dwb2023/document-loader-jul2025 huggingface dataset:
later	in	this	chapter.	Another	example	is	that	a	student9s	satisfactory	academic	progress	(SAP)	evaluation	must
correspond	with	the	end	of	a	payment	period.
The	definition	of	a	payment	period	depends	on	the	kind	of	academic	calendar	your	school	uses	and	the	Title	IV	program
for	which	you	are	disbursing	funds.	For	reference,	the	payment	period	definitions	described	in	detail	below	are
summarized	in	in	the	table	titled	<Payment	Period	Summary=	at	the	end	of	this	section.
Payment	Periods	for	Programs	Using	Standard	Terms	or	Substantially	Equal	Nonstandard	Terms
For	credit-hour	programs	with	standard	terms	or	with	nonstandard	terms	that	are	substantially	equal	in	length,	the
payment	period	is	the	term.	Nonstandard	terms	are	considered	to	be	substantially	equal	in	length	if	no	term	in	a	program
is	more	than	two	weeks	of	instructional	time	longer	than	any	other	term	in	the	program.
Payment	Periods	for	Programs	With	Nonstandard	Terms	Not	Substantially	Equal	in	Length
Nonstandard	terms	are	considered	to	be	not	substantially	equal	in	length	if	any	nonstandard	term	in	a	program	is	more
than	two	weeks	of	instructional	time	longer	than	another	term	in	the	same	program.
For	the	Pell	Grant,	TEACH	Grant,	and	Federal	Supplemental	Educational	Opportunity	Grant	(FSEOG)	programs,	the
payment	period	for	a	credit-hour	program	with	nonstandard	terms	that	are	not	substantially	equal	in	length	is	the	term.
For	the	Direct	Loan	Program,	if	a	program	has	nonstandard	terms	that	are	not	substantially	equal	in	length,	the	payment
period	is	the	same	as	described	below	under	<Payment	Periods	for	Clock-Hour	and	Non-Term	Programs.=
Payment	Periods
34	CFR	668.4
Substantially	Equal	in	Length
34	CFR	668.4(h)(1)
Volume	3,	Chapter	1,	Example	4:	Payment	Periods	for	Programs	With	Nonstandard	Terms	Not	Substantially	Equal	in
Length
For	a	nonstandard	term	program,	a	school	may	have	to	use	different	payment	periods	for	Direct	Loans	than	the
payment	periods	used	for	Title	IV	grants.	In	this	example,	we	show	how	the	payment	periods	for	a	Pell	Grant	and
a	Direct	Loan	can	differ	in	a	program	with	nonstandard	terms	that	are	not	substantially	equal	in	length.	In	this
program,	the	payment	periods	for	Pell	Grants	are	the	terms,	while	the	payment	periods	for	the	Direct	Loan	are
the	non-term	payment	periods.	This	means	that	the	Direct	Loan	payment	periods	will	not	match	up	with	the
payment	periods	used	for	the	Title	IV	grant	programs.	For	example,	the	first	Direct	Loan	payment	period	shown
below	may	not	end	until	the	end	of	the	second	Pell	Grant	payment	period,	depending	on	when	the	student
successfully	completes	the	credit	hours	and	weeks	of	instructional	time	in	the	payment	period.
Payment	Periods	for	Clock-Hour	and	Non-Term	Programs
For	all	clock-hour	programs	and	for	credit-hour	programs	that	do	not	have	academic	terms,	payment	periods	are	defined
based	on	a	student9s	successful	completion	of	clock	or	credit	hours	and	weeks	of	instructional	time,	as	described	below.
As	noted	earlier,	these	same	payment	period	requirements	also	apply	when	disbursing	Direct	Loans	to	students	enrolled
in	programs	with	nonstandard	terms	that	are	not	substantially	equal	in	length.
A	student	successfully	completes	clock	or	credit	hours	if	the	school	considers	the	student	to	have	passed	the	coursework
associated	with	those	hours.
