What Happens to Your FAFSA If You Are Dropped From School?

The Free Application for Federal Student Aid, or FAFSA, is filed by a student or prospective student for the following academic year. For example, a FAFSA filed in February 2011 would be applicable for the 2011-2012 academic year. If you have filed a current FAFSA, it remains valid for the entire academic year as long as you are enrolled at the university that you specified in your FAFSA.
  1. Academic Ineligibility

    • If you are declared academically ineligible, and as a result no longer attend the university referenced on your FAFSA, you will have to modify it before it will be applicable to any future financial aid requests. At a minimum, you will have to change the school code to the one for the college where you now wish to enroll. You will also need to update your personal and financial information.

    Time Frame

    • After you withdraw from college, you have six months before any student loans become due and payable. If you re-enroll during that grace period, you can renew your FAFSA, and if you are approved for additional financial aid, you will not be obligated to start making payments on the earlier loan balance.

    Voluntary Withdrawal

    • If you voluntarily withdraw from the university, that has the same effect as if you were subjected to academic expulsion, as far as the FAFSA is concerned. However, you can have the six-month grace period extended if you can show that your withdrawal was due to personal hardship, such as medical or financial issues. Proof of those circumstances should be submitted to the financial aid office at the university you formerly attended as soon as possible.

    Service Professions

    • If you withdraw from college in order to work in certain types of professions, such as teaching in low-income areas, or working for service or charitable organizations, you may be able to defer any obligation to start payment on your student loans while you are employed in those areas. Federal guidelines differ according to geographic and income criteria; consult the federal FAFSA website for the most current rules: www.fafsa.ed.gov.

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