Office of Student Aid : Students Must Know : Withdrawal 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.

Will current student aid be adjusted if I withdraw from school?

• Federal student aid programs are awarded based on the percentage of time you are enrolled for the semester.
• Depending on when you withdraw, student aid will be adjusted according to a federal formula.

Please Note:The Pennsylvania State Grant and other types of aid have different formulas.

• Tuition will also be adjusted, but typically, students owe money to the University after withdrawal. For more information, access:
  • Student aid adjustments and withdrawal
  • Tuition adjustments and withdrawal

All of my student aid has not been disbursed into my account. Will I receive it after I withdraw from school?

• Some aid programs may be available to you after you withdraw. In some cases, a portion of your Federal Pell Grant, Supplemental Educational Opportunity Grant (SEOG), Federal Perkins Loan, and/or Federal Stafford Loan may be available to you.
• If you were selected for verification of your Free Application for Federal Student Aid (FAFSA) information, you will need to provide information to the Office of Student Aid promptly.
• If you are considering withdrawal, you should contact the Office of Student Aid to determine whether you meet eligibility to receive these funds after withdrawal. You will also be notified upon withdrawal if you are eligible for "post-withdrawal disbursement" of any aid funds. You may be required to confirm that you want to accept the disbursement.

Do I need to notify anyone if I withdraw?

If you are a recipient of a Federal Perkins Loan or University Loan:

• Notify Penn State's Office of Loans and Scholarships by e-mail or phone at (814) 865-0461 of your address while you are away from school. Also notify any other schools from which you borrowed, if applicable.
• Contact Penn State's Office of Loans and Scholarships (and/or other schools) if you re-enroll to move your loans back to an in-school deferment status.

Note: When you withdraw, your one-time grace period prior to repayment will begin (9-month period for Perkins Loans, 6-month period for University Loans). If you re-enroll before the grace period ends, you will be given a new grace period when you leave school again.

If you are a Federal Stafford Loan recipient:

• Notify AES-Loan Servicing at (800) 233-0557 of your address. Also notify any other loan servicers if you have non-Penn State loans.
• Contact AES Loan Servicing (and/or other loan servicers) if you re-enroll to move your loans back to an in-school deferment status.

Note: When you withdraw, a 6-month grace period prior to repayment will begin. If you re-enroll within 6 months, you will have a new grace period when you leave school again. Otherwise, when you re-enroll, you will need to request an in-school deferment.

Will I be required to complete the Loan Exit Interview if I withdraw from school?

• Students who withdraw from Penn State, even for just one semester, will be required to complete the Loan Exit Interview on eLion in order to fulfill University policy and federal regulations.
• Students who do not complete the Loan Exit Interview may have registration and transcript holds placed on their academic records.

Will my future student aid eligibility be in jeopardy if I withdraw from school?

• If you withdraw from the University, your student aid for the future semester will be cancelled. If you process a re-enrollment request for an upcoming semester, please contact the Office of Student Aid to request consideration for reinstatement of any or all your aid.
• Your student aid for the future academic year may be in jeopardy if you fall below the minimum credit expectation for satisfactory academic progress, which affects your eligibility for most student aid programs.
• Academic progress is calculated using the number of credits you attempt and earn each semester. These credit requirements are completely separate from those determined by your academic college or department.

Note: We recommend that you treat the decision about whether or not to withdraw as an--academic--issue. However, it is your responsibility to understand the financial implications of withdrawal as well.