INST STUDENT IN AN SEL SMA CLBED ABOVE ASSIGNED ALT DURING HOLDING PRACTICE RESULTING IN THE INSTRUCTOR TAKING ACFT CTL AND DSNDING BACK TO ASSIGNED ALT.

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I HAD JUST RECEIVED MY INST TEACHING CERTIFICATION LESS THAN 1 WK BEFORE ALTDEV. THIS HAPPENED TO BE MY FIRST INST STUDENT. WE FILED AN IFR FLT PLAN AND OUR FIRST MISSION WAS VOR HOLDING. AT THE TIME THERE WAS A SIGMET FOR MODERATE TO OCCASIONAL SEVERE TURB. IT JUST HAPPENED THAT WE WERE RECEIVING CONTINUOUS MODERATE TURB AND SW WINDS NEAR 40 KTS AT CRUISE ALT. THE STUDENT WAS HAVING SOME PERCEIVED DIFFICULTIES WITH HIS FULL WORKLOAD OF NAV; COM; COCKPIT ORGANIZATION AND WX. ALT THROUGHOUT THE FLT WAS +/-250 FT FROM ASSIGNED ALT. I; AS THE INSTRUCTOR; WAS CONTINUOUSLY GETTING ON HIM ABOUT HIS DISREGARD ON ALT. IT JUST SO HAPPENED THAT ON ONE INSTANCE THE STUDENT HAD BEGUN CORRECTING FOR ALT WHEN I WAS DISTR BY SOMETHING ELSE IN THE COCKPIT. HOW MUCH TIME ELAPSED I CAN ONLY GUESS. MAYBE 15 SECONDS. MAYBE 30 SECONDS. BY THAT TIME THE DAMAGE WAS DONE. THE STUDENT HAD STRAYED +500 FT FROM ASSIGNED ALT. I CAUGHT THE DEV JUST AS WE REACHED +500 FT AND IMMEDIATELY CAUSED THE ACFT TO RETURN TO ASSIGNED ALT.