U.S. Department of Education
04/02/2026 | Press release | Distributed by Public on 04/02/2026 12:30
Victories for American Taxpayers: Eliminating Fraud, Waste, and Abuse Across Federal Student Aid Programs
April 2, 2026
The Trump Administration continues to tackle fraud, waste, and abuse across higher education programs.
American citizens have to present an ID to board a flight or rent a car, yet the Biden Administration made the executive decision to require identity verification for fewer than one percent of students applying for federal financial aid. That ill-informed decision created a prime opportunity for fraudsters to exploit the Free Application for Federal Student Aid (FAFSA®) form and steal taxpayer funds. These lax standards allowed bad actors to divert aid intended for low- and middle-income students.
Now, the Trump Administration has tightened safeguards at the U.S. Department of Education (the Department), implementing commonsense identity verification and cracking down on fraud to deliver record savings for American taxpayers.
Cracking Down on Fraud: In 2025 alone, the Trump Administration prevented more than $1 billion in student aid fraud, reversing years of mismanagement in the federal student aid programs under the Biden Administration's failed leadership.
- The Department implemented identity verification for first-time federal student aid applicants, helping to ensure that every student is a real student, not an AI bot or 'ghost student.'
Protecting the American Taxpayer: The Trump Administration has taken additional historic, proactive steps to ensure federal student aid dollars are used responsibly. Under Secretary McMahon's leadership, the Department conducted a comprehensive review of these programs, saving the American taxpayer more than $90 million.
- The Department strengthened real-time data-sharing with the Social Security Administration to prevent identity theft, 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.
- The Department finalized a rule to ensure loan forgiveness is not granted to individuals whose employers engage in specific illegal activities such that they have a substantial illegal purpose, including aiding and abetting violations of federal immigration laws.
U.S. Department of Education published this content on April 02, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 02, 2026 at 18:31 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]