regains	eligibility	for	a	new	annual	loan	limit.	For	example,	a	student	who	is	attending	less	than	full	time	will	take	longer
to	complete	a	BBAY	3	than	a	full-time	student.	(In	contrast,	an	SAY,	BBAY	1,	or	BBAY	2	ends	when	the	calendar	period
associated	with	the	terms	in	the	SAY	or	BBAY	has	elapsed,	regardless	of	how	many	credit	hours	or	weeks	of	instruction
the	student	completed	during	the	SAY	or	BBAY.)
Individual	Academic	Progress	in	BBAY	3
In	many	clock-hour,	non-term,	and	nonstandard-term	programs,	students	are	allowed	to	progress	at	an	individual	pace.
For	example,	consider	a	school	that	defines	its	academic	year	as	900	clock	hours	and	26	weeks	of	instructional	time	and
offers	a	900	clock-hour	program	that	most	students	complete	in	26	weeks.	However,	one	student	might	complete	900
clock	hours	in	22	weeks,	and	another	in	30	weeks.
As	we	explained	in	Chapter	5	of	this	volume,	the	annual	loan	limit	must	be	prorated	(reduced)	if	an	undergraduate
student	is	enrolled	in	a	program	that	is	less	than	a	full	academic	year	in	length	or	is	in	a	remaining	period	of	study	that	is
shorter	than	a	full	academic	year.	However,	in	the	scenario	described	above,	you	do	not	have	to	prorate	the	loan	limit	for
the	occasional	student	who	completes	the	program	in	fewer	than	26	weeks.	This	policy	applies	only	to	programs	that	are
exactly	one	academic	year	in	length.	If	a	program	is	longer	than	an	academic	year,	proration	may	be	required	for	a	loan
covering	the	remaining	portion	of	the	program	if	a	student	completes	more	than	the	minimum	number	of	hours	during	the
first	26	weeks	of	instructional	time	(see	Example	7	in	Chapter	5	of	this	volume).
BBAY	3	for	Programs	With	Both	Standard	and	Nonstandard	Terms
BBAY	3	must	also	be	used	if	a	program	has	both	standard	terms	and	nonstandard	terms	and	does	not	qualify	to	use	an
SAY.	For	example,	if	you	offer	a	program	with	a	4-week	intersession	between	a	15-week	fall	semester	and	a	15-week
spring	semester,	and	you	do	not	combine	the	intersession	with	one	of	the	standard	terms	but	instead	treat	it	as	a
standalone	nonstandard	term,	you	must	use	BBAY	3	to	monitor	annual	loan	limit	progression.	In	this	circumstance	you
cannot	simply	ignore	the	intersession	and	consider	the	program	to	be	offered	only	in	standard	terms.	In	contrast,	if	you
combine	the	intersession	with	one	of	the	semesters,	you	could	use	an	SAY	consisting	of	the	fall	and	spring	semesters.
Volume	8,	Chapter	6,	Example	7:	BBAY	3	for	a	Clock-Hour	Program
A	school	has	an	1,800	clock-hour	program	with	52	weeks	of	instructional	time	and	defines	its	academic	year	as
900	clock	hours	and	26	weeks	of	instructional	time.	The	first	BBAY	3	begins	with	a	student9s	initial	enrollment
date	and	ends	when	the	student	has	successfully	completed	the	first	900	clock	hours	and	26	weeks	of
instructional	time	in	the	program,	whichever	comes	later.
The	second	BBAY	3	would	be	the	period	of	time	it	takes	the	student	to	successfully	complete	the	final	900	hours
and	26	weeks	of	instructional	time	in	the	program.	A	student	who	completes	the	first	900	hours	in	less	than	26
weeks	must	still	complete	26	weeks	of	instructional	time	before	the	second	BBAY	3	begins.	Similarly,	a	student
who	has	completed	fewer	than	900	clock	hours	after	26	weeks	of	instructional	time	must	successfully	complete
900	hours	before	the	second	BBAY	3	begins.
During	the	first	BBAY	3,	the	student	may	receive	up	to	the	full	annual	loan	limit	for	a	first-year	undergraduate.
The	student	becomes	eligible	for	a	new	annual	loan	limit	(at	the	second-year	undergraduate	level)	when	the
second	BBAY	3	begins.
The	principles	described	in	this	example	for	a	clock-hour	program	also	apply	to	non-term	credit-hour	programs	or
non-SE9W	nonstandard	term	credit-hour	programs.	For	example,	if	a	school	offers	a	non-term	48	semester	hour,
60	weeks	of	instructional	time	program	with	a	defined	academic	year	of	24	semester	hours	and	30	weeks	of
instructional	time,	the	second	BBAY	3	would	not	begin	until	a	student	has	successfully	completed	the	first	24
semester	hours	and	30	weeks	of	instructional	time.
Similarly,	in	a	72	quarter-hour	program	with	60	weeks	of	instructional	time	offered	in	a	series	of	non-SE9W
nonstandard	terms,	with	a	defined	academic	year	of	36	quarter	hours	and	30	weeks	of	instructional	time,	the
second	BBAY	3	would	not	begin	until	a	student	has	successfully	completed	the	first	36	quarter	hours	and	30
weeks	of	instructional	time,	whichever	comes	later,	regardless	of	the	number	of	terms	that	have	elapsed.	For
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