New ID Verification to Curb Student Aid Fraud

The U.S. Department of Education will implement new identity validation processes to combat rising student aid fraud, starting with the 2025-26 award year.

For the summer term, first-time appliants at higher education institutions must verify their identity, with permanent screening planned for all FAFSA® applicants this fall. The measures aim to protect taxpayers and reduce administrative burdens on colleges.

Recent Federal Student Aid data identified nearly 150,000 suspect identities in current FAFSA forms, requiring live ID verification before aid disbursement.

Applicants must present valid, unexpired government-issued photo ID in person or via live video, with institutions retaining copies.

Fraud, exacerbated by relaxed safeguards during the COVID-19 pandemic, has led to significant losses, including $7.4 million at the College of Southern Nevada.

The initiative follows reports of widespread fraudulent applications, particularly in community colleges.