You may 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: a student may take a course and receive a D. The student may want to retake the course to achieve a higher grade. If the second attempt of the course is not the grade the student is seeking (some courses require a C or higher), the student is not eligible to receive aid for that course in future attempts.
If the student withdraws from all Title IV eligible courses in the payment period or period of enrollment and continues to attend only the course(s) the he/she is completing or repeating for which he/she may not receive Title IV aid during that period, the student is 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.