Federal Student Financial Aid Penalties for Drug Law Violations. Federal Student Financial Aid Penalties for Drug Law Violations Federal guidelines focus strongly on illicit drug use and distribution. The Higher Education Act states that a federal or state drug conviction can disqualify a student for federal financial aid and make them no longer eligible to apply for their FAFSA. Federal financial aid includes the following:
- Federal Pell Grant
- Iraq and Afghanistan Service Grant
- Academic Competitiveness Grant (ACG)
- National Science and Mathematics Access to Retail Talent (SMART) Grant
- Federal Supplemental Educational Opportunity Grant (FSEOG)
- Federal Work Study
- Federal Direct Loan Program
- Federal Direct Parent PLUS Loan
- Without a valid FAFSA for federal financial aid, students are also ineligible for State aid and most institutional aid programs.
Possession of Illegal Drugs
- First Offense: Loss of eligibility for federal financial aid for one year from the date of conviction.
- Second Offense: Loss of eligibility for federal financial aid for two years from the date of conviction.
- Third and Subsequent Offenses: Indefinite eligibility for federal financial aid from the date of conviction.
Sale of Illegal Drugs
- First Offense: Loss of eligibility for federal financial aid for two years from the date of conviction.
- Second and Subsequent Offenses: Indefinite eligibility for federal financial aid from the date of conviction.
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