BBAY Y or not ot to BBAY, , That is the Quest stio ion Presen - - PDF document

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BBAY Y or not ot to BBAY, , That is the Quest stio ion Presen - - PDF document

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6/17/2016 BBAY Y or not ot to BBAY, , That is the Quest stio ion Presen sented ed by: Kriss issy Bhaumik ik Un Univer ersity sity of Michig higan, an, Ann Arbo bor 2016 MSFAA AA Summer mer Trainin ining Confer eren ence

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6/17/2016 1

Presen sented ed by: Kriss issy Bhaumik ik Un Univer ersity sity of Michig higan, an, Ann Arbo bor 2016 MSFAA AA Summer mer Trainin ining Confer eren ence

BBAY Y or not

  • t to BBAY,

,

That is the Quest stio ion

SA SAY vs. BBAY

  • Scheduled Academic Year (SAY)

One size e fits ts all

  • Borrower Based Academic Year (BBAY)

Un Unique e to the e borro rrower er

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SAY – Schedu heduled ed Academi ademic c Year

  • Generally begins and ends at same time

annually.

  • The student does not have to be enrolled in the

first term.

  • Must meet the program’s FSA academic year in

weeks and hours

  • Total of all loans received within a SAY (including

summer) cannot exceed the annual loan limit

  • Student becomes eligible for a new annual loan

limit after SAY calendar period has elapsed

SA SAY

  • After the original loan, student may receive

additional loans during same SAY if:

  • Student did not receive maximum annual loan amount

and has remained eligible;

  • Student progresses to a grade level with higher loan

limits; or

  • Student changes from dependent to independent
  • Summer term may be “trailer” or “header”

per:

  • Strict policy;
  • By program; or
  • Case by case, by student
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BBAY

  • Borrower-Based Academic Year (BBAY) may

y be used as an alternative to an SAY for programs also offered in an SAY

  • BBAY must

t be used d for clock-hour, non-term, and nonstandard-term programs, and for standard-term credit-hour programs without an SAY

FSA Handbook p. 3-87

6

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Type pes s of BBAY

  • BBAY

Y 1 – credit-hour programs using Scheduled Academic Year with standard terms or nonstandard SE9W terms.

  • BBAY

Y 2 – credit-hour programs not using SAY, with standard terms or nonstandard SE9W terms.

  • BBAY

Y 3 – clock-hour programs, non-term programs, any nonstandard-term program or a program with standard and nonstandard terms not described above.

BBAY 1

  • Corresponds to traditional academic calendar
  • “Floats” with student’s enrollment
  • Student must be enrolled in first term of the BBAY1
  • Length must equal number of terms in SAY (excluding

summer header/trailer)

  • Number of weeks & hours need not meet regulatory

requirements for academic year if it includes summer terms

  • May include terms student does not attend if student could

have enrolled at least ½ time.

  • Total of all loans cannot exceed annual limit
  • Student becomes eligible for new annual loan limit after BBAY1

calendar period has elapsed

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BBAY 1

Borrower Based Academic Year (BBAY1):

  • Student may receive additional loans during

same BBAY1 when student progresses to grade level with higher annual loan limit

  • Mini-sessions (Modules) must be combined with

each other or with other terms and treated as a single standard or nonstandard term Student need not enroll in each mini-session (module), but must have been able to enroll at least ½ time in the combined term.

BBAY1 Examples

Basic BBAY1 Academic Year Calendar Fall Spring Summer Fall Spring Summer Year 1: SAY or BBAY1 Year 2: BBAY1 Year 3: BBAY1

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BBAY1 Examples

BBAY1 - Student not enrolled 2nd term of year 2 Fall Spring Summer Fall (not

enrolled)

Spring Summer Year 1: SAY or BBAY1 Year 2: BBAY1 Year 3:BBAY1 BBAY1 - Student not enrolled for beginning term, so BBAY floats Fall Spring Summer Fall Spring (not

enrolled)

Summer Fall Year 1: SAY or BBAY1 Year 2: BBAY1 Year 3: BBAY1

BBAY 2

  • Credit hour programs not offered in SAY but with
  • Standard terms
  • Nonstandard SE9W terms
  • “Floats” with student’s enrollment
  • Student must be enrolled in first term of the BBAY2
  • May include terms student is not enrolled in but could

have enrolled at least ½ time

  • Length must meet at least the minimum requirements

for hours & weeks of the programs FSA academic year

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BBAY 2

Borrower Based Academic Year (BBAY2):

  • Total of all loans cannot exceed annual limit
  • Student becomes eligible for new annual loan limit

after BBAY2 calendar period has elapsed

  • Student may receive additional loans during

same BBAY2 when student progresses to grade level with higher annual loan limit

  • Mini-sessions (Modules) must be combined with

each other or with other terms and treated as a single standard or nonstandard term

  • Student need not enroll in each mini-session (module),

but must have been able to enroll at least ½ time in the combined term.

