what happens if you are awarded full time finanical aid and drop a course

by Mr. Bart Hoppe I 10 min read

If you receive some form of financial aid – such as grants or loans – your decision to drop out of college will affect your financial aid award for future semesters in which you plan to enroll in school and potentially trigger repayment responsibilities.

If you drop or withdraw from classes, you may jeopardize future eligibility for student aid (including loans). If your enrollment drops below half-time, your financial aid awards may be adjusted, and the grace period repayment of loans will begin.

Full Answer

What happens if I drop credits before my financial aid is disbursed?

Your financial aid award(s) may be adjusted if your award(s) requires full-time or half-time enrollment and your credits drop below the minimum required. If you are a Federal Pell Grant recipient, the grant may be adjusted; for example, if you drop from 12 to 9 credits, your grant may be prorated. Review additional information about the Pell census date. If you are a …

Will withdrawing from a class affect my financial aid?

If you are a graduate student, your financial aid is based on an enrollment status of 9+ credit hours per semester during the academic year (5+ credit hours for summer terms). If you drop below your respective enrollment status during a drop/add period, your financial aid will be adjusted based on the number of credit hours you are enrolled in at end of the drop/add period.

What happens if I drop a course?

Answer (1 of 4): That depends on whether your financial aid was a loan or a grant. If it was a grant, no, you do not have to pay it back but don’t expect your school to divvy up the money to you. The money was granted for your educational purposes and …

What happens if my financial aid is over awarded?

For example, if you receive a full-time federal Pell grant payment, 100 percent of the awarded amount, and you drop to 9 units, your enrollment status changes from full time to three-quarter time; therefore, you may have to repay 25 percent of the amount already received. What if I drop any or all my classes? Please read the withdrawal policy.

What happens if you drop a class after receiving fafsa?

Enrollment Status When you withdraw from a class, your school's financial aid office is required to recalculate your financial aid offer. If your withdrawal means you are no longer a full-time student, you may only receive a percentage of your initial financial aid offer.Mar 30, 2022

Do I have to pay back financial aid if I drop a class?

Federal regulations require you to repay a portion of financial aid funds if you withdraw from all classes before satisfying the 60 percent completion rule for the enrollment term. (See the current 60 percent dates for the financial aid award year.)

Is it better to drop a class or fail financial aid?

A withdraw will show up on your transcript and can affect your financial aid, but won't be as drastic as a later drop that results in a failing grade for the class. Dropping classes with financial aid in the balance, may result in having to pay back part of the loan that you received.Sep 21, 2018

Is it better to fail or withdraw?

Failing & Then Re-Taking a Class Croskey notes that dropping a class is better than withdrawing, but withdrawing is better than failing. “A failing grade will lower the student's GPA, which may prevent a student from participating in a particular major that has a GPA requirement,” Croskey says.

About Future Student Aid Eligibility

If you drop below half-time enrollment, you may be ineligible for aid, including loans. Depending on the time during the semester that you drop a c...

If You Drop Credits Before Your Financial Aid Is Disbursed

If you drop credits before all of your aid is disbursed: 1. You will be responsible for the balance of your tuition bill after your aid is adjusted...

What Happens and What to Do If You Late-Drop Credits

Students with Federal Direct or Perkins LoansIf you received a Federal Direct Loan or Federal Perkins Loan and drop below half-time, the grace peri...

What happens if you withdraw your financial aid?

Some schools even impose penalties. If your financial aid has post-withdrawal disbursement, this means you do not receive money for your tuition and education needs until after the add/drop deadline has passed, which helps many students avoid financial punishment like having to repay grants or scholarships.

What happens if you enroll in half time?

If you enroll only half time, the amount you receive will be prorated. If you drop below what your school considers half time, your Pell Grant award is canceled. If you receive some Pell Grant funding but drop courses after the add/drop date, you will be required to pay the money back.

What happens if you disappear from your school?

If you simply disappear, you will be subject to serious penalties, including exclusion from other aid programs and harm to your credit score. If you remain in contact with those managing your education costs, they will work with you so you can repay your loans, grants, and scholarships.

What happens if you don't enroll in a semester?

