Should You Declare Academic Bankruptcy?
Americans who have made bad financial decisions can begin fixing their poor financial history by declaring bankruptcy. However, for community college students, did you know that a similar process exists for bad grades? A semester riddled with poor grades can be wiped clean with academic bankruptcy. While an academic bankruptcy will not magically disappear from your records in seven years as a financial bankruptcy does, there are many advantages to undergoing the process. However, there are also some definite negatives to making this decision.
Pros of Academic Bankruptcy
Although academic bankruptcy may sound like a novel term, it may help raise your community college GPA. When you declare educational bankruptcy, you essentially erase the grades of one entire semester or quarter. If you’ve gotten good grades during your first two semesters in community college and then had one lousy semester due to medical, family, or other issues, that one bad semester can completely ruin your GPA. By declaring that one semester bankrupt, the grades that you received will not be calculated as part of your overall GPA. This can be a good strategy to repair and boost your cumulative GPA.
If you have lost your financial aid eligibility because of a cumulative GPA that does not meet the minimum requirements, then declaring academic bankruptcy may help you regain your financial aid more expeditiously. However, because policies vary from college to college, you should discuss this situation with your community college’s financial aid office before deciding to declare a semester as academically bankrupt.
Cons of Academic Bankruptcy
While the grades of a particular quarter or semester are erased, your transcript will include a notation that you have declared academic bankruptcy. However, this notation will not explain why the semester was declared bankrupt. In addition, although the grades you earned during that particular semester will not count towards your overall GPA, the work (and earned grades) may still be included on your transcript, depending upon your community college’s policies. In essence, academic bankruptcy can make your GPA look better by removing a lousy semester from GPA calculations, but the grades earned may still be posted to your official transcript. In that regard, an academic bankruptcy is not a means of completely hiding a semester’s poor performance.
Suppose you are planning to transfer to a four-year university. In that case, it may be wise to include in your application a supplementary statement discussing the circumstances surrounding your academically bankrupt quarter or semester. For example, if you were in a car accident and spent a month in the hospital, this should be conveyed to the transfer university as a means of explaining why your grades were so low in the bankrupt semester. In addition, keep in mind that not all universities will accept your academic bankruptcy, meaning they may calculate your entire GPA, including the bankrupt semester. In this scenario, for a community college student transferring to a four-year institution, declaring academic bankruptcy may not provide you with many benefits.
Also, remember that future employers who review your transcript will also see the notation of academic bankruptcy. Again, be prepared to explain what happened that semester in case potential employers ask.
Of course, for most community colleges, all your classes during the academically bankrupt quarter or semester will not count as credit towards your major or graduation requirements. As a result, you will need to retake these classes to earn the course credits. In addition, you cannot academically bankrupt a portion of your semester’s coursework. The entire semester must be declared academically bankrupt. Thus, even if you earned A’s in two of your courses, this performance and its course credits will be wiped from your transcript as well. If you have a mixed bag of grades for one semester, with several As and several Ds and Fs, you must consider whether bankruptcy is worth losing the grades and credits from the classes where you received good grades.
This TEDTalk looks at the issue of grades defining success in college.
Financial Ramifications of Academic Bankruptcy
Students receiving financial aid should take extra care when considering academic bankruptcy. Before you make your decision, it is critical that you first speak with your community college’s financial aid office to determine what the ramifications to your financial aid eligibility will be. The bankruptcy may impact your current or future eligibility, so you risk losing part or all of your award package. For most community colleges, however, the course hours earned in the bankrupt semester will still be credited towards your minimum progress requirements. They may not negatively impact your financial aid awards.
When Should You Declare Academic Bankruptcy?
Remember that some community colleges only allow students to declare academic bankruptcy once. You should check with your academic counselor to determine your campus’s policies.
You should choose your timing wisely regarding your academic bankruptcy declaration. For example, if you experienced abnormal health problems during the semester, you changed your major dramatically, or if a family situation caused you unusual duress, these circumstances may have impacted your usual performance. They could be solid grounds for academic bankruptcy. If, however, you are simply a freshman who was adjusting to the community college life and earned a range of grades from A’s to C’s, then you may want to “save” your academic bankruptcy for another point in the future that may be more appropriate for an academic bankruptcy.
In addition, keep in mind that you typically do not need to exhibit haste when wiping an entire semester’s slate clean. For most community colleges, you can declare academic bankruptcy for any semester before you graduate. Others will allow you up to three calendar years from the semester in question to declare bankruptcy. Therefore, before you graduate, you can review your academic performance over the last several years and choose your worst-performing semester to go bankrupt.
This video examines the question of whether perfect grades matter.
How to File for Academic Bankruptcy
In deciding to file for academic bankruptcy, it is highly recommended that you first consult with both an academic counselor and a financial aid officer. Deciding to go academically bankrupt a semester is not taken lightly, and the guidance of college personnel is highly recommended.
Once you have decided to utilize academic bankruptcy, you will most likely need to petition the Dean’s Office at your community college. However, this may vary from campus to campus. The petition will be reviewed for eligibility, and you will be notified regarding the approval or disapproval of your academic bankruptcy.
Every community college outlines its policies, regulations, and guidelines regarding academic bankruptcy. Meeting with your college counselor is the first step in determining if academic bankruptcy should be a route you choose to take. It is a viable option for students who have had one rough semester and need to improve their GPA. However, there could be negative consequences for students who wish to transfer to a four-year institution, which should be considered. Additionally, academic transcripts will include a notation that a semester has been bankrupted, so be prepared to explain the situation to potential employers.
Questions? Contact us on Facebook or Instagram. @communitycollegereview
#communitycollege #academicbankruptcy
