Denial of Education Benefits

"The Higher Education Act of 1965,1 as amended, provides for the suspension of certain federal higher education benefits to students who have been convicted for the possession or sale of a controlled substance under federal or state law.2 The controlled substance offense may be either a felony or a misdemeanor. Federal higher education benefits that are denied to such individuals include student loans, Pell Grants, Supplemental Educational Opportunity Grants, and the Federal Work-Study program.3
"The Higher Education Act [HEA] provision outlines different periods for which such drug offenders are ineligible to receive certain federal higher education benefits, depending upon the type and number of controlled substance convictions. The period of ineligibility begins on the date of conviction and ends after a specified interval."

Source: 

"Drug Offenders: Various Factors May Limit the Impacts of Federal Laws That Provide for Denial of Selected Benefits," United States Government Accountability Office (Washington, DC: September 2005) GAO-05-238, p. 51.
http://www.gao.gov/new.items/d...