How Total Withdrawal for the Semester Affects Your Aid

  • If you withdraw from all your courses at IUP, your financial aid for the semester may be impacted. The 1998 Reauthorization of the Higher Education Act requires educational institutions to calculate a Return of Federal Student Aid Funds for students who withdraw from all classes on or before the 60 percent attendance point in the semester. A pro-rata schedule is used to determine the percentage of the semester attended, which determines the amount of federal funds earned.

    Example: If you withdraw on the 32nd calendar day of a semester that encompasses 106 calendar days (not including breaks of five or more days), you attended 30 percent of the semester. Therefore, you earned 30 percent of your federal aid. The university would return 70 percent of your aid.

    The Bursar’s Office is responsible for applying the federal guidelines to determine whether funds must be returned. Funds that must be returned to the federal programs are returned in the following order:

    1. Unsubsidized Federal Direct Loan
    2. Subsidized Federal Direct Loan
    3. Perkins Loan
    4. PLUS loan
    5. Pell Grant
    6. Federal Supplemental Educational Opportunity Grant

    Your charges may also be affected by a withdrawal. Based on the date of withdrawal, the Bursar’s Office will calculate whether institutional charges will be reduced. For information on the adjustment of charges, see the Bursar’s Office.

    Be advised that the adjustment of charges and financial aid due to a withdrawal can result in a balance on your account even if your account had been paid in full prior to the withdrawal. Please discuss the financial impact of a withdrawal with the Bursar’s Office prior to withdrawing.

    Withdrawing may also impact your future eligibility for financial aid. Carefully review the satisfactory academic progress requirements below.

    Specific Requirements Prior to Withdrawing

    Verification (all federal aid funds): If you’re undergoing verification for Title IV aid, you have 120 days from the date of withdrawal to complete the verification process. Failure to do so will make you ineligible for the Federal Pell Grant, SEOG, Federal Direct loan. Note, that the Federal Direct loans and PLUS loans cannot be certified after attendance has ceased.

    Additional Program Information

    PHEAA Grant: If you received a PHEAA grant this semester, it will be counted as one of your semesters of eligibility. PHEAA allows eight semesters of eligibility for full-time students.

    Federal Direct Loans: You must complete exit counseling at and contact your lender to notify them of your withdrawal. Repayment will begin after a six-month grace period unless you have been readmitted before the grace period expires (see your promissory note). Repayment information can be obtained from your lender. Loan checks that have not been endorsed prior to withdrawal will be returned to the lender and all subsequent disbursements will be canceled.

    Satisfactory Academic Progress

    Title IV Federal Student Aid: All students must maintain satisfactory academic progress while attending IUP to be eligible to receive Title IV federal student aid. These programs include Pell Grants, SEOG, Federal Work Study, Federal Direct Loans, and Parent PLUS Loans for Undergraduate Students.

    For undergraduate students, the minimum requirement for Cumulative Grade Point Average (CGPA) is 2.0, and the minimum required completion rate for each semester is 67 percent. For degree completion, students who exceed 150 percent of the normal period to complete their academic programs are not eligible for additional Title IV assistance for the period that is in excess of 150 percent of the academic period normally required to complete the program of study. Both part-time and full-time students are treated equally for the purposes of monitoring and enforcing Satisfactory Academic Progress according to the IUP Satisfactory Academic Progress policy.

    Satisfactory Academic Progress is reviewed after every spring semester for the subsequent academic term. There is an appeal process available for students who lose financial aid eligibility due to a lack of satisfactory academic progress. 

    PHEAA Grant: Satisfactory progress is defined as earning 24 new credits for each two full-time semesters of PHEAA grant received or 12 new credits for each two part-time semesters of PHEAA grant received.