year,	the	student9s	loan	eligibility	for	the	remaining	term(s)	of	the	academic	year	is	equal	to	the	difference	between	the
applicable	loan	limit	for	the	new	program	and	the	loan	amount	the	student	received	for	the	prior	program	within	the	same
academic	year.
Transfer	Into	a	Clock-Hour,	Non-Term,	or	Non-SE9W	Nonstandard	Term	Program	(BBAY	3):	Abbreviated	Loan	Periods
Transfers	Between	Schools
If	a	student	transfers	into	a	clock-hour,	non-term,	or	non-SE9W	nonstandard	term	program	at	a	new	school	and	the
academic	year	associated	with	the	last	loan	the	student	received	at	the	prior	school	overlaps	the	initial	academic	year	for
the	program	at	the	new	school,	the	new	school	may	originate	an	initial	loan	for	a	loan	period	that	covers	the	remaining
portion	of	the	academic	year	that	began	at	the	prior	school.	The	loan	period	for	this	initial	loan	is	called	an	<abbreviated
loan	period=	because	it	is	shorter	than	the	loan	period	that	would	otherwise	be	required	under	the	normal	minimum	loan
period	requirements.	As	explained	earlier	in	this	volume,	under	normal	rules	the	minimum	loan	period	for	a	clock-hour,
non-term,	or	non-SE9W	nonstandard	term	program	is	the	lesser	of:
The	academic	year;	or
The	length	of	the	program	or	the	remaining	portion	of	the	program.
The	new	school	may	originate	a	loan	for	an	abbreviated	loan	period	regardless	of	whether	the	new	school	accepts	transfer
hours	from	the	prior	school.	The	abbreviated	loan	period	begins	with	the	date	of	the	student9s	enrollment	at	the	new
school	and	ends	on	the	calendar	period	ending	date	of	the	academic	year	that	began	at	the	prior	school,	without
regard	to	the	number	of	credit	or	clock	hours	or	weeks	of	instructional	time	that	the	student	has	completed	during	the
abbreviated	loan	period.	After	the	abbreviated	loan	period	is	completed,	the	student	progresses	to	a	new	loan	period	and
academic	year	(BBAY	3)	and	a	new	annual	loan	limit.
If	the	new	school	accepts	credits	or	hours	from	the	prior	school,	this	may	give	the	student	advance	standing	that	reduces
the	length	of	time	it	will	take	to	complete	the	program	at	the	new	school.	If	the	remaining	portion	of	the	program	at	the
new	school	following	the	completion	of	the	abbreviated	loan	period	is	shorter	than	an	academic	year,	the	annual	loan	limit
for	the	next	loan	must	be	prorated.
Generally,	the	loan	amount	for	the	abbreviated	loan	period	at	the	new	school	may	not	exceed	the	remaining	balance	of
the	full	annual	loan	limit	applicable	to	the	student	at	the	new	school,	minus	the	loan	amount	the	student	received	at	the
first	school	for	the	same	academic	year.	However,	there	is	an	exception	to	this	general	rule	if:
The	student	is	transferring	into	a	program	at	the	new	school	that	is	less	than	a	full	academic	year	in	length;	or
The	student	is	transferring	into	a	remaining	portion	of	a	program	(of	any	length)	that	is	less	than	an	academic	year	in
length.
In	the	two	circumstances	described	above,	the	total	loan	amount	that	the	student	may	receive	for	the	program	(or
remaining	portion	of	the	program)	at	the	new	school	(for	the	abbreviated	loan	period	and	any	subsequent	loan	period
combined)	may	not	exceed	the	applicable	prorated	annual	loan	limit	for	the	program	or	remaining	portion	of	the	program.
Rules	for	Abbreviated	Loan	Periods:
The	abbreviated	loan	period	begins	when	the	student	starts	at	the	new	school.
The	abbreviated	loan	period	ends	when	the	academic	year	would	have	ended	at	the	prior	school,	without	regard	to
how	many	hours	or	weeks	of	instructional	time	the	student	has	completed	at	the	new	school	during	the	abbreviated
loan	period.
Generally,	the	maximum	loan	amount	that	the	student	can	receive	for	the	abbreviated	loan	period	is	the	difference
between	the	full	annual	loan	limit	applicable	to	the	student	at	the	new	school	and	the	loan	amount	that	was
disbursed	at	the	prior	school	during	the	overlapping	academic	year	(see	the	preceding	discussion	for	an	exception	to
this	general	rule).
The	first	disbursement	of	the	loan	for	the	abbreviated	loan	period	at	the	new	school	is	made	at	the	beginning	of	the
abbreviated	loan	period.	Unless	the	school	qualifies	based	on	its	cohort	default	rate	for	the	exemption	from	the
multiple	disbursement	requirement	(see	Volume	3,	Chapter	1),	the	loan	must	be	disbursed	in	at	least	two
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