost of attendance  **
** **
**Loans:  **_**at least half-time**_** for determining eligibility **

**Nonterm**

## Nonterm

**Pell Formula**** **
**Pell formula 4 must be used.**

**Nonterm**

## Nonterm

**FFEL and DL - Loan Period**
**The minimum loan period is the lesser of— **
****** ****The academic year, or **
****** ****The length of the program.**
**If an educational program is greater than an academic year in length, the remaining portion of the student’s program that is less than an academic year in length may be a loan period.**
**A loan period may not exceed 12 calendar months.**

**Nonterm**

## Nonterm

**FFEL and DL - Delivery**
**The school may not deliver the second half of the  loan proceeds until the later of— **
** ******** ****The calendar midpoint between the first and **
**             ****last scheduled days of the loan period; or**
** ******** ****The date that the student has completed half of the**
**      ****academic coursework in the loan period.**

**Nonterm**

## Nonterm

**Academic calendar = nonterm, 120 semester hours, self-paced**
**Academic year = 24 semester hours and 40 weeks of instructional time**
**Full-time = 24 semester hours over 40 weeks of instructional time**

**Nonterm**

## Nonterm

**Example – Nonterm Bachelor’s Program (self-paced)**

**Nonterm**

**Payment period = 12 semester hours and 20 weeks of instructional time.**
**Most full-time students are completing the hours in the defined academic year in 40 weeks of instructional time.**

## Nonterm

**Nonterm**

**Formula 4 Pell payment for a payment period calculation**
**   **

_**Step 1**_
** **
**Determining a student’s Scheduled Award**

**Example – Nonterm Bachelor’s Program (self-paced)**

## Nonterm

**Nonterm**

_**Step 2**_
** **
**Multiplying the Scheduled Award by the lesser of either “one” or the following fraction:**
**The number of weeks of instructional**
** ****time required for a full-time student**
** ****to complete the lesser of the clock or credit hours**
**in the program or the academic year                                                **
**                                       **
** ****The number of weeks of instructional time**
**            ****in the program’s academic year****	**** **
** **

**Example – Nonterm Bachelor’s Program (self-paced)**

## Nonterm

**Nonterm**

** **
_**Step 3**_
** **
**The result of Step 2 multiplied by:**
** **
**  ****The number of credit or clock hours**
**         ****in a payment period  **
**                                                                       ****=       payment for **
**  ****The number of credit or clock hours               a payment    **
**    ****in the program’s academic year                         period **

**Example – Nonterm Bachelor’s Program (self-paced)**

## Nonterm

**Nonterm**

**Student with a Scheduled Award of $4,000 **
**Payment for a payment period calculation  **

_**Step 1**_
**Scheduled Award   =   $4,000**
_**Step 2**_
**      **_**40**_**           $4000   =   $4,000**
**      ****40**

****

**Example – Nonterm Bachelor’s Program (self-paced)**

## Nonterm

**Nonterm**

_**Step 3**_
_**12**_**             $4,000   =    $2,000  **
**24**

****

**Example – Nonterm Bachelor’s Program (self-paced)**

## Nonterm

**Nonterm**

**Student completes 12 semester hours in 15 weeks of instructional time.**
**School may disburse second Pell only after the student completes 20 weeks of instructional time.**

**Week 15**

**Week 20**

**Start date****     1****st**** Pell disbursement**

**2****nd****  Pell disbursement**

**Example – Nonterm Bachelor’s Program (self-paced)**

## Nonterm

**Nonterm**

**The loan period is based on using a BBAY.**
**The loan period is the calendar-time period in which the student is expected to complete an academic year.**

**Example – Nonterm Bachelor’s Program (self-paced)**

## Nonterm

**Nonterm**

**As a transfer student with an overlapping loan period from the prior enrollment, the student is eligible for an amount determined by subtracting the gross amount received at the prior institution from the loan limit for the new loan. **
**Since the program must use BBAY, and institution must certify the reduced loan amount for an academic year.****  **

**Week 20**

**Start date**

**Example – Nonterm Bachelor’s Program (self-paced)**

**Week 15**

**loan period before transfer**

## Nonterm

**Nonterm**

**The calendar midpoint of the loan period is at the end of the 20****th**** week of instructional time. **
**The school may deliver the second loan disbursement after the calendar midpoint of the loan period.**

