View of the downtown Louisville skyline and riverfront

Withdrawing from Coursework & Financial Aid Impact

Withdrawing from one or more classes is an important academic decision—and it can also have financial aid consequences. Before making changes to your schedule, consult with your professor, academic advisor, and the Student Financial Aid Office. 

Your eligibility for federal, state, and institutional aid may be affected by either partial or total withdrawal. These outcomes are governed by federal financial aid regulations and the University of Louisville’s Satisfactory Academic Progress (SAP) Policy.

Reminder: The financial aid impact of a withdrawal is separate from the tuition credit/refund process managed by the Bursar’s Office and Registrar’s Office. Students are responsible for any balance remaining after adjustments.

Common Withdrawal Scenarios

Each student situation is unique, and it’s impossible to outline every scenario that could lead to your financial aid being adjusted. You are encouraged to contact the financial aid office with specific questions. 

1. Partial Withdrawal – Pell Grant or CAP Grant Recipients

If you only drop some courses, the Financial Aid Office must confirm whether you began attendance/participated in those courses.

  • The Registrar’s Office will contact your instructor to verify your attendance and/or participation.
  • If your attendance and/or participation is confirmed, there will be no adjustment to your financial aid.
  • If your attendance and/or participation is NOT confirmed, your financial aid may be adjusted, and you could owe a balance.

Example: A student enrolled in 12 hours and awarded $370 in Federal Pell Grant funds and $2,650 in CAP Grant funds withdraws from two 3-hour courses for a total of 6 hours. If they never attended/participated in the courses, $185 of the Federal Pell Grant and $1,324 of the CAP Grant may be returned.

2. Partial Withdrawal – Federal Direct Loan Recipients

If you withdraw from a course, causing your enrollment to drop below half-time after your Federal Direct Loans are disbursed, your financial aid will be reviewed.

  • If your loans disbursed while you were enrolled at least half-time, the disbursed funds will not be cancelled; however, any loans not disbursed will be cancelled.
  • If your loans disbursed and you drop below half-time enrollment, you are required to complete Loan Exit Counseling. This requirement applies even if you plan to re-enroll, as it ensures you understand your repayment responsibilities and borrower rights.

Under the One Big Beautiful Bill Act (OBBBA), changes to your enrollment intensity may affect your Federal Direct Loan eligibility. If you withdraw from coursework, your remaining loan eligibility may need to be recalculated based on applicable federal requirements. As a result, withdrawing from courses during one semester could affect the amount of Federal Direct Loan funding available to you for the remainder of the academic year.

Example: A first-year dependent undergraduate student is initially enrolled full-time and is eligible for a $5,500 annual Federal Direct Loan, with $2,750 scheduled for the fall semester and $2,750 scheduled for the spring semester.

If the student withdraws from coursework during the fall semester and the change in enrollment requires the University to recalculate the student's Federal Direct Loan eligibility, the amount of loan funding available for the remainder of the academic year may be reduced. The amount of any reduction will depend on the student's enrollment and applicable federal loan eligibility requirements.

Note: This example reflects the University's current understanding of the One Big Beautiful Bill Act and information available from the U.S. Department of Education. Additional federal guidance is expected, and implementation requirements may change. This webpage will be updated as new guidance becomes available.

3. Total Withdrawal (All Coursework)

If you withdraw from and/or never participated or stopped participating in all coursework during the semester, federal law requires a Return of Title IV Funds (R2T4) calculation.  Review the Return of Title IV website for a complete review of this policy.  

  • If you withdraw from a class, you will receive a ‘W’ for the course. If you never begin attendance in a class and do not officially withdraw from the course, you will receive an ‘NP’ (Never Participated) grade for the course. If you stop attending a course and do not officially withdraw from the course, you will receive a ‘UF’ (Unearned F) grade for the course.
  • If you withdraw from a class, you will receive a ‘W’ for the course. If you never begin attendance in a class and do not officially withdraw from the course, you will receive an ‘NP’ (Never Participated) grade, which is treated the same as an “F” for GPA and financial aid purposes. If you stop attending a course and do not officially withdraw from the course, you will receive a ‘UF’ (Unearned F) grade for the course.
  • The aid you "earned" is based on how much of the semester you completed for the courses used to determine your initial award amounts for Title IV and CAP Grant eligibility.
  • If your Federal Direct Loans disbursed and you complete a total withdrawal, you are required to complete Loan Exit Counseling. This requirement applies even if you plan to re-enroll, as it ensures you understand your repayment responsibilities and borrower rights.
  • Your last day of participation and/or attendance is verified prior to R2T4 calculation.  This is reviewed on a case-by-case basis after grades are submitted. 

