Students who checked "yes" on the FAFSA application saying they have been convicted of a drug-related offense automatically lost federal financial aid in the form of Pell Grants, Stafford Loans and potentially state financial aid as well, but they may be able to win it back. For charges of possession, the first offense is loss of financial aid for a year. Second offense is two years and for a third offense, financial aid is suspended indefinitely. The policy has been in effect since 2000, when an amendment was added to the Higher Education Act, which was passed in 1965. [continues 400 words]