The	remaining	period	of	study	(two	terms)	is	shorter	than	an	academic	year,	so	the	annual	loan	limit	for	each	loan
must	be	prorated	based	on	the	total	number	of	hours	for	which	the	student	is	enrolled	in	the	fall	and	spring
quarters.
The	prorated	loan	limit	is	determined	by	converting	the	fraction	based	on	the	combined	number	of	hours	in	the
fall	and	spring	terms	to	a	decimal:
24	hours	enrolled	in	fall	and	spring	/36	hours	in	academic	year	=	0.67
Note:	In	this	example	the	decimal	is	rounded	up:
24/36	=	0.666,	rounded	up	to	0.67
It	would	also	be	acceptable	to	truncate	the	decimal	to	0.66,	but	you	should	be	consistent	in	the	method	used,
since	rounding	up	vs.	truncating	will	result	in	slightly	different	amounts	(see	below).
Multiply	this	decimal	by	the	combined	subsidized	and	unsubsidized	annual	loan	limit	for	an	independent	fourth-
year	undergraduate	($12,500,	not	more	than	$5,500	of	which	may	be	subsidized):
$12,500	x	0.67	=	$8,375	combined	subsidized	and	unsubsidized	prorated	annual	loan	limit	for	the	fall	and	spring
terms.
To	determine	the	maximum	portion	of	the	$8,375	prorated	annual	loan	limit	that	the	student	may	receive	in
subsidized	loan	funds	for	the	fall	and	spring	terms,	multiply	the	maximum	subsidized	annual	loan	limit	of	$5,500
by	the	same	decimal	(0.67):
$5,500	x	0.67	=	$3,685	subsidized	prorated	annual	loan	limit	for	the	fall	and	spring	terms.
The	maximum	loan	amount	the	student	may	receive	for	the	two	terms	in	the	final	period	of	study	(fall	and	spring)
combined	is	$8,375,	not	more	than	$3,685	of	which	may	be	subsidized.
As	an	alternative,	the	school	could	choose	to	originate	separate	fall-only	and	spring-only	loans.	With	this	option,
the	prorated	loan	limit	is	determined	separately	for	each	term	by	converting	the	fraction	based	on	the	number	of
hours	in	each	term	to	a	decimal:
12	hours	enrolled	in	term	/36	hours	in	academic	year	=	0.33
This	decimal	is	then	be	multiplied	by	the	combined	subsidized	and	unsubsidized	annual	loan	limit	for	an
independent	fourth-year	undergraduate:
$12,500	x	0.33	=	$4,125	combined	subsidized	and	unsubsidized	prorated	annual	loan	limit	for	a	single	term	(fall
or	spring)
To	determine	the	maximum	portion	of	the	$4,125	prorated	annual	loan	limit	that	the	student	may	receive	in
subsidized	loan	funds	for	a	single	term,	the	subsidized	annual	loan	limit	of	$5,500	is	multiplied	by	the	same
decimal	(0.33):
$5,500	x	0.33	=	$1,815	subsidized	prorated	annual	loan	limit	for	a	single	term	(fall	or	spring)
The	prorated	loan	limit	for	each	single-term	loan	(fall-only	and	spring-only)	in	the	remaining	period	of	study	is
$4,125,	not	more	than	$1,815	of	which	may	be	subsidized.	This	means	that	the	maximum	loan	amount	the
student	may	receive	for	the	two	terms	in	the	final	period	of	study	combined	is	$8,250,	not	more	than	$3,630	of
which	may	be	subsidized.
Note:	With	the	alternate	approach	of	originating	separate	fall-only	and	spring-only	loans,	the	total	loan	amount
the	student	receives	is	slightly	less	than	the	total	amount	determined	using	the	single	loan	approach	with	a	fall-
winter-spring	loan	period,	as	described	earlier	in	this	section.	This	is	due	to	rounding	up	the	fraction	to	0.67	in	the
single	loan	approach.	If	the	fraction	used	in	the	single-loan	period	approach	were	instead	truncated	to	0.66,	both
approaches	would	result	in	the	same	total	loan	amount.
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