In most cases, grants come with certain conditions. If the student doesn’t meet those conditions, they may have to repay the money. Different grants come with different requirements, so check the criteria for each grant you received. However, there are a few typical reasons you might need to repay grant money.
Withdrawing early: If a student withdraws in the middle of a term, repayment may be necessary. That’s because the grant specified that the student needed to finish the courses as a condition of receiving the funds.
Reduced course load: This could come into play if a full-time student reduces their course load to the degree that they become a part-time student.
Failing to meet academic progress requirements: This varies by grant, but some grants are tied to academic progress requirements, and if they are not met, the grant could need to be repaid.
Change in financial situation: If a student’s expected family contribution as determined by their FAFSA increases, the student receives certain outside funding, or similar situations occur, they might need to repay government-provided grants.
Not meeting professional requirements: Certain grants are meant to encourage students to select specific careers and hold particular jobs post-graduation. A prime example is the TEACH grant, where recipients have a service obligation. They must work at a qualifying school for four academic years within eight years of graduation. They must also teach a high-need subject. If the student does not meet these requirements, they will need to repay the TEACH grant money.