S 4428
No Aid for Ghost Students Act of 2026
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Bill overview
This bill, the No Aid for Ghost Students Act of 2026, aims to prevent fraudulent applications for federal student aid. It requires the Department of Education to use an identity fraud detection system to review applications submitted after October 1, 2026, and to flag applications suspected of identity fraud. Institutions receiving federal aid will be required to verify the identity of applicants flagged as potentially fraudulent, either through in-person or live verification, before disbursing funds.
Key provisions
- Requires the use of an identity fraud detection system for student aid applications.
- Institutions must verify the identity of applicants flagged as potentially fraudulent.
- Applicants will receive notice if their application is flagged for potential fraud.
- Institutions must notify the Department of Education upon verifying an applicant's identity.
- The Secretary of Education must establish guidelines for identity verification procedures.
- The Secretary must report on the identity fraud detection system and its effectiveness to Congress annually.
- A report on the system's effectiveness is due to Congress by October 1, 2027.
Who is affected
- Students applying for federal financial aid
- Institutions of higher education
- The Department of Education
- Congress
Notable changes
- Adds a requirement for identity fraud detection systems in the application review process.
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119th CONGRESS — 2d Session
S. 4428
IN THE SENATE OF THE UNITED STATES
A BILL
To amend the Higher Education Act of 1965 to require the use of an identity fraud detection system in reviewing Free Applications for Federal Student Aid.
This Act may be cited as the No Aid for Ghost Students Act of 2026
.
If the Secretary determines that an application submitted under this section presents a reasonable suspicion of identity fraud, the Secretary shall—
of such determination and the basis for such determination;
that the applicant is subject to additional identity verification requirements in accordance with section 487(a)(15); and
transmit to each institution designated by the applicant in the application, a notice—
The Secretary shall submit to the authorizing committees—
not later than November 1, 2026, a written description of the identity fraud detection system required under this subsection; and
not later than 30 days after implementing any substantial change to such system, a written description and rationale for such change.
Section 487(a)(15) of the Higher Education Act of 1965 (20 U.S.C. 1094(a)(15)) is amended—
by striking (15) The institution acknowledges
and inserting (15)(A) The institution acknowledges
; and
by adding at the end the following new subparagraph:
determines that a reasonable suspicion of identity fraud is not present by confirming the identity of such applicant using in-person verification or live, synchronous audiovisual verification;
notifies the Secretary that the identity of the applicant has been verified; and
maintains a record of such identity verification.