**Week 20**** Midpoint   2****nd****  loan disbursement**

**Start date     **** 1****st**** loan disbursement**

**Example – Nonterm Bachelor’s Program (self-paced)**

**Week 15**

## Nonterm

**Nonterm**

**2****nd**** Pell and loan disbursements coincide.**

**Example – Nonterm Bachelor’s Program (self-paced)**

**Week 20****       ****2****nd****  Pell disbursement ****Midpoint      2****nd****  loan disbursement**

**Start date****      ****1****st**** Pell disbursement   ****1****st**** loan disbursement**

**Week 15**

## Contact Information

**Policy, Planning and Innovation**
**Office of Postsecondary Education**
**(202) 502-7502**
**fred.sellers@ed.gov**

**Contact Information**

## Toolbox

**Toolbox**

## Week of Instructional Time

**Recent Regulatory Changes – Academic Year**** **
**   ****November 1, 2002 regulations **
**   ****Academic year = at least:**
**     ********  ****30 weeks of  instructional time, and**
**     ********  ****If an undergraduate program, 24 semester hours,**
**          ****36 quarter hours, or 900 clock hours**
**  ****Revised definition of a week of instructional time**
**  ****Elimination of 12-hour rule**

## Week of Instructional Time

**Recent Regulatory Changes – Weeks**
**  ****A “week of instructional time” (**_**for all programs**_**) = **
**    ****7 consecutive days in which at least one day of**
**    ****regularly scheduled instruction, examinations, or**
**    ****preparation for examinations occurs **
**   ****Instructional time ******** periods of orientation, counseling,**
**     ****vacation, or other activity not related to class **
**     ****preparation or examination**

## Term and Nonterm

**Academic Calendars**

## Term and Nonterm

**A Term**** **
**  ****Definition:  **_**A discrete period of time during which**_
**    **_**all courses in the term are scheduled to begin and**_
**    **_**end**_
**  ****A segment of a program’s academic calendar **
**   ****divided into separate segments**
**  ****Within a term:  full-length courses, compressed**
**    ****courses or modules, courses offered sequentially**

## Term and Nonterm

**Academic calendar no longer term-based**
**  ****All classes do not start and stop within the same**
**    ****dates.**

## Term and Nonterm

**Standard Term **
**  ****A traditional semester, quarter, or trimester**
**  ****Academic progress:  always measured in semester **
**   ****or quarter credit hours**

## Term and Nonterm

**Standard Term - Semesters**** ****and Trimesters**
**  ****Length:  ****approximately 15 weeks of instructional**
**                   ****time**
**  ****Academic progress:  ****measured in semester hours**
**  ****Full-time:  ****at least 12 semester hours**
**  ****Academic calendar:  ****usually 3 terms - fall, spring,**
**                                        ****and often summer**
** **

## Term and Nonterm

**Standard Term – Quarters**
**Length:  ****approximately 10-12 weeks of instructional**
**                    ****time**
**Academic progress:  ****measured in quarter hours**
**Full-time:  ****at least 12 quarter hours**
**Academic calendar:  ****usually 3 quarters in fall, winter,**
**                                        ****and spring and often a summer**
**                                        ****quarter**

## Term and Nonterm

**Nonstandard Term **
**Does not meet requirements for a standard term**
**May be the length of a standard term but academic progress not measured with the appropriate credit hours, e.g., a quarter using semester hours**

## Term and Nonterm

**Nonterm Programs**
**  ****Courses do not all begin and end within a**
**    ****discrete period of time and may—**
-   **Contain self-paced or independent study **
**      ****courses without fixed timeframes; or **
**  ****Consist of sequential courses that do not have **
**      ****to begin and end within a term.**
**  ****Clock-hour programs are always treated as nonterm. **

## Nonterm Payment Periods

## Payment Period Definition

**Recent Regulatory Changes – Payment Period**
**  ****For **_**nonterm**_** **_**credit-hour**_** programs:**
**   **
**         **** ********  ****Added weeks of instructional time in addition to hours**
**  ****For **_**clock-hour**_** programs:**
**   **
**          ********  ****Continue only to use hours**

## Payment Period Definition

**Payment Periods for Nonterm Programs**
**  ****A program one academic year or less in length **
**    ****(if one measure is equal to or less than an academic**
**    ****year)**
** ****First payment period, the first half of **
**  ****The hours in the program, and**
**  ****If a credit-hour program, the weeks of**
**    ****instructional time in the program**
** ****Second payment period, the second half of **
**  ****The hours in the program, and**
**  ****If a credit-hour program, the weeks of**
**    ****instructional time in the program**

**Payment Period Definition**

## Payment Period Definition

**  ****A program with more than one academic year, the**
**    ****first academic year and any subsequent full**
**    ****academic year **
** ****First payment period, first half of **
**  ****The hours in the academic year, and**
**  ****If a credit-hour program, the weeks**
**    ****of instructional time in the academic year**
** ****Second payment period, the second half of**
**  ****The hours in the academic year, and**
**  ****If a credit-hour program, the weeks**
**    ****of instructional time in the academic year**

