the	different	types	of	BBAY.	We	describe	the	differences	between	BBAY	1,	BBAY	2,	and	BBAY	3	in	the	sections	that	follow.
BBAY	1	for	Credit-Hour	Programs	With	an	SAY
If	a	program	is	offered	in	an	SAY,	you	have	the	option	of	using	a	BBAY	1	as	an	alternative	to	the	SAY	for	monitoring	annual
loan	limit	progression.	As	explained	earlier,	a	BBAY	is	not	a	fixed	period	that	begins	and	ends	at	the	same	time	each	year.
The	beginning	and	ending	dates	depend	on	the	individual	student9s	enrollment.
For	programs	with	an	SAY,	a	BBAY	1	must	include	the	same	number	of	terms	as	the	SAY	that	would	otherwise	be	used
(not	counting	any	summer	trailer	or	header).	For	example,	if	the	SAY	includes	three	quarters	(fall,	winter,	spring),	a	BBAY
1	would	consist	of	any	three	consecutive	terms.	A	BBAY	1	may	include	terms	the	student	does	not	attend	if	the	student
could	have	enrolled	at	least	half	time	in	those	terms,	but	(unlike	an	SAY)	it	must	begin	with	a	term	in	which	the	student
is	enrolled	(even	though	the	student	may	be	enrolled	less	than	half	time	for	the	first	term	and	not	eligible	for	a	loan	for
that	term).	Also,	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.
Like	an	SAY,	a	BBAY	1	must	meet	the	minimum	
Title	IV	requirements	for	an	academic	year.	However,	a	BBAY	1	that
includes	a	summer	term	may	include	fewer	than	30	weeks	of	instructional	time	or	fewer	credit	hours	than	the	minimum
number	required	for	an	SAY.	This	is	because	a	summer	term	may	be	shorter	than	a	standard	term	in	an	SAY	but	is
recognized	as	academically	equivalent	to	a	standard	term	when	used	as	one	of	the	terms	in	a	BBAY	1.	This	exception
applies	only	to	a	BBAY	1	used	as	an	alternative	for	a	program	with	an	SAY.
You	may	use	a	BBAY	1	for	all	students,	only	for	students	in	certain	programs,	or	on	a	student-by-student	basis.	For
example,	you	could	use	a	BBAY	1	for	students	enrolled	in	a	program	that	begins	in	a	term	other	than	the	first	term	of	the
SAY.	You	can	even	alternate	BBAY	1	and	SAY	for	a	student,	provided	the	academic	years	don9t	overlap.	This	treatment
may	allow	a	student	to	receive	another	loan	sooner	than	would	be	allowed	under	an	SAY	standard.
As	with	an	SAY,	the	annual	loan	limit	applies	to	the	BBAY	1.	Once	the	calendar	period	associated	with	all	terms	in	the
BBAY	1	has	elapsed,	a	student	regains	eligibility	for	a	new	annual	loan	limit.
Alternating	an	SAY	With	BBAY	1
Alternating	an	SAY	with	BBAY	1	may	allow	a	student	to	receive	another	loan	sooner	than	would	be	allowed	with	an	SAY.
For	instance,	if	you	normally	use	an	SAY	consisting	of	fall	and	spring	semesters	with	a	summer	trailer,	a	student	who
received	the	maximum	annual	loan	limit	for	fall-spring	could	not	receive	another	loan	until	the	start	of	a	new	SAY	in	the
fall.	If	the	student	enrolls	for	summer	and	wants	a	loan,	you	could	choose	to	switch	the	student	to	a	BBAY	1	consisting	of
the	summer	and	fall	terms.	The	student	could	then	receive	a	loan	for	the	summer	term,	which	would	be	the	start	of	a	new
academic	year.	A	school	that	provides	flexibility	in	academic	year	standards	for	purposes	of	monitoring	annual	loan	limits
must	have	a	written	policy	that	explains	how	it	applies	this	flexibility	when	determining	loan	eligibility.
Examples	2	through	5	illustrate	the	optional	use	of	BBAY	1	for	a	program	that	is	offered	in	an	SAY.	Note	that	in	each
example	the	first	BBAY	1	is	the	same	as	the	SAY.
Volume	8,	Chapter	6,	Example	2:	BBAY	1	Where	the	SAY	Contains	Two	Semesters
Year	1:	SAY	or	BBAY	1 Year	2:	BBAY	1 Year	3:	BBAY	1
Fall	+	Spring Summer	+	Fall Spring	+	Summer
In	Example	2,	the	initial	fall	and	spring	terms	could	be	considered	either	an	SAY	or	BBAY	1.	If	the	student	attends
the	summer	session	at	the	school,	the	school	can	choose	to	treat	the	summer	term	and	the	next	fall	as	a	BBAY	1
for	the	student.	In	that	case,	the	following	spring	and	summer	would	also	constitute	a	BBAY	1.	The	maximum	loan
limit	for	an	academic	year	applies	to	each	BBAY	1.	If	these	were	the	first	three	years	of	study	for	a	dependent
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