A determination or adjudication arising out of a juvenile proceeding is not a conviction for purposes of this regulation. The institution is not required to question their applicants for Title IV HEA program funds about drug convictions. The institution is also not required to verify the accuracy of the student's self-certification. Students who regain eligibility during an enrollment period will be eligible to receive grants or loans for the entire period, and students who lose eligibility during a payment period will be immediately ineligible to receive subsequent disbursements of aid. On a first conviction of a drug possession offense, the government will withhold eligibility for one year, two years for a second offense, and indefinitely for a third possession offense.
Stricter penalties apply to convictions for selling illegal drugs.
The Department of Education will be providing further guidance to institutions on this rule.