1. Financial Aid Madness: FAA vs. BBAY

2. 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. 2

3. Goal is to reach a final decision that serves all the internal constituents, maintains compliance and provides a quality academic program for students. RecruitmentAcademic Programs Cash Flow Accreditation Financial Aid Processing SAY Regulatory Compliance Final Decision BBAY 3

4. Academic Year Requirements * You must define an academic year for each program * FSA minimums (undergrad) 24 credit hours & 30 weeks 36 quarter hours & 30 weeks 900 clock hours & 26 weeks * Keys: Understanding what constitutes a week of instruction Academic 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

5. 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

6. Academic Calendar Options * 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 Reference citation: FSA Handbook Volume 3, Chapter 1, pgs. 4 - 8 6

7. Academic Calendar Options * 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 time  Courses overlap terms  Self-paced and independent study courses that overlap terms  Sequential 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 Reference citation: FSA Handbook Volume 3, Chapter 1, pgs. 4 - 8 7

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9. 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

10. FallSpringSummer Year 1: SAY FallSpringSummer Year 2: SAY 10

11. Academic Years for Annual Loan Limits * 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 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 Reference citation: FSA Handbook Volume 3, Chapter 5, pgs. 97-98 11

12. Academic Years for Annual Loan Limits * 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 term  Student need not enroll in each minisession (module), but must have been able to enroll at least ½ time in the combined term. Reference citation: FSA Handbook Volume 3, Chapter 5, pgs. 97-98 12

13. Basic BBAY1 Academic Year Calendar FallSpringSummerFallSpringSummer Year 1: SAY or BBAY1Year 2: BBAY1Year 3: BBAY1 BBAY1 - Student not enrolled 2nd term of year 2 FallSpringSummer Fall (not enrolled) SpringSummer Year 1: SAY or BBAY1Year 2: BBAY1Year 3:BBAY1 13 BBAY1 - Student not enrolled for beginning term, so BBAY floats FallSpringSummerFall Spring (not enrolled) SummerFall Year 1: SAY or BBAY1Year 2: BBAY1 Year 3: BBAY1

14. Academic Years for Annual Loan Limits * Borrower Based Academic Year (BBAY2) 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 Reference citation: FSA Handbook Volume 3, Chapter 5, pgs. 97-98 14

15. Academic Years for Annual Loan Limits * 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 term  Student need not enroll in each minisession (module), but must have been able to enroll at least ½ time in the combined term. Reference citation: FSA Handbook Volume 3, Chapter 5, pgs. 97-98 15

16. Basic BBAY2 Academic Year Calendar Term1Term2Term3Term4Term5Term6 Year 1: BBAY2Year 2: BBAY2Year 3: BBAY2 BBAY2 - Student not enrolled 2nd term of year 2 Term1Term2Term3 Term4 (not enrolled) Term5Term6 Year 1: BBAY2Year 2: BBAY2Year 3: BBAY2 16 BBAY2 - Student not enrolled for beginning term, so BBAY floats Term1Term2Term3Term4 Term5 (not enrolled) Term 6Term7 Year 1: BBAY2Year 2: BBAY2 Year 3: BBAY2

17. Academic Years for Annual Loan Limits * Borrower Based Academic Year (BBAY3) 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 Reference citation: FSA Handbook Volume 3, Chapter 5, pgs. 97-98 17

18. Academic Years for Annual Loan Limits * 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 Reference citation: FSA Handbook Volume 3, Chapter 5, pgs. 97-98 18

19. 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 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 19

20. 20 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 overlap) Payment Period 1 (13 cr/19 wks) Payment Period 2 (11 cr/16 wks) Year 1: BBAY3

21. 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” 21

22. 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 courses  Maximizing grants & minimizing loan debt while covering educational costs 22

23. Huntington University Example * 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 23

24. Huntington University Example * 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 24

25. Full Need Student (Federal & State Grants, Federal Loans) 1 2 Terms (July - Dec & Jan - Jun)3 Terms (BBAY) Fall, Spring, Summer FT, 12 hours per termHT - 8 hours per term Complete in 5 years +1 term Total Direct Cost 47,500 Total Aid 99,93185,599 Total Refund to Student 52,43138,099 Total Loans 47,79557,416 2 2 Terms (July - Dec & Jan - Jun)3 Terms (BBAY) Fall, Spring, Summer FT, 16 hours per termFT, 12 hours per term Complete in 4 yearsComplete in 3 years + 2 terms Total Direct Cost 46,50046,300 Total Aid 88,26896,527 Total Refund to Student 41,76850,227 Total Loans 43,19853,748 25

26. No Grant Need Student (Federal Loans Only) 1 2 Terms (July - Dec & Jan - Jun)3 Terms (BBAY) Fall, Spring, Summer FT, 12 hours per termHT - 8 hours per term Complete in 5 years +1 term Total Direct Cost 47,500 Total Aid 57,416 Total Refund to Student 9,916 Total Loans 57,416 2 2 Terms (July - Dec & Jan - Jun)3 Terms (BBAY) Fall, Spring, Summer FT, 16 hours per termFT, 12 hours per term Complete in 4 yearsComplete in 3 years + 2 terms Total Direct Cost 46,50046,300 Total Aid 44,91457,465 Total Refund to Student (1,586)11,165 Total Loans 44,91457,465 26

27. Huntington University Example * 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 27

28. 28 * Angela Spangler Indiana Wesleyan University Director of Financial Aid, CAPS angela.spangler@indwes.edu * Craig Kirkwood Indiana Wesleyan University Assistant Director of Financial Aid, Compliance & Training craig.kirkwood@indwes.edu * Robert Sommers Huntington University Director of Financial Aid rsommers@huntington.edu