Student Aid
According to the U.S. Department of Education, if a student is convicted of a drug offense after receiving federal student aid money, he or she must notify the financial aid department immediately and that student will become ineligible for any further student aid. They will also be responsible for reimbursing any and all financial aid they may have received after the conviction.
The law requires that a student lose his or her financial aid upon conviction of a drug offense. The good news is that many times, student aid can be recovered in many ways. Even if a conviction results, a student can take advantage of a rehabilitation program that can make them eligible for financial aid again.
Under the Higher Education Act, students become ineligible for federal student aid money upon conviction of any offense involving the possession or sale of drugs. This includes Pell Grants, Stafford Loans, Plus Loans, Work-Study Programs, and Perkins Loans.
Common questions from those who lose financial aid
How long am I ineligible for federal student aid?
For possession of illegal drugs
First offense: You are ineligible for financial aid for 1 year from the date of conviction.
Second offense: You are ineligible for financial aid for 2 years from the date of conviction.
Third and subsequent offenses: Indefinite eligibility from the date of conviction.
For the sale of illegal drugs
First offense: You are ineligible for financial aid for 2 years from the date of conviction
Second offense: You are ineligible for financial aid indefinitely from the date of conviction.
Is there anything I can do to protect my financial aid and/or have it reinstated after a conviction?
Yes. If a student successfully completes a drug rehabilitation program, he or she will regain eligibility for federal student aid funds as of the day they complete the program.
What are the drug rehabilitation programs like?
To be sufficient to reinstate financial aid eligibility the program must:
1. Include at least 2 unannounced drug tests
2. Be recognized as a Federal, State, or local government agency run program.
Generally, a student forced to enroll to maintain financial aid eligibility will have to do so at his or her own expense.
Do city tickets for possession of marijuana make me ineligible for federal student aid?
If the tickets are paid through mail and you never appear before a judge, then this does not count as a drug conviction. It is advisable to pay such tickets through the mails if you are in fact guilty or you lack a realistic legal defense to avoid risking having to appear in court and be convicted. If this occurs, despite the option to pay through mail, you will lose your eligibility for federal student aid.
What about court supervision on a misdemeanor charge of possession of marijuana?
Under the terms of court supervision, the judge is deferring a guilt conviction in anticipation of you fulfilling certain conditions. At that point, you receive a conditional discharge/dismissal and you can retain your student aid money.
What if I lie on a Federal Student Aid Application form?
Although many critics have pointed out that the federal government has no way of knowing if you have been convicted in a municipal or state court, lying on your FAFSA form is considered a crime and can carry a fine of up to $10,000. It can also lead to immediate dismissal from the school.