The Senate Health, Education, Labor and Pensions Committee will mark up the bipartisan No Aid for Ghost Students Act of 2026 (S. 4428) on Sept. 24, legislation intended to stop bad actors using fake or stolen identities from obtaining federal student aid. A House version (H.R. 7892) passed June 10 by a vote of 249-172, with 36 Democrats joining Republicans in support.
Under the House-passed bill, the Department of Education (ED) would be required to screen every Free Application for Federal Student Aid (FAFSA) for potential identity fraud beginning with applications submitted after Oct. 1, 2026.
If an application is flagged, ED would notify the applicant and the institutions listed on the FAFSA. Before disbursing federal aid, an institution would have to confirm the applicant’s identity, report that confirmation to ED, and maintain a record of the verification.
The measure also would require ED to establish guidelines for institutional identity verification and report to Congress on the effectiveness of its detection system.
The legislation builds on anti-fraud measures already being implemented by the department, including enhanced identity confirmation for FAFSA applicants. ED has said its efforts have prevented more than $1 billion in federal student aid from being accessed by bad actors.
For more details on the bill, read ACE’s summary.