Pell Grant funds are adjusted based on your enrollment level. If you drop a class, the Financial Aid and Scholarship Office must decrease your Pell Grant to portray your new enrollment level. Because the Pell Grant you obtain is based on the total number of hours you take and your enrollment status, dropping a class might lower your grant by a comparable quantity.

The Pell Grant is a federal scheme that gives monetary support to undergraduate students who need it. Funds are disbursed based on parent and student finances and therefore are anticipated to be spent on course fees, books, and school transportation costs.

Depending on the school, your Pell funds will be transferred to your account or you will receive a check from the school. Your Pell amount is calculated in part by the number of classes you are carrying. If you drop one, you may be accountable for the money that has already been apportioned.

Dropping out of college or withdrawing from classes doesn’t stop you from receiving future Pell Grants. Students have a lifetime Pell Grant limit, which is comparable to six full years of Pell Grant financial support. If you find yourself missing school more than once and/or changing majors, you may reach this cap, so take this into consideration.

If you drop out of college whilst still getting a Pell Grant, you may be required to repay some of the money. The amount you end up paying will be determined by the university, but you should consult the financial aid department for more information.

You have the option of repaying the college in full or setting up an extended credit repayment schedule. If you do not pay the money back, the debt will be forwarded to collections. You could also be denied further federal financial aid until the grant is paid back.

Things to Consider Before You Withdraw From Class

For undergrads who are paying for their college education, the Pell Grant is an incredible asset. Notwithstanding, college does not frequently go as intended, and undergrads are occasionally not able to complete their degree program. Nevertheless, if you want to drop out of class, here are a few things to consider;

  1. Making Satisfactory Academic Progress

Anybody who is a U.S. citizen or permanent resident and registered in an eligible school is able to qualify for a Pell grant. However, your qualifications for this grant do not stop when you submit the Free Application for Federal Student Aid (FAFSA).

You should sustain satisfactory academic progress all through your college career in order to continue receiving your assistance. There are two terms used to describe satisfactory academic progress. You must complete the following tasks:

  • Accomplish your degree on time. The above implies you’re taking adequate classes and garnering sufficient credits every year to graduate on time.
  • Complete your courses with flying colors. Many schools consider this to be keeping a 2.0 GPA on a 4.0 scale.

For the first week or two of the school term, several colleges permit you to drop a class without penalty. However, after that time, your timetable is essentially established. If you drop a class after that time frame, you may end up losing credit points.

  1. Leaving between semesters

You don’t have anything to bother about if you drop out of college between semesters and still haven’t paid for your next semester or received Pell Grant funds. You will not be required to repay any of your Pell Grant funds. You are absolutely clear because you concluded the semesters upon which you attracted your financial support.

  1. Dropping out mid-semester

Things could become a lot trickier if you drop out in the middle of a semester. That’s because your Pell Grant funds are personalized to your enrollment status.

Even if you do not drop out completely, but rather withdraw from courses and decrease your workload from full-time to half-time, you may be required to repay a percentage of your Pell Grant. In either of these instances, you should consult your school’s department of financial aid before taking any action.

  1. Every college has its own definition of satisfactory academic progress

Even though the Office of Federal Student Aid necessitates you to sustain satisfactory academic progress in order to retain your aid, the standard is determined by every college. You’ll have to contact your college’s financial aid office to find out the number of credits you have to take every semester and what GPA you need to maintain.

Before dropping a class, check with your financial aid office to see if it will impact your financial aid. If this change will jeopardize your school performance and cost you financial aid, you’ll have to choose between keeping the class or figuring out how to reclaim your eligibility.

  1. Losing eligibility

Opting out of college or quitting classes somehow doesn’t preclude you from receiving future Pell Grants. It is significant to mention, nonetheless, that students have a lifetime Pell Grant limit, which is comparable to six full years of Pell Grant assistance.

If you see yourself dropping from college and/or changing majors, you may exceed this threshold, so take this into account.

  1. Overpayment

Dropping a class minimizes the level of Pell money you will qualify for, however, if it has already been given out to you, which is known as an overpayment, you need to repay the federal government. If a Pell payment that has already been assigned to the college for your tuition bill is unexpectedly lowered, you will most likely owe the school that portion.

In the incident of an overpayment, the implications on a student’s future financial aid schemes can sometimes be drastic.

He would be unable to obtain any other federal financial aid again until the Pell payment has been made. This includes federal loans, both subsidized and unsubsidized, together with extra Pell grants. The government will also gladly overwrite any potential tax refunds you may receive in order to repay the loan.


It can sometimes be unpreventable to fall behind in your school performance. However, even though you end up losing your qualifications for financial aid, you can recover it. In most instances, you’ll have to re-establish your educational performance by adding courses to your timetable and raising your GPA.

If you’ve dropped behind or anticipate doing so shortly, you could talk to your financial aid office regarding how to get back on track. And if you’ve had a reasonable justification for your poor academic performance, such as a family or medical emergency, you may be able to submit an appeal.