Clock-Hour	and	Non-Term	Program	Payment	Periods	for	Programs	One	Academic	Year	or	Less	in	Length
The	first	payment	period	is	the	period	in	which	the	student	successfully	completes	half	of	the	credit	or	clock	hours
and	half	of	the	weeks	of	instructional	time	in	the	program.
The	second	payment	period	is	the	period	in	which	the	student	completes	the	remainder	of	the	program.
Clock-Hour	and	Non-Term	Program	Payment	Periods	for	Programs	More	Than	One	Academic	Year	in	Length
For	the	first	academic	year	of	the	program	and	for	any	subsequent	full	academic	year,	follow	the	payment	period
rules	above	for	a	program	that	is	one	academic	year	or	less	in	length,	substituting	<academic	year=	for	<program.=
Academic	Year	=	24	Semester	Hours	and	30	Weeks	of	Instructional	Time
Pell	Grant:	Payment	periods	are	the	nonstandard	terms	(three	disbursements)
Nonstandard	term	#1:	12	weeks
First	payment	period
Nonstandard	term	#2:	6	weeks
Second	payment	period
Nonstandard	term	#3:	12	weeks
Third	payment	period
Direct	Loan:	Payment	periods	are	determined	by	credit-hours	and	weeks	(two	disbursements)
12	semester	hours	and	15	weeks
First	payment	period
12	semester	hours	and	15	weeks
Second	payment	period
Note:	If	you	are	determining	the	payment	periods	for	a	program	for	which	one	of	the	measures	(either	clock	or
credit	hours	or	weeks	of	instructional	time)	is	less	than	an	academic	year	and	the	other	measurement	is	not	,	the
program	is	considered	less	than	an	academic	year	in	length,	and	you	follow	the	payment	period	rules	below	for	a
program	that	is	one	academic	year	or	less	in	length.
Successfully	Completes
34	CFR	668.4(h)(2)
For	any	remaining	portion	of	a	program	that	is	more	than	half	of	an	academic	year	(as	measured	in	both	clock	or
credit	hours	and	weeks	of	instructional	time),	but	less	than	a	full	academic	year4
The	first	payment	period	is	the	period	in	which	the	student	successfully	completes	half	of	the	credit	or	clock
hours	and	half	of	the	weeks	of	instructional	time	in	the	remaining	portion	of	the	program;	and
The	second	payment	period	is	the	period	of	time	in	which	the	student	successfully	completes	the	remainder	of
the	program.
For	any	remaining	portion	of	a	program	that	is	half	of	an	academic	year	or	less,	the	payment	period	is	the	remainder
of	the	program.
Volume	3,	Chapter	1,	Example	5:	Payment	Periods	for	Half-Time	Student	in	a	Non-Term	Program
The	illustration	below	shows	how	Pell	Grants	and	Direct	Loans	would	be	disbursed	for	a	student	enrolled	half-time
in	a	program	of	48	semester	credits	that	a	full-time	student	completes	in	60	weeks	of	instructional	time.	For	this
program,	the	school	has	defined	the	academic	year	as	24	semester	credits	and	30	weeks	of	instructional	time.
Under	the	regulations,	this	half-time	student	would	receive	second	disbursements	after	completing	half	of	the
credit	hours	and	half	of	the	weeks	of	instructional	time	in	the	academic	year.	Because	the	student	in	the	example
is	enrolled	only	half	time,	it	takes	the	student	30	weeks	of	instructional	time	to	successfully	complete	12	credit
hours,	after	which	the	second	Pell	and	loan	disbursements	can	be	made.	The	student	is	eligible	for	a	new	loan	and
a	new	Pell	Grant	once	the	student	has	successfully	completed	24	credit	hours	and	60	weeks.
