If your kid drops out after a month…you would already have paid for the first term, and gotten aid for the first term. You would not get a refund.
Depending on the date of withdrawal…if your kid got something like a Pell Grant, they might have to repay that.
BUT assuming the kid properly withdraws from the school, you would not be billed for semester number 2…and you also wouldn’t receive the aid for semester number two.
And you need to also make sure about housing/board. If your kid drops out…you want that also indicated in the withdrawal…so you don’t get billed for the second term.
Oh…and if they have direct loans…their loan payment deferral period will begin, and if they don’t return to college within 6 months…they will need to start repaying those loans.