Can You Get Financial Aid With a Felony?

If you have a felony on your record and you’re wondering whether college is financially possible, here is the most important thing you need to know: the FAFSA does not ask about your criminal history. As of the 2023-24 award year, the drug conviction question — which was the only question the FAFSA ever asked about criminal records — was completely removed from the application.

This happened because Congress passed the FAFSA Simplification Act in December 2020, which eliminated the requirement that drug convictions affect your Title IV federal aid eligibility. The U.S. Department of Education began implementing this change early, so even for the 2021-22 award year, having a drug conviction no longer impacted your eligibility.

What this means for you: if you are not currently incarcerated, your felony conviction — regardless of type — does not prevent you from completing the FAFSA and qualifying for federal grants, loans, and work-study programs. You are evaluated on the same financial need criteria as every other student.

Your eligibility depends on factors like your income, family size, and enrollment status — not your criminal record. The one remaining restriction applies to individuals subject to involuntary civil commitment following a sexual offense conviction, who are ineligible for Pell Grants specifically.

Before 2021, if you were convicted of possessing or selling drugs while receiving federal student aid, you could lose your eligibility for a set period — or indefinitely for repeat offenses. This policy was the only way a felony could directly disqualify you from federal aid through the FAFSA. The FAFSA Simplification Act, enacted on December 27, 2020, as part of the Consolidated Appropriations Act of 2021, repealed this provision entirely.

The law made two major changes that matter to you. First, it eliminated the suspension of federal aid eligibility based on drug convictions. As the Department of Education confirmed in the Federal Register, drug convictions no longer impact your Title IV aid eligibility for any award year from 2021-22 onward.

Second, it restored Pell Grant eligibility for incarcerated students enrolled in approved prison education programs, effective July 1, 2023. This reversed a ban that had been in place since 1994, when the Violent Crime Control and Law Enforcement Act stripped Pell access from students in federal and state prisons.

The Department of Education estimates that approximately 760,000 incarcerated individuals became newly eligible for federal financial aid as a result of this restoration. If you’re currently incarcerated, on parole, or recently released, these changes directly expand your options.

If you’re currently in a federal or state correctional facility, your financial aid options are more limited than they are after release — but they are not nonexistent. Here is what you are and are not eligible for while incarcerated.

You CAN receive Federal Pell Grants if you are enrolled in an approved prison education program (PEP). These programs, offered by public or nonprofit institutions, must be approved by your state’s Department of Corrections, the institution’s accreditor, and the U.S. Department of Education.

The maximum Pell Grant for both the 2025-26 and 2026-27 award years is $7,395. You may also be eligible for Federal Supplemental Educational Opportunity Grants (FSEOG), though funding is limited and distributed at the school’s discretion. Federal Work-Study is technically available but practically difficult to use while confined.

You CANNOT receive federal student loans while incarcerated in an adult correctional facility or juvenile justice facility. This restriction is lifted upon your release. You also cannot receive Pell Grants unless you are enrolled in a formally approved PEP — simply taking classes at a facility is not enough if the program has not gone through the approval process.

You should still complete the FAFSA even while incarcerated, especially if you anticipate release during the upcoming academic year. You can submit the paper FAFSA form, which is available at fsapartners.ed.gov. Having your FAFSA on file ensures you can receive aid promptly when you are released.

This is the most important section if you’ve already served your time. Once you are released from a correctional facility — whether you’re on probation, parole, living in a halfway house, or fully off supervision — you are eligible for the full range of federal student aid. This includes Pell Grants, Federal Supplemental Educational Opportunity Grants, Federal Work-Study, Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans (for graduate students or parents).

Your eligibility is based on the same criteria as any other student applicant. You need to be a U.S. citizen or eligible noncitizen, have a valid Social Security number, hold a high school diploma or GED, be enrolled in an eligible program at an accredited institution, and maintain satisfactory academic progress. Your criminal record does not factor into federal aid determinations.

There are two narrow exceptions to know about. If your federal aid eligibility was previously suspended due to a drug conviction under the old rules, that suspension has been lifted — you do not need to do anything extra. And if you were convicted of a sexual offense that resulted in involuntary civil commitment, you remain ineligible for Pell Grants specifically, though you may still qualify for federal loans.

If you have defaulted federal student loans from before your incarceration, you will need to resolve that default before receiving new aid. Options include loan rehabilitation, consolidation, or the Fresh Start program for eligible borrowers.

Beyond federal financial aid, several organizations offer scholarships designed specifically for people with felony convictions or incarceration histories. These can supplement your Pell Grant and reduce or eliminate your need for loans.

The NAACP Empowering a Better Tomorrow Scholarship, powered by Walmart, awards $5,000 to formerly incarcerated individuals or those who have recently been convicted and completed their sentence. You must be enrolled in a public educational institution, have no serious disciplinary incidents within the past 12 months, and have already applied for all available federal and state aid. Applications typically open in the spring.

The Charles W. Colson Scholarship at Wheaton College in Illinois supports students with felony records (excluding sexual offenses, arson, or repeat violent offenses) who are pursuing undergraduate or graduate studies. You must have been out of prison for at least one year and be established at a local church.

The Transcending Through Education Foundation, founded by three formerly incarcerated individuals from Rhode Island, offers scholarships and resources to both incarcerated and recently released students. The Prison Education Foundation provides scholarships to incarcerated students in approved programs and to those recently released, though you must have already secured all other available grants and loans first.

Many general scholarships also do not ask about criminal history. Cast a wide net when searching and do not assume your record automatically disqualifies you.

The process of applying for financial aid with a felony is not different from the standard process. You do not need to disclose your criminal history on the FAFSA, and there is no separate form or additional hurdle. Your biggest task is simply completing the application and submitting it on time.

That said, the process can feel overwhelming if you’ve been away from school for a while or if you’re navigating reentry. The steps below break it down into manageable actions. If you’re currently incarcerated, you’ll need to work with your facility’s education coordinator to complete the paper FAFSA. If you’re released, you can complete it online at studentaid.gov.

Either way, you should gather your documents early, including your Social Security number, tax records (or confirmation that you did not file), and your high school diploma or GED. If you’re a dependent student, you’ll need a parent or guardian to contribute information as well.

Once you submit the FAFSA, you’ll receive a FAFSA Submission Summary showing your Student Aid Index (SAI). Your schools will use this to build your financial aid package. Review any award letters carefully and contact the financial aid office if anything seems wrong or if you have questions about your eligibility.

Getting approved for financial aid is one thing; getting accepted to a college is another. It’s important to understand that these are two separate processes. The FAFSA determines your financial aid eligibility and does not consider your criminal record. College admissions, however, are handled independently by each institution, and policies vary.

Some schools ask about criminal history on their applications, and some do not. According to data referenced by the Department of Education, approximately 72% of colleges had some form of criminal history question on their applications as of 2023. However, a growing number of institutions — including many community colleges and state university systems — have adopted “ban the box” policies that remove criminal history questions from initial applications.

Even at schools that do ask, disclosure does not automatically mean denial. Many schools evaluate each applicant individually, and having a felony does not disqualify you from admission at most institutions.

Community colleges are generally the most accessible option. Most have open-enrollment policies, meaning they accept all applicants with a high school diploma or GED, regardless of criminal history. They also tend to have lower tuition, flexible scheduling, and support services for nontraditional students. If you’re unsure where to start, your local community college is an excellent first step.