Credible takeaways
- If you drop a class without adding another, your financial aid package may be adjusted to reflect this smaller course load.
- Dropping a class could cause you to fall below half-time enrollment, which would make you ineligible for federal student aid.
- It's important to speak to someone in your school's financial aid office before dropping a class to ensure you'll still be making satisfactory academic progress.
Withdrawing from a class can affect your financial aid, especially if doing so means you fall below your minimum course load or you're not able to graduate on time.
To be eligible for federal student aid — including many scholarships, grants, work-study, and federal student loans — you must be making satisfactory academic progress toward completing your degree. This means taking enough classes and earning high enough grades to graduate in a reasonable amount of time.
This guide covers how dropping a class can affect your financial aid, and what you can do to prevent any issues from arising when doing so.
Current private student loan rates
How does withdrawing from classes affect financial aid?
There’s no set definition for what constitutes satisfactory progress. Every college and university has its own guidelines, which generally include:
- The GPA you need to maintain
- How many credits you must complete each year
- How incomplete or dropped classes affect your progress
- What happens if you fail to make satisfactory progress
In most cases, you can drop a class and add another by a certain deadline with no penalty. If you choose to drop a class during this period but don’t add another, your financial aid package may be adjusted to reflect the number of hours you end up with.
Withdrawing from a class after the deadline can affect your satisfactory academic progress. Universities often require you to complete at least two-thirds of the classes you enroll in. Withdrawing from a course hurts your percentage.
Tip:
You may need to balance multiple factors when deciding whether to drop a specific class. For example, if taking the class risks hurting your GPA significantly, you may choose to drop it and try to make up the credit hours you need in the next semester.
Another potential concern: Most student aid requires you to be enrolled at least half-time. If dropping a class would put you below that threshold, you risk having your financial aid adjusted or revoked entirely.
Also, any student loans you currently have may then enter the grace period before coming due. In most cases, you won’t need to make any payments toward your federal student loans while you’re still enrolled in school at least half-time. Once you graduate, leave school, or fall below half-time enrollment, you’ll enter a grace period that typically lasts six months. After that point, you’ll be responsible for making principal and interest payments that pay down your student loan balance.
Contact your school’s financial aid office
Since policies can differ significantly from school to school, it’s vital that you check with your financial aid office before dropping a class. Many colleges and universities provide their definition of satisfactory academic progress online and offer examples of how dropping a class can affect your standing.
You can also make an in-person appointment with the financial aid office if you’d like help navigating the rules and how they apply to your situation.
How does dropping a class impact student loans?
Private student loans generally are not tied to “satisfactory academic progress.” You typically won't risk losing any private student loans for failing to complete two-thirds of your classes. If dropping a class causes you to lose some or all of your federal financial aid, private loans may help you fill in the gaps.
“I recommend doing everything you can to keep your federal student loan eligibility before turning to private loans. Private student loans usually cost more and offer fewer protections, so they should be a last resort if dropping a class affects your federal aid eligibility.”
— Renee Fleck, Student Loans Editor, Credible
Many private student loans require you to be enrolled at least half-time. If you drop below this threshold, you may not be able to take out more private loans. And any loan payments you’ve opted to defer until after you leave school may begin to come due.
Private student loans typically have a grace period, much like federal loans. This clock may start when you fall below half-time enrollment. But a number of private student loans are available to part-time students or nontraditional students. These may still be an option for you after dropping a class.
Again, the best course of action is to contact your school’s financial aid office before dropping a class. This is especially true if you’re planning to do so after your college or university’s “drop/add” deadline. The staff in the financial aid office should be able to help guide you through the consequences of dropping a class and how it will affect your scholarships, grants, and loans.
FAQ
Do I have to be enrolled half-time to get federal student aid?
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Can I regain eligibility for federal student aid if I’m no longer eligible?
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Can I still make satisfactory academic progress if I drop a class?
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How does dropping a class affect my grace period?
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