First	academic	year:	24	semester	hours
Æ
1st	Pell	Grant	disbursement
1st	Direct	Loan	disbursement
Æ
30	weeks	elapsed
Student	has	completed
12	credits
2nd	Pell	Grant
disbursement
2nd	Direct	Loan
disbursement
Æ
60	weeks
elapsed
24	credits
completed
End	of	first
academic	year
Second	academic	year:	24	semester	hours
Æ
New	Pell	Grant	and	loan	award	begin	after	student	completes	24
semester	hours	and	weeks	in	first	academic	year
1st	Pell	Grant	disbursement	for	2nd	year
1st	Direct	Loan	disbursement	for	2nd	year
Æ
30	weeks	elapsed	in	2nd
academic	year
Student	has	completed
36	credits
2nd	Pell	Grant
disbursement	for	2nd
year
2nd	Direct	Loan
Æ
60	weeks
elapsed	in	2nd
year
48	credits
completed
End	of	program
disbursement	for	2nd
year
Volume	3,	Chapter	1,	Example	6:	Payment	Periods	for	Non-Term	Programs	One	Academic	Year	or	Less	in	Length
For	both	programs	illustrated	below,	the	school	defines	the	academic	year	as	24	semester	hours	and	30	weeks	of
instructional	time.	The	first	program	is	less	than	an	academic	year;	the	second	program	is	a	full	academic	year.
Program	1:	16	semester	hours	and	20	weeks	(less	than	an	academic	year)
Æ
1st	payment	period:
8	semester	hours
and	10	weeks
Æ
2nd	payment	period:
8	semester	hours
and	10	weeks
Program	2:	24	semester	hours	and	30	weeks	(one	academic	year)
Æ
1st	payment	period:
12	semester	hours
and	15	weeks
Æ
2nd	payment	period:
12	semester	hours
and	15	weeks
Academic	year	=	24	semester	hours	and	30	weeks
Volume	3,	Chapter	1,	Example	7:	Payment	Periods	for	Non-Term	Programs	More	Than	One	Academic	Year	in	Length
For	both	programs	illustrated	below,	the	school	defines	the	academic	year	as	24	semester	hours	and	30	weeks	of
instructional	time.	The	first	program	is	an	academic	year	with	a	remaining	portion	less	than	half	of	an	academic
year;	the	second	program	is	an	academic	year	with	a	remaining	portion	greater	than	half	of	an	academic	year.
Academic	year	=	24	semester	hours	and	30	weeks
Payment	Periods	for	Clock-Hour	Programs	With	Terms
Although	some	schools	offer	clock-hour	programs	that	are	divided	into	terms	for	institutional	purposes,	for	
Title	IV
purposes	all	clock-hour	programs	are	considered	to	be	non-term	programs.	Therefore,	the	payment	periods	for	clock-hour
programs	that	a	school	divides	into	terms	are	determined	in	the	same	way	as	described	above	under	<Payment	Periods
for	Clock-Hour	and	Non-Term	Programs.=	Because	a	student	enrolled	in	such	a	program	must	successfully	complete	all	the
clock	hours	in	the	payment	period	before	the	next	payment	period	begins,	the	payment	period	starting	dates	may	not
coincide	with	the	starting	dates	of	the	terms	in	the	program.
Counting	Excused	Absences	in	Clock-Hour	Programs	Toward	Payment	Period	Completion
In	a	clock-hour	program,	you	are	allowed	to	count	a	limited	number	of	excused	absences	when	deciding	whether	the
student	has	completed	the	hours	in	a	payment	period.	An	excused	absence	may	only	be	counted	if	the	student	is	excused
from	hours	that	were	actually	scheduled	but	were	missed	and	do	not	have	to	be	made	up	for	the	student	to	receive	the
degree	or	certificate	for	the	program.
For	instance,	a	student	in	a	program	that	has	450-clock-hour	payment	periods	might	miss	20	clock	hours	and	only	have
attended	430	clock	hours	at	the	point	where	other	students	who	did	not	miss	any	clock	hours	have	received	450	clock
hours	of	instruction.	If	your	school	has	an	excused	absences	policy,	the	20	missed	clock	hours	are	considered	excused,
and	this	student	could	be	paid	the	next	disbursement.