Example: A student enrolled for 6 hours never participated in one course and stopped participating in the second course, a Return of Title IV Funds (R2T4) calculation is required by federal law, because this is considered an unofficial complete withdrawal.

Example 2:  If you received a $2,750 loan and completed 30% of the semester, only $825 is considered earned. The remaining $1,925 must be returned.

4. Withdrawing Before Aid Disburses

If you withdraw from all coursework before your financial aid disburses, some or all of your financial aid may be cancelled.

  • If your financial aid is cancelled and you plan to re-enroll during the current or a subsequent term, contact the Student Financial Aid Office to determine whether you may still be eligible for financial aid.

Example: A student enrolled in 6 credit hours accepts a Federal Direct Loan but does not complete the required Master Promissory Note (MPN) and Entrance Counseling before withdrawing from all courses or dropping below half-time enrollment. Because Federal Direct Loans generally require at least half-time enrollment at the time of disbursement, the loan will not disburse if the student is no longer enrolled at least half-time.

If you withdraw from or otherwise do not complete courses that were considered when determining your financial aid eligibility before your financial aid disburses, your Federal Direct Loan eligibility may need to be recalculated, and your loan amount could be reduced.

Example: A first-year dependent undergraduate student is offered a $5,500 annual Federal Direct Loan, with $2,750 initially scheduled to disburse for the fall semester. Before the loan disburses, the student withdraws from coursework and reduces their enrollment from 12 credit hours (full-time) to 6 credit hours (half-time).

Under applicable federal enrollment-intensity requirements, the student's Federal Direct Loan eligibility may need to be recalculated based on the student's reduced enrollment. This could result in a reduction to the student's Federal Direct Loan eligibility for the academic year.

A reduction in financial aid does not automatically reduce the tuition and fees charged by the University. If your financial aid is reduced or cancelled, you are responsible for paying any remaining balance owed to the University.

Note: This example reflects the University's current understanding of the One Big Beautiful Bill Act and information available from the U.S. Department of Education. Additional federal guidance is expected, and implementation requirements may change. This webpage will be updated as new guidance becomes available.

5. Never Begins Attendance in a Class

If you never begin attendance in a course, you will receive an ‘NP’ (Never Participated) grade, and your financial aid could be reduced or cancelled.

  • After all your semester grades have been submitted, your disbursed financial aid must be reevaluated to determine if a portion or all funds must be returned.
  • If aid is adjusted, you could owe a balance.
  • This is reviewed on a case-by-case basis after grades are submitted. 

Example: A student enrolled in 6 hours received a $2,750 Federal Direct Loan and a $1,849 Federal Pell Grant for the term. The student received an earned grade (i.e. A, B, C, D, EF) in one class and received an NP grade in the second class because the student never began attendance in that course. The Federal Pell Grant must be recalculated based on 3 hours. If the loan is disbursed, the loan will not be cancelled; however, any loan not disbursed will be cancelled since the student is no longer enrolled at least half-time.

Tips for Managing your Financial Aid

  1. Know the Consequences
    Meet with a Financial Aid Advisor to fully understand the impact of withdrawal.
  2. Talk to Your Professors and Academic Advisors
    There may be ways to complete the course or resolve academic issues without withdrawing.
  3. Keep Track of Your Student Account
    If a balance is created after a withdrawal, you must take action to resolve it. Holds may be placed on your account for an outstanding balance.
  4. Plan Ahead
    Choose your courses carefully. Balance demanding coursework with your personal obligations to reduce the risk of needing to withdraw.

Need Help?

Contact the Student Financial Aid Office for questions about your specific situation. You can also visit the: