House Republicans Advance Bill to Stop Ghost Students from Stealing Federal Aid

House Republican Conference Chairwoman Lisa McClain (R-Mich.) and Rep. Owens released the following statements:
"Federal student aid should help students build a future, not help criminals steal one," Chairwoman McClain said. "When fraudsters use fake identities to steal federal aid, they are not just robbing taxpayers. They are taking opportunities away from real students who are working to get an education and build a better life. House Republicans are shutting down a multi-million-dollar scam that never should have been tolerated in the first place."

"Every dollar that goes to a scammer and a 'ghost student' is a dollar that doesn't go to the students who need it the most," Rep. Owens said. "This Administration's Department of Education just blocked more than $1 billion in fraudulent requests, but the guardrails they are implementing aren't required by law. My bill fixes that and ensures that the hard-earned tax dollars coming out of the pockets of Americans are being shielded from fraudsters permanently."

The No Aid for Ghost Students Act of 2026 requires the Department of Education to use identity fraud detection tools to review FAFSA applications for suspicious activity. The bill also requires colleges to verify flagged applicants before aid is disbursed and establishes reporting, auditing, and oversight requirements to help prevent future fraud. Since 2019, more than $350 million in ghost student fraud has been uncovered and attempted federal student aid theft exceeded $1 billion in 2025 alone.