Can Financial Aid Be Taken Away?
Q: Is it possible that I can lose my financial aid after it has been granted?
A: Yes, there are some circumstances where you might lose financial aid funds.
Federal law mandates financial aid recipients maintain a certain standard of academic performance in order to qualify for and retain financial aid eligibility.
Failure to meet these requirements can result in the loss of financial aid.
You might also lose financial aid eligibility if you drop below half-time enrollment or if you fail to enroll.
If you transfer schools, any financial aid funds in your account might have to be returned. Financial aid eligibility can transfer between schools, but the actual financial aid money cannot be transferred.
Also, because financial aid eligibility can change every year, you might lose some financial aid eligibility if your income (or your family income) increases from year to year.
When the income you report on your FAFSA goes up, your EFC (or Expected Family Contribution) will also increase. The EFC is the amount you and your family are expected to pay out-of-pocket toward your education expenses.
If your EFC goes above $4,000 you might lose your eligibility for Pell Grants, Perkins Loans, and Subsidized Stafford Loans.
If you think you have lost financial aid due to an error, be sure to contact your school Financial Aid Office for assistance.
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