A sign reminding people to fill out the Free Application for Federal Student Aid, more commonly known as the FAFSA, appears on a bus near Union Station in Washington, D.C. (Shauneen Miranda/States Newsroom).
WASHINGTON – On Wednesday, the U.S. House of Representatives passed a bill to combat financial aid fraud.
The measurewhat passed 249-172would require the U.S. Department of Education to establish an identity fraud detection system for the Free Application for Federal Student Aid, more commonly known as the FAFSA.
Nearly 40 Democrats voted for the Republican Party-led bill.
The bill protects against fraudulent “ghost students” who lawmakers say have cost taxpayers millions of dollars by applying for federal student aid and college and enrolling in courses under stolen identities, only to later disappear with those funds.
The measure would codify a FAFSA Fraud detection tool This is already underway at the Education Department and comes at a time when President Donald Trump’s administration is seeking a sweeping crackdown Combating fraud efforts across the federal government.
Rep. Burgess Owens, who sponsored the measure, said during Tuesday’s floor debate that his bill “builds on the good work the Trump administration has already done to protect taxpayer dollars and protect the integrity of the student aid system by ensuring that federal aid goes to real students.”
The Utah Republican added that his legislation “takes a hands-off approach, identifying suspicious student aid applications and ensuring those applications apply to who they claim to be before dollars go out the door.”
A similar one, non-partisan This initiative was introduced in the US Senate earlier this year.
Education Secretary Linda McMahon said in a statement Wednesday that her department was “proud” that the House passed the bill, which will “solidify our ongoing efforts to eliminate fraud, waste and abuse by requiring screening for suspicious federal student aid applications.”
“Since day one, the Trump Administration has been committed to restoring existing fraud detection capabilities while building the most comprehensive fraud detection system in the department’s history,” she said.
Fraud detection system
Under the bill, the Secretary of Education would be required to employ the Identity Fraud Detection System to evaluate any FAFSA filed on or after October 1.
If there is a “reasonable suspicion of identity fraud” on the FAFSA, the Secretary must notify the applicant and the schools named on the application that they will be subject to “additional identity verification requirements” before they can receive federal financial aid.
The bill also requires both an annual audit of the system and a report to Congress on its effectiveness.
The measure eliminates provisions a separate invoice from GOP Rep. Glenn “GT” Thompson of Pennsylvania, who also aims to combat student aid fraud.
This includes a requirement that the Secretary of Education prioritize program reviews of institutions that have “demonstrated a pattern” of providing federal financial aid to students whose FAFSA “raised reasonable suspicion of identity fraud.”
“Vague enforcement standards”
Rep. Bobby Scott, ranking member of the House Education and Workforce Committee, expressed opposition to the measure during floor debate Tuesday, saying the bill “could reasonably be viewed as part of a broader strategy to weaponize student aid.”
The Virginia Democrat pointed out that while it is “always a good idea” to prevent federal student aid fraud and protect taxpayer dollars, the bill’s “creation of vague enforcement standards and penalty provisions without clear guidance” for schools and students could make it more complex for legitimate students to access financial aid.
Scott also pointed to the Education Department’s rollout of an identity fraud detection system in April and said Congress should allow the tool to operate and wait for the agency to evaluate the results.
“It simply doesn’t make sense to codify this new system without evaluating its effectiveness,” he said.
