What is the undergraduate withdrawal rate for regular students required by new schools aiming to participate in FSA programs?

• A. A No more than 28% during the last completed award year
• B. B No more than 33% during the last completed award year
• C. C No more than 37% during the last completed award year
• D. D No more than 41% during the last completed award year

Answer: (B)

This item is about the withdrawal rate threshold that new schools must meet to participate in FSA programs. The withdrawal rate is the share of undergraduate regular students who withdraw from the institution during the last completed award year. For eligibility, a new school must keep this rate at or below 33% in the last completed award year, reflecting a standard for student persistence and program stability. If the rate exceeds that limit, the school would not meet the requirement for FSA participation. So the no more than 33% threshold is the correct rule the item tests.