Student Aid Fraud Oversight and Accountability Act of 2026

This bill requires the Department of Education to focus its attention on colleges and universities that give out federal student aid money without first checking whether a student applying through the FAFSA might be committing identity fraud. Schools would be flagged if they hand out aid to students whose applications raise red flags in the Department's fraud detection system, unless the school can show it verified the student's identity in person or by live video before giving out the money. The Department of Education can use this information to guide its reviews, audits, and investigations of schools that receive federal student aid.

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