BBAY	2	for	Standard-Term	Programs	and	SE9W	Nonstandard	Term	Programs	Without	an	SAY
If	a	program	with	standard	terms	or	SE9W	nonstandard	terms	is	not	offered	in	a	traditional	academic	year	calendar	(SAY),
BBAY	2	must	be	used.	If	the	program	uses	semesters	or	trimesters,	a	BBAY	2	consists	of	any	two	consecutive	terms.	If	the
program	uses	quarters,	a	BBAY	2	consists	of	any	three	consecutive	terms.	If	the	program	uses	SE9W	nonstandard	terms,
a	BBAY	2	consists	of	the	number	of	consecutive	terms	that	coincide	with	the	weeks	of	instructional	time	in	the	program9s
academic	year.
As	with	the	optional	BBAY	1	that	may	be	used	for	programs	with	an	SAY,	BBAY	2	may	include	terms	that	a	student	does
not	attend	(as	long	as	the	student	could	have	enrolled	at	least	half	time	in	those	terms),	but	it	must	begin	with	a	term	in
which	the	student	is	enrolled	(even	if	the	student	is	enrolled	less	than	half	time	during	the	first	term	and	therefore
ineligible	to	receive	a	Direct	Loan	for	that	term).	Unlike	the	optional	BBAY	1	for	programs	offered	in	an	SAY,	there	is	no
exception	to	the	minimum	academic	year	requirements	for	a	BBAY	2	that	includes	a	summer	term.	This	means	that	the
BBAY	2	for	standard-term	programs	that	are	not	offered	in	a	traditional	academic	calendar,	or	for	SE9W	nonstandard	term
programs	not	offered	in	a	comparable	academic	calendar,	must	always	include	enough	terms	to	meet	the	minimum	
Title
IV	academic	year	requirements	for	weeks	of	instructional	time.
As	with	BBAY	1,	any	modules	(summer	or	otherwise)	that	run	consecutively	within	a	term	must	be	combined	and	treated
as	a	single	term.	The	COA	cannot	include	costs	for	a	module	for	which	the	student	is	not	expected	to	be	enrolled.	A
student	doesn9t	have	to	be	enrolled	in	each	module	but	must	be	able	to	enroll	at	least	half	time	in	the	combined	term.
The	annual	loan	limit	applies	to	the	BBAY	2.	Once	the	calendar	period	associated	with	all	of	the	terms	in	the	BBAY	2	has
elapsed,	a	student	regains	eligibility	for	a	new	annual	loan	limit.
BBAY	3	for	Clock-Hour,	Non-Term	Credit-Hour,	and	Non-SE9W	Nonstandard-Term	Programs
All	clock-hour	programs,	non-term	credit-hour	programs,	and	non-SE9W	nonstandard-term	programs	must	use	a	BBAY	3
that	meets	the	minimum	requirements	for	an	academic	year.	That	is,	the	BBAY	3	must	contain	at	least	30	weeks	(or,	for
clock-hour	programs,	26	weeks)	of	instructional	time	and:
For	undergraduate	programs,	a	minimum	of	24	semester	or	trimester	hours,	36	quarter	hours,	or	900	clock	hours;	or
For	graduate	programs,	at	least	the	number	of	hours	a	student	would	complete	under	the	school9s	full-time	standard
in	weeks	of	the	Title	IV	academic	year,	which	must	be	a	minimum	of	30	weeks	of	instructional	time	for	credit-hour
programs,	or	at	least	26	weeks	of	instructional	time	for	clock-hour	programs.
The	BBAY	3	begins	when	a	student	enrolls	and	does	not	end	until	the	later	of	the	date	the	student	successfully
completes	the	hours	in	the	academic	year	or	the	number	of	weeks	of	instructional	time	in	the	academic	year.	Because	a
student	must	successfully	complete	the	minimum	number	of	hours	or	weeks	of	instructional	time	in	an	academic	year
(whichever	comes	later)	before	a	new	BBAY	3	begins,	a	student9s	enrollment	status	may	affect	how	soon	the	student
Volume	8,	Chapter	6,	Example	6:	BBAY	2
First	BBAY	2 Second	BBAY	2 Third	BBAY	2
Semester	1	+	Semester	2 Semester	3	+	Semester	4	(not 	enrolled	in	Semester	4) Semester	5	+	Semester	6
A	school	has	a	program	that	measures	academic	progress	in	credit	hours	and	uses	15-week	semesters,	but	it	is
not	offered	in	a	traditional	academic	year	calendar	(SAY).	New	students	begin	the	program	each	month,	and	a	15-
week	semester	begins	at	that	time	for	that	cohort	of	students.	The	school	must	use	BBAY	2	to	monitor	annual
loan	limits.	A	BBAY	2	consists	of	any	two	consecutive	semesters,	beginning	with	a	semester	in	which	a	student	is
enrolled.	In	Example	6,	the	student	is	not	enrolled	in	the	second	semester	(Semester	4)	of	the	second	BBAY	2.
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