Federal Student Financial Aid Penalties for Drug Law Violations

A student, who had a drug offense for selling or possessing illegal drugs that led to a conviction under federal or state law and occurred while the student was enrolled in school and receiving Title IV aid, is not eligible for additional Title IV funds. Title IV funds include Federal Student Loans, Federal Pell Grant, Federal Supplemental Education Opportunity Grant and Federal Work-Study.

A borrower's eligibility is based on the student's self-certification on the Free Application for Federal Student Aid (FAFSA). Convictions that are reversed, set aside or removed from the student's record, or a determination arising from a juvenile court proceeding do not affect eligibility and do not need to be reported by the student.

Summary of Penalties

If convicted of an offense involving possession of a controlled substance:

  • First offense - ineligible for 1 year
  • Second offense - ineligible for 2 years
  • Third offense - Indefinite Ineligibility

If convicted of an offense involving the sale of a controlled substance

  • First offense - ineligible for 1 year
  • Second offense - Indefinite Ineligibility

Reinstating Eligibility

A student whose eligibility has been suspended based on a conviction for possession or sale of a controlled substance may resume eligibility before the end of the ineligibility period if the student satisfactorily completes an acceptable drug rehabilitation program. An acceptable drug rehabilitation program must:

  • have TWO unannounced drug tests AND it must either:
  • Be qualified to receive funds from a federal, state or local government agency or program, or from a state or federally licensed insurance company, or
  • Be administered or recognized by a federal, state or local government agency or court, or by a state or federally licensed hospital, health clinic, or medical doctor.