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Federal Student Financial Aid Penalties for Drug Law Violations
Suspension of Federal Financial Aid Eligibility for Drug-Related Offenses
A. In General – A student who has been convicted of any offense under any Federal or State law involving the possession or sale of a controlled substance shall not be eligible to receive any grant, loan, or work assistance under Title IV, Section 484(r) of the Higher Education Opportunities Act, during the period beginning on the date of such conviction and ending after the interval specified in the following table:
If convicted of an offense involving:
| The possession of illegal drugs: | Ineligibility period is: |
|---|---|
| First offense | 1 year of ineligibility from date of conviction |
| Second offense | 2 years of ineligibility from date of conviction |
| Third offense | Indefinite period of ineligibility |
| The sale of illegal drugs: | Ineligibility period is: |
|---|---|
| First offense | 2 years of ineligibility from date of conviction |
| Second offense | Indefinite period of eligibility |
B. Rehabilitation – A student whose eligibility has been suspended as described above may resume eligibility before the end of the ineligibility period determined under such paragraph if –
(1) the student satisfactorily completes an approved drug rehabilitation program that –
(a) complies with such criteria as the US Department of Education Secretary shall describe in regulations for purposes of this paragraph; and
(b) includes two unannounced drug tests;
(2) the student successfully passes two unannounced drug tests conducted by a drug rehabilitation program that complies with such criteria as the Secretary shall prescribe; or
(3) the conviction is reversed, set aside, or otherwise rendered nugatory.
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Other Financial Aid-related forms can be obtained by contacting the Financial Aid Office. These forms include:
- Dependency Override Appeal
- Homeless/At-Risk Form
- Legal guardianship/Emancipated Minor Form
- Non-Degree Statement of Purpose for Post-Baccalaureate
- Permanent Disability Discharge Form
- Parental Non-disclosure Application Form
- Proof of Prior Aid Cancellation Form
- Special Circumstances Appeal
- Unusual Enrollment History Appeal
- Ward of Court/Orphan Form
Entrance counseling is required by federal regulations for all first-time borrowers at a school. It gives an overview of the Federal Loans Program and discusses specific topics related to types of loans, interest rates, borrower rights and responsibilities, etc. This counseling session can provide tips and tools for you to develop a budget for managing educational expenses. Loan Entrance Counseling documents can be accessed from the Documents & Forms page.
What is Student Loan Exit Counseling and why must I complete this process when I am in school or returning to school?
Exit counseling is federally mandated when you have stopped attending school or have dropped below half-time, regardless of whether you intend on returning. Student Loan Exit Counseling can be accessed from the Documents & Forms page.
Both Subsidized and Unsubsidized Direct Federal Loans are funded through the Federal Direct Loan program and administered by the federal government.
- Subsidized Loan - the federal government pays the interest on your Subsidized loan while you are enrolled at least half-time. Eligibility for Subsidized Loans is determined by financial need, are for a limited eligibility period, and are available to students seeking an undergraduate degree.
-
Unsubsidized Loan - you are responsible for your Unsubsidized loan while enrolled in school. You have the option to pay the interest or defer the payment until after graduation. Eligibility for Unsubsidized loans is available to both undergraduate and graduate level students.
Is there a limit on the total amount of loan funds I can receive throughout a single academic year or total years of enrollment?
Yes. There are federally mandated aggregate limits that you cannot exceed, dependent on grade level and dependency status. For more information see Types of Aid.
No. While all grant funds are automatically accepted for you, you are able to accept a reduced amount of funds based on your discretion. Please note the following stipulations:
- The funds must be divided evenly over all of the packaged terms in an academic year.
- The minimum loan amount you can accept is $200.
- All subsidized funds must be accepted before accepting/reducing unsubsidized loans.
In order to reduce funds, you need to indicate the revised amount on your award letter or notate a full decline of a loan. Please contact a Financial Aid Counselor if you have any questions about reducing your loan amounts.
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Founded in 1850, Urbana University is a private, not-for-profit institution that offers educational opportunities and college degree programs to learners around the world and throughout the state of Ohio, including the cities of Urbana, Bellefontaine, Columbus, Dayton, Fairborn, London, Marysville, Piqua, Sidney, Springfield, and Troy. Urbana is a division of Franklin University, a nonprofit accredited university in Columbus, Ohio and provider of online college degree programs.