To	be	counted	for	
Title	IV	purposes,	excused	absences	must	be	permitted	in	your	school9s	written	policies,	and	the
number	of	excused	absences	that	may	be	counted	when	determining	whether	a	student	completed	the	hours	in	a
payment	period	may	not	exceed	the	lesser	of4
Program	1:	30	semester	hours	and	36	weeks
1st	payment	period
12	semester	hours
and	15	weeks
2nd	payment	period
12	semester	hours
and	15	weeks
3rd	payment	period
6	semester	hours
and	6	weeks
one	academic	year remaining	portion	of	program
There	is	a	single	payment	period	for	the	remaining	portion	of	the	program,	since	at	least	one	of	the	measures
(hours	and	weeks)	in	the	remaining	portion	is	half	of	an	academic	year	or	less.
Program	2:	40	semester	hours	and	50	weeks
1st	payment	period
12	semester	hours
and	15	weeks
2nd	payment	period
12	semester	hours
and	15	weeks
3rd	payment	period
8	semester	hours
and	10	weeks
4th	payment	period
8	semester	hours
and	10	weeks
one	academic	year remaining	portion	of	program
There	are	two	payment	periods	for	the	remaining	portion	of	the	program	because	both	the	hours	and	weeks	in
the	remaining	portion	are	more	than	half	of	an	academic	year.
The	policy	on	excused	absences	of	your	school9s	accrediting	agency	or,	if	you	have	more	than	one	accrediting
agency,	the	policy	of	the	agency	that	you	designate	to	the	Department	as	the	agency	whose	accreditation	will	be
used	in	determining	your	school9s	eligibility	to	participate	in	the	Title	IV	programs	(see	the	guidance	in	Volume	2,
Chapter	1	on	<Dual	Accreditation=	for	more	information);
The	policy	on	excused	absences	of	any	state	agency	that	licenses	your	school	or	otherwise	legally	authorizes	your
school	to	operate	in	the	state;	or
10%	of	the	clock	hours	in	the	payment	period.
Payment	Period	Summary
Program	Type Direct	Loan Pell,	TEACH,	and	FSEOG
Credit-hour	programs	offered	in
standard	terms	and	nonstandard	term
programs	offered	in	terms	that	are
substantially	equal	in	length.
The	payment	period	is	the	term. The	payment	period	i s	the	term.
Credit-hour	programs	offered	in
nonstandard	terms	that	are	not
substantially	equal	in	length.
The	payment	period	is	the	period	of
time	in	which	the	student
successfully	completes:
half	of	the	weeks	of	instructional
time	in	the	academic
year/program	less	than	an
academic	year;	and
half	of	the	credit	hours	in	the
academic	year/	program	less
than	an	academic	year.
For	the	remainder	of	a	program
equal	to	or	less	than	half	of	an
academic	year,	the	payment	period
is	the	remainder	of	the	program.
The	payment	period	is	the	term.
Clock-hour	programs	and	non-term
credit-hour	programs.
The	payment	period	is	the	period	of
time	in	which	the	student
successfully	completes:
half	of	the	weeks	of	instructional
time	in	the	academic
The	payment	period	is	the	period	of
time	in	which	the	student
successfully	completes:
half	of	the	weeks	of	instructional
time	in	the	academic
Excused	Absences	in	Clock-Hour	Programs
34	CFR	668.4(e)
year/program	less	than	an
academic	year;	and
half	of	the	clock/credit	hours	in
the	academic	year/program	less
than	an	academic	year.
For	the	remainder	of	a	program
equal	to	or	less	than	half	of	an
academic	year,	the	payment	period
is	the	remainder	of	the	program.
year/program	less	than	an
academic	year;	and
half	of	the	clock/credit	hours	in
the	academic	year/program	less
than	an	academic	year.
For	the	remainder	of	a	program
equal	to	or	less	than	half	of	an
academic	year,	the	payment	period
is	the	remainder	of	the	program.
