Drug convictions can have a significant impact on various aspects of your life, including your ability to secure employment and find stable housing. Previously, these convictions could also affect your eligibility for federal financial aid, including student loans.

However, recent changes to the Free Application for Federal Student Aid (FAFSA) are now making it easier for individuals with drug-related convictions to access federal student aid.

Am I eligible to receive federal financial aid with a drug conviction?

The FAFSA Simplification Act, enacted in 2021, has brought significant changes to the financial aid application process. As of the 2023-24 FAFSA cycle, students are no longer required to disclose drug-related convictions on their FAFSA application. The question about drug convictions has been removed from the form to eliminate any confusion.

Although students can still choose to disclose this information, a drug conviction will no longer affect their eligibility for federal financial aid.

How drug convictions used to impact students’ eligibility for federal student aid

Before the FAFSA Simplification Act, your eligibility for financial aid in college largely depended on your specific circumstances. For example, if you were incarcerated for a drug conviction, you were ineligible for a Federal Pell Grant or federal student loans, and your chances of receiving a Federal Supplemental Educational Opportunity Grant (FSEOG) or work-study were limited. Although these restrictions typically ended once you were released, you were still required to disclose your conviction on the FAFSA. You would then have to complete a worksheet that the federal government used to assess your eligibility for financial aid.

The duration of your ineligibility for aid depended on the type of conviction and the number of prior offenses. Additionally, if you were convicted of a drug offense after submitting the FAFSA, you risked losing future eligibility and could have been required to return any financial aid you had already received.

Regaining eligibility

Regaining eligibility for financial aid after a conviction used to involve a separate process. You typically had to complete an approved drug rehabilitation program or pass two unannounced drug tests conducted by an approved program.

Now, your eligibility for federal aid, including grants and student loans, is no longer suspended even if the conviction occurred while you were receiving financial aid.

Other ways to fund college

Federal aid is a primary resource for funding your college education, offering scholarships, grants, work-study opportunities, and student loans.

If your financial aid package falls short, consider exploring these additional options:

  • State and Local Funding: To qualify for state and local aid, you need to complete the FAFSA. This funding is often need-based, determined by your financial situation rather than merit. Additionally, local and state nonprofits, for-profit businesses, and other organizations may offer aid that doesn’t require the FAFSA.
  • Institutional Funding: Many colleges provide their own scholarships, grants, and sometimes loans to help offset education costs. Check with your institution to see what they offer and determine your eligibility. College-specific funding might cover a significant portion of your expenses.
  • Scholarships and Grants: These are forms of financial aid that don’t require repayment. Scholarships are typically merit-based, while grants are need-based. Seek out both types to maximize your funding opportunities before considering student loans.
  • Private Student Loans: Unlike federal loans, private student loans come from individual lenders and require a strong credit score or a creditworthy co-signer. Explore these options if additional funds are needed beyond what federal aid provides.

In Conclusion

Previously, a drug-related conviction could affect your eligibility for federal financial aid. However, with the enactment of the FAFSA Simplification Act in 2021, this is no longer the case. Now, regardless of any drug-related convictions on your record, you remain eligible for federal financial aid, including grants, work-study programs, and student loans, just like other students.