Drug Convictions and Federal Aid

Did you know that students convicted of drug-related offenses committed while receiving Title IV federal financial aid can lose eligibility for one year or more from the date of conviction?  Federal Grants, Federal Work Study, Federal Student Loans, and Federal PLUS Loans are some programs that are included in the Title IV federal financial aid.

Drug Convictions that affect Title IV eligibility include but are not limited to:

•  Possession of Illegal Drugs
• The first offense will result in ineligibility for 1 year from the date of conviction.
• The second offense will result in ineligibility for 2 years from the date of conviction.
• The third and subsequent offenses will result in indefinite ineligibility from the date of the conviction. 
• Sale of Illegal Drugs
• The first offense will result in ineligibility for 2 years from the date of conviction.
• The second and subsequent offenses will result in indefinite ineligibility from the date of conviction.

To regain eligibility for Title IV federal financial aid the student must successfully complete an acceptable drug rehabilitation program meeting Congressional and United States Department of Education standards.  Once the program is completed, eligibility will be regained on the date of completion.

A qualified drug rehabilitation program requires the student pass two unannounced drug tests and must be:

1.      Qualified to receive funds from federal, state, or local government agencies or program, or
2.      Qualified to receive funds from a state or federally licensed insurance company, or
3.      Administered or recognized by a federal, state, or local government agency or court, or 
4.      Administered by a state or federally licensed hospital, health clinic, or medical doctor.

The Free Application for Federal Student Aid (FAFSA) asks if student has ever been convicted of a drug related offense.  (See question 23 of application).  Falsely answering this question may result in fines up to $20,000, imprisonment, or both.

If a student is convicted of a drug related offense after receiving Title IV federal financial aid, the student must notify their Student Finance Professional immediately per United States Department of Education regulations.  The student will be deemed ineligible to receive further aid and will be required to pay back all aid received after the date of conviction.

The information provided should in no way be considered legal advice.  The accuracy of any legal information provided is not guaranteed.  Please seek professional help if there are concerns about specific legal issues.

                                

   980-267-2338

www.nesmithlawpllc.com