Withdrawing from a term

Withdrawing from school may impact your student financial aid for both the term you withdraw and also future terms. We encourage you to speak with the financial aid office if you are planning to withdraw.

Student financial aid is earned for each day that you participate (eg: attending class or posting in an online course discussion). You may be expected to repay the unearned portion of your financial aid if you withdraw from school. You are also required to complete exit counseling if you have borrowed federal loans or received a TEACH grant.

Types of withdrawals:

  • Official Withdrawal – if you withdraw from all federal aid eligible courses for the term in Banweb or through the Office of the Registrar, this is an official withdrawal.  Audited courses are not eligible for federal aid.
  • Unofficial Withdrawal – if you stop attending your classes and receive grades for the term that do not indicate participation (e.g. X/M/F/NP grades), this is an unofficial withdrawal.  You will be considered withdrawn as of your last date of attendance or participation in your classes or the midpoint of the term as determined by PSU.

What happens to federal aid when a student withdraws:

If you withdraw (either officially or unofficially) prior to completing more than 60 percent of the term, you have not earned all of your federal financial aid and per federal law, a Return of Title IV Funds calculation must be performed. The Title IV programs that are covered by this law are Federal Pell Grants, Iraq and Afghanistan Service Grants, TEACH Grants, Direct Loans, Direct PLUS Loans, Federal Supplemental Educational Opportunity Grants (FSEOGs), and Federal Perkins Loans.

PSU is required to return the lesser of the unearned portion of federal aid, or of the total institutional charges (tuition and fees, housing charges, etc.) billed to you for the term.  The unearned portion of the aid is returned based upon federal guidelines. For example, if you complete only 20% of your term, then you have not earned 80% of the federal financial aid that was disbursed or could have been disbursed for the term.

Funds will be returned, if needed, in the following order:

  1. Direct Unsubsidized Loans
  2. Subsidized Direct Loans
  3. Direct PLUS loans
  4. Federal Pell Grant
  5. FSEOG
  6. TEACH Grant
  7. Iraq and Afghanistan Service Grant

If the return of the funds creates a balance due on your student account, you will be responsible to pay the balance on your account according to the standard payment options.

Your aid eligibility will be reviewed within 45 days after the Office of Financial Aid and Scholarships becomes aware of your withdrawal. In the case of an unofficial withdrawal, aid eligibility will be reviewed within 45 days after grades are posted for the term.

Other impacts of withdrawing:

  • Your non-federal aid may also be affected by your withdrawal.  Please contact our office with any questions about your financial aid.
  • Your enrollment status will be updated with your loan servicer.  You may enter your loan grace period or loan repayment if you have already exhausted your grace period.
  • Withdrawing impacts your Satisfactory Academic Progress and could make you ineligible to receive aid in future terms.
  • Student Financial Services will process your Tuition Refunds based on the date you drop the class.  Any credit balance caused by a tuition refund may be used to repay the financial aid programs.  
  • Withdrawing could change your academic standing with the Office of the Registrar or with your department.  The Office of the Registrar has a Withdraw Checklist which students should review before withdrawing from all of their courses.