Groups Decry Student-Aid Law's Anti-Drug Provision

When police found a small amount of marijuana residue in her car the day before her 19th birthday, Marisa Garcia was handed a ticket and sent on her way. After she was convicted of drug possession and paid a $415 fine, Ms. Garcia thought the incident could be put behind her.

But the California State University-Fullerton student later discovered that her minor scrape with the law had cost her much more: Ms. Garcia ended up losing her eligibility for federal student financial aid because of a change three years ago in the Higher Education Act.

"It was the first time I had ever been in trouble with the law," said Ms. Garcia, who worked extra hours in a flower shop and turned to her family to help pay her tuition and expenses. "When I found out that if I was a murderer or child molester I would still be eligible,...

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