Financial Aid Madness: FAA vs. BBAY. Agenda * Challenges of the Elite 8 – Factors influencing the need for non-standard academic programs * Fundamentals

Financial Aid Madness:

FAA vs. BBAY

Non-Standard Academic Programs

Agenda & Scope

Agenda*Challenges of the Elite 8 – Factors influencing the

need for non-standard academic programs

*Fundamentals – Academic Calendar & Academic Year options

*Road to the Final Four – Suggestions and experiences shared by two institutions

Scope*Reviewing “non standard” academic programs in

regards to set up of academic year and monitoring annual loan limits.

*Not directly addressing Pell payment periods, census dates, or modular issues regarding R2T4, which are items that do need to be addressed.

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Challenges of the Elite 8

Goal is to reach a final decision that serves all the internal constituents, maintains compliance and provides a quality academic program for students.

Recruitment Academic Programs

Cash Flow

Accreditation

Financial Aid Processing

SAY

Regulatory Compliance Final Decision BBAY

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Fundamentals

Academic Year Requirements

*You must define an academic year for each program

*FSA minimums (undergrad)24 credit hours & 30 weeks36 quarter hours & 30 weeks900 clock hours & 26 weeks

*Keys:Understanding what constitutes a week of instructionAcademic year definition does not have to coincide

with the program’s academic calendar.

Reference citation: FSA Handbook Volume 3, Chapter 1, pg. 1-3 4

Fundamentals

Academic Calendar Options

*Standard term calendar• Semesters/Trimesters: 14 – 17 weeks: Quarters: 10 –

12 weeks

• Terms within a program cannot overlap

• Intersession can be combined with a standard term

•Non-standard terms (modules) can be combined to form a standard term

• Payment period is the term

*Keys:All coursework begins and ends within the term

Reference citation: FSA Handbook Volume 3, Chapter 1, pgs. 4 - 8 5

Fundamentals


*Non-standard term calendar•Not semester, trimester or quarter terms

• Terms may be of unequal or equal length

• Length of term not necessarily associated with the type of credit hours awarded

• Payment periods: SE9W: payment period is the term

SE9W means all terms are substantially equal and 9 weeks or greater in length

“Substantially Equal” means no term more than 2 weeks of instructional time longer than any other term

Not SE9W: For Pell, TEACH, SEOG and Perkins – payment period is the term For Direct Loans – a nonterm payment period is used


Fundamentals


*Nonterm calendar•Required for a program that measures progress in credit

hours and any of the following:Courses don’t begin and end in a set period of timeCourses overlap termsSelf-paced and independent study courses that overlap termsSequential courses that do not begin and end within a term

•Required for a program that measures progress in clock-hours

• Payment periods:Based on time it takes to successfully complete ½ the credit or

clock hours AND ½ the weeks of instruction


Handbook Reference 8

Fundamentals

Academic Years for Annual Loan Limits

*Scheduled Academic Year (SAY)•Corresponds to traditional academic calendar

• Fixed period of time each year

• Summer term may be “trailer” or “header”

• Student doesn’t have to be enrolled in the first term

• Total of all loans cannot exceed annual limit

•Minimum loan period is a single term

• Student may receive additional loans during same SAY when student progresses to grade level with higher annual loan limit

Reference citation: FSA Handbook Volume 3, Chapter 5, pgs. 97-98 9

SAY Example

Fall Spring Summe

r Year 1: SAY

Fall Spring Summe

r Year 2: SAY

10

Fundamentals


*Borrower Based Academic Year (BBAY1)•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 termsMay include terms student does not attend if student could have

enrolled at least ½ time.

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

calendar period has elapsed


Fundamentals


*Borrower Based Academic Year (BBAY1)• Student may receive additional loans during same

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

•Minisessions (Modules) must be combined with each other or with other terms and treated as a single standard or nonstandard termStudent need not enroll in each minisession (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

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

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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

Fundamentals


*Borrower Based Academic Year (BBAY2)•Credit hour programs not offered in SAY but with

Standard termsNonstandard SE9W terms


• 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


Fundamentals


*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

•Minisessions (Modules) must be combined with each other or with other terms and treated as a single standard or nonstandard termStudent need not enroll in each minisession (module), but must