**Payment Period Definition**

## Payment Period Definition

** ****Payment Periods for Nonterm Programs**
** **
**  ****Remainder of a program more than one-half an**
**    ****academic year (both measures), but less than a**
**    ****complete academic year (one or both measures), in**
**    ****length**
** ****First payment period, the first half of **
**  ****The remaining hours in the program, and**
**  ****If a credit-hour program, the remaining weeks of**
**    ****instructional time in the program**
** ****Second payment period, the second half of **
**  ****The remaining hours in the program, and**
**  ****If a credit-hour program, the remaining weeks of**
**    ****instructional time in the program**

**Payment Period Definition**

## Payment Period Definition

** ****Payment Periods for Nonterm Programs**
** **
**  ****For the remainder of a program not more than**
**    ****half an academic year in length (one or both **
**    ****measures)**
**     ********  ****The payment period is the remainder of that program.**

**Payment Period Definition**

## Enrollment Status

## Enrollment Status

**Standard Terms**
_**Status            **__**	**__**        Minimum hours**_
**Full-time                      ****12 credit hours per term**
**Three-quarter-time       ****9 credit hours per term**
**Half-time                        ****6 credit hours per term**
**Less-than-half-time      ****Less than half the workload of**
**                                        ****the minimum full-time**_                   _
-                                         **requirement**

**Enrollment Status**

## ÷

**Nonstandard term**

**Step 1**  **Full-time**
** **

**       ****Credit hours in**
**         ****the academic year**

****

**      ****Credit hours**
**       ****taken by student **
**       ****in the term**

**÷**

**  ****Credit hours required**
**   ****for full-time status for the **
**   ****term (as determined above)**

**   ****Step 2****  ****Determining less-than-full-time enrollment status**

**Enrollment Status**

## Enrollment Status

**Nonterm**

**Enrollment Status**

**  ****Full-time equals defined academic year, i.e.,**
**    ****attends the hours of the academic year in the**
**    ****weeks of instructional time of the academic**
**    ****year.**

## Pell Formulas

## Program Requirements

**Federal Pell Grant Program Formulas**
**   ****Award Pell “evenly” across defined academic **
**     ****year – both measures**
**   ****Consider the weeks of instructional time in the **
**     ****program first, then the credit or clock hours in**
**     ****determining payments for payment periods**
**   ****Add incentives for institutions to offer **
**     ****educational programs in reasonable timeframes **
**     ****to ensure a favorable learning environment**
**     **

## Program Requirements

**Federal Pell Grant Program Formulas**
_**1**_** **** Standard term  **
**       **
**     ********  ****Credit-hour**
**     ********  ****Fall through spring terms = at least 30**
**           ****weeks of instructional time**
**     ********  ****Full-time = at least 12 hours for all terms**
**     ********  ****No overlapping terms**
_**2**_**  **** Standard term                                                                        **
**      **
******  ****Credit-hour**
**      ********  ****Fall through spring terms = less than 30**
**            ****weeks of instructional time**
**      ********  ****Full-time = at least 12 hours for all terms**
**      ********  ****No overlapping terms**

**Program Requirements**

## Program Requirements

**Federal Pell Grant Program Formulas**
_**3**_**  Any term-based credit-hour program including**
**    ****nonstandard-term credit-hour programs**
_**4**_** **** Clock-hour and nonterm credit-hour programs**
_**5**_**  Correspondence programs**

**Program Requirements**

## Additional Case Studies

**Additional Case Studies**

## Additional Case #1

**Clock-hour example**
**Payment periods only in hours**
**Determination of weeks of instructional time to complete the hours in the defined academic year**
**Reduced Pell disbursement to assure do not exceed Scheduled Award**
**Calendar midpoint drives 2****nd**** loan disbursement**
**Options on loan periods**

**Additional Case #1**

## Additional Case #1

**Academic calendar = 1200 clock hours over 30 weeks of instructional time**
**Academic year = 900 clock hours and 30 weeks of instructional time**
**Full-time = 24 clock hours per week of instructional time**
**Pell Scheduled Award = $1,000**

**Additional Case #1**

## Additional Case #1

**Example – Nonterm Undergraduate Certificate Program**

**Additional Case #1**

_**Payment periods = 450 clock hours, 450 clock hours, and 300 clock hours**_
**Loan period must be for the program.**

