What Happens to Your Financial Aid When You Drop Classes or Withdraw?

Quick Links >> Hour Drops : Withdrawal

Hour drops or withdrawal result in the reassessment of your university charges according to the university refund policy and the recalculation of your financial aid according to federal regulations. The exact consequences to you depend on a number of factors, including the type and amount of aid you have and the official date on which you drop classes or withdraw.

The consequences for hour drops and withdrawal are different.

Hour Drops - What happens when you withdraw from some but not all classes?

Your financial aid was awarded on the basis of full-time enrollment. If you decrease your hours from full time anytime through the end of all refund periods for the term, the following chart illustrates how much of your financial aid you may be eligible to keep depending on the credit hours you retain. Please note: you will be terminated from your Federal Work-Study job if you drop below half-time enrollment anytime during the term.

Less Than Full Time Chart
Awards	Enrollment Status
	Three-Quarter Time Undergraduate: 9-11 hours Grad/Sr Professional: 8-9 hours	Half Time Undergraduate: 6-8 hours Grad/Sr Professional: 5-7 hours	Less-Than-Half Time Undergraduate: 1-5 hours Grad/Sr Professional: 1-4 hours
Scholarships & Grants	See below	See below	See below
Academic Competitiveness Grant and National SMART Grant (undergraduate only)	3/4 of full-time award	1/2 of full-time award	$0
Federal Pell Grant (undergraduate only)	3/4 of full-time award, except smallest awards	1/2 of full-time award, except smallest awards	Pro-rated based on federal guidelines
Federal SEOG (undergraduate only)	$0	$0	$0
OCOG State of Ohio Grant (undergraduate only)	3/4 of full-time award	1/2 of full-time award	1/4 of full-time award
Federal Perkins Loan, Nursing Student Loan, Federal Work-Study	Same as full-time amount	Same as full-time amount	$0
Health Professions Student Loan	$0	$0	$0
Long-Term University Loan	Full-time amount	Full-time amount	Full-time amount
Federal Direct Stafford Loan and PLUS	Full-time amount	Full-time amount	$0

Scholarships and Grants

Most awards will be reduced to $0. However, some may be adjusted for less than full-time enrollment. If an award does not remain on your statement of account after you reduce your course load, you must contact the donor for permission to retain the funds.

After All Refund Periods

No financial aid, except for Federal Work Study, will be adjusted for hour drops with an effective date after the refund period. All hours for which you are enrolled as of the end of all refund periods for the term or which you schedule thereafter, will be counted as “hours attempted” for determination of whether you are making Satisfactory Academic Progress for financial aid. Hours dropped after the refund period count as hours unsuccessfully completed.

Financial Impact

The overall consequences of dropping courses depend on EACH of the following:

• the aid you have been awarded
• the number of credits you retain
• the tuition refund period in effect at the time of the hour drop

You could owe additional money to the university (which would be due immediately) or you could have additional funds returned to you from the university in the form of a direct deposit.

Ohio State's Tuition Refund Policy for Quarter and Semester Enrollment (See the Registrar's website for current term dates)
100% refund of fees paid	Through the 1st Friday of classes
80% refund of fees paid	Through the 2nd Friday of classes
70% refund of fees paid	Through the 3rd Friday of classes
60% refund of fees paid	Through the 4th Friday of classes
50% refund of fees paid	Through the 5th Friday of classes
Ohio State's Tuition Refund Policy for Summer Five Week Courses
100% refund of fees paid	Through 1st Friday of classes
50% refund of fees paid	Through 2nd Friday of classes
COTA and Student Health Insurance fees are not adjusted; RPAC removed under 4 credit hours.

Hour Drop Example

The original bill is based on full-time enrollment. The adjusted bill shows the adjustment when the student dropped to 6 credit hours during the 50% refund period.

Hour Drop Example
Description of charges/credits	Original Charges	Original Credits		Adjusted Charges	Adjusted Credits
Tuition	$2800			$2100
Columbus Campus Misc. Charges	$100			$100
Federal Pell Grant		-$1000			-$500
State of Ohio Grant		-$336			-$168
Academic Competitiveness Grant		-$250			-$125
Scarlet and Gray Scholarship (Type A)		-$1000			-$0
Federal Direct Subsidized Loan		-$1160			-$1160
Direct deposit sent to student				$846
Totals	$2900	-$3746		$3046	$1953
Balance (charges minus credits)	-$846			$1093
Result	Direct deposit of $846 sent to student			Student is billed for additional $1093

Questions?

If you are considering dropping a class and have any questions about the financial aid consequences, please contact the Office of Student Financial Aid.

Withdrawal - What happens when you withdraw from all classes?

