Identity theft is a problem worldwide creating high costs and damaging reputations for companies, organizations, and even higher education institutions.
Last summer, the Department of Education announced a nationwide effort to eliminate identity theft and fraud in the federal student aid programs by requiring that schools verify the identity of additional first-time applicants who complete FAFSA. This is done through V4 and V5 verification.
Schools have some flexibility in how they verify student identities in addition to in-person identification, which is the preferred method of the Department of Education. The new acceptable methods include:
- NIST IAL2-compliant third-party verification: The student’s identity is verified by an external entity using methods that meet the NIST IAL2 standard.
- Video call: A live video call between the student and trained institutional personnel.
- Correctional facility official: For confined or incarcerated individuals in an eligible prison education program, an authorized official at the facility can verify the student’s identity
Schools can use the NIST IAL2 for the 2026-27 FAFSA verification cycle when a student is unable to verify in person. This replaces the traditional notary methods used previously. It can be done online or through a secure identity verification service.
Students need to submit a government-issued photo ID such as a passport, driver’s license, or State ID. The student then provides biographical information including full legal name, date of birth, and address. The identity proofing checks such as document authenticity checks, matching the face to the ID, or database checks such as a credit header or public records.
A common third-party IAL2 identity verification provider is ID.me as it is used in education and government; however, there are quite a few other platforms that are used in financial aid and higher education.
