Graduate	Early	From	a	Clock-Hour	Program=	later	in	this	chapter).
In	a	standard-term	program,	or	a	credit-hour	program	using	SE9W	nonstandard	terms,	a	remaining	period	of
study	is	considered	shorter	than	an	academic	year	if	the	remaining	period	contains	fewer	terms	than	the	number	of	terms
covered	by	the	school9s	Title	IV	academic	year.	For	programs	that	are	offered	in	a	Scheduled	Academic	Year	(SAY;	see
Chapter	6),	the	number	of	terms	covered	in	the	school9s	Title	IV	academic	year	usually	does	not	include	a	summer
<header=	or	<trailer=	term.
Consider	a	student	who	is	enrolled	in	a	four-year	program	that	is	offered	in	an	SAY	consisting	of	three	quarters	plus	a
summer	trailer,	and	who	has	completed	four	academic	years	of	study.	The	student	needs	to	attend	an	additional	quarter
term	to	complete	the	program	requirements.	The	final	quarter	term	falls	in	a	new	academic	year;	therefore	the	annual
loan	limit	must	be	prorated	because	the	remaining	period	of	study	(a	single	quarter)	is	less	than	a	full	academic	year.
Similarly,	if	a	student	enrolled	in	a	two-year	program	not	offered	in	an	SAY	(where	the	
Title	IV	academic	year	covers	two
15-week	semesters)	has	completed	two	academic	years	of	study,	but	needs	to	return	for	an	additional	semester	to
complete	the	program	requirements,	the	loan	limit	must	be	prorated	if	the	student	receives	a	loan	for	the	final	semester.
Note	that	for	standard-term	programs	or	credit-hour	programs	with	SE9W	nonstandard	terms,	the	length	of	the	loan
period	does	not	determine	whether	a	student	is	enrolled	in	a	remaining	period	of	study	that	is	shorter	than	an	academic
year.	The	determining	factor	is	the	length	of	the	remaining	period	of	study	in	which	the	student	is	enrolled,	which	may	not
be	the	same	as	the	loan	period.	For	example,	if	an	undergraduate	student	is	enrolled	for	a	full	SAY	consisting	of	fall	and
spring	semesters,	and	will	complete	the	program	at	the	end	of	the	spring	term,	but	is	enrolled	less	than	half	time	during
the	spring,	the	student	is	eligible	to	receive	a	Direct	Loan	only	for	the	fall	semester.	Although	the	loan	period	(fall	only)	is
shorter	than	an	academic	year,	the	remaining	period	of	study	(fall	through	spring)	is	a	full	academic	year.	Therefore,	if	the
student	receives	a	Direct	Loan	in	the	fall,	proration	of	the	annual	loan	limit	is	not	required.
In	a	clock-hour	program,	non-term	program,	or	a	program	with	non-SE9W	nonstandard	terms,	a	remaining
period	of	study	is	considered	less	than	an	academic	year	if	it	consists	of	fewer	clock	or	credit	hours	than	the	program9s
defined	Title	IV	academic	year.	In	contrast	to	standard	term	and	SE9W	nonstandard	term	programs,	if	a	student	enrolled
in	a	clock-hour,	non-term,	or	non-SE9W	nonstandard	term	program	is	in	a	remaining	period	of	study	shorter	than	an
academic	year	and	receives	a	Direct	Loan,	the	loan	period	and	the	remaining	period	of	study	will	always	be	the	same.	This
is	because	for	these	programs	the	minimum	loan	period	is	the	lesser	of	the	length	of	the	program	(or	remaining	portion	of
a	program)	or	the	academic	year.
For	all	types	of	programs,	you	determine	the	prorated	loan	limit	for	a	student	enrolled	in	a	remaining	period	of	study	less
than	an	academic	year	by	multiplying	the	applicable	annual	loan	limit	by	the	following	fraction:
Unlike	proration	for	programs	that	are	shorter	than	an	academic	year,	there	is	no	comparison	of	weeks	and	hours.	Only
the	credit	or	clock	hours	that	the	student	is	scheduled	to	attend,	or	is	actually	attending,	at	the	time	of
origination	are	used	in	the	calculation.
Proration	Examples:	Remaining	Periods	of	Study	Shorter	Than	an	Academic	Year
Examples	3	through	7	illustrate	how	the	prorated	annual	loan	limit	is	determined	when	a	student	is	enrolled	in	a
remaining	period	of	study	shorter	than	an	academic	year.
Semester,	trimester,	quarter,	or	clock	hours	enrolled	in	program
Semester,	trimester,	quarter,	or	clock	hours	in	academic	year
Volume	8,	Chapter	5,	Example	3:	Remaining	Period	=	One	Quarter