Timing	of	Disbursements
Except	for	FWS	wages,	
Title	IV	disbursements	are	made	on	a	payment	period	basis	as	described	below.	Except	when
making	late	disbursements	or	retroactive	payments	for	completed	payment	periods	(as	discussed	in	Volume	4,	Chapter
2),	you	must	disburse	the	Title	IV	funds	during	the	payment	period	to	which	they	apply.
Disbursement	Timing	in	Term-Based	Programs	Using	Credit	Hours	(Except	Subscription-Based	Programs)
As	noted	earlier	in	the	chapter,	for	the	Pell	Grant,	TEACH	Grant,	and	FSEOG	programs	the	payment	period	is	the	academic
term	for	a	student	enrolled	in	a	credit-hour	program	that	uses	any	type	of	academic	term	(standard	or	nonstandard).	For
the	Direct	Loan	Program,	the	payment	period	is	the	academic	term	only	if	the	program	uses	standard	terms	or	uses
nonstandard	terms	that	are	substantially	equal	in	length.	If	the	program	uses	nonstandard	terms	that	are	not	substantially
equal	in	length,	a	school	must	use	the	non-term-based	rules	for	Direct	Loan	disbursement	timing,	as	discussed	in	the	next
section	below.
Except	as	noted	above	for	the	Direct	Loan	Program,	there	is	no	requirement	for	a	student	who	is	enrolled	in	a	credit-hour
term	program	that	is	not	a	subscription-based	program	to	successfully	complete	a	certain	amount	of	coursework	in	a
payment	period	before	they	can	receive	a	disbursement	of	
Title	IV	funds	in	the	next	payment	period.	For	instance,	a
student	could	receive	a	Pell	Grant	or	Direct	Loan	disbursement	in	the	spring	term	after	failing	several	courses	in	the	fall
term,	provided	that	the	student	is	still	making	satisfactory	academic	progress	under	the	school9s	policy.
Disbursement	Timing	in	Clock-Hour,	Non-Term,	and	Certain	Nonstandard	Term	Programs
A	student	who	is	enrolled	in	a	credit-hour	program	without	terms	or	in	a	clock-hour	program	must	successfully	complete
Note:	We	do	not	cover	the	requirements	for	reporting	disbursements	through	the	Common	Origination	and
Disbursement	(COD)	System	or	the	rules	for	making	early	disbursements,	late	disbursements,	or	retroactive
payments	in	this	section.	For	guidance	on	those	topics,	refer	to	Volume	4,	Chapter	2.	We	also	do	not	cover	certain
disbursement	requirements	that	are	specific	to	the	Title	IV	grant	programs	or	the	Direct	Loan	Program.	For
information	on	those	requirements,	see	Volumes	6,	7,	8,	and	9.
Disbursements	by	Payment	Period
HEA	Sec.	428G
34	CFR	668.164(b)
information.
Schools	that	use	payment	periods	as	the	basis	for	their	Return	of	
Title	IV	Funds	calculations	should	note	that	making
multiple	disbursements	within	a	payment	period	does	not	create	a	new	or	additional	payment	period.	See	Volume	5	of	the
FSA	Handbook	for	information	on	how	withdrawal	calculations	handle	multiple	disbursements.
Disbursement	Rules	for	Terms	With	Modules
When	a	student	is	enrolled	in	a	term-based	program	in	which	the	terms	are	divided	into	two	or	more	modules,	but	the
student	won9t	attend	the	first	module,	the	date	when	classes	begin	for	making	disbursements	is	the	starting	date	of	the
first	module	that	the	student	will	attend.
For	example,	the	earliest	the	school	can	pay	a	student	who	is	scheduled	to	begin	attendance	in	the	second	of	three	5-
week	modules	that	make	up	a	semester	is	10	days	before	the	first	day	of	the	second	module	(or	30	days	after	the	second
module	begins,	if	the	student	is	a	first-time,	first-year	borrower	and	the	school	does	not	meet	the	requirements	for	an
exemption	from	the	delayed	disbursement	requirement	for	such	students,	as	described	in	
Volume	4,	Chapter	2).
