Taking a leave of absence or withdrawing

If you need to step away from school in the middle of a term, the order of your next few calls matters. Start with the financial aid office, then the registrar, and this page explains why and what to ask each one.

Talk to the aid office first

Leaving mid-term can change the federal aid you have already received, and the aid office can tell you how much before you act. Ask for an estimate of what would be returned and what you might owe the school. A few days can sometimes make a difference, so get the numbers before you submit any form.

Ask also about other options, such as dropping one course, taking an incomplete or switching to a lighter load. One of these may solve the problem at a lower cost.

How federal aid is returned

Federal aid is earned as you attend. If you withdraw before a certain point in the term, which the federal Return of Title IV Funds rules set as a share of the days in the payment period, part of your aid is treated as unearned and must be returned. The school returns its portion first, and you may need to repay part of any grant or loan money that was paid to you.

Loan money that goes back simply reduces what you borrowed. Grant money you owe is handled through the school or the Department of Education, and the aid office can explain the repayment options. Stopping attendance without telling anyone leaves this process in place, because the school still has to work out a withdrawal date.

Before you leave

• An estimate of aid to be returned
• The tuition refund schedule
• The last date you attended class
• Notes on whom you contacted and when

Leave of absence or withdrawal

An approved leave of absence keeps you enrolled for federal aid purposes, as long as it follows federal rules, including a limit on the number of days within a 12-month period. Some schools offer no such leave, and others offer one that counts as a withdrawal for aid. Ask the registrar which kind your school has.

Many schools also have a medical or compassionate withdrawal for illness or a family emergency. It may change how your grades are recorded and how the tuition refund is calculated, and it usually needs documentation.

Loans, benefits and coming back

When you drop below half-time, the grace period on most federal loans starts, and repayment begins when it ends. Borrowers who leave usually complete exit counseling on studentaid.gov. If you plan to return soon, ask how the grace period works in your case.

Tell your scholarship providers, your housing office and, if you use VA benefits, your school certifying official. When you are ready to come back, ask about readmission, file the FAFSA for the new year and check whether your Satisfactory Academic Progress status needs an appeal.