ending	date	of	the	loan	period	or	the	dates	of	the	second	and	any	subsequent	disbursements.
New	Payment	Period	and	New	Loan	Period
If	the	requirements	described	above	are	not	met,	or	if	they	are	met	but	you	choose	to	place	a	student	who	transfers	from
one	program	to	a	different	program	in	a	new	payment	period,	you	must	perform	a	Return	of	
Title	IV	(R2T4)	funds
calculation	for	the	student9s	withdrawal	from	the	payment	period	in	the	first	program.	This	is	assuming	that	the	student
did	not	complete	that	payment	period	without	starting	a	new	one	before	transferring	into	the	new	program	if	the	R2T4
calculation	is	done	on	a	payment	period	basis.	Likewise,	it	is	assuming	the	student	did	not	complete	the	loan	period	if	the
calculation	is	done	on	a	period	of	enrollment	basis.	That	calculation	would	close	out	the	original	loan	period.	Then	the
student	would	start	over	with	a	new	loan	period	for	their	new	program	that	uses	the	remaining	annual	loan	limit	eligibility
from	the	academic	year	associated	with	the	first	program.
If	a	student	transfers	from	one	program	at	your	school	to	a	different	program	at	your	school	within	the	same	academic
year	and	is	not	considered	to	remain	in	the	same	payment	period	and	loan	period	(regardless	of	whether	the	student
completed	the	first	program	or	is	changing	to	a	different	program	without	having	completed	the	first	program),	you	may
originate	an	initial	loan	for	the	new	program	with	an	abbreviated	loan	period	that	ends	on	the	calendar	period	ending	date
of	the	academic	year	associated	with	the	prior	program,	as	described	in	more	detail	above.	As	with	a	student	who
transfers	from	a	different	school,	for	the	abbreviated	loan	period,	the	student	may	receive	up	to	the	difference	between
the	applicable	annual	loan	limit	for	the	new	program	and	the	loan	amount	that	the	student	received	for	the	prior	program
during	the	same	academic	year.
Volume	8,	Chapter	7,	Example	4:	Transfer	Into	a	Non-Term	Credit-Hour	Program	at	the	Same	School
A	school	offers	some	programs	in	a	standard	term	academic	calendar	and	other	programs	in	a	non-term	calendar.
A	first-year	dependent	undergraduate	student	enrolls	in	a	standard	term	program	with	an	SAY	consisting	of	fall,
winter,	and	spring	quarters	and	receives	the	first	and	second	disbursements	of	a	Direct	Subsidized	Loan	(total	of
$2,234)	and	a	Direct	Unsubsidized	Loan	(total	of	$1,334).	The	loan	period	and	academic	year	dates	are
September	1	to	May	31.
The	student	decides	not	to	finish	the	program	and	after	completing	the	winter	quarter	transfers	to	a	2-year	non-
term	credit	hour	program	offered	at	the	same	school.	The	academic	year	for	the	new	program	is	defined	as	24
semester	hours	and	30	weeks	of	instructional	time.	The	student	begins	the	new	program	on	March	1.	For	the	new
program,	the	school	may	originate	an	initial	loan	for	an	abbreviated	loan	period	that	begins	on	March	1	and	ends
on	May	31,	the	ending	date	of	the	academic	year	associated	with	the	loans	the	student	received	for	the	first
program.	For	the	abbreviated	loan	period,	the	student	can	receive	up	to	$1,932,	not	more	than	$1,266	of	which
may	be	subsidized.	This	represents	the	difference	between	the	first-year	dependent	undergraduate	annual	loan
limit	($5,500,	maximum	$3,500	subsidized)	and	the	loan	amounts	received	for	the	first	program	during	the
overlapping	academic	year.
On	June	1,	the	first	BBAY	3	for	the	new	program	will	begin.	(BBAY	3	must	be	used	because	this	is	a	non-term
credit-hour	program.)	The	loan	period	will	be	for	the	first	full	academic	year	of	the	new	program	(the	period
during	which	the	student	will	be	expected	to	complete	24	semester	hours	and	30	weeks	of	instructional	time).