Let’s use a hypothetical situation. A freshman attending college decides that they want to dropout after the first semester of college. If that student completes the semester, (they go to class) but does not receive a passing grade for their class(es), would the government require them to pay back that grant or any part of it because of failing grades? It is understood that if the student drops out before the period of time the grant has payed for, they would have to pay back a portion depending on when they chose to do so. But the question is, as a result of failing grades on a transcript, would that student have to repay any grants? If the result of those failing grades are because of a midterm not being done, a final not being done, or certain assignments not being handed in, would there a penalty in terms of returning of Grants.Thank you to whoever can provide an answer to any part of this question.
Here are the reguations:
If a student earns a passing grade in one or more of his or her classes offered over an entire period, for that class, an institution may presume that the student completed the course and thus completed the period. If a student who began attendance and has not officially withdrawn fails to earn a passing grade in at least one course offered over an entire period, the institution must assume, for Title IV purposes, that the student has unofficially withdrawn, unless the institution can document that the student completed the period.
Some schools may have a system in place for attendance & may be able to document that the student completed the class. This is not always the case. The only way to know for your school is to ask. If the school cannot document that the student who failed all courses completed the period, the Pell has to be repaid.