Federal Student Loans Webinar

TROY, MI, June 27, 2012 (Press-News.org) Michigan criminal defense attorney John Freeman to moderate live webinar "Collateral Consequences of Criminal Convictions" on Wednesday, June 27, 2012; State Bar of Michigan's Institute of Continuing Legal Education.

Eligibility
There are many requirements that students must meet for federal student loan eligibility. Certain criminal convictions may affect a student's eligibility to receive such loans. To receive federal loans, students must complete the Free Application for Federal Student Aid (FAFSA). The FAFSA specifically asks about a student's criminal history relating to the possession or sale of illegal drugs. Depending on the nature of the offense, the date of the conviction, and if the student received federal loans at the time of the conviction, the student's eligibility for a federal loan could be jeopardized. Some students may be only partially eligible or eligible after a certain date. Successful completion of a drug rehabilitation program may expedite eligibility.

Sources:
www.fafsa.ed.gov
www.ifap.ed.gov/drugworksheets/attachments/0107091011Drug%20WorksheetFINAL.pdf

Determining Eligibility
If a student answers "yes" indicating a conviction for possessing or selling illegal drugs, they will have to fill out the Student Aid Eligibility Worksheet. The worksheet determines whether the student is eligible, partly eligible, or ineligible for federal student loans. You can view the worksheet at:

http://www.ifap.ed.gov/drugworksheets/attachments/0107091011Drug%20WorksheetFINAL.pdf

Practice point: If your client is a student, you should review the worksheet with them to determine if a possible plea or conviction will affect their eligibility status.

If a conviction occurred before the student received federal student aid, then past drug convictions do not affect eligibility. However, if an offense occurred during a period of enrollment, then eligibility may be affected depending on the individual circumstances.

Note: Upon successful completion of an approved drug rehabilitation program that includes two unannounced drug tests, an otherwise ineligible person will be eligible for federal aid.

Possession of Illegal Drugs
One Conviction - Eligible One Year from Date of Conviction
Two Convictions - Eligible Two Years from the Date of Last Conviction
More than Two Convictions - Ineligible Indefinitely without Drug Rehabilitation

Selling of Illegal Drugs
One Conviction - Eligible Two Years from the Date of Conviction
Two Convictions - Ineligible Indefinitely without Drug Rehabilitation
More than 2 convictions - Ineligible Indefinitely without Drug Rehabilitation

See 34 C.F.R. 668.40