Volume	3,	Chapter	1,	Appendix	A:	Non-Term	Examples
Volume	3,	Chapter	1,	Appendix	A,	Example	1:	Clock-Hour	Program	Payment	Periods	3	Student	Must	Repeat	Course
A	student	enrolls	in	a	1-year	clock-hour	program	with	an	academic	year	(AY)	of	900	clock	hours	and	26	weeks	of
instructional	time.	The	program	consists	of	six	successive	graded	courses,	each	of	which	has	150	clock	hours.	The
scheduled	payment	periods	are	one-half	of	the	length	of	the	program	in	clock	hours	and	weeks	of	instructional
time:	450	clock	hours	and	13	weeks	of	instructional	time.
The	student	in	this	example	fails	the	second	course,	but	immediately	repeats	it	and	passes.	The	student
successfully	completes	all	other	courses	in	the	program.
The	school	cannot	make	the	second	Pell	and	Direct	Loan	disbursements	until	the	student	has	successfully
completed	both	the	clock	hours	and	the	weeks	of	instructional	time	in	the	first	payment	period.	Because	the
student	must	repeat	the	second	course	of	the	program	(taking	an	additional	three	weeks	to	do	so),	the	school
must	reschedule	the	date	of	the	second	Pell	and	Direct	Loan	disbursements.	The	second	disbursements	will	now
be	made	after	the	student	has	successfully	completed	450	clock	hours	and	attended	for	16	weeks	of	instructional
time,	and	the	school	will	need	to	report	the	rescheduled	second	disbursement	dates	to	COD.
Scheduled	Payment	Periods
450	clock	hours	AND	13	weeks	of	instruction 450	clock	h ours	AND	13	weeks	of	instruction
Progression	through	payment	periods	for	disbursements	(student	cannot	receive	next	disbursement
until	successful	completion	of	BOTH	hours	and	weeks	in	scheduled	payment	periods)
Volume	3,	Chapter	1,	Appendix	A,	Example	2:	Non-Term	Credit-Hour	Program	Payment	Periods	3	Additional	Weeks
Completed	in	First	Academic	Year
A	non-term,	two-year	program	of	48	semester	hours	and	60	weeks	of	instructional	time	has	an	academic	year	of
24	semester	hours	and	30	weeks	of	instructional	time.	There	are	four	scheduled	payment	periods,	each	of	which
is	equal	to	one-half	of	the	defined	academic	year:	12	semester	hours	and	15	weeks	of	instructional	time.
Students	in	the	program	are	expected	to	complete	the	first	24	hours	over	36	weeks	of	instructional	time,	and	the
final	24	semester	hours	in	24	weeks	of	instructional	time.	Students	complete	each	of	hours	1-12	and	13-24	in	18
weeks	of	instructional	time	and	each	of	hours	of	25-36	and	37-48	in	12	weeks	of	instructional	time.
Scheduled	payment	periods
First	year	of	program Second	year	of	program
12	semester	hours	AND	15
weeks	of	instruction
12	semester	hours	AND	15
weeks	of	instruction
12	semester	hours	AND	15
weeks	of	instruction
12	semester	hours	AND	15
weeks	of	instruction
Progression	through	payment	periods	for	disbursements	(student	cannot	receive	next	disbursement
until	successful	completion	of	BOTH	hours	and	weeks	in	scheduled	payment	periods)
The	scheduled	payment	periods	are	12	semester	hours	and	15	weeks	of	instructional	time,	but	the	student	in	this
example	takes	18	weeks	to	complete	the	first	12	hours.	Therefore,	the	second	disbursements	of	the	first	Pell
Grant	award	and	the	Direct	Loan	for	the	first	academic	year	of	the	program	cannot	be	made	until	the	19th	week
of	instruction.	This	is	because	the	next	grant	or	loan	disbursement	cannot	begin	until	the	student	successfully
completes	both	the	credit	or	clock-hours	and	the	weeks	of	instruction	in	the	previous	scheduled	payment	period.
