Senators Hassan, Moody Introduce Bipartisan Legislation to Protect Financial Aid from Fraud

WASHINGTON - U.S. Senators Maggie Hassan (D-NH), Ashley Moody (R-FL), and Tommy Tuberville (R-AL) introduced bipartisan legislation to prevent bad actors from committing financial aid fraud that hurts students and taxpayers. The No Aid for Ghost Students Act aims to stop scammers, often called "ghost students", from using stolen or fake identities to submit FAFSA applications and steal federal financial aid. The bill will require the U.S. Department of Education to deploy an identity fraud detection system to review submitted FAFSA applications and to alert institutions of higher education if an application presents a reasonable suspicion of identity fraud.

"Scammers are deploying increasingly sophisticated tactics to steal money and federal financial aid from hardworking Americans. In the face of these scams, we need to do more to protect students and taxpayer dollars," said Senator Hassan. "This bipartisan bill will require that the federal government establish an identity fraud detection system during the student financial aid process, catching scammers on the front-end before tax dollars leave the government's bank account. I will continue to combat the scourge of scams and ensure that higher education is accessible for all Americans."

"Taxpayer-funded student aid should go to students-not fraudsters gaming the system. This legislation takes common-sense steps to verify identity, strengthen oversight, and ensure federal dollars are not wasted," said Senator Ashley Moody.

"Our young students work night and day to earn their spot on campus. Zero federal student aid should go towards ghost students who are stealing money from Americans. As Co-Chair of the Senate Health, Education, Labor, and Pensions task force to root out waste, fraud, and abuse in education, I am proud to introduce this bill and will not stop until we eliminate all fraud," said Senator Tommy Tuberville.

This legislation is a part of Senator Hassan's ongoing efforts to combat scams, including as Ranking Member of the Joint Economic Committee. She has opened investigations into the roles that AI companies, federal agencies, satellite internet providers, and online dating platforms have in protecting Americans from criminal fraud.

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