A	dependent	fourth-year	undergraduate	is	enrolled	in	a	program	with	a	defined	academic	year	of	36	quarter
hours	and	30	weeks	of	instructional	time,	covering	three	quarters	(fall,	winter,	and	spring).	The	student	will	attend
the	fall	and	winter	quarters,	but	not	the	spring	quarter,	and	will	graduate	at	the	end	of	the	winter	term.
The	student	will	be	enrolled	for	12	quarter	hours	(full	time)	during	the	fall	quarter,	but	will	be	enrolled	for	only
three	hours	(less	than	half	time)	in	the	winter	quarter:
Fall
(full	time:	12	hours)
Winter
(less	than	half	time:	3	hours)
Spring
(not	enrolled)
The	student9s	final	period	of	study	(two	terms)	is	shorter	than	an	academic	year,	so	the	annual	loan	limit	must	be
prorated.	However,	because	the	student	will	be	enrolled	less	than	half	time	during	the	winter	quarter	(and
therefore	ineligible	to	receive	Direct	Loan	funds	for	that	term),	the	loan	period	will	cover	the	fall	quarter	only.
Only	the	12	quarter	hours	will	be	used	for	the	fall	term	are	to	determine	the	prorated	annual	loan	limit.
To	determine	the	prorated	loan	limit	for	the	final	period	of	study,	convert	the	fraction	based	on	the	hours	that	the
student	is	expected	to	attend	in	the	fall	quarter	and	the	hours	in	the	academic	year	to	a	decimal:
12	hours	enrolled	in	fall/36	hours	in	academic	year	=	0.33
Multiply	this	decimal	by	the	combined	Direct	Subsidized	Loan	and	Direct	Unsubsidized	Loan	annual	loan	limit	for	a
dependent	fourth-year	undergraduate	($7,500,	not	more	than	$5,500	of	which	may	be	subsidized):
$7,500	x	0.33	=	$2,475	combined	subsidized	and	unsubsidized	prorated	annual	loan	limit
To	determine	the	maximum	portion	of	the	$2,475	prorated	annual	loan	limit	that	the	student	may	receive	in
subsidized	loan	funds,	multiply	the	maximum	subsidized	annual	loan	limit	of	$5,500	by	the	same	decimal	(0.33):
$5,500	x	0.33	=	$1,815	subsidized	prorated	annual	loan	limit
The	total	prorated	annual	loan	limit	for	the	fall	quarter	loan	is	$2,475,	not	more	than	$1,815	of	which	may	be
subsidized.
Volume	8,	Chapter	5,	Example	6:	Remaining	Period	=	Two	Quarters,	Separated	by	a	Period	of	Non-Enrollment
A	school	has	an	academic	year	that	covers	three	quarters:	fall,	winter,	and	spring.	An	independent	fourth-year
undergraduate	will	be	enrolled	full	time	in	the	fall	and	spring	quarters,	but	will	not	attend	the	winter	quarter,	and
will	graduate	at	the	end	of	the	spring	quarter:
Fall
(full	time:	12	hours)
Winter
(not	enrolled)
Spring
(full	time:	12	hours
Because	the	fall	quarter	is	in	the	same	academic	year	as	the	student9s	final	quarter	of	attendance,	it	is	part	of	the
remaining	period	of	study,	even	though	there	is	a	term	between	the	fall	and	spring	quarters	in	which	the	student
will	not	be	enrolled.	As	explained	under	<Loan	Periods=	in	Chapter	2,	the	school	may	originate	a	single	loan	for	a
loan	period	covering	the	fall,	winter,	and	spring	quarters	(but	no	costs	associated	with	the	winter	quarter	may	be
included	when	determining	the	loan	amount	the	student	is	eligible	to	receive).
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