How Dropping/Withdrawing from Classes Affects Your Financial Aid

Dropping or withdrawing from classes can affect both your award amount and your Satisfactory Academic Progress (SAP). *We highly recommend that you read our Satisfactory Academic Progress Policy before continuing with this article.* Financial Aid is awarded based on a student’s eligibility as well as the number of credit hours for which the student is enrolled. Students are encouraged to pass and complete all classes without dropping, withdrawing or failing in order to maintain their eligibility; however, there may be unforeseen events that occur in a student’s life that may result in the student having to drop or withdraw from classes. If this occurs, it is important that the student understands both how their aid and eligibility are affected, and follows the proper steps for dropping classes.

Terms Defined

The terms “Dropping” and “Withdrawing” are often used interchangeably; therefore, further explanation must be given before we can explain how Dropping or Withdrawing from classes affects your financial aid. The words themselves mean the same thing. Anytime a student decides they no longer wish to attend a class and files the proper paper-work, he/she is dropping/withdrawing from that class and it will be reflected on his/her transcript. *For the purpose of this article, the key difference is the type of form filled-out by the student when he/she decides they no longer wish to attend a class or classes.*

The Drop/Add Form is filled out by the student when he/she is signed-up for classes and although a change(s) is being made to his/her schedule, he/she will still be enrolled in at least one class once the change(s) are implemented.

For Example: A student registered for four (4) classes decides she can only continue taking two (2) of the classes for which she is enrolled. Since she will be keeping at least one class, she would fill-out the Drop/Add form and submit it to the Registrar’s Office.

The Official Withdrawal Form is completed when the student determines he/she can no longer attend any of the classes for which he/she is enrolled.

Dropping Classes

As previously stated, students who are dropping a class(es), but will be remaining in at least one class will have to complete the “Drop/Add Form” and submit it to the Registrar’s Office. When a student drops a class(es) their aid may have to be adjusted for that term and the Satisfactory Academic Progress can be affected. Following are scenarios depicting different circumstances in which a student drops a class(es) and how it impacts both their award amount and Satisfactory Academic Progress.

Classes Dropped Prior to the Beginning or Within the First 3 Days of the Semester

Class dropped prior to the beginning of the semester or within the first three (3) days of the semester will not be counted as attempted hours. Therefore, the student’s SAP will not be negatively affected; however, any aid that was awarded for the term prior to the changes being made must be adjusted accordingly. Students are encouraged to check with the Financial Aid Office prior to dropping classes to determine what adjustments would need to be made and whether any funds would need to be
paid out-of-pocket.

Scenario #1: Jane is registered full-time for the next semester for 4 classes at a total of 12 credit hours. Her financial aid has been awarded on her account, and any cost not covered by her aid has been paid by her out-of-pocket to the Business Office. Before the semester begins, she is promoted to another position within her company with more work hours, and
decides she will only be able to attend one (1) of the classes for which she is enrolled. She fills-out the Drop/Add Form and turns it into the Registrar’s Office. Because the changes are made prior to the beginning of the term, her SAP will not be negatively affected, but her previous award is adjusted accordingly. Jane checks with the Financial Aid Office to verify that her aid has been adjusted and whether there are any charges not covered by the new award amount.

Scenario #2: It is the second (2nd) day of new semester and John is registered half time for 3 classes at a total of 8 credit hours. He has been awarded both Hope and Pell funds and receives enough to cover all of his tuition and fees. However, due to extenuating circumstances he decides he will only be able to complete one (1) of the classes in which he is enrolled, and submits a Drop/Add form to the Registrar’s Office. Because the change is taking place within the first three (3) days of the semester, his SAP will not be negatively affected, but his previous award amount is adjusted accordingly and John checks with the Financial Aid Office to verify that the aid is adjusted and whether there are any charges not covered by the new award amount.

