Withdrawal and Its Effects on Financial Aid

The University recognizes that circumstances may arise that require students to drop some or all of their classes.

  • Dropping all classes before the semester begins:

    Any time a student withdraws completely from all classes, the financial aid office will require a return of refunds issued that were drawn from federal funds, since the student would have received an ineligible disbursement. If this process occurs before the start of the semester, the student is typically entitled to a refund of University charges.

  • Dropping all classes after the semester begins:

    If the student completely withdraws after the first week of classes, he or she will have to return a percentage of financial aid equal to the amount of the semester completed. For example, if the student withdraws after completing 30% of his classes, he is only entitled to approximately 30% of his financial aid (and must pay back the remaining 70%).

    If this occurs, the office will return a portion of the federal aid money used to pay institutional charges (such as tuition, fees, or university housing) on a student's account. Sometimes this will leave some university charges unpaid, and the student will be billed for this amount. Second, if the student received federal aid funds directly (as a refund, for example) to be used for other educational expenses, the student may have to return some portion of that money. The amount due will appear on the student's bill in about 45 days after the withdrawal date.

  • Dropping some classes after the semester begins:

    Financial aid recipients are required to complete 67% of the classes originally attempted. (See also Satisfactory Academic Progress Policy.) If the student falls below 67% completion rate, he or she will forfeit their eligibility for federal financial aid. It is critical to exercise discretion when deciding when to drop and add classes after the semester has already begun.

    Enrollment information is reported to the National Student Loan Data System, and previously borrowed loans may go into repayment if the student does not meet deferment criteria (half-time enrollment).

  • Pell grant recipients must attend all of their courses in order to keep the grant. Failure to attend all courses could result in a reduction of Pell grant funds.


Office of Student Financial Aid
Tirey Hall 150
220 North 7th Street
Indiana State University
Terre Haute, IN 47809


The Catalog of Indiana State University is the document of authority for all students. The requirements given in the Catalog supersede information issued by any academic department, program, college, or school. The University reserves the right to change the requirements at any time. The right to correct errors is also reserved.