Squibs in HOL Hogwarts are not those unfortunates of no magic born into a wizard family. The term 'Squib', here, refers to a person who has determined that the house into which the Sorting Hat sent them doesn't work for them.
They discuss their options with their Head of House and if they really want to leave the House, but stay at HOL, they may 'Squib'. (This is not the same as House Neutral, though.)
They may not play quidditch on a house team nor participate as a member of any House in their House activities (except as a general member of HOL).
Sometimes a Squib will wish to join another house. (Sometimes a person will deliberately Squib to join another house.) The privilege of joining another house is up to the respective Head of House.
While squibbing is allowed, new students must stay in their current house for at least one term before beginning the process to squib into another. This is to make sure that new students have an opportunity to get to know their current house and housemates so that if they end up deciding to squib, they won't have made the decision rashly. Squibbing is not encouraged and should only be done after a lot of consideration.
- Squib period is now 5 school months, though July and August don't count and if you squib during the summer it becomes 7 months.
- One must be active for at least 1 term and earn at least 1 quill before he/she can become eligible to squib out of a house. House activity (in the CR) is under the HoHs and DHoHs discretion.
- A squib must remain active during his/hers squibbing period and must earn at least 1 quill.
- Once they join a new house, they must spend at least 6 months as an active member of that house and earn at least 1 quill in order to be allowed to squib again.
- For the 2nd time and on that someone squibs, the squib period will be 1 year, instead of 5 months.