As we pass the midpoint of the fall semester, many college students, particularly those in their first year, may be re-evaluating their school decisions. They may be rethinking their choice of institution or maybe even wondering if college is for them.

When considering whether to drop out, most students don’t realize there’s a monetary penalty that can come along with the decision. If you’re sitting in class thinking “I’ve made a huge mistake,” consider these tips before you take any action.

1. Know what you’ll owe: Federal student loan regulations require that the school return all or a portion of the student’s federal aid if the student withdraws before they have completed at least 60 percent of the loan period, which is usually the academic year. The problem is that the school is not required to, and often does not, have the same tuition refund policy. This means that many students who withdraw from school not only end up having student loan debt, but end up owing the school directly as well.

For example, let’s say you withdraw from your school on Nov. 1. The academic year is from September until May and is 270 days long. You were awarded a federal student loan for that same period in the amount of $10,000, of which $5,000 was disbursed back in September. Tuition is $10,000 for the year and the school’s refund policy states that you may only receive a refund of any kind if you withdraw before the 30th day of the semester.

[Get student loan repayment tips for college dropouts.]

As you’ve attended for 60 calendar days, you’ve completed approximately 22 percent of the academic year and consequently earned 22 percent of the federal student loan, which is $2,200. The school, therefore, is required to return $2,800 back to the loan holder.

But because you have attended school for longer than 30 days, the school’s refund policy dictates that you still owe the tuition for the full semester. This leaves you owing $2,200 in student loans and $2,800 directly to the school. You will be required to pay that debt regardless of whether you ever complete your credential or felt like you got anything out of your school experience.

This can be an even bigger problem if your reason for withdrawing is to eventually transfer into another institution. The new school is probably going to want an official copy of your transcript, something the school you withdrew from will likely withhold until they have been paid in full.

Many students withdraw due to feeling overwhelmed, especially during midterms. Before you take such a step, consider the consequences of withdrawal versus pushing through and finishing at least the semester so you will, as a minimum, have some transferable credits to show for your effort and debt.

If you’re determined to leave now, make sure you understand the school’s refund policy for withdrawals. Most will have it posted online or available in the school’s bursar or financial aid offices.

[Learn how transferring schools can affect student loans.]

2. Make sure you’ve actually withdrawn: Speaking of written policies, colleges and universities are also required to have a written withdrawal policy that explains exactly what a student must do to be considered withdrawn from the school.

It’s very important that you follow these steps fully and completely, or you could find yourself with a bill for a full semester when you only attended a single week. Simply not showing up to class is almost always not considered an official withdrawal.

3. Consider alternatives to dropping out: There are really only three reasons to withdraw from college after going through all the trouble to get there in the first place: financial reasons, academic reasons or social reasons.

The first two have similar solutions — go to school part time. If you are struggling to pay the tuition bill or to keep up with your classes, dropping a class or two could be enough to keep your head above water to at least finish the semester and accumulate credits before transferring to a more affordable school. Just remember to keep enough credits to be considered at least a half-time student as defined by the school, or you will risk going into repayment on your student loans earlier than you expected.

[Know what to expect the first time you borrow student loans.]

If you’re just not comfortable at the school socially, try seeking out social and activity groups off campus, if only to get you through the next two months of the semester to achieve those credits.

If the school really isn’t a good fit, transferring sooner rather than later is probably a good idea.You should still finish the semester, as it can be easier to transfer basic class credits than it would be to transfer classes required for a particular major. It can also be difficult to transfer credits from a two-year school to a four-year school, depending on the classes you took.

Whatever your strategy, your goal should always be certificate or degree completion. Know that the majority of those student loan borrowers who do default are those that don’t complete their program of study.

If completion is just not possible right now, remember that your student loans aren’t going to go away, and it’s best to contact the loan holder to determine a repayment strategy sooner rather than later.

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Consider Your Student Loans Before Dropping Out of College originally appeared on usnews.com