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

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  Scheduled Academic Year (SAY) One size e fits ts all SAY vs. BBAY SA  Borrower Based Academic Year (BBAY) Un Unique e to the e borro rrower er 1

6/17/2016 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  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 SAY SA • Student changes from dependent to independent  Summer term may be “trailer” or “header” per: Strict policy; • • By program; or • Case by case, by student 2

6/17/2016  Borrower-Based Academic Year (BBAY) may y be used as an alternative to an SAY for programs also offered in an SAY BBAY  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 3

6/17/2016  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 Type pes s of BBAY 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.  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) BBAY 1  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 4

6/17/2016 Borrower Based Academic Year (BBAY1):  Student may receive additional loans during same BBAY1 when student progresses to grade level with higher annual loan limit BBAY 1  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 5

6/17/2016 BBAY1 Examples BBAY1 - Student not enrolled 2nd term of year 2 Fall (not Fall Spring Summer Spring Summer enrolled) Year 1: SAY or BBAY1 Year 2: BBAY1 Year 3:BBAY1 BBAY1 - Student not enrolled for beginning term, so BBAY floats Spring (not Fall Spring Summer Fall Summer Fall enrolled) Year 1: SAY or BBAY1 Year 2: BBAY1 Year 3: BBAY1  Credit hour programs not offered in SAY but with  Standard terms  Nonstandard SE9W terms  “Floats” with student’s enrollment BBAY 2  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 6

6/17/2016 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 BBAY 2 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 7

6/17/2016 BBAY2 Examples BBAY2 - Student not enrolled 2nd term of year 2 Term 4 (not Term 1 Term 2 Term 3 Term 5 Term 6 enrolled) Year 1: BBAY2 Year 2: BBAY2 Year 3:BBAY2 BBAY2 - Student not enrolled for beginning term, so BBAY floats Term 5 Term 1 Term 2 Term 3 Term 4 Term 6 Term 7 (not enrolled) Year 1: BBAY2 Year 2: BBAY2 Year 3: BBAY2  Required for  Clock-hours programs  Nonterm programs  Nonstandard terms that are not SE9W  “Floats” with student’s enrollment BBAY 3  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 8

6/17/2016 Borrower Based Academic Year (BBAY3):  Student becomes eligible for new annual loan limit only after successfully completing both the BBAY 3 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 Class2 (3 Class3 (3 Class4 (3 Class5 (3 Class6 (3 Class7 (3 Class8 (3 cr/6 wks) cr/6 wks) cr/6 wks) cr/6 wks) cr/6 wks) cr/6 wks) cr/6 wks) 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 Class2 (3 Class3 (3 Class4 (3 Class5 (4 Class6 (3 Class7 (3 Class8 (3 cr/5 wks) cr/5 wks) cr/6 wks) cr/6 wks) cr/8 wks) cr/6 wks) cr/6 wks) cr/5 wks) Payment Period 1 (16 cr/30 wks) Payment Period 2 (9 cr/17 wks) Year 1: BBAY3 9

6/17/2016 BBAY3 Examples BBAY3 Academic Year Calendar Nonterm with courses overlapping (varying course hours and weeks) Academic Year Definition 24 credits/30 weeks Class1 (3 Class3 (3 Class4 (3 Class6 (4 cr/10 Class8 (3 cr/5 wks) cr/5 wks) cr/5 wks) wks) cr/6 wks) Class7 (3 Class2 (4 cr/10 Class5 (4 cr/10 cr/6 wks - 3 wks wks - 3 wk overlap w/ each course) wks - all overlap) overlap) Payment Period 1 (13 Payment Period 2 (11 cr/16 wks) cr/19 wks) Year 1: BBAY3 19 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. 10

6/17/2016  You pick –  All Students Who do you  Only students in certain programs award award?  On a student-by-student basis  Make sure your written policy matches your practice. How do you identify your population(s)?  Self-identify vs. auto-package Consider sider  Implications for aggregate borrowing  Additional counseling for borrowers 11

6/17/2016 How much extra work should staff expect?  It can be significant, depending on the time of year, the size of the population, the Consider sider customization of the borrowing and the number of staff you have working on these loans.  Identify some “experts” in your office. How do you couns nsel el students? ents?  It can be challenging Consider sider explaining a “floating” loan period.  Pictures help! 12

6/17/2016 How do you counsel sel studen dents? ts?  Borrowers should fully understand long-term implications of additional borrowing during their degree. Consider sider  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. How do you counsel sel studen dents? ts?  Additional explanation of award notices may be necessary.  If a dependent, undergraduate borrower going into Consider sider 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. 13

6/17/2016 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 oring 14