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Notice of Federal Student Financial Aid Penalties for Drug Law Violations

Under federal law, some students that have a federal or state drug related conviction may be ineligible for federal student aid such as grants, loans, and work study.

The information and table below are provided through .

In General

A student who is convicted of any offense under any Federal or State law involving the possession or sale of a controlled substance for conduct that occurred during a period of enrollment for which the student was receiving any grant, loan, or work assistance under this subchapter shall not be eligible to receive any grant, loan, or work assistance under this subchapter from the date of that conviction for the period of time specified in the below tables.

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

Offense Ineligibility Period
First offense 1 year
Second offense 2 years
Third offense Indefinite

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

Offense Ineligibility Period
First offense 2 years
Second offense Indefinite

Students that have further drug related convictions after filing the FAFSA may have extended periods of ineligibility or may lose their eligibility indefinitely.

Regaining Eligibility

Students with suspended federal eligibility may regain their eligibility the day after the period of ineligibility expires (one year plus one day, two years plus one day).

Students may shorten their period of ineligibility or regain eligibility from an indefinite timeframe by meeting at least one of the following means:

  1. Having a conviction reversed, set aside, or otherwise rendered invalid.
  2. Successfully completing an acceptable drug rehabilitation program that includes two unannounced drug tests.
  3. Passing two unannounced drug tests administered by an acceptable drug rehabilitation program.

Acceptable Drug Rehabilitation Program

An acceptable drug rehabilitation program must include two unannounced drug tests, and at least one of the following:

  1. Be qualified to receive funds from a federal, state or local government program, or from a federal or state licensed insurance company, or
  2. Be administered or recognized by a federal, state, or local government agency or court, or by a federal or state licensed hospital, health clinic, or medical doctor.

Not all programs administer unannounced drug testing.   Students that contact a program for potential admission should explain the need for unannounced drug testing and inquire if the program can meet this requirement.

Many drug rehabilitation programs do not provide drug tests to individuals that have not been admitted to treatment. To meet the drug testing requirement without going through a drug rehabilitation program, students must make arrangements with an acceptable drug rehabilitation program to administer the unannounced drug tests.

Other Drug Laws

The Anti-Drug Abuse Act of 1988 includes provisions that authorize federal and state judges to deny certain federal benefits, including federal financial aid, to persons convicted to drug trafficking or possession. The Department of Education maintains a hold list for applicants that have had such a judgment against them. Students will be notified that they are not eligible for federal financial aid and to whom they may inquire if they have questions.

For further information view Federal Student Aid's page on .

Update

The FAFSA Simplification Act (Title VII of the , CAA) repeals the disclosure requirement for the Notice of Federal Student Financial Aid Penalties for Drug Law Violations in , effective July 1, 2023 with the 2023-24 award year.

Although the U.S. Department of Education (ED) has not yet authorized this repeal for early implementation, schools have been given the authority to update this notice to provide the following information:

  • ED has rescinded the student eligibility requirement and that the student no longer faces penalties or suspension of Title IV aid due to a drug conviction that occurred while the student was enrolled and receiving Title IV aid; and
  • While the information must still be provided, the loss of federal student aid for drug convictions no longer applies.