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Award Year v. Academic Year and Title IV Aid

 

It is a common misconception that Pell and Loans must all be paid from the same award year. This is not the case. It is the Payment Period for Pell and the Loan Period for which the loan is being originated, that determines which Award Year may be used. Crossover payment periods and loan periods have the flexibility to be assigned to either Award Year (with the condition that the student has remaining eligibility for Pell in the chosen Award Year, but there is no restriction for loans).

Award Year

Generally, this is the 12-month period that begins on July 1 of one year and ends on June 30 of the following year. Also referred to as the “FAFSA year”.

Pell Grant eligibility is limited to the Scheduled Award amount using the applicable Pell Chart. For the 16/17 Award Year the limit is 100% and for 17/18 it is 150% (due to the introduction of Year-Round Pell). Crossover payment periods for Pell (a payment period that includes both June 30 and July 1) may be assigned to either of the Award Years that the payment period straddles:

Example:

6/15/17- 8/15/17 Pell may be assigned to, and paid from, 16/17 or 17/18 Award Year subject to remaining eligibility for the Award Year (but not both!)

8/15/17 – 12/15/17 Pell must be paid from 17/18 Award Year subject to remaining eligibility for the Award Year

1/15/17 – 5/15/17 Pell must be paid from 16/17 Award Year subject to remaining eligibility for the Award Year

Academic Year

This is the amount of the academic work you must complete each year, and the time period in which you are expected to complete it, as defined by your school. For example, your school’s academic year may be made up of a fall and spring semester, during which a full-time undergraduate student is expected to complete at least 24 semester hours (usually called credits or credit hours) over the course of 30 weeks of instructional time. Academic years change from school to school and even from educational program to educational program at the same school.

Direct Loans are packaged for an academic year and annual loan limits apply to the academic year as defined by the school. However, it is the Loan Period dates which determine in which COD Award Year those loans may be originated. A crossover loan period (one that includes both June 30 and July 1) may be originated in either of the Award Years that the loan period straddles.

Examples:

1. Academic year: 8/15/17 – 5/15/18

Comprising 2 Semesters: Fall: 8/15/17 – 12/15/17 Spring: 1/15/18 - 5/15/18

Whole Academic Year Loan Period: 8/15/17 – 5/15/18 Must be originated in 17/18

Fall only Loan Period: 8/15/17 – 12/15/17 Must be originated in 17/18

Spring only Loan Period: 1/15/18 – 5/15/18 Must be originated in 17/18

 

2. Academic year: 8/15/17 – 8/15/18

Comprising 3 Semesters: Fall: 8/15/17 – 12/15/17 Spring: 1/15/18 - 5/15/18 Summer: 6/15/18 – 8/15/18

 

Whole Academic Year Loan Period: 8/15/17 – 8/15/18 May be originated in 17/18 OR 18/19

Fall only Loan Period: 8/15/17 – 12/15/17 Must be originated in 17/18

Spring only Loan Period: 1/15/18 – 5/15/18 Must be originated in 17/18

Summer only Loan Period: 6/15/18 – 8/15/18 May be originated in 17/18 OR 18/19

 

If you have any further questions regarding Award Year vs. Academic Year, please contact us here: https://www.weberassociatesinc.com/contact/ and we will be happy to assist you further!