## Additional Case #1

**Program is not self-paced.  **
**For Pell full-time students are completing the hours in the academic year in **_**23 weeks of instructional time**_**.**
**                       ****900/1200      30 = 23 (22.5 rounded up)**
**              ****hours in academic year          weeks of instructional time**
**                 ****hours in the program                    in the program**

**Additional Case #1**

****

****

## Additional Case #1

**Payment for a payment period calculation for first two payment periods **

_**Step 1**_
** ****Scheduled Award       =   $1,000**
_**Step 2**_
**      **_**23**_**           $1,000      =   $766.66 **
**      ****30**
_**Step 3**_
**     **_**450**_**          $766.66    =   $383.33**
**     ****900**

****

****

**Example – Nonterm Undergraduate Certificate Program**

## Additional Case #1

_**Step 1**_
**Scheduled Award       =    $1000**
_**Step 2**_
**      **_**23**_**           $1,000      =    $766.66**
**      ****30**
_**Step 3**_
**      **_**300**_**          $766.66   =    $255.56  **
**      ****900**

****

****

**Payment for a payment period calculation for third payment period**

**Example – Nonterm Undergraduate Certificate Program**

## Additional Case #1

**Additional Case #1**

**Second Pell disbursement after student completes 450 clock hours, and third disbursement after 900 clock hours.**
_**If in same award year, Pell third disbursement is reduced to $233.34.**_
_**Second loan disbursement is after reaching the calendar midpoint and 600 clock hours.**_** **

**450 clock**
** ****hours**

**450 clock **
**hours**

**300 clock hours**

- 1st Pell
- Disbursement  1st loan
- disbursement

- 2nd Pell disbursement

- 3rd Pell disbursement

- 2nd loan
- disbursement

**Example – Nonterm Undergraduate Certificate Program**

## Additional Case #2

**Additional Case #2**

**Program less than an academic year in length because one measure is less than an academic year**
**Proration of maximum loan amount**

## Additional Case #2

**Academic calendar = 30 quarter hours over 30 weeks of instructional time**
**Academic year = 36 quarter hours and 30 weeks of instructional time**

**Additional Case #2**

## Additional Case #2

_**Two payment periods**_
_**Maximum loan amount prorated by 30/36**_**; lesser of **
**                 ****wks in program/wks in ac yr**
**                                       ****or**
**                    ****hrs in program/hrs in ac yr **

**Additional Case #2**

**Example – Nonterm Undergraduate Certificate Program**

## Additional Case #3

**Determination of weeks of instructional time to complete the hours in the defined academic year**
**Reduced Pell disbursement due to compressed coursework by most full-time students**
**No Pell disbursement for payment period for final hours of a program for most full-time students**
**Reduced loan maximum for program completed in less than an academic year**

**Additional Case #3**

## Additional Case #3

**Academic calendar = nonterm; 30 semester hours; self-paced**
**Academic year = 24 semester hours and 30 weeks of instructional time**
**Full-time = 24 semester hours over 30 weeks of instructional time**
**Pell Scheduled Award = $1,000**

**Additional Case #3**

## Additional Case #3

**Additional Case #3**

**Payment periods = 2 payment periods of 12 hours and 15 weeks of instructional time**
**Third payment period = 6 hours and 8 weeks (must impute weeks but are not relevant) **
**  ****6 (hrs in pp)/24 (hrs in ac yr) X 30 (wks in ac yr) = 7.5 (wks in pp)**

**Example – Nonterm Undergraduate Certificate Program**

## Additional Case #3

**1 student completed program in 21 weeks of instructional time, 2 in 23, 4 in 24, 2 in 25, and 1 in 27 weeks. **
**The school averages the student completions:**
**            ****240 weeks/10 students = **_**24 weeks of instructional time**_
**                                                       **_**for most full-time students to **_
**                                                       **_**complete the program**_** **

**Additional Case #3**

**Example – Nonterm Undergraduate Certificate Program**

## Additional Case #3

**For Pell, affects the calculation of payments for a payment period **
**For loans, affects loan period and loan amount.  **

**Additional Case #3**

**Example – Nonterm Undergraduate Certificate Program**

## Additional Case #3

**For Pell full-time students are completing the hours in the academic year in **_**20 weeks of instructional time**_**.**
**                           ****24/30        24   =  19.2 (round up to 20)**
**              ****hours in academic year          weeks of instructional time**
**                 ****hours in the program          for most full-time students to**
**                                                                ****complete the hours in the  **
**                                                                                  ****program**

