How withdrawing from courses affects your aid
Withdrawing from all of your courses during a semester can have a big impact on your financial aid.
Return of Title IV funds
If you receive Title IV financial aid and officially withdraw from a semester or unofficially withdraw by ceasing to attend, federal regulations require a Return of Title IV Funds calculation to determine if any Federal Title IV aid must be repaid. Federal Title IV aid includes Pell Grants, Supplemental Educational Opportunity Grants, Direct Loans, Perkins Loans, and PLUS loans for parents or graduate students.Review the Return of Title IV regulations
The amount of Federal Title IV aid to be repaid is calculated based on the percentage of time completed within a semester. This involves calculating the amount of Title IV aid that you earned, and the amount of institutional charges for that semester. Prior to withdrawing for the semester, you are encouraged to contact our office.
When unearned Federal Title IV funds are repaid, they are returned by program up to the disbursed amount for each program. Unearned Federal Title IV grant funds are returned prior to loan funds in the following order: Direct Unsubsidized Loans, Direct Subsidized Loans, Perkins Loans, Direct PLUS loans for parents or graduate students, Pell Grants, and Supplemental Educational Opportunity Grants.
Notification of return of funds
If funds are returned, you will be notified by mail no later than 45 days of the determination that you withdrew during the semester. In the case of a Parent PLUS loan, notification regarding the loan will be sent to the Parent PLUS loan borrower. Your notification will provide detailed information on the Federal Title IV funds and the amount of these funds to be repaid by the student and/or parent. If the notification to the student and/or parent includes eligibility for a post-withdrawal disbursement, the student and/or parent has 14 days to respond to accept or decline. The return of these funds typically results in charges becoming due which previously were paid by the aid we are required to return. Current information on your financial aid award status and bursar account status is available on One.IU.
Withdrawals and state of Indiana awards
If you officially withdraw from a semester or drop below full-time enrollment (12 credit hours) before the state census date (end of the 25% refund period or 28th day of the term), state regulations require the cancellation of Frank O'Bannon and 21st Century Scholars awards. This cancellation results in the removal of the financial aid credit from your bursar account, and the charge is your responsibility to repay. If your state aid is cancelled, you will receive a Financial Aid Notification (FAN) at your university email address with an update. FAN emails are sent daily. You are also encouraged to visit One.IU to view your financial aid award status and bursar account status.
Withdrawals and academic progress
Withdrawal from the semester after the official census date may impact future eligibility for federal or state financial aid due to Satisfactory Academic Progress. Future satisfactory academic progress monitoring will include any courses dropped after the official census date as attempted but not completed hours.