Financial Effects of Withdrawing from Classes
Official term withdrawal is defined as a student’s formal notification of his/her intent to withdraw from all courses for a term. A student’s withdrawal date is defined as the actual date the student submits information to Student Records to drop a course or courses. To officially withdraw from a course or courses, a student must provide official notice to Student Records electronically or in person.
Students could lose academic eligibility for future financial aid. Students are required to make “satisfactory academic progress” to continue receiving aid. While withdrawals may not hurt a student’s GPA, it can hurt a student’s completion rate. Please see the college’s Financial Aid Satisfactory Academic Progress policy for further information.
Student loans may enter “grace period” or repayment. If a student leaves school or drops below half time status, the student will receive information about repayment. However, a student is responsible for beginning repayment, even if the student did not receive information on when the repayment begins. Refer to the exit interview materials, U.S. Department of Education Student Guide or contact your servicer to determine how soon student loan payments will be required. Exit loan counseling is required for any student receiving a loan when a student completely withdraws from the college.
Upcoming student loan disbursements are canceled. For example, if a student withdraws after receiving the fall disbursement, the spring disbursement of the loan is automatically canceled. Even if the student is returning for the spring semester, a new loan application for the spring semester must be processed. Upon complete withdrawal, exit loan counseling is required for any student receiving a loan at the college. Failure to comply will result in a HOLD being placed on all academic records.
A federal financial aid recipient who does not officially withdraw from the term will be considered as having completed 50 percent of the term for calculating the amount of aid to be returned to the federal government and will not be eligible for a refund based on the college’s refund policy.
Return of Federal Financial Aid
A student’s federal financial aid eligibility must be recalculated for students who withdraw, drop out, are dismissed or take a leave of absence prior to completing 60 percent of a term. Federal financial aid includes Federal Pell Grant, Federal Supplemental Educational Opportunity Grant (FSEOG) and Federal Direct Loans. Institutional costs include tuition, fees and charges made in the Bookstore using federal financial aid.
The recalculation of eligibility is based on the percent of earned aid using the following formula:
- Percent of earned aid = Number of days attended in the term ÷ Total number of days in the term
Federal financial aid must be returned to the federal government based on the percent of unearned aid using the following formula:
- Percent of unearned aid × Amount of federal financial aid disbursed = Aid to be returned
The amount of aid to be returned is the responsibility of the college and the student. However, the student will be responsible for repaying the college for the amount that the college was required to return on his or her behalf less any refund for which the student is eligible. Therefore, a student who does not complete at least 60 percent of a term will owe a repayment to the college and/or the federal government for the amount of unearned federal financial aid. Students will be informed by mail within approximately three weeks from the date of the complete withdrawal. Students must have a valid permanent address on file in the Student Records Office.
A student who owes the college may not be permitted to register for a subsequent term or obtain an official academic transcript until the debt is paid. Payment should be made to the Business Office. A student who owes the federal government may be reported to the U.S. Department of Education and be required to provide documentation of a satisfactory payment arrangement before federal or state financial aid eligibility is restored.
Please contact the Financial Aid Office for dates that mark the 60 percent point of each term.