Student Loans and Drug Possession

A student is ineligible to receive federal student loans for a certain period of time following a conviction for a drug offense as explained below. It should be noted that illegal alcohol possession does not apply:

(1) Possession. If a student has been convicted of possession of controlled drugs—
– A one time for possession of illegal drugs, the student is ineligible to receive program funds (student loans) for one year after the date of conviction;

– Two times for possession of illegal drugs, the student is ineligible to receive program funds for two years after the date of the second conviction; or
– Three or more times for possession of illegal drugs, the student is ineligible to receive program funds for an indefinite period after the date of the third conviction.
(2) Sale. If a student has been convicted of sale of a controlled drug—
– A one time conviction for sale of illegal drugs, the student is ineligible to receive program funds for two years after the date of conviction; or
– Two or more times for sale of illegal drugs, the student is ineligible to receive program funds for an indefinite period after the date of the second conviction.
Note: If a student successfully completes a drug rehabilitation program after the student’s most recent drug conviction, the student regains eligibility on the date the student successfully completes the program.
A drug rehabilitation program referred to above, is one which—
(1) Includes at least two unannounced drug tests; and
(2) Has received or is qualified to receive funds directly or indirectly under a Federal, State, or local government program;
(3) Is administered or recognized by a Federal, State, or local government agency or court;
(4) Has received or is qualified to receive payment directly or indirectly from a Federally- or State-licensed insurance company; or
(5) Is administered or recognized by a Federally- or State-licensed hospital, health clinic or medical doctor.
(Authority: 20 U.S.C. 1091(r))
As you can see this can be a complication area. Our attorney’s are available to review your situation and give you professional advice.