BBAY2 Examples

Basic BBAY2 Academic Year Calendar Term 1 Term 2 Term 3 Term 4 Term 5 Term 6 Year 1: BBAY2 Year 2: BBAY2 Year 3: BBAY2

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BBAY2 Examples

BBAY2 - Student not enrolled 2nd term of year 2 Term 1 Term 2 Term 3 Term 4 (not

enrolled)

Term 5 Term 6 Year 1: BBAY2 Year 2: BBAY2 Year 3:BBAY2 BBAY2 - Student not enrolled for beginning term, so BBAY floats Term 1 Term 2 Term 3 Term 4 Term 5

(not enrolled)

Term 6 Term 7 Year 1: BBAY2 Year 2: BBAY2 Year 3: BBAY2

BBAY 3

  • Required for

Clock-hours programs Nonterm programs Nonstandard terms that are not SE9W

  • “Floats” with student’s enrollment
  • BBAY3 begins with student enrollment on at least ½

time basis

  • Length must meet at least the minimum

requirements for hours & weeks of the programs FSA academic year

  • Total of all loans cannot exceed annual limit
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BBAY 3

Borrower Based Academic Year (BBAY3):

  • Student becomes eligible for new annual loan

limit only after successfully completing both the clock/credit hours AND AND weeks of instruction

  • Student may progress to next grade level/annual

loan limit after the successful completion of a BBAY3

BBAY3 Examples

BBAY3 Academic Year Calendar Nonterm with sequential classes (6 weeks long, 3 credit hours) Academic Year Definition 24 credits/30 weeks Class1 (3

cr/6 wks)

Class2 (3

cr/6 wks)

Class3 (3

cr/6 wks)

Class4 (3

cr/6 wks)

Class5 (3

cr/6 wks)

Class6 (3

cr/6 wks)

Class7 (3

cr/6 wks)

Class8 (3

cr/6 wks)

Payment Period 1 (12 cr/24 wks) Payment Period 2 (12 cr/24 wks) Year 1: BBAY3 BBAY3 Academic Year Calendar Nonterm with sequential classes (varying course hours and weeks) Academic Year Definition 24 credits/30 weeks Class1 (3

cr/5 wks)

Class2 (3

cr/5 wks)

Class3 (3

cr/6 wks)

Class4 (3

cr/6 wks)

Class5 (4

cr/8 wks)

Class6 (3

cr/6 wks)

Class7 (3

cr/6 wks)

Class8 (3

cr/5 wks)

Payment Period 1 (16 cr/30 wks) Payment Period 2 (9 cr/17 wks) Year 1: BBAY3

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BBAY3 Examples

19

BBAY3 Academic Year Calendar Nonterm with courses overlapping (varying course hours and weeks) Academic Year Definition 24 credits/30 weeks Class1 (3

cr/5 wks)

Class3 (3

cr/5 wks)

Class4 (3

cr/5 wks)

Class6 (4 cr/10

wks)

Class8 (3

cr/6 wks)

Class2 (4 cr/10

wks - 3 wk overlap w/ each course)

Class5 (4 cr/10

wks - all overlap)

Class7 (3

cr/6 wks - 3 wks

  • verlap)

Payment Period 1 (13

cr/19 wks)

Payment Period 2 (11 cr/16 wks) Year 1: BBAY3

Why use BBAY Y for your studen udents ts?

 “Float” borrowing with a student’s (or group of students’) attendance and progression.  Summer assistance. Many awards are fully utilized in the scheduled academic year, leaving students with limited resources to accelerate degree progress or engage in co- curricular activities (like studying abroad) during summer.  “Butts in seats” effect. Additional resources in summer could increase enrollment during that period of time.

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Who do you award award?

  • You pick –
  • All Students
  • Only students in certain programs
  • On a student-by-student basis
  • Make sure your written policy matches your

practice.

Consider sider

How do you identify your population(s)?

 Self-identify vs. auto-package  Implications for aggregate borrowing  Additional counseling for borrowers

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Consider sider

How much extra work should staff expect?

  • It can be significant, depending on the time of

year, the size of the population, the customization of the borrowing and the number of staff you have working on these loans.

  • Identify some “experts” in your office.

Consider sider

How do you couns nsel el students? ents?

  • It can be challenging

explaining a “floating” loan period.

  • Pictures help!
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Consider sider

How do you counsel sel studen dents? ts?

  • Borrowers should fully understand long-term

implications of additional borrowing during their degree.

  • They may reach aggregate limits before they

complete their program.

  • They may reach SULA limits before they complete

their program.

  • Counselin

seling is key to borrowing the minimum needed.

Consider sider

How do you counsel sel studen dents? ts?

  • Additional explanation of award notices may be

necessary.

  • If a dependent, undergraduate borrower going into

their senior year receives $3750 subsidized direct loans in summer, their maximum fall term eligibility would likely be $1750.

  • This uneven split of subsidized loans in particular can

cause confusion.

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What challenges should I be aware of?

 A clearly defined (and documented) loan period and impacted population is key.  PLUS loans must follow the same BBAY period used for Direct Subsidized/Unsubsidized Loans.  Loan proration reviews need to be done year-round.  Errors happen, both by the computer and by us. Calculating the “floating” loan period and borrowing eligibility can be tricky all around.

AND…

Transf nsfer er Moni nitoring

  • ring
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Transfer er Monit itor

  • ring

ing

  • It is important with transfer students to identify

how the other school awards loans to ensure a student does not exceed limits at your school.

  • Be aware of overlapping academic year loan

periods.

  • Holistic review of borrowing history.

CRITICAL THINKING ZONE

NOT Crossover Period…barely

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CRITICAL THINKING ZONE

Did this transfer student start a new BBAY on 1/06/15?

Too soon to tell!

CRITICAL THINKING ZONE – Review EVERYTHING

Look for loan periods that seem to conform to “standard”

  • lengths. Move forward (and/or backward) from there in the

history using this template.

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Transfer er Monit itor

  • ring

ing

  • It is important with transfer students to identify

how the other school awards loans to ensure a student does not exceed limits at your school.

  • Be aware of overlapping academic year loan

periods.

  • Holistic review of borrowing history.
  • If in doubt,

bt, call ll a frien iend! d!

Que uesti stions?

  • ns? Th

Thank nk You! u!

  • Krissy

y Bhau aumik, Univ ivers rsit ity y of Michiga igan

  • kbhau

aumik ik@u @umich ich.ed edu

  • Please

ase complet lete e the session ion eva valuation uation form.