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


BBAY2 Examples

Basic BBAY2 Academic Year Calendar

Term1 Term2 Term3 Term4 Term5 Term6

Year 1: BBAY2 Year 2: BBAY2 Year 3: BBAY2

BBAY2 - Student not enrolled 2nd term of year 2

Term1 Term2 Term3 Term4 (not enrolled)

Term5 Term6


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BBAY2 - Student not enrolled for beginning term, so BBAY floats

Term1 Term2 Term3 Term4Term5

(not enrolled)

Term 6 Term7


Fundamentals


*Borrower Based Academic Year (BBAY3)•Required for

Clock-hours programsNonterm programsNonstandard terms that are not SE9W


•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


Fundamentals


*Borrower Based Academic Year (BBAY3)• Student becomes eligible for new annual loan limit only

after successfully completing both the clock/credit hours 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 CalendarNonterm 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

BBAY3 Academic Year CalendarNonterm 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

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BBAY3 Examples20

BBAY3 Academic Year CalendarNonterm 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 overlap)

Payment Period 1 (13 cr/19 wks)

Payment Period 2 (11 cr/16 wks)

Year 1: BBAY3

Road to the Final Four

Key Factors for Successful Outcomes

*Make sure you have seat at the table

*Build in a buffer zone for research

*Balance office efficiency with university goals

*Be a team player and see the big picture

*Communication needs to be accurate and timely

*Educate colleagues without “Financialaideze”

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Huntington University Example

*Background: Continuing education programs with 3 credit hour courses offered in 7 weeks of instruction at multiple locations and online

*Academic entity asked how they should best structure the schedule of courses to maximize aid and ease burden on students and university offices.

*Issues: Balancing timely completion with minimal doubling up of

coursesMaximizing grants & minimizing loan debt while covering

educational costs

Road to the Final Four

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*Solution: Provided summary with two options:Option 1: Traditional academic calendar

Three equal terms (Fall, Spring, Summer) BBAY1

Overlapping of courses required To meet academic year requirements within 2

terms so that we can run continual BBAY1 through summer

To maximize student grant eligibility

Running the Picket Fence

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*Solution: Provided summary with two options:Option 2: Nonstandard term academic calendar

Two SE9W nonstandard terms (July – Dec & Jan - June)

BBAY2

Overlapping of courses required For more timely completion of program

To maximize student grant eligibility


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Sample Projections – Full Need Student

Full Need Student (Federal & State Grants, Federal Loans)

12 Terms (July - Dec & Jan - Jun) 3 Terms (BBAY) Fall, Spring, Summer

FT, 12 hours per term HT - 8 hours per termComplete in 5 years +1 term Complete in 5 years + 1 term

Total Direct Cost 47,500 47,500

Total Aid 99,931 85,599

Total Refund to Student 52,431 38,099

Total Loans 47,795 57,416


FT, 16 hours per term FT, 12 hours per term Complete in 4 years Complete in 3 years + 2 terms

Total Direct Cost 46,500 46,300

Total Aid 88,268 96,527

Total Refund to Student 41,768 50,227


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Sample Projections – Loans Only Student

No Grant Need Student (Federal Loans Only)


FT, 12 hours per term HT - 8 hours per termComplete in 5 years +1 term Complete in 5 years + 1 term

Total Direct Cost 47,500 47,500 Total Aid 57,416 57,416 Total Refund to Student 9,916 9,916



FT, 16 hours per term FT, 12 hours per term Complete in 4 years Complete in 3 years + 2 terms

Total Direct Cost 46,500 46,300 Total Aid 44,914 57,465 Total Refund to Student (1,586) 11,165


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*Analysis showed Academics & Student Accounts Ability of student to cover charges with aid each year

Potential Title IV credit balances due to students each year

Flexibility financial aid could offer in helping attain University recruitment & retention goals

*Provided opportunity to discuss resourcing requirements not only for financial aid, but other support offices


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Bracketologist

*Angela SpanglerIndiana Wesleyan University

Director of Financial Aid, CAPS

[email protected]

*Craig KirkwoodIndiana Wesleyan University

Assistant Director of Financial Aid, Compliance & Training

[email protected]

*Robert SommersHuntington University

Director of Financial Aid

[email protected]

mailto:[email protected]



Documents

Financial Aid Madness: FAA vs. BBAY. Agenda * Challenges of the Elite 8 – Factors influencing the need for non-standard academic programs * Fundamentals