[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 4428 Introduced in Senate (IS)]
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119th CONGRESS
2d Session
S. 4428
To amend the Higher Education Act of 1965 to require the use of an
identity fraud detection system in reviewing Free Applications for
Federal Student Aid.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 29, 2026
Mrs. Moody (for herself, Ms. Hassan, and Mr. Tuberville) introduced the
following bill; which was read twice and referred to the Committee on
Health, Education, Labor, and Pensions
_______________________________________________________________________
A BILL
To amend the Higher Education Act of 1965 to require the use of an
identity fraud detection system in reviewing Free Applications for
Federal Student Aid.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``No Aid for Ghost Students Act of
2026''.
SEC. 2. IDENTITY FRAUD DETECTION SYSTEM.
(a) Identity Fraud Detection System.--Section 483 of the Higher
Education Act of 1965 (20 U.S.C. 1090) is amended by adding at the end
the following:
``(e) Identity Fraud Detection System.--
``(1) In general.--In addition to or in conjunction with
other verification processes carried out under this title, the
Secretary shall use an identity fraud detection system to
review each application submitted under this section on or
after October 1, 2026, to determine whether the application
presents a reasonable suspicion of identity fraud. If the
Secretary determines that such an application presents a
reasonable suspicion of identity fraud, the Secretary shall
carry out notifications in accordance with paragraph (2).
``(2) Notification of reasonable suspicion of identity
fraud.--If the Secretary determines that an application
submitted under this section presents a reasonable suspicion of
identity fraud, the Secretary shall--
``(A) provide the applicant with notice--
``(i) of such determination and the basis
for such determination;
``(ii) that the information described in
subparagraph (B) will be transmitted to each
institution of higher education designated by
the applicant in the application; and
``(iii) that the applicant is subject to
additional identity verification requirements
in accordance with section 487(a)(15); and
``(B) transmit to each institution designated by
the applicant in the application, a notice--
``(i) that such application presents a
reasonable suspicion of identity fraud; and
``(ii) that the applicant is subject to
identity verification requirements to be
carried out by the institution in accordance
with section 487(a)(15)(B), before the
institution may disburse Federal financial aid
under this title to such applicant.
``(3) Congressional notices and report.--
``(A) Notices.--The Secretary shall submit to the
authorizing committees--
``(i) not later than November 1, 2026, a
written description of the identity fraud
detection system required under this
subsection; and
``(ii) not later than 30 days after
implementing any substantial change to such
system, a written description and rationale for
such change.
``(B) Annual evaluation and report.--Not later than
October 1, 2027, and annually thereafter, the Secretary
shall conduct an evaluation of the effectiveness of the
identity fraud detection system carried out under this
subsection, and submit to the authorizing committees a
report on the use and effectiveness of such system.''.
(b) Additional Verification Requirements.--
(1) Amendments.--Section 487(a)(15) of the Higher Education
Act of 1965 (20 U.S.C. 1094(a)(15)) is amended--
(A) by striking ``(15) The institution
acknowledges'' and inserting ``(15)(A) The institution
acknowledges''; and
(B) by adding at the end the following new
subparagraph:
``(B) Beginning on October 1, 2026, the institution will
not disburse Federal financial aid under this title to an
applicant whose application under section 483 presents a
reasonable suspicion of identity fraud under section 483(e),
unless the institution, in accordance with procedures
established by the Secretary--
``(i) determines that a reasonable suspicion of
identity fraud is not present by confirming the
identity of such applicant using in-person verification
or live, synchronous audiovisual verification;
``(ii) notifies the Secretary that the identity of
the applicant has been verified; and
``(iii) maintains a record of such identity
verification.''.
(2) Guidelines on institutional verification procedures.--
Not later than October 1, 2026, the Secretary of Education
shall establish guidelines with respect to identity
verification procedures to be carried out by institutions of
higher education under subparagraph (B) of section 487(a)(15)
of the Higher Education Act of 1965 (20 U.S.C. 1094(a)(15)), as
amended by paragraph (1).
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