Classes Dropped Following the First 3 Days of the Semester

Scenario #3: Jack registered half-time for 2 classes at a total of 6 credit hours for the current term. His financial aid has been awarded on his account and any cost not covered by his aid has been paid out-of-pocket to the Business Office. Two weeks into the semester he is hired to a new company and determines he will only be able to remain in one (1) of the
classes for which he is enrolled. He completes and submits the Drop/Add Form and checks with Financial Aid to see if any federal aid has to be adjusted. Since the changes are made after the term has started, his SAP will be negatively affected because the credit hours of both classes will be counted as attempted hours. If this is Jacks first term of attendance and he completes the remaining class with a “B” average, then when grades post at the end of the term he would have a 3.0 GPA, unfortunately he will have a Completion Rate of only 50% (which is below the Satisfactory Academic Progress standards). If this is Jack’s first time falling below the Satisfactory Academic Progress standards then he will be placed on Financial Aid WARNING for the next term of attendance.

Scenario #4: Jill is a returning students who is currently on Financial Aid WARNING due to her GPA and Completion Rate being below the standard. *For this scenario we will say her GPA is a 1.15 and her Completion Rate is at 60%.* She is enrolled for 3 classes totaling 9 credit hours. Her financial aid has been awarded and any cost not covered by her aid has
been paid out-of-pocket to the Business Office. Half-way through the term Jill gets sick and misses several days of classwork and tests. After speaking with her instructors and academic advisor, it is determined that she will not be able to make-up the missed assignments in two (2) of her classes and receive passing grades. Rather than receive failing grades for the two (2) classes, she decides to withdraw from them and submits the Drop/Add Form to the Registrar’s Office. Because she is withdrawing beyond the7th day of classes and she is keeping at least one class, no adjustments will need to be made to her Pell; however, any Loans on her account will have to be removed since she has dropped below 6 credit hours. Also, her SAP is negatively affected since all 3 classes will be factored as attempted hours. At the end of the term she passes the remaining class with an “A” and manages to raise her overall GPA to the minimum requirement of a 2.0. Unfortunately her Completion Rate is still below the SAP standard at 61%. Since this is the second time Jill has fell below the Satisfactory Academic Progress standards, she will now be placed on Financial Aid SUSPENSION.

The previous scenarios were examples of what could possibly happen when students drop classes and it is important to note that they may not necessarily end up on WARNING or SUSPENSION although they are real possibilities. The primary point is that students withdrawing from classes after the first 3 days of classes who keep at least one (1) class, may have to have Federal funds adjusted and will have their SAP negatively affected.

Withdrawing From Classes

As defined at the beginning of this article, students who determine they cannot continue in any of the classes for which they are registered will fill out the Official Withdrawal Form and submit it to the Registrar’s Office. . When a student withdraws from all of their classes their aid may have to be adjusted for that term and the Satisfactory Academic Progress can be affected. Following are scenarios depicting different circumstances in which a student withdraws from all of their classes and how it could impacts both their award amount and Satisfactory Academic Progress.

Classes Withdrawn From Prior to the Beginning or Within the First 3 Days of the Semester

If classes are dropped prior to the beginning of the term or within the first three (3) days of classes, the student’s Satisfactory Academic Progress will not be negatively affected, but any aid awarded on his/her account must be removed. If the student has used any Pell funds in the GNTC Bookstore prior to withdrawing, he/she will need to pay those funds back to the Business Office.

Scenario #1: Mary is registered full-time in 5 classes at a total of 15 credit hours. Mary has been awarded enough financial aid to cover all of her tuition and fees and even has Pell funds remaining. As always, up to 50% (but no more than $600) of any remaining Pell funds are available for use in the GNTC Bookstore on the 1st day of classes. Mary spends $500.00 in the Bookstore on the 1st day of the term for books and supplies. Unfortunately, on the 2nd day of classes, extenuating circumstances arise that make it impossible for her to remain enrolled in any of her classes for this semester. She fills-out the Official Withdrawal Form and turns it into the Registrar’s Office. Because the changes are made prior to the beginning of the term, her SAP will not be negatively affected, but her financial awards must be removed and the $500.00 in Pell money she spent in the bookstore must be repaid.

