Each school establishes its own minimum satisfactory grade point average (GPA) for federal funding programs. The school looks at the GPA of the student at the end of the semester or year and compares it to how many total credit hours the student completed. If the GPA falls below the minimum standards, the student may face funding restrictions or lose the Pell Grant completely.
Each school also determines satisfactory academic progress based on the number of credit hours the student registered for versus the number of credit hours he actually completed in a semester or year. For example, if a student registered for 30 hours in one year and only completed 15, he may face funding restrictions or lose the Pell Grant completely.
The federal government may also take away Pell Grant funds if the student fails to complete his degree according to the 150 percent rule. This rule states that students have 150 percent of the published length of the program to obtain a degree. For example, for a four-year degree, the student would have six years to complete the program.