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How Dropping or Withdrawing Affects Your Financial Aid

How Enrollment Changes Affect Your Aid 

  • If you drop or withdraw from classes, you may jeopardize your eligibility for Financial aid (including loans).  
  • If your enrollment drops below half-time (below 6 hours), your financial aid awards may be adjusted, and the grace period repayment of loans will begin. 
  • If you withdraw from your last active class and didn't complete 60 percent of the semester, you may have to repay financial aid according to the Withdrawal and Return of Title IV Funds Policy.
  • If you do not pass at least one class each semester with letter grades (A, B, C, D) , you may have to repay some of your financial aid back to the college. Visit SCTC’s Withdrawal and Return to Title IV Funds Policy. 

What is the 60 percent completion Rule financial aid? 

  • If you leave school before 60% of the academic term is over, you lose eligibility for all Federal student aid programs. You will be required to repay a pro-rated share of the aid you have received for the term. Loans are repaid in accordance with the terms of the promissory note.

How much is 60 percent of a semester? 

  • Each term or semester has a start date and an end date. The 60% point of the term is the date at which 60% of the semester has been completed. 

What is the 60% Point of the Term & What Does it Mean for You? 

  • Have you ever heard of someone reference the 60% point of the term? It’s not as complicated as you might think, but it could impact you! 
  • The 60% point of the term is exactly what it sounds like. Each term or semester has a start date and an end date. The 60% point of the term is the date at which 60% of the semester has been completed. 

So why does this matter and what does it mean for you? 

  • Students who completely withdraw from the college before academic semester is over will have their aid adjusted up through the 60% point of the term. This means that some financial aid funds may have to be returned to federal and state governments when a student withdraws before the 60%-point date. This process is called Return of Title IV and is required by law. 
  • Aid is disbursed at the beginning of the semester with the expectation that the student will successfully complete the enrollment term and thereby earn the aid that was disbursed. If the student withdraws or stops attending their courses before the 60% point, the Office of Financial Aid must determine how long the student attended and how much of the aid was earned. Unearned aid must be returned to the aid programs. A formula established by the federal government is used to calculate this amount. Faculty are required to record the last date of attendance for each student, so that this calculation can be made. 
  • In most cases this will result in a balance owed to the College. After funds are returned, any balance on the student’s account will need to be paid by the student to SCTC’s Business Office. 

How to Calculate the 60% point for your term? 

There are 114 days in the spring 2022 term. Divide the number of days in the term by the number of days you attend classes: 

114 Days in the term Divided by the Number of days you attended class in the term 

114 days/69 days attended class = 60% 

Keep this in mind when making the decision to withdraw. Withdrawing after the 60% point will not impact aid.

The Impact of dropping and withdrawing based on Types of Aid and Enrollment 

Federal student financial aid is awarded under the assumption you will be enrolled at least Full-time for the semester. Any time you reduce your enrollment after class has begun, SCTC's Financial Aid Office must review your record and recalculate your aid. Federal (Title IV) aid includes the following programs: 

  • Federal Pell Grant 
  • Federal Supplemental Educational Opportunity Grant (SEOG) 

Student’s receiving federal Loans, must remain enrolled in at least half-time (6 hours) to remain eligible for student loans. Per federal regulations, students who drop or are no showed in their classes, will have their student loans cancelled.  

  • Subsidized Direct Stafford Loans 
  • Unsubsidized Direct Stafford Loans 

Enrollment reductions can also affect your Satisfactory Academic Progress, which ultimately affects your aid eligibility. Learn more about Satisfactory Academic Progress Policy. 

Six Tips to Manage Your Financial Aid 

  1. Plan: Minimize your financial risk by selecting classes carefully, balancing most difficult classes against your other courses and family and work demands. 
  2. Understand the Rules for Your Award: Federal Financial aid is awarded with expectation that you complete your classes. When you do not complete your courses you attempt each semester, you risk having your aid reduced or canceled. 
  3. Know the Consequences: Be sure that you understand what will happen if you withdraw or fail to complete your classes. A financial aid advisor can help determine your financial liability. 
  4. Consider Your Options Before You Drop or Withdraw: Make sure you have explored all options for assistance. 
  5. Don't Ignore Your Account Balance: If you do not act, if your balance is not paid, you will be prevented from registering, seeing your grades, or receiving an official copy of your transcript.