U.S. Department of Education Strengthens Identity Checks to Combat Student Aid Fraud

 

WASHINGTON, D.C. – The U.S. Department of Education has announced new measures to tackle identity theft and fraud affecting federal student aid programs, beginning in the summer and fall terms of 2025. To safeguard taxpayers and ease administrative burdens on colleges and universities, temporary identity validation will be required for certain first-time applicants during the summer term. Starting in the fall, a permanent screening process will be implemented for all FAFSA applicants.

The initiative responds to rising incidents of identity fraud, exacerbated by the move to online classes during the COVID-19 pandemic and the temporary relaxation of verification protocols. Education Secretary Linda McMahon emphasized the importance of these measures, stating they will help prevent fraud and protect taxpayers who fund student aid programs.

In recent weeks, intensified fraud detection has identified approximately 150,000 potentially fraudulent FAFSA submissions. Institutions will now be required to perform live identity verifications, either in person or through live video conferences, using valid, unexpired, government-issued photo IDs.

The Department’s action follows reports of widespread fraud in community colleges, notably in California and Minnesota, with losses in the millions of dollars. The College of Southern Nevada, for instance, lost $7.4 million due to fraudulent enrollments in Fall 2024 alone.

Further guidance on these new processes is available directly from the Federal Student Aid Office.

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