It	takes	the	student	another	18	weeks	to	complete	the	second	12	hours	in	the	program,	meaning	that	the	first
disbursements	of	the	second	Pell	Grant	award	and	the	Direct	Loan	for	the	second	academic	year	of	the	program
cannot	be	made	until	the	37th	week	of	instruction	(this	corresponds	to	when	the	student	officially	enters	the	3rd
scheduled	payment	period).	Based	on	the	scheduled	payment	periods	a	student	cannot	enter	the	4th	payment
period	until	the	student	has	completed	at	least	45	weeks	and	36	semester	hours	(12	semester	hours	and	15
weeks	within	each	payment	period).
After	the	student	has	successfully	completed	36	weeks	of	instruction	and	24	semester	hours,	there	are	24	weeks
and	24	hours	remaining	in	the	program.	The	second	disbursements	of	the	second	Pell	Grant	award	and	the	Direct
Loan	for	the	second	academic	year	of	the	program	cannot	be	made	until	the	student	officially	enters	the	4th
scheduled	payment	period,	which	occurs	after	the	student	has	cumulatively	completed	36	semester	hours	and	48
weeks.
Remember	that	the	Pell	Grant	amount	the	student	is	eligible	to	receive	in	each	of	the	four	payment	periods	is
always	based	on	the	scheduled	payment	periods	of	12	semester	hours	and	15	weeks	of	instructional	time.
Although	the	academic	year	for	the	program	is	defined	as	24	semester	hours	and	30	weeks	of	instructional	time,
students	are	expected	to	complete	the	first	24	hours	over	36	weeks	of	instructional	time.	To	ensure	that	the	loan
period	for	the	student9s	first	Direct	Loan	covers	both	measures	of	the	defined	academic	year,	the	school	must
originate	a	loan	for	a	loan	period	covering	36	weeks	of	instructional	time.
The	Direct	Loan	for	the	second	academic	year	of	the	program	will	be	originated	for	a	loan	period	covering	24
weeks	of	instructional	time.	Although	this	is	fewer	weeks	than	the	number	of	weeks	in	the	program9s	defined
academic	year,	the	number	of	semester	hours	remaining	in	the	program	(24)	equals	the	number	of	hours	in	the
academic	year.	Therefore,	proration	of	the	Direct	Loan	annual	loan	limit	is	not	required.
Volume	3,	Chapter	1,	Appendix	A,	Example	3:	Non-Term	Credit-Hour	Program	Payment	Periods	3	More	Hours	Earned
in	the	First	Academic	Year
A	school	offers	a	non-term,	two-year	program	of	48	semester	hours	and	60	weeks	of	instructional	time,	with	the
academic	year	defined	as	24	semester	hours	and	30	weeks	of	instructional	time.	There	are	four	scheduled
payment	periods,	each	of	which	is	equal	to	one-half	of	the	defined	academic	year:	12	semester	hours	and	15
weeks	of	instructional	time.
Students	are	expected	to	complete	the	first	30	semester	hours	over	30	weeks	of	instructional	time	in	the	first
period	of	enrollment.	They	are	then	expected	to	complete	18	semester	hours	in	the	last	30	weeks	of	instructional
time.
Scheduled	Payment	Periods
First	year	of	program Second	year	of	program
12	semester	hours	AND	15
weeks	of	instruction
12	semester	hours	AND	15
weeks	of	instruction
12	semester	hours	AND	15
weeks	of	instruction
12	semester	hours	AND	15
weeks	of	instruction
Progression	through	payment	periods	for	disbursements	(student	cannot	receive	next	disbursement
until	successful	completion	of	BOTH	hours	and	weeks	in	scheduled	payment	periods)