Student Aid Fraud Oversight and Accountability Act of 2026

The Student Aid Fraud Oversight and Accountability Act of 2026 requires colleges to report any student whose financial aid application raised reasonable suspicion of identity fraud after October 1, 2026. These reports will be used to help the Department of Education prioritize program reviews and audits for institutions with higher numbers of flagged cases. The bill allows schools to avoid reporting a student if they can prove they verified the student's identity through in-person or live video checks before disbursing funds. Importantly, identifying a school in this way does not automatically mean the institution has failed to meet legal requirements.