Satisfactory Academic Progress: How It Affects Federal Student Aid (2024)

When it comes to paying for college, it’s wise to start with federal financial aid. In addition to grants, the U.S. Department of Education also offers low-interest student loans, and the government is the most common source of loans. In fact, 43% of students and parents use federal student loans to pay for college, according to a recent survey from Sallie Mae and Ipsos.

However, it’s possible to lose your eligibility for federal student aid if you don’t meet your school’s satisfactory academic progress (SAP) standards, leaving you to pay tuition and fees on your own. Here’s what you need to know about satisfactory academic progress standards and what you can do if you lose your eligibility for financial aid.

What Is Satisfactory Academic Progress?

To receive federal financial aid throughout college or graduate school, you need to demonstrate SAP. Each university sets its own requirements, which can vary. In general, you need to complete enough credits and maintain decent grades to earn a degree within a set timeframe.

For example, the University of Central Florida evaluates a student’s SAP status every semester. Undergraduate students must maintain a GPA of at least 2.0 and earn a “successful” grade, which can include an A, B, C or D, in at least 70% of their attempted credit hours to maintain SAP. Students must graduate within 150% of the credit hours required for their degree program. So, if your degree requires 120 credit hours, you can attend classes for up to 180 credit hours to remain eligible.

At the University of Minnesota, undergraduate students must maintain a GPA of at least 2.0. Students must earn at least 67% of the credits attempted and can receive federal financial aid for 150% of the published degree credits required for their programs.

Check your school’s website or contact the financial aid office to learn about credit, timeline and grade requirements.

Consequences If You Don’t Make SAP

If you fail to meet your school’s SAP requirements, the consequences are dependent on the university’s policies.

At some schools, you may be issued a warning, and you’ll have one semester where you can continue receiving financial aid while you try to bring up your grades or complete credit hours. If you don’t meet SAP requirements after that semester, you’ll lose your financial aid.

At others, federal financial aid will be suspended right after your evaluation. You can still attend school, but you won’t be eligible for federal grants, student loans or work-study programs, and you will need to find alternative sources of funding.

Contact your school financial aid office to see how federal financial aid suspensions are handled and the specifics regarding its SAP policy.

SAP and Transfer Students

It’s a common misconception that transferring schools can reset your SAP and make you eligible for federal financial aid again. That’s not the case.

If you are a transfer student, the college you attend will assign you a transfer status when you enroll. At the end of the semester, any transfer credits accepted by the college will be counted toward your cumulative GPA, the number of attempted credit hours and degree progression. In short, your previous academic performance will influence your SAP at your new college.

How to Submit a Satisfactory Academic Progress Appeal

Most colleges and universities allow you to appeal the loss of federal financial aid. If there were extenuating circ*mstances that affected your academic progress, you might be eligible for federal aid reinstatement.

Circ*mstances that may have affected your academic performance include:

• Illness or injury to you or a close family member or friend documented by a medical billing statement or letter from a health care provider
• Death of a significant person in your life documented by an obituary or death certificate
• Divorce by you or a parent, documented by a divorce decree or a letter from an attorney

To file an appeal, check with your financial aid office for your school’s required steps and documentation. Typically, you will have to complete an SAP appeal form and submit documentation supporting your claim of extenuating circ*mstances.

You will likely have to meet with your academic advisor to develop a written plan to meet SAP standards in the upcoming semester and attach a copy of the plan with your appeal form. The advisor may have to sign the appeal form and provide their opinion on the probability that you will meet SAP standards.

It’s a good idea to complete and submit the appeal as soon as possible after receiving a notice that your financial aid was suspended. If your appeal is approved, your financial aid will be reinstated based on available funds. But if funds are not available, you won’t get the full financial aid package you had before the appeal.

How Your School Might Respond to Your SAP Appeal

If you submit an SAP appeal, there are two possible outcomes:

• Reinstatement of federal aid. If the school approves your SAP appeal, your federal financial aid eligibility will be reinstated for one probationary semester. During this probation period, you must meet SAP standards to maintain your financial aid eligibility.
• Denial of appeal. In some cases, the school may deny your SAP appeal. If that happens, you’ll lose your eligibility for federal financial aid. While you can usually stay in school, you’ll have to cover the expenses yourself.

Alternatives to Federal Financial Aid

If you do not meet your school’s SAP requirements and your appeal is denied, you won’t be eligible for federal financial aid and will have to find other ways to pay for your education. There are three options available:

1. Part-time Jobs

If you want to continue taking classes and working toward a degree, one option is to drop down to part-time student status. With a smaller course load, you can bring up your grades, and you may have more time to get a part-time job. You can use your earnings to pay for some of your education, reducing your need for financial aid.

Sites like SnagAJob can be helpful for college students looking for part-time jobs and flexible work.

2. Private Scholarships and Grants

If you lose your federal aid eligibility, you may still qualify for some private scholarships or grants. Scholarships and grants are forms of gift aid, meaning they don’t have to be repaid. You can combine multiple awards to pay for a portion of your expenses.

Use sites like FastWeb, Scholarships.com and Niche.com to find grants and scholarship opportunities.

3. Private Student Loans

If you are no longer eligible for federal grants, student loans or work-study programs, another option is to take out private student loans to pay for school. Private student loans are issued by banks and online lenders rather than the federal government, so they have different requirements for borrowers.

However, you should keep in mind that private loans typically have higher interest rates and fewer borrower protections than federal loans. Aim to borrow as little as possible, and make sure you have a plan in place to repay the loans.

If you’re not sure where to start, you can see our top picks for private student loans.