If you fail to meet these qualifications, you will lose your scholarship. Based on enrollment, you may simply not receive that scholarship as you enter the new academic year. You will also lose your financial aid ...

What is need based aid?

State-based aid: Some states offer need-based grants and scholarships to college students who are residents of the state. Like other forms of financial aid, need-based aid has specific requirements for your college attendance. For example, you must legally reside in the state, you must attend a state-based college or university, ...

How to be a regular student on FAFSA?

Be enrolled or accepted for enrollment as a regular student at an accredited program. Be enrolled at least half time for direct student loans. Maintain satisfactory academic progress (SAP) per the institution’s guidelines. Submit only truthful information on your FAFSA.

How to become a selective service student?

Have a valid Social Security number, with some U.S. territorial exceptions. Be registered with the Selective Service, if male. Be enrolled or accepted for enrollment as a regular student at an accredited program.

How much financial aid do you have to repay?

A student who unofficially withdraws may be required to repay up to 50% of the financial aid received for the term. Students who never attended any of their classes and did not complete any coursework are required to repay 100% of the financial aid received for the semester or summer term.

What happens if you drop below enrollment status?

If you drop below your respective enrollment status during a drop/add period, your financial aid will be adjusted based on the number of credit hours you are enrolled in at end of the drop/add period. Dropping Hours After the Drop/Add Period:

How many credit hours do you drop before or during drop period?

Dropping Hours Before or During the Drop/Add Period: If you are an undergraduate student, your financial aid is based on an enrollment status of 12+ credit hours per semester during the academic year (6+ credit hours for summer terms).

What does "drop the course" mean?

You drop the course (s) that lasts the entire semester after you have completed the course (s) that does not span the entire semester.

What happens if you withdraw from a university?

If you withdraw from the University, you must contact the Registrar's Office to begin the official withdrawal process and establish your withdrawal date. If you stop attending all of your classes, you are required to officially withdraw from the University. If you stop attending all of your classes but fail to complete the official withdrawal ...

Can you drop a class after the drop add window closes?

Dropping Hours After the Drop/Add Period: If you drop one or more classes after the drop/add window closes but are still enrolled and attending your other courses, your financial aid will typically not be adjusted.

What happens if you drop out of school?

If you drop out of school, you won’t earn a degree, but you still may have substantial education debt. Here’s what happens to student loans if you withdraw before graduating.

How long do you have to pay off a loan after leaving school?

If you chose deferred repayment, you have six months after leaving school before you have to start making payments. Refer to your loan promissory agreement to find out your loan terms, or contact your lender directly to ask how it handles payments.

How long is the grace period for PLUS loans?

With direct subsidized and direct unsubsidized loans, you have a six-month grace period. PLUS loans don’t have grace periods, but graduate PLUS borrowers are eligible for a six-month deferment after leaving school or dropping below half-time status. For parent PLUS borrowers, repayment starts after the loan is disbursed.

How long do you have to pay off a private student loan?

Private Student Loans. Private student loan lenders have different rules than federal loans. While you don’t have to make payments on federal loans until six months after you drop out, private student loans may not have that same benefit. Student loan repayment policies can vary widely from lender to lender.

What happens to your principal and interest payments when you take out a RISLA loan?

If you opted for immediate repayment, your principal and interest payments start when you’re in school and continue after you leave or withdraw.

What happens when you drop below half time?

The lender will mark you as withdrawn from school, and your loans enter repayment.

How long does a student loan refinance last?

When you refinance, you can change your loan term, with some lenders offering terms as long as 25 years.

How long is financial aid ineligible for a drug conviction?

The period of financial aid ineligibility for a drug possession or sale conviction is as follows: For possession of illegal drugs. First offense: one year from date of conviction. Second offense: two years from date of conviction. Three or more offenses: indefinite period. For sale of illegal drugs (including conspiring to sell drugs)

What happens if you are registered less than full time?

If you are registered less than full time, your initial award amount is subject to reduction or cancellation. Your initial award represents the maximum amount you may receive if registered full time. The amount disbursed to your student account may change depending on the number of units you are enrolled in.

How much of your Pell grant will you receive if you enroll in 6 units?

For example, if you are enrolled in 6 units when the initial payment is made, you may receive only 50 percent of your federal Pell grant award.

