Clock-Hour,	Non-Term	Credit	Hour,	and	Non-SE9W	Nonstandard	Term	Programs:	Grade	Level	Progression	Occurs	Only	at
the	Beginning	of	a	New	BBAY	3
In	contrast	to	standard	term	and	SE9W	nonstandard	term	programs,	progression	to	a	higher	grade	level	and	the
beginning	of	a	new	BBAY	3	for	loan	limit	purposes	always	happens	at	the	same	time	for	a	student	in	a	clock-hour	program,
non-term	program,	or	non-SE9W	nonstandard-term	program.	To	advance	to	the	next	grade	level	for	annual	loan	limit
purposes,	a	student	must	successfully	complete	both	the	weeks	and	hours	in	the	program9s	
Title	IV	academic	year.	That
is,	the	student	must	complete	at	least	30	weeks	of	instructional	time	(or,	for	clock-hour	programs,	at	least	26	weeks)	and
the	number	of	credit	or	clock	hours	in	the	academic	year,	whichever	comes	later.	For	instance,	a	first-year	student	in	a
two-year	non-term	program	with	a	defined	academic	year	of	36	quarter	hours	and	30	weeks	of	instructional	time	who
earns	36	quarter	credits	over	24	weeks	of	instructional	time	cannot	progress	to	the	next	grade	level	(and	begin	a	new
BBAY	3	for	annual	loan	limit	purposes)	until	another	six	weeks	of	instructional	time	are	completed.
New	Annual	Loan	Limit	at	the	Same	Grade	Level
The	beginning	of	a	new	academic	year	for	annual	loan	limit	purposes	does	not	always	coincide	with	a	student9s
progression	to	a	higher	grade	level.	For	both	standard-term	programs	and	SE9W	nonstandard	term	programs,	if	a	student
is	enrolled	at	the	same	grade	level	after	a	full	academic	year	has	elapsed,	the	student	may	be	eligible	for	a	new	annual
maximum	amount	at	the	same	grade	level,	provided	that	the	student	maintains	satisfactory	academic	progress.	For
example,	a	student	in	a	standard	term	or	SE9W	nonstandard	term	program	who	completes	only	12	semester	hours	during
the	first	SAY,	BBAY	1,	or	BBAY	2	could	receive	another	loan	when	the	calendar	period	associated	with	that	academic	year
has	elapsed,	but	the	borrower	would	still	be	classified	as	a	first-year	undergraduate	at	the	start	of	the	second	academic
year.
If	a	student	is	maintaining	satisfactory	academic	progress,	a	school	may	not	have	a	general	policy	that	limits	the	number
of	times	the	student	can	receive	the	maximum	annual	loan	limit	at	one	grade	level.	A	school	may	refuse	to	originate	a
loan	or	may	originate	a	loan	for	an	amount	less	than	the	borrower9s	maximum	eligibility	only	on	a	case-by-case	basis	(see
<Refusing	to	Originate	a	Loan	or	Originating	for	Less	Than	Maximum	Eligibility=	in	Chapter	1	of	this	volume).
Remedial	Work	and	Grade	Level	Progression
Remedial	coursework	can	be	counted	towards	a	student9s	grade	level	progression,	but	only	if	the	school9s	written	and
officially	approved	academic	grade	level	progression	policy	specifies	that	remedial	coursework	can	be	counted	for	this
purpose.	For	instance,	a	school	might	have	a	policy	stating	that	a	student	must	complete	30	semester	hours	to	progress
to	a	second-year	grade	level	and	specifying	that	up	to	10	of	those	hours	may	be	in	the	form	of	remedial	coursework.
Increasing	the	Loan	Amount	When	a	Student9s	Dependency	Status	Changes	During	the	Academic	Year
For	any	type	of	educational	program	(whether	term-based	or	non-term,	credit-hour	or	clock-hour),	a	dependent	student
who	has	already	borrowed	up	to	the	annual	loan	limit	within	an	academic	year	may	be	eligible	to	receive	additional	loan
funds	if	their	dependency	status	changes	to	independent	during	that	same	academic	year.
{"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250605165703Z00'00'", "moddate": "D:20250605165703Z00'00'", "source": "data/raw/The_Direct_Loan_Program.pdf", "total_pages": 71, "page": 65, "page_label": "66", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:14.400068"}