Loss of Eligibility Due to Drug Convictions

The Department of Education (ED) received numerous inquiries regarding the Reauthorization provision 1998 (HEA) relating to student loss of eligibility for Title IV aid due to drug convictions. As a result, ED published GEN-99-16 to announce that the new student eligibility provision will not become effective until July 1, 2000, and to provide interim guidance to be used until final regulations are issued.

suspended if the student is convicted, under federal or state law, of any offense involving the possession or sale of a controlled substance (generally meaning illegal drugs, but not including alcohol or tobacco). Eligibility suspension begins on the date of conviction and lasts until the end of a specified period defined in the HEA. The suspension of eligibility ranges from one year to indefinite, depending upon the number and types of convictions. A student may regain eligibility early by completing a drug rehabilitation program that meets certain statutory and regulatory requirements, or if the conviction is overturned.

Implementation
All regulations related to Title IV of the HEA are subject to both the requirements of negotiated rulemaking and the master calendar provisions of the HEA. As a result, final regulations establishing the criteria for acceptable drug rehabilitation programs will be published by ED later this year and will become effective July 1, 2000.

Therefore, this new student eligibility provision will not be implemented until regulations defining an acceptable drug rehabilitation program take effect on July 1, 2000. Until that time no student will be determined to be ineligible for Title IV assistance under the new provision.

Student's Actions Affect Eligibility
A student's actions between now and the effective date of the regulations may affect eligibility. For example, a first conviction for possession of a controlled substance on February 1, 2000, will make the student ineligible for Title IV assistance from July 1, 2000 (the effective date of the regulations) until January 31, 2001 (one year from the date of conviction). If the conviction is the second for the student, eligibility would not be regained until January 31, 2002 (two years from the conviction). Because of the serious consequences of the new provision to some students, ED encourages, but is not requiring, schools to inform their students of the new provision and help them understand how their actions might affect their future eligibility.

Students affected by the new law can avoid a loss of eligibility by completing an acceptable drug rehabilitation program. Because the final regulations defining an acceptable rehabilitation program will be published by November 1, 1999, students will have time to enroll in acceptable drug rehabilitation programs before the regulations become effective on July 1, 2000.

Schools are not required to question their federal student aid applicants about drug related matters. ED is working with representatives from various schools to develop processes to collect needed information from applicants and to report the results to schools. Texas Guaranteed Student Loan Corporation (TG) will update its business partners when the final plans are developed.

Questions
For questions about the effect of drug convictions on student eligibility for Title IV financial aid or for a copy of GEN-99-16, contact TG Customer Support at (800) 252-9743, ext. 4444, or send an e-mail message to customer.services@tgslc.org.