Federal Student Financial Aid Penalties for Drug Law Violations
Federal guidelines focus strongly on illicit drug use and distribution. The Higher Education Act states that a federal or state drug conviction can disqualify a student for federal financial aid and make them no longer eligible to apply for their FAFSA. Federal financial aid includes:
- Federal Pell Grant
- Iraq and Afghanistan Service Grant
- Academic Competitiveness Grant (ACG)
- National Science and Mathematics Access to Retail Talent (SMART) Grant
- Federal Supplemental Educational Opportunity Grant (FSEOG)
- Federal Work Study
- Federal Direct Loan Program
- Federal Direct Parent PLUS Loan
Without a valid FAFSA for federal financial aid, students are also ineligible for State aid and most institutional aid programs.
Possession of Illegal Drugs
- First Offense: Loss of eligibility for federal financial aid for one year from the date of conviction.
- Second Offense: Loss of eligibility for federal financial aid for two years from the date of conviction.
- Third and Subsequent Offenses: Indefinite eligibility for federal financial aid from the date of conviction.
Sale of Illegal Drugs
- First Offense: Loss of eligibility for federal financial aid for two years from the date of conviction.
- Second and Subsequent Offenses: Indefinite eligibility for federal financial aid from the date of conviction.
Regaining Federal Student Aid Eligibility after a Drug Conviction
In accordance with an HEOA provision, a student whose eligibility has been suspended due to a drug conviction is allowed to resume eligibility if the student successfully passes two unannounced drug tests conducted by a qualified drug rehabilitation program. A qualified drug rehabilitation program must satisfy at least one of the following:
- Be qualified to receive funds directly or indirectly from a federal, state, or local government program.
- Be qualified to receive payment directly or indirectly from a federal, state, or local government program.
- Be administered or recognized by a federal, state, or local government agency or court.
- Be administered or recognized by a federally or state licensed hospital, health clinic, or medical doctor.
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