Student Aid Fraud Oversight and Accountability Act of 2026
Sponsored By: Representative Thompson (PA)
In Committee
Summary
Prioritizes program reviews for colleges that disburse Title IV aid when FAFSA information shows a reasonable suspicion of identity fraud. It lets the Education Department use those flags in targeted reviews, audits, and investigations while protecting schools that verify student identity before awarding aid.
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- Institutions: Schools identified under this rule are treated as a program review priority category and may face focused program reviews, audits, or investigations tied to Title IV aid.
- Students and applicants: The change applies to aid disbursed on or after Oct. 1, 2026 for FAFSA applications the Education Department’s identity-fraud system marks with reasonable suspicion.
- Schools that confirm identity: An institution can be excluded from identification if it verifies a student’s identity in person or by live, synchronous audiovisual check, notifies the Secretary, and keeps verification records.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
Flag schools for suspected FAFSA fraud
If enacted, the Department of Education would identify schools that disbursed Federal Title IV aid on or after October 1, 2026 when a student's FAFSA showed a reasonable suspicion of identity fraud, as determined by the Department's identity-fraud detection system. A school could avoid the flag if it shows that, before disbursing aid, it confirmed the student’s identity in person or by live, synchronous audiovisual verification, notified the Department, and keeps a record. Identified schools would be added to the program review priority list and the identification would be allowed to inform program reviews, audits, investigations, and other Title IV oversight. Being identified alone would not, by itself, mean the school failed to meet Title IV requirements.
Sponsors & CoSponsors
Sponsor
Thompson (PA)
PA • R
Cosponsors
Foxx
NC • R
Sponsored 3/18/2026
Roll Call Votes
No roll call votes available for this bill.
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