The Aid Elimination Penalty and FAFSA Q. #23
Brief History:
Since 2000, students convicted of a drug law violation have lost access to federal financial aid as a result of the Aid Elimination Penalty, a provision of the federal Higher Education Act (HEA). This provision was enacted in 1998 without debate; one of many measures enacted by Congress at that time intended to ramp up the war on drugs.
The Aid Elimination Penalty applies to any conviction for a state or federal drug law violation, no matter how minor, that occurs while the student is receiving financial aid. The penalty applies to all forms of federal student aid including federal student loans, supplemental education opportunity grants, federal work-study and Pell grants. Typically, a student loses federal aid following a drug conviction when they go to reapply for federal student aid for the next school year using the Free Application for Federal Student Aid (FAFSA) form and are confronted with Question #23 on this form that inquires if the applicant was ever convicted of a drug law violation while they were receiving federal student aid. If a student answers “Yes” to this question or leaves the question blank they risk losing aid.
A first offense for possession means a one-year period of ineligibility; a second offense results in two years of ineligibility; and a third offense means a student loses access to aid indefinitely. For convictions involving the sale of a controlled substance, a first offense leads to two years of ineligibility for student aid, and a second means an indefinite loss of eligibility.
The Aid Elimination Penalty and Question #23 on the FAFSA:
Current Opportunity:
There is significant bipartisan support in Congress for criminal justice reform and interest in removing counterproductive barriers to reentry like this one. There is also interest, especially among Republicans, in making the FAFSA less burdensome to student applicants by simplifying the form. The House and Senate is currently working on legislation that would reauthorize the Higher Education Act, the law that includes the Aid Elimination Penalty. The House Higher Education Act Reauthorization bill named the College Affordability Act passed out of the House Education Committee on December 10th, 2019. This presents a great opportunity for repealing this penalty and removing Question #23 from the FAFSA.
Since 2000, students convicted of a drug law violation have lost access to federal financial aid as a result of the Aid Elimination Penalty, a provision of the federal Higher Education Act (HEA). This provision was enacted in 1998 without debate; one of many measures enacted by Congress at that time intended to ramp up the war on drugs.
The Aid Elimination Penalty applies to any conviction for a state or federal drug law violation, no matter how minor, that occurs while the student is receiving financial aid. The penalty applies to all forms of federal student aid including federal student loans, supplemental education opportunity grants, federal work-study and Pell grants. Typically, a student loses federal aid following a drug conviction when they go to reapply for federal student aid for the next school year using the Free Application for Federal Student Aid (FAFSA) form and are confronted with Question #23 on this form that inquires if the applicant was ever convicted of a drug law violation while they were receiving federal student aid. If a student answers “Yes” to this question or leaves the question blank they risk losing aid.
A first offense for possession means a one-year period of ineligibility; a second offense results in two years of ineligibility; and a third offense means a student loses access to aid indefinitely. For convictions involving the sale of a controlled substance, a first offense leads to two years of ineligibility for student aid, and a second means an indefinite loss of eligibility.
The Aid Elimination Penalty and Question #23 on the FAFSA:
- Jeopardizes a student’s ability to continue higher education. When a student is forced to drop out of school, they are less likely to retain a stabilizing and enriching environment that higher education provides.
- Disproportionately affects people of color who apply for federal student aid. Although no more likely to use drugs than other students, people of color are more likely to be convicted of a drug law violation that results in suspension of student aid.
- Penalizes only students who might not have access to meaningful education opportunities without federal student aid. Students who do not receive financial aid, including more affluent students, are not impacted by the penalty.
- Deters applicants from applying for federal student aid even if they may be eligible. Anecdotal evidence indicates that many students who have experienced a brush with the law on account of drugs but were never convicted are deterred from applying because they encounter Question #23 and misbelieve they are ineligible.
Current Opportunity:
There is significant bipartisan support in Congress for criminal justice reform and interest in removing counterproductive barriers to reentry like this one. There is also interest, especially among Republicans, in making the FAFSA less burdensome to student applicants by simplifying the form. The House and Senate is currently working on legislation that would reauthorize the Higher Education Act, the law that includes the Aid Elimination Penalty. The House Higher Education Act Reauthorization bill named the College Affordability Act passed out of the House Education Committee on December 10th, 2019. This presents a great opportunity for repealing this penalty and removing Question #23 from the FAFSA.