What Happens to Student Loans When You Withdraw or Drop Out of College?
Share this article:
What Withdrawing From College Means
Common Reasons for Withdrawing From College
Financial problems. If students can’t keep up with the steep price tags, including tuition and books, it may be difficult for them to continue. Academic workload. The expectations for college students are well above those for high schoolers. Sometimes, it’s just too much for certain people. No guidance. Navigating the world of college is no easy task. Adjusting to these changes can prove too much for some. Studying the wrong thing. If a student picks a certain major due to parental pressure, or to follow their friends, or any other reason other than an authentic fit, they may drop out due to lack of connection in that area. Mental health issues. Stress can lead to depression, burnout, or other difficult scenarios that can lead students to simply giving up on school.
How Withdrawing Affects Financial Aid
Do You Have to Repay Grants if You Withdraw?
Pell Grants: The timing of the withdrawal is key. If 60% of the semester has not been completed, you will be expected to repay a portion. Once you’re past that 60% mark, you do not need to repay any part. TEACH Grants: These are for those who intend to serve as full-time teachers at an elementary or secondary school serving low-income families. Recipients must teach for four years at an eligible school. If this requirement isn’t met, the grant becomes an unsubsidized loan and will need to be repaid — interest included.
Loans Impacted by Withdrawing
Private Student Loans
Federal Student Loans
Does Withdrawing Affect Your Eligibility for Possible Student Loan Forgiveness?
How Do Grace Periods Work?
Student Loan Repayment Options
Student Loan Refinancing
Income-Driven Repayment (IDR) Plans
Saving on a Valuable Education (SAVE) Plan, which replaces the Revised Pay As You Earn (REPAYE) Plan Pay As You Earn (PAYE) Income-Contingent Repayment (ICR) Income-Based Repayment (IBR)
Student Loan Grants
Doctors, Nurses, and Other Healthcare Professionals Teachers Lawyers Veterinarians Researchers Corporate Loan Repayment Grants
Compare Student Loan Refinancing Rates
Frequently Asked Questions
About the Author
Share this article: