(APP-25-16) Significant Actions to Prevent Fraud through Identity Verification
June 6, 2025
Recent data from Federal Student Aid (FSA), States, and financial aid administrators (FAAs) at a wide range of institutions of higher education has made it clear that the rate of fraud through stolen identities has reached a level that imperils the federal student aid programs authorized under Title IV of the Higher Education Act (HEA). As such, the Department and its institutional partners must act to protect the integrity of federal student aid programs funded by taxpayers. This is especially acute for the Pell Grant program, which is already facing a budgetary shortfall and has been targeted by technologically advanced fraud rings.
In light of these serious threats to the integrity of the Title IV, HEA programs, the Department will launch a nationwide effort to eliminate identity theft and fraud in the federal student aid programs for the fall 2025 semester to protect taxpayers while significantly reducing the administrative burden on colleges and universities. In the interim during this summer, the Department will require institutions to verify the identity of additional first-time applicants who complete a Free Application for Federal Student Aid (FAFSA®)
