Department of Education stopped $1 billion in student aid fraud, promises more crackdowns in 2026

Campus Reform

Jared Harris

December 27, 2025

The U.S. Department of Education announced it has stopped over $1 billion in attempted student aid fraud in 2025, crediting strengthened identity verification policies reinstated under the Trump administration.

The reforms, which include mandatory ID checks for select first-time FAFSA applicants, were introduced after a wave of fraud schemes exploited loosened rules under the Biden administration.

Federal investigators found nearly $90 million in aid had already been fraudulently disbursed, including over $30 million to deceased individuals and more than $40 million to bots posing as students.

The Department responded with a nationwide identity check in June, immediately flagging nearly 150,000 suspicious FAFSA submissions and notifying colleges of potential fraud.

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