Withdrawal results in the reassessment of your university charges according to the university refund policy and the recalculation of your financial aid according to federal regulations. The exact consequences to you depend on a number of factors, including the type and amount of aid you have and the official date on which you withdraw. If you do not withdraw officially, but simply stop attending class, you are considered to have unofficially withdrawn, and your charges and applicable aid will be adjusted accordingly.

Financial Impact

The overall consequences withdrawing from all courses depend on EACH of the following:

• the types of aid you have been awarded
• the amount of your original charges which you retain
• the point in the term at which you withdraw

The following chart describes what happens to financial aid for the term when you withdraw or if you stop attending ALL classes without formally withdrawing.

Consequences of Withdrawal
Aid Source	Example Aid Programs	Effects of Withdrawal on Term Aid
Federal	Pell Grant, Academic Competitiveness Grant, SMART Grant, SEOG, Perkins Loan, Federal Direct Loans (Subsidized, Unsubsidized and PLUS); Nursing Loans, Health Profession Student Loans; Federal Work-Study	For withdrawals up to the 60% point of the term, a calculation must be done to determine the amount of aid that must be returned to the programs. After the 60% point of the term, all aid is considered earned. Please note that once you withdraw at any point in the term, you are no longer eligible to work on a Federal Work-Study job.
State of Ohio	State of Ohio Grants (OCOG and OIG), War Orphans Scholarship	Aid is refunded to the programs based on the institutional refund period (100% returned to the program during 100% refund period, 80% during 80% refund period, etc.)
Ohio State University	Most university scholarships and grants, including but not limited to, Flagship, Trustee, Scarlet and Gray, Freshman Foundation and Land Grant	For withdrawals during the institutional refund period, all funds are returned to the program. After all refund periods, aid is retained by the student. (Some scholarships listed as Type B on Student Self Service are subject to different rules)

The University’s refund policy is described in the table below. Please note, this policy only applies when you formally withdraw via your college office or you drop all courses on the web. If you stop attending classes without notification, you are not eligible for a fee refund. See the section below on Unofficial Withdrawals for additional consequences.

Ohio State's Tuition Refund Policy for Quarter and Semester Enrollment (See the Registrar's website for current term dates)
100% refund of fees paid	Through the 1st Friday of classes
80% refund of fees paid	Through the 2nd Friday of classes
70% refund of fees paid	Through the 3rd Friday of classes
60% refund of fees paid	Through the 4th Friday of classes
50% refund of fees paid	Through the 5th Friday of classes
Ohio State's Tuition Refund Policy for Summer Five Week Courses
100% refund of fees paid	Through 1st Friday of classes
50% refund of fees paid	Through 2nd Friday of classes
Campus specific charges such as COTA, RPAC, ATI Campus Safety are refunded 100% through the first week of classes; no refunds thereafter. Student Health Insurance charges are refunded 100% through the third Friday; no refunds (or coverage) thereafter. Residence hall charges are pro-rated through the 8th week based on the date the key is returned.

Financial Aid Processes for Withdrawals

The table below describes the processes that occur when you formally withdraw and the time frame in which they occur.

Withdrawal Processing
	Process	Time frame
1	Withdrawal form completed in college office (you should take this formal step if you are withdrawing from ALL classes)
2	Fees are adjusted based on institutional fee refund period in effect	Same day withdrawal is processed
	Residence hall charges are pro-rated based on date key is turned in the hall director	Usually within 1-2 days from return of key
3	All financial aid is removed from account for withdrawals taking place within the initial 60% of the term	Usually one day after withdrawal is processed
4	Office of Student Financial Aid reviews student eligibility for aid (based on rules listed in chart above) and eligible aid is re-disbursed to Statement of Account	Within 45 days of withdrawal
5	If additional money is owed, account reflects balance due	One day after aid is adjusted
	If credit balance results, direct deposit sent to student	Within 1-2 days of aid adjustment

Return of Title IV Process for Federal Aid

If you have federal aid, you are subject to a Return of Title IV calculation to determine how much aid must be returned to the federal programs in the event of a complete withdrawal prior to completing 60% of the term (see example below). The Office of Student Financial Aid is required to complete the calculation in cases of official withdrawal (you complete the withdrawal form or drop all classes on the web) and in cases of unofficial withdrawals (you stop attending classes).

The calculation determines the amount of federal aid that is considered to be earned and the amount that is considered to be unearned, and therefore must be returned to the programs. The earned/unearned amounts are calculated based on the percent of the term completed. The length of the term is defined as the first day of all classes through the last day of all classes (not including finals week).

Withdrawal Example

This example shows what happened when a student withdrew completely on the 21st day of an 80 day quarter (70% refund period). The first table shows how the Return to Title IV calculation applies to this specific student's situation. Please note that this is only an example; your specific situation may differ. If you are considering withdrawal, we strongly encourage you to consult with your academic advisor and a financial aid counselor prior to taking any official action.

