To thwart would-be fraudsters, the financial aid application process now includes an identity screening process.
In an April 27 press release, the Department of Education said that effective immediately, they have launched a new, real-time fraud detection capability for the Free Application for Federal Student Aid (FAFSA) form.
Every applicant will be evaluated in real-time through a risk-based identity screening. Applicants who display a certain level of fraud risk will be required to present government-issued identification before having access to federal student aid funds, including Pell Grants and federal student loans.
In conducting a one-time review of all previously submitted 2026-27 FAFSA forms utilizing the new screening technology, the Department estimates that by identifying and denying federal student aid to fraudsters, it will save taxpayers over $1 billion during the 2026-27 FAFSA cycle.
This new fraud detection tool will relieve schools of the burdensome aspects of identity verification.
More information on the fraud detection was provided in an April 15 Electronic Announcement.
