What You Need to Know About Drugs and Federal Loans

in Careers college life Education by Angie — February 16, 2011 at 12:19 pm | 0 comments

Think smoking a joint is no big deal? After all, it’s only a misdemeanor, right?

Actually, the stakes are a lot higher than you think.

As a result of the Higher Education Act, students may lose their eligibility for federal loans and student aid following a conviction related to the possession or sale of illegal drugs. This can include the following types of Title IV federal aid:

• Federal Direct Loans and Federal Direct PLUS Loans
• Federal Direct graduate PLUS Loans
• Federal Pell Grants
• Federal ACG Grants
• Federal SMART Grants
• Federal Supplemental Education Opportunity Grants
• Federal TEACH Grants
• Federal Work Study
• Perkins Loans

Filing your Free Application for Federal Student Aid (FAFSA)

What your mother said is true; honesty really is the best policy. On the FAFSA form you will be asked whether you have ever been convicted of a drug-related offense. If you don’t answer the question, you will automatically be disqualified from receiving a federal loan.

Some students may be tempted to lie on the application, reasoning that the federal government does not necessarily know about convictions that take place at the state and local levels. However, don’t be tempted to lie, because the penalty for fraudulently completing your application can be steep. Lying on your application is a crime that can lead to dismissal from your college or university and a fine of up to $10,000.

After a Drug-Related Conviction

If you are convicted of a drug offense following enrollment, the U.S. Department of Education must be notified immediately. You will no longer be eligible to receive federal financial aid in the future, and you will be required to pay back any aid received following your conviction.

Second Chances

While the law states that students convicted of drug offenses are no longer eligible to receive aid, it does not necessarily mean that you won’t be able to earn your degree. In some instances, cases are resolved without a formal conviction. And even in those cases where a student is convicted, there are rehabilitation programs available that may help you regain your eligibility. It’s true – often if you can prove that you have successfully completed some form of rehabilitation, then you can become eligible for those federal loans.

If you have general questions about the rules for eligibility, you can contact your financial aid office. For questions regarding drug-related charges, always seek legal advice.

Tags: drugs and student aid FAFSA and drugs federal financial aid student aid