**Additional Case #3**

****

****

**Example – Nonterm Undergraduate Certificate Program**

## Additional Case #3

**Pell payment for a payment period calculation for the first two payment periods **

_**Step 1**_
** ****Scheduled Award       =  $1,000**
_**Step 2**_
**      **_**20**_**           $1,000      =   $666.66**
**      ****30**
_**Step 3**_
**     **_**12**_**           $666.66      =   $333.33**
**     ****24**

****

****

**Example – Nonterm Undergraduate Certificate Program**

## Additional Case #3

**Pell payment for a payment period calculation for the third payment period**

_**Step 1**_
** ****Scheduled Award       =  $1,000**
_**Step 2**_
**      **_**20**_**           $1,000      =   $666.66**
**      ****30**
_**Step 3**_
**     **_** **__**6**_**             $666.66    =  $166.66**
**     ****24**

****

****

**Example – Nonterm Undergraduate Certificate Program**

## Additional Case #3

**Additional Case #3**

**Second Pell disbursement after student completes 12 semester hours and 15 weeks of instructional time, i.e., the first payment period (1/2 of the defined academic year)**
_**No third Pell disbursement for most full-time students as they are completing the program in less than 30 weeks of instructional time  **_

- 1st Pell
- disbursement

- 2nd Pell disbursement

- 3rd Pell disbursement

**Example – Nonterm Undergraduate Certificate Program**

## Additional Case #3

**Additional Case #3**

**Since most full-time students are completing the program in 24 weeks, the loan period must be for the calendar time to complete the program in 24 weeks of instructional time.  **
**Only one loan period as program is considered less than an academic year in length for loans.**

**Example – Nonterm Undergraduate Certificate Program**

- Mid-
- point

- Calendar time for most full-time students complete 30 hours and 24 weeks of instructional time

## Additional Case #3

**Must prorate maximum loan amount by 24/30 (lesser of the wks in program/wks in ac yr  *****or  *****hrs in program/hrs in ac yr).**
_**Second loan disbursement is after reaching the calendar midpoint and 15 semester hours (half the hours in the loan period).**_** **

**Example – Nonterm Undergraduate Certificate Program**

- 2nd loan
- disbursement

- 1st loan
- disbursement

- Mid-
- point

- Calendar time to complete loan period

## Additional Case #3

**Additional Case #3**

**Pell and loan disbursements do not coincide.**

- 2nd Pell disbursement

- 3rd Pell disbursement

- 2nd loan
- disbursement for most full-time students

**Example – Nonterm Undergraduate Certificate Program**

- 1st Pell  disbursement
- 1st loan
- disbursement

- Mid-
- point

## Additional Case #4

**Payment periods and loan period for the remaining portion of a nonterm program**
**Determination of weeks of instructional time to complete the hours in the defined academic year**
**Treatment when all students are less-than-full-time**
**Determination of total Pell disbursements dependent on whether the program is in more than one award year**
**Affects of failing courses on Pell payments and loan periods**

**Additional Case #4**

## Additional Case #4

**Academic calendar = 60 quarter hours over 54 weeks of instructional time; not self-paced**
**Academic year = 36 quarter hours and 30 weeks of instructional time**
**Full-time = 36 quarter hours over 30 weeks of instructional time**

**Additional Case #4**

## Additional Case #4

**Additional Case #4**

**1****st**** Pell disbursement**

**2****nd**** Pell disbursement**
**20 h, 20 w**

**3****rd**** Pell disbursement**
**40 h, 38 w**

**4****th**** Pell disbursement**
**50 h, 46 w**

**Students complete 30 quarter hours in six 5-hour modules each with 5 weeks of instructional time.  And complete the second 30 quarter hours in three 8-week modules with 10 quarter hours each.**
_**Payment periods**_** = **
**First two = 18 quarter hours and 15 weeks of instructional time**
**Second two = 12 quarter hours and 12 weeks of instructional time**

## Additional Case #4

**For Pell full-time students are completing the hours in the academic year in 30 weeks of instructional time.**
**                  ****36/60          54 = 32.4  (students are less than full-time;**
**                                                       ****use 30 weeks of instructional time**
**                                                        ****in defined academic year)**
**              ****hours in academic year            weeks of instructional time**
**                 ****hours in the program                    in the program**

**Additional Case #4**

****

****

**Example – Nonterm Undergraduate Certificate Program**

## Additional Case #4

**Additional Case #4**

**Payment for a payment period calculation for first two payment periods **

_**Step 1**_
**Determine Scheduled Award**
_**Step 2**_
**     **_**30**_**         Scheduled    =  Step 2**
**     ****30             Award**
_**Step 3**_
**     **_**18**_**         Step 2   =  Payment for payment period**
**     ****36**

