Federal financial aid is based on satisfactory academic progress (SAP). Each school has its own SAP policy, but most require students to maintain a certain grade point average (GPA) and complete a certain number of credits each semester. If you fail 2 out of your 4 classes in the 1st semester of college, you may be placed on academic probation and may lose your financial aid. However, some schools may allow you to appeal your financial aid decision if you have extenuating circumstances. Check with your school's financial aid office to find out what their SAP policy is and what you need to do to remain eligible for financial aid.