No Aid for Ghost Students Act of 2026

The No Aid for Ghost Students Act of 2026 requires the Department of Education to use a new identity fraud detection system to review federal student aid applications starting October 1, 2026. If an application triggers a reasonable suspicion of identity fraud, the applicant will be notified and informed that their designated colleges must verify their identity before releasing any financial aid. To prevent payment, schools must confirm the applicant's identity through in-person meetings or live video calls unless the fraud suspicion is cleared. The Department of Education will also be required to report details about the system's design and its effectiveness to Congress annually.