****

****

## Additional Case #4

**Additional Case #4**

**Payment for a payment period calculation for the last two payment periods **

_**Step 1**_
**Determine Scheduled Award**
_**Step 2**_
**     **_**30**_**         Scheduled   =  Step 2**
**     ****30            Award**
_**Step 3**_
**     **_**12**_**          Step 2   =  Payment for payment period**
**     ****36**

****

****

**Payments for the last two payment periods not available unless in a new award year **

## Additional Case #4

**Additional Case #4**

**First loan period = 38 weeks of instructional time and 40 quarter hours. **
**The borrower-based-academic-year loan period must encompass the academic year definition in weeks and hours and must include the first 10-hour module in the loan period to have at least the 36 quarter hours of the academic year.  **
**The second disbursement of the loan may be made after earning the 20 quarter hours of the loan period and passing the calendar midpoint of the loan period.**

**1****st**** loan,**
**1****st**** dis-**
**bursement**

**1****st**** loan,  2****nd**** dis-bursement**

** ****2****nd**** loan**

**Mid-point**

**Example – Nonterm Undergraduate Certificate Program**

## Additional Case #4

**Additional Case #4**

**Second loan period = remaining balance of the program of 20 hours and 16 weeks of instructional time.**
**Prorate loan limit by 20/36 (hours in loan period/hours in academic year)**

**1****st**** loan,**
**1****st**** dis-**
**bursement**

**1****st**** loan,  2****nd**** dis-bursement**

**2****nd**** loan,    1****st**** dis-bursement**

**Midpoint  **
**2****nd**** loan,**
**2****nd**** dis-bursement**

**Mid-point**

**Example – Nonterm Undergraduate Certificate Program**

## Additional Case #4

**Loan disbursements line up with Pell in this case. **

**1****st**** **
**Pell**

**2****nd**** Pell**
**20 h, 20 w**

**3****rd**** Pell**
**40 h, 38 w**

**4****th**** Pell**
**50 h, 46 w**

**1****st**** loan,**
**1****st**** dis-**
**bursement**

**1****st**** loan,  2****nd**** dis-bursement**

**2****nd**** loan,**
**1****st**** dis-bursement**

**2****nd**** loan,**
**2****nd**** dis-bursement**

**Example – Nonterm Undergraduate Certificate Program**

## Additional Case #4

**Additional Case #4**

_**Student fails two 5-hour classes**_** that are completed at end of program.**
**Pell payment periods are extended to successfully complete the hours and weeks of each payment period.**

**1****st**** Pell**

**2****nd**** Pell**
**20 h, 20 w**

**3****rd**** Pell**
**40 h, 36 w**

**4****th**** Pell**
**50 h, 44 w**

**Example – Nonterm Undergraduate Certificate Program**

## Additional Case #4

**Additional Case #4**

**Second loan period starts after the first loan period but the first disbursement of the second loan cannot be made until the student has earned the 40 hours in the first loan period at the end of the second 10-hour module.  **
**Second disbursement of the second loan may be made after the student completes an additional 10 hours at the end of the third 10-hour module and passes the calendar midpoint of the loan period.****  **

**1****st**** loan,**
**1****st**** dis-**
**bursement**

**1****st**** loan,  2****nd**** dis-bursement**

** ****Midpoint  2****nd**** loan,**
** ****1****st**** dis-bursement**

**2****nd**** loan,**
**2****nd**** dis-bursement**

**Mid-point**

**Example – Nonterm Undergraduate Certificate Program**

** ****2****nd**** loan**
** **

## Additional Case #4

**Additional Case #4**

**Note that there are no additional costs of attendance because the period of attendance is extended.**

**1****st**** loan,**
**1****st**** dis-**
**bursement**

**1****st**** loan,  2****nd**** dis-bursement**

** ****Midpoint  2****nd**** loan,**
** ****1****st**** dis-bursement**

**2****nd**** loan,**
**2****nd**** dis-bursement**

**Mid-point**

**Example – Nonterm Undergraduate Certificate Program**

** ****2****nd**** loan**
** **

## Additional Case #5

**Additional Case #5**

**No loan proration for graduate program less than an academic year in length**
**Determining weeks of instructional time**
**No hours in academic year definition**
**Twelve-month limit on a loan period**

## Additional Case #5

**Program = **
**     ******** **_**13 consecutive modules over 15 months **_
**      ******** ****Each module = 4 quarter hours**
**      ******** **_**4 consecutive days of attendance each month for the first 12**_
**          **_** **__**modules**_
**      ******** **_**13**__**th**__** module is a 3-month research project**_
_**Academic year = 30 weeks of instructional time**_

