Failing one class does not mean you'll automatically lose access to federal financial aid. But these funds do have academic eligibility requirements, as outlined in your school's satisfactory academic progress (SAP) guidelines. So if you fail to meet the SAP requirements set by your school's financial aid office, you could be cut off from future aid.
Federal aid — any aid you received by submitting the Free Application for Federal Student Aid (FAFSA) — could include need-based grants, work-study and federal student loans. These could be taken away if you violate your school's SAP policy.
Each institution defines its own SAP policy, so requirements could vary. But many schools follow these guidelines.
Students must:
Maintain a minimum cumulative GPA between 1.6 and 2.0.
Complete at least 67% of all attempted credit hours.
Finish a degree in no more than 150% of the program's average number of required credit hours. (If the degree typically requires 120 credits, you can only get financial aid for 180 credits — including classes that you failed or dropped.)
Contact your school's financial aid office for information on your specific SAP requirements.
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What happens if you fall below your school's SAP requirement?
Before cutting your access to federal financial aid, a school may issue a warning and put you on probation. You may still have access to federal funds during this time, but your grades, for example, are expected to improve. If you do not achieve SAP standards by the conclusion of your probation, you will be unable to receive federal funds until you do. How long you're ineligible for aid depends on how often the school evaluates student performance.
Some schools only offer SAP probation if you fail to meet academic guidelines due to extenuating circ*mstances, such as a death in the family or serious illness or injury. By submitting a satisfactory academic progress appeal, you can explain why you could not meet SAP standards and why you believe you will be able to meet those standards in the future. If your appeal is approved, you may be able to maintain financial aid eligibility while the college monitors your progress.
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How to regain eligibility for financial aid
To regain access to federal aid, you'll need to show your institution that you can make satisfactory academic progress as outlined by the financial aid office. You might need to:
File a satisfactory academic progress appeal. Depending on the school's process, filing an approved SAP appeal could help you regain access to aid faster by placing you on probation, where your performance is evaluated more frequently.
Retake courses at your current school. To improve your GPA or pass more classes, you may need to retake what you previously failed. This can be hard to do without federal financial aid. You may need to consider private student loans to close the temporary gap in funding — but only if you have a solid plan to improve your grades and meet SAP standards.
Transfer to a less expensive college. Improving your grades without financial aid is no small feat. Consider transferring to a less expensive university or community college while you raise your GPA and accumulate enough credits to meet SAP requirements. You can also enroll part-time so that you can work while taking classes.
Submit the FAFSA every year. Your completed FAFSA is valid for one academic year. Complete the FAFSA each year to qualify for federal aid, especially if you're in better academic standing and are now meeting SAP requirements.
FAQs
To maintain your eligibility for financial aid, you must meet specific academic requirements throughout your time in school. If you fail classes or need to complete more credits, you may lose your scholarships, grants or loans.
What happens to FAFSA money if you fail a class? ›
If you failed a course but still qualify for financial aid, you can retake it once to improve your GPA. After that, you can no longer receive federal financial aid for the course. Scholarships and loans from third parties may have different rules.
Will financial aid cover retaking a failed class? ›
Federal regulations limit the number of times a student may repeat a course and receive federal financial aid for that course. A student may receive federal financial aid when repeating a course that was previously failed.
Can you lose FAFSA for bad grades? ›
One of the many requirements you need to meet to keep your financial aid is maintaining a certain GPA set by your school. If your grades dip below that or you have an incomplete class or withdrawal, it could cause you to lose access to all financial aid, including federal loans.
Does pass fail affect financial aid? ›
If I'm receiving financial aid, scholarships and/or federal loans, can I choose to take letter grades for some courses and pass/fail for others? The financial aid polices for good academic standing are the same whether you take some courses as graded or others as pass/fail.
What disqualifies you from FAFSA? ›
For example, if your citizenship status changed because your visa expired or it was revoked, then you would be ineligible. Other reasons for financial aid disqualification include: Not maintaining satisfactory progress at your college or degree program. Not filling out the FAFSA each year you are enrolled in school.
Can I regain my financial aid eligibility? ›
If your grades slipped due to extenuating circ*mstances, such as a death in the family, an illness or other reasons outside of your control, you may be able to appeal your financial aid office's decision and regain your eligibility.
How many times can you fail a class with FAFSA? ›
Repeat Policy Conditions
Once a student has completed any course twice and earned a passing grade (with a D- or better, including CR grade) they are no longer eligible to receive federal financial aid for that course.
Do I have to pay back pell grant if I fail a class? ›
If you fail a course, you will not have to repay the Pell Grant that you took out for it. Although failing a course can have drastic effects on your GPA and hurt your transcript, it will not require repayment of any Pell Grant funds.
How many times will FAFSA pay for a class? ›
A student may receive aid to repeat a previously passed course (grade of 'D' or higher) one additional time. Once a student has completed any course twice with a passing grade (grade of 'D' or higher), he/she is no longer eligible to receive aid for that course.
The Satisfactory Academic Progress regulations require that you maintain a minimum cumulative grade point average (GPA) in order to remain eligible for financial aid. This cumulative grade point average is 2.0 on a 4.0 scale.
Is it better to fail or drop a class with financial aid? ›
To maintain eligibility for federal financial aid, you need to be making satisfactory academic progress. If you drop a class by the add/drop deadline, the decision won't affect that factor. However, if you wait until after the deadline, it's considered a withdrawal, and that can have an impact.
Do I have to pay back FAFSA if I drop out? ›
Federal financial aid regulation states that if you withdraw from all of your classes or cease enrollment prior to the 60 percent point of instruction in any term, you will be required to repay all unearned financial aid funds received.
What happens if I fail one semester but pass the other? ›
It will still show as an F on your transcript and count in your GPA. Your only ways to deal with it are (a) work hard in other classes to try to compensate for that F in your GPA, and (b) if it is allowed, retake the class: it would reset your GPA, although the F would still be on your transcript.
Is it normal to fail a class in college? ›
Many college students find themselves falling behind at some point. And failing a class in college is more common than you might think.
Is D passing in college? ›
In fact, a “D” is considered passing in both high school and college, as it's above 60%. While a passing grade may be as low as 60%, you will want to aim higher for many reasons.
What happens if you don't use your financial aid for a semester? ›
Sometimes, students borrow more in student loans than they need to fund their education. Students in this situation may wonder “what happens if I don't use all of my student loan?” In most cases, colleges will refund the money to the student.
