Office of Student Aid : Students Must Know : Dropping Credits and Aid

Note: For student financial aid purposes, 12 or more credits are considered full-time enrollment for undergraduate students; 9 or more credits are considered full-time for graduate students.

Not all of my student financial aid has disbursed into my Bursar account yet. Will I receive it after I drop a course?

• If a particular award requires you to be enrolled full-time (e.g., the Penn State Tuition Assistance Grant, the Academic Competitiveness Grant, or the National SMART Grant) or half-time (e.g., the Federal Stafford Loan) and you drop below the appropriate number of credits, you will not be eligible for the award.
• The Federal Pell Grant will always be adjusted based on your new schedule. For example, if you drop from 12-15 credits down to 9-11 credits (or from 9-11 down to 6-8, and so on), your grant will be prorated.
• Your Pennsylvania State Grant may be reduced if you drop from full-time to part-time (or from half-time to less than half-time).

Will the student aid I have already received be adjusted if I late-drop a course?

• If you have already received a Federal Pell Grant and then drop credits, your grant will always be adjusted (unless you are still taking at least 12 credits). Your student Bursar account will be debited for the difference.
• If you have already received an Academic Competitiveness Grant or National SMART Grant and then drop credits, your grant will always be cancelled (unless you are still taking at least 12 credits).
• Other aid programs may be adjusted depending on the timing and number of credits you drop.

Will my future student aid eligibility be in jeopardy if I drop a course?

• By dropping a course after the semester begins, you may fall below the minimum credit expectation for satisfactory academic progress, which must be maintained to be eligible for student aid.

How will dropping below half-time affect loan borrowing?

• Dropping below half-time makes you ineligible for aid, including loans. Depending on the timing, your current aid may or may not be adjusted.
• When you drop below half-time (or do not enroll), your one-time grace period preceding repayment of Federal Stafford Loan or Federal Perkins Loans begins. If you must drop below half-time, contact the appropriate lender or loan servicer:

For Stafford Loan borrowers:
Student Loan Servicing Center
800-233-0557

For Perkins or University Loan borrowers:
Office of Loans and Scholarships
814-865-0461

Note: If you borrowed loans at an institution other than Penn State, you must contact that institution regarding Perkins Loans and your former loan servicer regarding Stafford Loans.

Note: The decision about whether or not to drop a course is an academic issue. However, it is your responsibility to understand the financial implications of your decision.