**Additional Case #5**

## Additional Case #5

**     ******** **_**4 consecutive days of attendance each month = 2 weeks of **_
**           **_**instructional time**_
_**                                           **_
**      **
**       **
**       ******** **_**13**__**th**__** module has 3 weeks of instructional time.**_

**Additional Case #5**

**Example – Nonterm Masters Degree**

## Additional Case #5

**Additional Case #5**

_**No loan period can exceed 12 calendar months**_**.**
**Loan period = **_**24 weeks of instructional time**_**.**
**Graduate program, **_**no proration**_**.**

**12 calendar**
** ****months**

**3 calendar**
** ****months**

- 2nd loan disbursement after calendar midpoint

- 1st loan disbursement

**Example – Nonterm Masters Degree**

## Additional Case #5

**Additional Case #5**

**FFEL:  The remaining period of 3 weeks of instructional time may be shorter than the period for which FFEL lenders and guaranty agencies generally make and guarantee loans.  **
**Direct Loans would accept a new loan.**

**12 calendar**
** ****months**

**3 calendar**
** ****months**

- 2nd loan disbursement after calendar midpoint

- 1st loan disbursement

- _2__nd__ loan _
-     _(?) _

**Example – Nonterm Masters Degree**

## Additional Case #6

**Additional Case #6**

**Potential treatment of loan periods for a nonstandard-term program depending on the academic year definition adopted.**

## Additional Case #6

**  **

**Example – Undergraduate Certificate Program**
** **
**  ****Academic calendar = 40 weeks of instructional time**
**    ****and 36 semester hours offered over 5 nonstandard**
**    ****terms **
**  ****Must use a borrow-based academic (BBAY) for**
**    ****loans.**

**Additional Case #6**

## Additional Case #6

**  **

**Example – Undergraduate Certificate Program**
** **
**  ****School may define the academic year—**
**    ********  ****As greater than the minimums to coincide with the end of a**
**         ****term or module (Option 1), or****  **
**    ********  ****As at least the statutory minimum weeks of instructional time**
**          ****and hours even though they do not coincide with the end of a**
**          ****term or module (Options 2 and 3).**

**Additional Case #6**

## Additional Case #6

**  **

**  **_**Option 1**_**:  Academic year = 33 semester hours and**
**   ****37 weeks of instructional time to coincide with the**
**   ****end of a term.  **
**  ****Use BBAY to end of fourth term.**
** **

**Additional Case #6**
**Option 1**

**Start of loan period**

**End of loan period**

## Additional Case #6

**  ****Second disbursement of the loan cannot be made until the end of**
**    ****the first module of the third term when half the semester hours of the**
**    ****loan period (17 semester hours) have been successfully completed and**
**    ****the loan period calendar midpoint is passed.**
**  ****The remaining balance of the program is generally too short for a **
**    ****second loan to be approved by FFEL lenders and guaranty agencies. **
**    ****DL would approve a prorated loan.**

** ****Example – Undergraduate Certificate Program**

**Loan, 2****nd**** Disbursement**

**Loan, 1****st**** Disbursement**

**Mid-point**

**Additional Case #6**
**Option 1**

**End of loan period**

## Additional Case #6

**  **

**Example – Undergraduate Certificate Program**
** **
**  **_**Options 2 and 3**_** - If using the minimum measures**
**    ****with an academic year of 24 semester hours and 30**
**    ****weeks of instructional time, two options for loan**
**    ****periods can be identified.**

**Additional Case #6**
**Options 2 and 3**

## Additional Case #6

**  **

**Example – Undergraduate Certificate Program**
** **
**  **_**Option 2**_** - Academic year = 24 semester hours and**
**    ****30 weeks of instructional time and does not**
**    ****coincide with the end of a term or module.**

**Additional Case #6**
**Option 2**

## Additional Case #6

**  **

**Example – Undergraduate Certificate Program**
** **
**  ****Loan period greater than the defined academic year**
**    ****to coincide with the end of a term or module**

**Additional Case #6**
**Option 2**

**Start of loan period**

**End of loan period**

## Additional Case #6

**  ****As in Option 1, the second disbursement of the loan cannot be made**
**    ****until the end of the first module of the third term when half the semester **
**    ****hours of the loan period (17 semester hours) have been successfully**
**    ****completed and the loan period calendar midpoint is passed.**
**  ****The remaining balance of the program is generally too short for a **
**    ****second loan to be approved by FFEL lenders and guaranty agencies. **
**    ****DL would approve a prorated loan.**

