An article fromDive Brief Bill to mandate FAFSA anti-fraud system passes House

The No Aid for Ghost Students Act would largely codify a system for screening applicants that the U.S. Department of Education launched earlier this year.

Published June 12, 2026Natalie Schwartz Senior Editor

• Share
  • Copy link
  • Email
  • LinkedIn
  • X/Twitter
  • Facebook
  • Print
• License
• Add us on Google

Rep. Burgess Owens speaks in the Rayburn Reception Room in the U.S. Capitol on Feb. 12, 2026, in Washington, D.C. Owens introduced legislation that would require the U.S. Department of Education to screen financial aid applicants for potential identity fraud. Michael M. Santiago via Getty ImagesListen to the article 4 min This audio is auto-generated. Please let us know if you have feedback. Dive Brief: 

• A Republican-backed measure that would require the U.S. Department of Education to screen federal financial aid applicants for potential identity fraud passed the House on Wednesday in a 249-172 vote. 
• Three dozen Democrats joined Republicans in voting for the measure. The bill would largely codify a fraud detection system for the Free Application for Federal Student Aid that the Education Department launched in April. Under that system, applicants deemed a high fraud risk must show their government-issued IDs before they can receive federal financial aid.
• The legislation, called the No Aid for Ghost Students Act, is aimed at reports of scammers using fake identities to apply and enroll in higher education institutions — often community colleges — in order to steal federal financial aid. 

if (window.dfp_visibility === 'mobile' ) googletag.cmd.push(function() googletag.defineSlot( '/3618/highereddive/highereddivehybrid1', [[300, 250], 'fluid'], 'dfp-hybrid1-mobile' ).addService(googletag.pubads()); ); waitToLoadAds.push(function() googletag.cmd.push(function() if (window.dfp_visibility === 'mobile' ) window.onDvtagReady?.(() => googletag.display('dfp-hybrid1-mobile')); googletag.pubads().addEventListener('slotRenderEnded', function (event) var adUnitPath = '/3618/highereddive/highereddivehybrid1'; var onProformative = false; if (onProformative && event.slot.getAdUnitPath() === adUnitPath && !event.isEmpty ) var adUnitPathWithVisibility = adUnitPath + '-mobile'; var selector = '.pf-comments__ad-wrapper #dfp-hybrid1-mobile'; if (!$(selector).closest('.pf-comments__ad-wrapper').hasClass('borders')) $(selector).closest('.pf-comments__ad-wrapper').addClass('borders') ); ); ); if (window.dfp_visibility === 'desktop' ) googletag.cmd.push(function() googletag.defineSlot( '/3618/highereddive/highereddivehybrid2', [[300, 250], 'fluid'], 'dfp-hybrid2-desktop' ).addService(googletag.pubads()); ); waitToLoadAds.push(function() googletag.cmd.push(function() if (window.dfp_visibility === 'desktop' ) window.onDvtagReady?.(() => googletag.display('dfp-hybrid2-desktop')); googletag.pubads().addEventListener('slotRenderEnded', function (event) var adUnitPath = '/3618/highereddive/highereddivehybrid2'; var onProformative = false; if (onProformative && event.slot.getAdUnitPath() === adUnitPath && !event.isEmpty ) var adUnitPathWithVisibility = adUnitPath + '-desktop'; var selector = '.pf-comments__ad-wrapper #dfp-hybrid2-desktop'; if (!$(selector).closest('.pf-comments__ad-wrapper').hasClass('borders')) $(selector).closest('.pf-comments__ad-wrapper').addClass('borders') ); ); ); Dive Insight: 

Rep. Burgess Owens, a Utah Republican who introduced the legislation, praised the fraud detection efforts the Education Department has already put in place. 

“The No Aid for Ghost Students Act makes those protections permanent, helping ensure that federal student aid goes to real students working to further their education — not scammers gaming the system,” Owens said in a Wednesday statement. 

Fraudsters have stolen millions from colleges by pretending to be real students. In the first quarter of 2026, the 116 institutions in the California Community Colleges system disbursed more than $1.9 million in financial aid to fake students, according to documents obtained from EdSource. And the system has lost $30 million due to the issue since 2024. 

