October 2010

Loss of Student Eligibility for Federal Aid due to Drug Conviction

The Higher Education Amendments of 1998 include a new student eligibility provision.  It provides that a student is ineligible for federal student aid if convicted, under federal or state law, of any offense involving the possession or sale of a controlled substance during a period of enrollment in which federal student aid was received.  Federal aid can be grants, student loans, and/or college work-study.  The period of ineligibility begins on the date of the conviction and lasts until the end of a statutorily specified period.  The student may regain eligibility early by completing a drug rehabilitation program or if the conviction is overturned.

If convicted of an offense involving possession of a controlled substance, the ineligibility period is:

First Offense -- 1 year

Second Offense -- 2 years

Third Offense -- Indefinite

If convicted of an offense involving the sale of a controlled substance, the ineligibility period is:

First Offense -- 2 years

Second Offense -- Indefinite 

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