Introduction
Financial aid is money provided by the government, private organizations, or universities to help students pay for college-related expenses such as tuition, books, and room and board. While financial aid can be a great help in paying for college, there are certain circumstances that can cause a student to lose it. In this article, we’ll explore the most common reasons for losing financial aid and what students can do to avoid it.
Failing to Meet Minimum GPA Requirements
Many schools require students to maintain a minimum grade point average (GPA) in order to remain eligible for financial aid. For example, the University of California San Diego requires undergraduates to maintain a 2.0 GPA in order to keep their financial aid. If a student fails to meet this requirement, they could lose some or all of their financial aid.
According to a study conducted by the National Center for Education Statistics, “nearly one-third of undergraduate students at four-year institutions who received financial aid failed to maintain the required GPA and therefore lost their aid in the following year.”
Exceeding Maximum Credit Hours Allowed
Most schools limit the number of credit hours a student can take while still receiving financial aid. For example, the University of California San Diego limits its undergraduates to 18 credit hours per quarter if they want to keep their financial aid. Taking more than 18 credit hours may result in the student losing some or all of their financial aid.
Not Maintaining Satisfactory Academic Progress
In addition to meeting minimum GPA requirements, many schools also require students to make satisfactory academic progress in order to remain eligible for financial aid. This means that students must complete a certain number of credits each year in order to continue receiving aid. For example, the University of California San Diego requires its undergraduates to complete at least 24 credits per year in order to remain eligible for financial aid.
If a student fails to complete the required number of credits, they could lose some or all of their financial aid.
Not Completing the Required Financial Aid Forms
Each year, students must fill out certain forms in order to receive financial aid. Examples of these forms include the Free Application for Federal Student Aid (FAFSA) and the College Scholarship Service Profile (CSS Profile). Failing to fill out these forms on time can result in a student losing some or all of their financial aid.
Dropping Courses or Withdrawing from School
Dropping courses or withdrawing from school can also have an impact on a student’s financial aid. Depending on when a course is dropped or a student withdraws from school, they could be responsible for repaying some or all of the financial aid they received for that semester.
Becoming Ineligible for Federal Student Aid
Certain circumstances can make a person ineligible for federal student aid, such as defaulting on a student loan or being convicted of a drug-related offense. If a student becomes ineligible for federal student aid, they could lose some or all of their financial aid.
Conclusion
Losing financial aid can be a major setback for students, so it’s important to understand the most common reasons for losing it and how to avoid it. The most common reasons for losing financial aid include failing to meet minimum GPA requirements, exceeding maximum credit hours allowed, not maintaining satisfactory academic progress, not completing the required financial aid forms, dropping courses or withdrawing from school, and becoming ineligible for federal student aid.
To avoid losing financial aid, students should be sure to meet all of the requirements set forth by their school, stay on top of all paperwork, and be aware of any changes in their eligibility for federal student aid.
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