hour,	or	non-SE9W	nonstandard	term	program	is	offered	in	modules,	the	minimum	loan	period	is	still	the	lesser	of	the
academic	year	or	the	program	length	(or	remaining	portion	of	the	program).
For	Title	IV	aid	purposes,	students	are	allowed	to	skip	one	or	more	modules.	However,	if	a	loan	period	includes	modules
that	the	student	does	not	attend,	the	COA	for	the	loan	period	may	not	include	costs	associated	with	those	modules.
Minimum	Loan	Period:	Standard	Term	Combined	With	an	Intersession
As	we	explain	under	<Intersessions=	in	Volume	3,	Chapter	1,	in	limited	cases	for	academic	programs	offered	in	standard
terms,	a	short	nonstandard	term	(often	called	an	<intersession=)	may	be	combined	with	a	preceding	or	following	standard
term	and	considered	to	be	a	single	standard	term.	In	such	cases,	the	minimum	loan	period	for	a	Direct	Loan	is	different
depending	on	whether	a	student	attends	the	intersession.	If	a	student	who	attends	the	intersession	requests	a	loan	for	the
combined	term,	the	loan	period	includes	the	standard	term	plus	the	intersession.	However,	if	the	student	attends	only	the
standard	term	and	is	not	enrolled	in	the	intersession	that	is	attached	to	that	term,	the	loan	period	includes	only	the
standard	term.
Maximum	Loan	Periods
The	maximum	period	for	which	you	may	originate	a	Direct	Loan	is	generally	an	academic	year.	However,	if	your	school
applies	the	annual	loan	limit	for	Direct	Subsidized	Loans	and	Direct	Unsubsidized	Loans	to	a	period	of	time	greater	than
an	academic	year,	you	may	originate	a	Direct	Loan	for	that	longer	period	of	time.	For	example,	a	school	might	offer	an
1100	clock-hour	program	and	define	the	academic	year	as	900	clock	hours	but	could	choose	to	allow	students	to	receive
just	one	annual	loan	limit	for	the	entire	1100-hour	program.	In	that	case,	the	loan	period	would	correspond	to	the	length
of	the	program,	a	period	of	time	that	is	longer	than	the	academic	year.
Direct	Loan	Disbursement	Requirements
For	general	guidance	on	the	timing	of	disbursements	made	under	the	
Title	IV	programs,	see	Volume	3,	Chapter	1.	For
guidance	on	reporting	Title	IV	program	disbursements	through	the	COD	System	and	the	rules	for	making	early
disbursements,	late	disbursements,	and	retroactive	payments,	see	Volume	4,	Chapter	2.	In	this	section	we	discuss	certain
other	disbursement	requirements	that	are	specific	to	the	Direct	Loan	Program.
Note:	See	the	guidance	at	the	end	of	this	chapter	for	certain	exceptions	to	the	normal	Direct	Loan	disbursement
requirements	that	apply	when	periods	of	clinical	work	are	included	in	a	standard	term.
Requirement	for	Substantially	Equal	Disbursements
Direct	Loans	must	be	disbursed	in	substantially	equal	installments,	regardless	of	any	difference	in	costs	for	different
payment	periods	that	are	within	the	same	loan	period,	and	no	Direct	Loan	disbursement	may	exceed	one-half	of	the	loan
Maximum	Loan	Period
34	CFR	685.301(a)(10)(iv)
Determining	Direct	Loan	Disbursement	Dates	and	Amou nts
34	CFR	685.303(d)
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