What happens if you don't complete your classes?

If you do not complete your classes, it may affect your ability to receive aid the next semester or academic year. Please read the Satisfactory Academic Progress policy for further details.

How long is a drug sale conviction?

For sale of illegal drugs (including conspiring to sell drugs) First offense: two years from date of conviction. Second offense: permanent ineligibility. If a student is convicted of both possessing and selling illegal drugs, he or she will be disqualified for the longer period of ineligibility.

How long does it take to get financial aid from California State University?

The university is listed under "California State University, Northridge.". Once you have completed LEC, it may take up to five business days for the Financial Aid & Scholarship Department to receive confirmation from the Department of Education.

What is a SAP for financial aid?

An annual review of student Satisfactory Academic Progress (SAP) toward an eligible degree or certificate is required by federal, state and institutional rules as one condition for financial aid eligibility. Students who do not meet the standards for satisfactory academic progress are not eligible for financial aid funding.

What happens to financial aid if you withdraw from school?

What happens to my financial aid if I withdraw from school? When you withdraw from school, it triggers a series of events that can affect your student aid and long-term eligibility for additional aid. Here are a few things to keep in mind before you leave school abruptly.

What percentage of student aid is prorated?

According to the Federal Student Aid Handbook, when a course is below 60 percent completion, the costs of that course are prorated. That means when you stay for more than 60 percent of a semester’s duration, you earn 100 percent of federal funds awarded to you.

What to do if you need to withdraw from school?

What To Do If You Need To Withdraw. You are responsible for contacting officials at your school before leaving. That way, the school can record the withdrawal date and use it to calculate the total amount of financial aid used for your last semester. You might be able to keep the funds if you used less than the school received.

Can you lose your state aid if you didn't finish your last semester?

For example, the state where you went to school might take away a semester of eligibility for some forms of state aid if you didn’t finish your last semester.

Enrollment Status

Financial aid, just like tuition, is based on your enrollment status. If you are enrolled as a full-time student, you will be eligible for more financial aid than if you are a part-time student.

Maintaining Satisfactory Academic Progress

Students are required to maintain satisfactory academic progress towards their degree or certificate to remain eligible for financial aid. Schools set a minimum GPA and course load that students must meet to maintain their eligibility for financial aid.

If You Must Leave a Course

Sometimes, things happen that are beyond your control (like a death in the family, natural disasters, or medical emergencies), forcing you to leave your education for a while. However, you are still responsible for navigating the situation in a tactful, responsible manner.

What happens if you drop financial aid?

If you drop below the necessary completion rate you may lose eligibility for financial aid in future terms.

How to maintain eligibility for financial aid?

In order to maintain your eligibility to receive financial aid, you must meet the following requirements: You must be a degree-seeking student. You must meet Satisfactory Academic Progress (SAP). You must be enrolled at least half-time (except for the Pell or TEACH Grant).

What happens if you don't meet the terms of probation?

If you do not meet the terms of probation, eligibility for financial aid will cease and all remaining aid will be cancelled. Subsequent appeals of the same nature are not permitted. Once you fail to meet the terms of your academic plan and lose eligibility, the only way to regain eligibility for financial aid is to meet the SAP minimum requirements.

What happens if you don't meet SAP standards?

After one semester of not meeting the SAP standards, students will be issued a warning and will be permitted to receive financial aid for the next semester. However, after the one semester of warning, students who fail to meet any one or a combination of the SAP components will be ineligible for financial assistance.

When do you regain eligibility?

The student may regain eligibility: The day after the period of ineligibility ends, When they successfully complete a qualified drug rehabilitation program, or. If the student passes two unannounced drug tests given by a qualified rehabilitation program they may regain eligibility.

Can you lose federal financial aid if you are convicted of a drug offense?

According to federal regulations, students convicted for a drug offense that occurred during a period of enrollment while they were receiving Title IV Federal Financial Aid, may lose eligibility for Federal Aid.

Is state and institutional aid the same?

State and Institutional Aid are not subject to the same regulatory restrictions. However, the cost of attendance for students will be reduced for courses that are not counting to the program of study, which can result in a lower amount of state and institutional aid a student could receive.