Notice of Federal Student Financial Aid Penalties for Drug Law Violations | ACTC

Notice of Federal Student Financial Aid Penalties for Drug Law Violations

This notice provides information on the penalties associated with drug-related offenses under section 34 CFR ยง668.40 of the Higher Education Opportunity Act (HEOA). It also provides notice on how to regain eligibility after conviction of a drug related offense.

Ashland Community & Technical College will provide a timely notice to each student who has lost eligibility for Title IV, HEA program funds as a result of these violations, and will advise the student of the ways in which he or she can regain eligibility.

In general, a student who has been convicted of an offense under any Federal or State law involving the possession or sale of illegal drugs during a period of enrollment for which the student was receiving Title IV, HEA  program funds shall not be eligible to receive any further Title IV funds (grants, loans, work study) during the period beginning on the date of such conviction and ending after the interval specified by the following table.

If convicted of an offense involving:

Possession of illegal drugs Ineligibility Period
First Offense  1 year from date of conviction
Second Offense  2 years from date of conviction
Third (or more) Offense Indefinite period from date of conviction
Sale of illegal drugs Ineligibility Period
First Offense  2 years from date of conviction
Second (or more) Offense Indefinite period from date of conviction

A student regains eligibility the day after the period of ineligibility ends or when he or she successfully completes a qualified drug rehabilitation program. The drug rehabilitation program must include the following:

  • two unannounced drug tests from such a program; and
  • has received or is qualified to receive funds directly or indirectly under a Federal, State, or local government program:
    • is administered or recognized by a Federal, State, or local government agency or court;
    • has received or is qualified to receive a payment directly or indirectly from a Federally- or State- licensed insurance company; or
    • is administered or recognized by a Federally- or State-licensed hospital, health clinic or medical doctor.