A student, who is convicted of a state or federal offense involving the possession or sale of an illegal drug that occurred while the student was enrolled in school and receiving Title IV aid, is not eligible for Title IV funds. [An illegal drug is a controlled substance as defined by the Controlled Substance Act and does not include alcohol and tobacco.]
A borrower's eligibility is based on the student's self-certification on the Free Application for Federal Student Aid (FAFSA). Convictions that are reversed, set aside or removed from the student's record, or a determination arising from a juvenile court proceeding do not affect eligibility and do not need to be reported by the student.
A student who is convicted of a drug-related offense that occurred while the student was enrolled in school and receiving Title IV aid loses Title IV eligibility as follows:
For the possession of illegal drugs:
First offense: one year from the date of conviction
Second offense: two years from the date of the second conviction
Third offense: indefinitely from the date of the third conviction
For the sale of illegal drugs:
First offense: two years from the date of conviction
Second offense: indefinitely from the date of the second conviction
A school must provide a student who loses Title IV eligibility due to a drug-related conviction with a timely, separate, clear and conspicuous written notice. The notice must advise the student of his or her loss of Title IV eligibility and the ways in which the student may regain that eligibility.