Financial aid may be awarded to include any repetition of a course, as long as you have never passed the course. If you previously passed the course, you may include one repetition after passing. Any second or subsequent repetition of the passed course may not be included in your enrollment status for the purpose of receiving federal financial aid.
Students are eligible to receive financial aid only ONCE for a previously passed course. For example: you may take a course and receive a D. Then you may want to retake the course to achieve a higher grade. If the second attempt of the course is not the grade you are seeking (some courses require a C or higher), you are not eligible to receive aid for that course in future attempts.
If you withdraw from all other Title IV eligible courses in the payment period or period of enrollment and continue to attend only the course(s) you are repeating, you may not receive Title IV aid during that period, and you will be considered as a withdrawal for Title IV purposes. This is because a student is considered to be attending a Title IV eligible program only if he/she is attending one or more courses in that program for which the student is receiving Title IV, HEA program funds.
The regulations related to retaking coursework only apply to the definition of full-time for undergraduate students.