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Student Loan Update Changes ID Requirements for Some FAFSA Applicants

Student Loan Update Changes ID Requirements for Some FAFSA Applicants

Summary

The U.S. Department of Education introduced a new fraud detection program for FAFSA applicants who are considered high risk. These applicants must verify their identity with government-issued ID before receiving federal student aid like Pell Grants or loans.

Key Facts

  • The new program uses real-time checks to identify high-risk FAFSA applicants for fraud.
  • Students flagged as high risk must provide a driver’s license, passport, tribal ID, or permanent resident card, or take a photo on camera to prove their identity.
  • Low and moderate-risk applicants do not have to verify their identity beyond the FAFSA form.
  • The goal is to prevent “ghost student” scams, where fake or stolen identities are used to get financial aid fraudulently.
  • Ghost student scams have cost colleges up to $180 million, according to Equifax.
  • Over 5 million students completed FAFSA for the 2026-2027 school year by December 17.
  • College tuition costs have been rising, making financial aid more important for students.
  • The Department of Education says this program strengthens the integrity of student aid and ensures funds go to eligible students.
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