Bill > S4428

This bill, titled the "No Aid for Ghost Students Act of 2026," amends the Higher Education Act of 1965 to require the Secretary of Education to implement an identity fraud detection system for reviewing Free Applications for Federal Student Aid (FAFSA) starting October 1, 2026. If this system detects a reasonable suspicion of identity fraud in an application, the Secretary must notify the applicant and the colleges they listed, informing them that the applicant is subject to additional identity verification. Colleges will then be prohibited from disbursing federal student aid to such applicants until they verify the applicant's identity through in-person or live audiovisual means, notify the Secretary of successful verification, and keep a record of the process. The bill also mandates that the Secretary provide Congress with descriptions of the fraud detection system and its changes, and submit an annual report evaluating its effectiveness.