What happens if a student drops below half-time status?
If you drop or withdraw from a course before your loan is disbursed and you fall below half-time status, your Federal Stafford Loan or Federal PLUS Loan will be canceled for that semester, and you will owe any balance due on your student account. If your loan has already been disbursed and you withdraw from all of your courses, you will need to repay a portion of your loan funds to the College. The repaid portion would reduce the amount of the principal loan balance that you will owe to your lender when you enter repayment. In addition, if you drop below half-time status, you will enter your six month grace period for repayment of your loan.