Return of Title IV Calculation
	Calculation	Result
1	Divide number of days attended by number of days in term Example: 21 days / 80 days =	Percentage of term completed 26%	Greater than 60%? All aid is earned; no further steps
			Less than 60%? Use percent of term completed
2	Subtract percentage completed from 100 Example: 100 - 26 =	Percent of term not completed 74%
3	Multiply total federal aid by percent of term not completed Example: 4133 x .74 =	Amount of aid that is unearned $3058.42
4	Multiply total fees by 74% to get amount of unearned aid to be returned by OSU Example: Total fees = 2900 x .74 =	Amount of unearned aid to be returned by Ohio State $2146 Ohio State returns: $1500 Direct Subsidized Loan; $646 Pell Grant
5	Subtract unearned aid to be returned by Ohio State from total unearned aid Example: 3058.42 - 2146 =	Amount of unearned aid to be returned by student $912.42 Student returns: $654 Pell Grant; $258.42 SMART Grant (All that is left to repay is grant funds. Student is not required to repay either grant program since the total in unearned grants is less than 50% of total federal grants.)

The federal regulations regarding Return to Title IV requires the following rules regarding return of federal aid to the programs:

• The order of repayment to programs is as follows:
1. Federal Direct Unsubsidized Loans
2. Federal Direct Subsidized Loans
3. Federal Perkins Loan
4. Federal Direct PLUS
5. Federal Pell
6. Academic Competitiveness Grant
7. National SMART Grant
8. Federal Supplemental Educational Opportunity Grant (SEOG)
• Ohio State returns its portion first; then the student’s portion is returned
• Any loan amounts unearned from the student’s share are not required to be repaid immediately (will be repaid in the normal repayment process)
• For grants, only the portion of unearned grants due from the student that exceeds 50% of the total federal grants received is required to be returned

The following table shows the difference between this student's original bill, based on full-time enrollment, and the adjusted bill. Again, this is only an example; your specific situation may differ. If you are considering withdrawal, we strongly encourage you to consult with your academic advisor and a financial aid counselor prior to taking any official action.

Withdrawal Example
	Original			Adjusted
Description of charges/credits	Charges	Credits		Charges	Credits
Tuition	$2800			$840 (30% forfeiture of tuition )
Columbus Campus Misc. Charges	$100			$100 (not adjusted after 1st week)
Federal Pell Grant		-$1300			-$654 (after $646 returned by Ohio State)
State of Ohio Grant		-$500			-$101 (pro-rated based on refund)
National SMART Grant		-$1333			-$1333
Scarlet and Gray Scholarship (Type A)		-$1000			-$0 (returned during refund period)
Federal Direct Subsidized Loan		-$1500			-$0 (returned by Ohio State)
Direct deposit sent to student				$2569
Totals	$2900	-$5469		$3509	$2088
Balance (charges minus credits)	-$2569			$1421
Result	Direct deposit of $2569 sent to student			Student is billed for additional $1421

Any time you have a balance due resulting from a withdrawal, the charges are due immediately. If you are not able to pay the charges within 120 days of the original fee assessment, the unpaid bill will be turned over to Accounts Receivable and interest can accrue.

Unofficial Withdrawals

If you simply stop attending classes, rather than officially withdrawing through your college office or dropping all of your classes online, you will be subject to the same financial aid consequences addressed above. You will also be subject to the following additional consequences:

• You will not be eligible for a fee refund on any charges
• You will receive EN grades (failing grade for non-attendance), negatively impacting your GPA
• Since your withdrawal likely will not be discovered until the term is over, there will be a delay in processing your financial aid calculation

The following example demonstrates the impact of an unofficial withdrawal due to EN grades, using the same original information as the official withdrawal example above:

Unofficial Withdrawal Example
	Official Withdrawal			Unofficial Withdrawal
Description of charges/credits	Charges	Credits		Charges	Credits
Tuition	$840 (30% forfeiture of tuition)			$2800 (fees not adjusted since university was not notified)
Columbus Campus Misc. Charges	$100 (not adjusted after 1st week)			$100
Federal Pell Grant		-$654 (after $646 returned by Ohio State)			-$654 (after $646 returned by Ohio State)
State of Ohio Grant		-$101 (pro-rated based on refund)			-$101 (pro-rated based on refund)
National SMART Grant		-$1333			-$1333
Scarlet and Gray Scholarship (Type A)		-$0 (returned during refund period)			-$0 (returned during refund period)
Federal Direct Subsidized Loan		-$0 (returned by Ohio State)			-$0 (returned by Ohio State)
Direct deposit sent to student	$2569			$2569
Totals	$3509	-$2088		$5469	$2088
Balance (charges minus credits)	$1421			$3381
Result	Student is billed for additional $1421			Student is billed for additional $3381

Questions?

If you are considering withdrawing and have any questions about the financial aid consequences, please contact the Office of Student Financial Aid.

 

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