** ****Example – Undergraduate Certificate Program**

**Loan, 2****nd**** Disbursement**

**Loan, 1****st**** Disbursement**

**Mid-point**

**Additional Case #6**
**Option 2**

**End of loan period**

## Additional Case #6

**  ****By using the minimum allowed defined academic **
**    ****year, Pell payments for a payment period are increased.**
**  ****By certifying the loan for a period greater than the**
**    ****minimum to coincide with the end of a module, other**
**    ****aspects of program administration such as return of **
**    ****Title IV are simplified.**

** ****Example – Undergraduate Certificate Program**

**Loan, 2****nd**** Disbursement**

**Loan, 1****st**** Disbursement**

**Mid-point**

**Additional Case #6**
**Option 2**

**End of loan period**

## Additional Case #6

**  **

**Example – Undergraduate Certificate Program**
** **
**  **_**Option 3**_** - Academic year = 24 semester hours and**
**    ****30 weeks of instructional time and does not**
**    ****coincide with the end of a term or module.**

**Additional Case #6**
**Option 3**

## Additional Case #6

**  **

**Example – Undergraduate Certificate Program**
** **
**  ****The first loan period is for the academic year, and**
**    ****the second loan period is for the remainder of the**
**    ****program. **

**Additional Case #6**
**Option 3**

**Start of 1****st**** loan period**

**  ****End of 2****nd**** loan period**

**Week 31 2****nd**** Loan**

**Mid-point**

**Mid-point**

## Additional Case #6

**  **

**Example – Undergraduate Certificate Program**
** **
**  ****For the second loan period, the loan limit is**
**    ****prorated by the hours remaining in the program **
**    ****compared to the defined academic year:  **
**                                    ****12/24**

**Additional Case #6**
**Option 3**

**Start of 1****st**** loan period**

**  ****End of 2****nd**** loan period**

**Week 31 2****nd**** Loan**

**Mid-point**

**Mid-point**

## Additional Case #6

**  ****The second disbursement of the first loan cannot be**
**    ****made until the end of the first module of the third**
**    ****term when half the semester hours of the loan period**
**    ****(12 semester hours) have been successfully**
**    ****completed and the loan period calendar midpoint is**
**    ****passed.**

** ****Example – Undergraduate Certificate Program**

**Additional Case #6**
**Option 3**

**Start of 1****st**** loan period**

**Week 31          2****nd**** Loan, 1****st**** Disbursement**

**Mid-point**

**Mid-point**

**1****st**** Loan, 2****nd**** Disbursement**

**2****nd**** Loan,                      2****nd**** Disbursement**

## Additional Case #6

**  ****The second loan would have a first disbursement **
**     ****after the 30****th**** week of instructional time.  The second**
**     ****disbursement would be made after the student**
**     ****completes 6 additional hours beyond the first loan**
**     ****period and passed the calendar midpoint of the**
**     ****second loan period.**

** ****Example – Undergraduate Certificate Program**

**Additional Case #6**
**Option 3**

**Start of 1****st**** loan period**

**2****nd**** Loan, 1****st**** Disbursement**

**Mid-point**

**Mid-point**

**1****st**** Loan, 2****nd**** Disbursement**

**2****nd**** Loan,                             2****nd**** Disbursement**

## Additional Case #6

**Costs to be included in loan periods depends on whether the       school charged up-front or by term.  **
**In Option 3, if costs are by the term, then the direct costs that       are charged in the loan period include the fourth term but not       the fifth term in the 1st loan period.  The indirect costs for the      1st loan period would be those through the 30th week.  **
**If the institution charged up-front, all those costs would be in the first loan period with the indirect costs being through the 30th week for the first loan**.

** ****Example – Undergraduate Certificate Program**

**Additional Case #6**
**Option 3**

**Start of 1****st**** loan period**

**2****nd**** Loan, 1****st**** Disbursement**

**Mid-point**

**Mid-point**

**1****st**** Loan, 2****nd**** Disbursement**

**2****nd**** Loan,                             2****nd**** Disbursement**

## Additional Case #6

** ****Example – Undergraduate Certificate Program**

**Additional Case #6**
**Option 3**

**Start of 1****st**** loan period**

**2****nd**** Loan, 1****st**** Disbursement**

**Mid-point**

**Mid-point**

**1****st**** Loan, 2****nd**** Disbursement**

**2****nd**** Loan,                             2****nd**** Disbursement**

**  ****By using the minimum allowed defined academic **
**    ****year, both Pell payments for a payment period and loan**
**    ****amounts are increased.**
**  ****This option creates complications in other aspects of**
**    ****program administration such as return of Title IV. **