No Aid for Ghost Students Act of 2026

The No Aid for Ghost Students Act of 2026 would amend the Higher Education Act of 1965 to combat identity fraud in federal student aid programs. The bill would require the Secretary of Education to implement an identity fraud detection system to review all Free Application for Federal Student Aid (FAFSA) applications submitted on or after October 1, 2026. If the system identifies reasonable suspicion of identity fraud, the Secretary must notify both the applicant and the colleges listed in their application, explaining the basis for the suspicion and the need for further identity verification.

Under this bill, colleges and universities would be prohibited from disbursing federal financial aid to any applicant whose FAFSA raises a reasonable suspicion of identity fraud unless the institution verifies the applicant's identity using procedures established by the Secretary of Education. The bill aims to ensure that federal student aid funds go only to legitimate students and to enhance the integrity of the financial aid process. The bill has passed committee review and is now eligible for a floor vote in the House.