Classes Withdrawn From Following the First 3 Days of the Semester

Classes dropped following the first three (3) days of the semester will be counted as attempted hours and have a negative effect on the student’s Satisfactory Academic Progress. *Federal funds (such as Pell) may have to be adjusted depending on the time-frame in which the student drops classes*. Because charges incurred for tuition and fees remain the same following the first
three (3) days of the semester, students may be required to pay for charges initially covered by federal funds.

Scenario #2: Joseph is registered half-time for 2 classes at a total of 8 credit hours for the current term. Total tuition and fees for the 8 credit hours (based off of 2013-2014 year) is $928.00. For this scenario we will say that Joseph was awarded $200.00 in Pell funds, which combined with his Hope funds, covers $686.00 of tuition and fee costs. He pays a remaining balance of $242.00 out-of-pocket to the Business Office. Two weeks into the semester he is hired to a new company out-of-state and determines he will not be able to remain in any of the classes for which he is enrolled. He completes and submits the Official Withdrawal Form and checks with Financial Aid to see how he will be affected.

Joseph’s Hope award will remain on his account, but a calculation must be completed to determine how much if any Pell funds may remain and whether any needs to be repaid. It is determined he has only completed 12% of the term, and therefore he has only earned 12% ($24.00) of the Pell he was awarded. His Pell is adjusted to as required to the $24.00 he has earned; however, since the original Pell award ($200.00) had helped to covered tuition and fee charges, Joseph will now need to pay $176.00 to the Business Office.

Withdrawing from the classes also negatively affects Joseph’s Satisfactory Academic Progress because the credit hours of the classes will be counted as attempted hours and his Completion Rate will be lowered. Depending on whether his overall Completion Rate falls below the standards, he may be in danger of being placed on Financial Aid WARNING or SUSPENSION in any future terms of attendance.

Scenario #3: Mary is a returning student who is enrolled for 3 classes totaling 9 credit hours. The total cost of her tuition and fees are $1,013.00. Due to eligibility, she receives only the federal Pell in the amount of $1,411.00 which is enough to cover the tuition and fees cost and $398.00 remaining. Since students may use up-to 50% (but no more than $600) of any remaining Pell funds in the GNTC Bookstore on the first day of classes, Mary uses the half amount ($199.00) for books and supplies. Half-way through the term extenuating circumstances arise and it is determined that she will not be able to complete any of the classes with passing grades. Rather than receive failing grades for the classes, she decides to withdraw from them and submits the Official Withdrawal Form to the Registrar’s Office.

Because she is withdrawing from all of her classes beyond the first three (3) days of classes, all tuition and fee charges initially incurred will remain the same. As for her financial aid award, a calculation must be completed to determine how much if any Pell funds may remain on her account and whether any needs to be repaid. It is determined she has only completed 50% of the term, and therefore has only earned 50% ($705.50) of the Pell she was awarded. Her Pell is adjusted as required to the $705.50 she has earned; however, since the original Pell award had helped to covered her tuition and fee charges and funds were used in the bookstore, Mary will now need to pay $506.50 to the Business Office.

(Initial amount of Tuition & Fees covered by Pell + Pell amount used in bookstore= Total cost initially covered by Pell)
(Total cost initially covered by Pell – Adjusted Pell award= amount to be repaid)
$1,013.00 + $199.00= $1,212.00$1,212.00 - $705.50=$506.50 to be repaid to Business Office.

As for the impact withdrawing makes on her Satisfactory Academic Progress, the credit hours of the classes will be counted as attempted hours and her Completion Rate will be lowered. Depending on whether her overall Completion Rate falls below the standards, she may be in danger of being placed on Financial Aid WARNING or SUSPENSION in any future terms of attendance.