U.S. Department of Education Launches Comprehensive, Nationwide Federal Student Aid Fraud Prevention Effort

Today, the U.S. Department of Education (the Department) launched a new, real-time fraud detection capability for the Free Application for Federal Student Aid (FAFSA®) form, marking the largest and most comprehensive, nationwide fraud prevention effort in the agency's history. Effective immediately, fraud detection is built directly into the FAFSA itself, with every applicant evaluated in real-time using risk-based identity screening. Applicants who display a certain level of fraud risk will now be required to present government-issued identification before accessing federal student aid funds such as Pell Grants and federal student loans.

The Department also recently began conducting a one-time review of all previously submitted 2026-27 FAFSA forms using the new screening technology, ensuring that all federal student aid program dollars are supporting students and families, not fraudsters. The Department estimates that its efforts to identify and deny federal student aid to fraudulent students will save taxpayers over $1 billion during this year's FAFSA cycle.

"Since day one, the Trump Administration has protected the integrity of federal student aid programs, ensuring that these critical resources help the students they are intended to serve," said U.S. Secretary of Education Linda McMahon. "Under President Trump's leadership, we've not only reversed the previous Administration's years of mismanagement of the federal student aid portfolio, but have rooted out fraud, waste, and abuse-keeping $1 billion out of fraudsters' hands and putting it back in the pockets of real students and families. This new fraud detection tool will stop fraud at the start of the process, before money goes out the door, strengthening the integrity of our programs and expanding opportunity for students who depend on these resources to finance their postsecondary education."

During the COVID-19 pandemic, the Biden Administration removed key verification safeguards, diverted resources away from fraud prevention, and required less than one percent of students to verify their identity following the submission of the FAFSA. These policies led to institutions across the country coming under siege by highly sophisticated fraud rings, 'ghost students,' and AI bots. In response, the Trump Administration launched a nationwide effort to combat identity fraud in the federal student aid programs by requiring institutions to verify the identity of each newly enrolled student - leading to more than $1 billion in savings.

This new fraud detection tool embeds real-time fraud prevention technology directly into the FAFSA, relieving institutions of the most burdensome aspects of identity verification. It builds on the Trump Administration's commitment to root out fraud, waste, and abuse across the federal government, in coordination with the new White House Task Force to Eliminate Fraud, chaired by Vice President Vance.

Protecting the American Taxpayer

The Trump Administration has taken historic, proactive steps to ensure federal student aid dollars are used responsibly. Under Secretary McMahon's leadership, the Department conducted a comprehensive review of the Department's fraud prevention systems and made the following changes to protect the federal student aid programs, saving the American taxpayer millions of dollars.

• The Department strengthened real-time data-sharing with the Social Security Administration to prevent identity theft and stop money from going to dead individuals, saving the American taxpayer more than $30 million.

• The Department resumed automated post-screening of student aid records, preventing overpayments to ensure lifetime federal Pell Grant limits are respected and enforced, saving American taxpayers more than $10 million.

• The Department partnered with the U.S. Department of Homeland Security to ensure illegal aliens no longer receive federal student aid funds.