Federal Student Financial Aid Penalties for Drug Law Violations

 

Under the Higher Education Act,( Title IV Section 485(k) students become ineligible for Federal student aid programs upon a conviction under state or federal statutes during any period of enrollment of any offense involving the possession or sale of illegal drugs. These programs include Federal Pell Grants,  Direct Loans,  Direct PLUS Loans,  Direct Graduate PLUS Loans,  Supplemental Educational Opportunity Grants,  ACG Grants,  SMART Grants,  TEACH Grants,  Work Study, and Perkins Loans. All convictions occurring after submission of the FAFSA require immediate notification of the financial aid administration, forfeiture of future eligibility and repayment of all federal financial aid received after the conviction.

Exclusions:     A previous conviction does not automatically result in ineligibility for federal student aid. Previous convictions do not include those that have been removed from your record or those which occurred before you turned 18, unless you were tried as an adult. Count only federal or state convictions for the possession or sale of illegal drugs if the offense occurred during a period of enrollment for which you were receiving federal student aid (grants, loans, and/or work-study). Contact the U.S. Department of Education for more information on question 23 of the FAFSA form which addresses convictions related to drug offenses.

Penalties:        Conviction of any offense involving the possession or sale of a controlled substance while enrolled in college and receiving federal student aid was received shall not be eligible to receive federal student aid beginning on the date of such conviction and ending after the interval specified below:

Ineligibility resulting from illegal possession of a controlled substance:

1st  Offense

1 year from the date of conviction.

2nd Offense

2 years from the date of conviction.

3rd  offense

Indefinite. (See Rehabilitation below)

Ineligibility resulting from sale of a controlled substance:

1st Offense

2 years from the date of conviction.

2nd Offense

Indefinite. (See Rehabilitation below)

 

Rehabilitation and Reinstated Eligibility:   Eligibility may be reinstated prior to the end of the penalty period by completing a drug rehabilitation program that is approved by the U.S. Secretary of Education, including passing at least 2 unannounced drug tests.