Student Aid Fraud Oversight and Accountability Act of 2026

HR 7891 creates a new category for institutions identified as having disbursed federal student aid to students where identity fraud was suspected (based on a Secretary's detection system), effective October 1, 2026. It requires colleges and universities to identify such cases unless they verified the student's identity in person or via live video before disbursing aid and documented this verification. The bill does not penalize institutions but allows this identification to inform audits or reviews under existing law. This directly affects institutions receiving federal student aid under Title IV of the Higher Education Act, focusing on preventing fraud through mandatory reporting and verification requirements.