The Education Department began ramping up fraud detection efforts last year. That June, the agency told colleges it would temporarily require them to verify the identities of roughly 125,000 first-time federal financial aid applicants while it developed a permanent screening process. 

That process was key to ensuring financial aid didn’t go “out the door to fraudsters,” FAFSA Program Executive Director Aaron Lemon-Strauss said during an higher education conference in February. The department also flagged tens of thousands of students for verification in August. 

In December, the Education Department said the measures helped prevent $1 billion in federal financial aid fraud. They also helped train the department’s system for identifying potential fraudsters, Lemon-Strauss said in February. 

The Education Department’s formal fraud detection system that debuted in April requires students flagged as high risk to verify their identities through the online FAFSA form. They are asked to present their IDs and take a picture during a live camera check. 

If students can’t complete this step, they must verify their identities in person at their institutions. 

Virginia Rep. Bobby Scott, the top-ranking Democrat on the House’s education committee, raised concerns during Wednesday’s floor debate about students incorrectly flagged as potential fraudsters. 

“The bill prohibits colleges from distributing funds to those students until the suspicion is cleared up,” Scott said. “These students could face hardships obtaining housing, transportation, or even buying books for who knows how long.” 

While he voiced support for fraud detection efforts, he argued that lawmakers didn’t yet know whether the department’s system was working. 

“That system is still being tested, and Congress has not yet seen meaningful evidence about its effectiveness or its impact on students,” Scott said. “Yet this legislation would rush to codify requirements and penalties before we know whether the department's current efforts are even working.”

A companion bill was introduced in the Senate in April.

• Add us on Google
• Share
  • Copy link
  • Email
  • LinkedIn
  • X/Twitter
  • Facebook
  • Print
  • License

Filed Under: Federal Policy, Students /* Keep this hidden until we need to show the v2 challenge. */ .captcha-container display: none; (function () /* Signup reCAPTCHA flow (v3-first, v2-fallback): - On submit, we run existing form validation first. - Then we execute reCAPTCHA v3 and send token+action to /signup/recaptcha-v3-score/. - If backend verification succeeds and score is above 0.5 , we submit normally. - If score is below 0.5 or v3 errors, we show the v2 checkbox challenge and submit after solve. - Per-form dataset flags prevent duplicate wiring/submits and track v2 waiting state. */ // This partial can show up more than once, so keep config per instance. var config = key: 'generic_signup', formSelector: 'form.js\u002Dform\u002Demail\u002Dvalidate[name\u003D\u0022signup\u0022]', v2ContainerSelector: '.captcha-container', v2ElementSelector: '.g-recaptcha', submitAction: 'signup_submit', pageAction: 'signup_page_load', runExistingValidation: true, scoreThreshold: 0.5, v2SiteKey: '6LfnFggUAAAAAKaDTgN6vqjZtnNENIqa\u002D\u002DTCG9F4', v3SiteKey: '6Lc\u002DlpYsAAAAAMhweO3XD1__w\u002DvHSSOVRRpARwEM' ; // Save each config globally so one bootstrap pass can wire them all. window._signupRecaptchaConfigs = window._signupRecaptchaConfigs )(); Higher Ed Dive news delivered to your inbox

Get the free daily newsletter read by industry experts

Email:

• Select user consent: By signing up to receive our newsletter, you agree to our Terms of Use and Privacy Policy. You can unsubscribe at anytime.

Sign up A valid email address is required. Please select at least one newsletter.Editors' picks

• Getty ImagesEducation Department releases final rule for Workforce Pell

  The regulations detail the process for how short-term programs can get approval from the federal government to be eligible for Pell Grants. 

  By Natalie Schwartz • May 18, 2026
• Kayla Bartkowski via Getty ImagesEducation Department finalizes rule tightening federal student lending

  The agency kept a contested definition of “professional” student that excludes fields like graduate nursing and physical therapy from higher loan caps.

  By Ben Unglesbee • April 30, 2026