Bill > HR7892

This bill, the "No Aid for Ghost Students Act of 2026," aims to prevent federal student aid from being disbursed to individuals who have committed identity fraud when applying for financial assistance. It mandates that starting October 1, 2026, the Secretary of Education must use an identity fraud detection system to review every Free Application for Federal Student Aid (FAFSA) to identify any reasonable suspicion of fraud. If such suspicion arises, the applicant will be notified, and the designated colleges will also be informed, requiring them to conduct additional identity verification before disbursing any federal financial aid. This verification must meet specific standards, including in-person checks, live video verification, or compliance with National Institute of Standards and Technology (NIST) guidelines, and institutions must maintain records of these verifications. The bill also requires the Secretary to report to Congress on the system's implementation and effectiveness and designates institutions with a pattern of disbursing aid to applicants with suspected identity fraud as a priority for program review, unless they can prove compliance with the new verification requirements.