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Translation: The CC calculates GPA based only on the credits earned at the community college. This is pretty standard fare for community colleges, who often receive transfer credits from trade schools and accelerated colleges with less rigorous grading standards.
It's unlikely that they'll waive the requirement for your daughter (setting precedents, yadda yadda), but it's also probably not that important. Financial Aid probation isn't the same thing as Academic Probation. If she's on financial aid probation, it simply means that the community college may not extend her any more financial aid if she fails additional classes at the community college itself. If she passes her current classes and any additional community college classes she may take in the future, she'll have nothing to worry about.
Financial Aid probation is also not recorded on her official transcript, and isn't registered as a disciplinary action. It's simply a flag to indicate that they might not be willing to give her money anymore.
And yes, financial aid is unique to the institution. If the CC withdraws its willingness to offer her financial aid, it shouldn't impact the financial aid she gets from her primary college (unless they're both CC's in the same state system, in which case the rules vary).
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