Tuberville Helps Introduce Bill Targeting Financial Aid Fraud

WASHINGTON - Today, U.S. Senator Tommy Tuberville (R-AL) helped introduce the No Aid for Ghost Students Act, which aims to stop fraudsters-often called "ghost students"-from using stolen or fake identities to submit FAFSA applications and take federal student aid money.

"Our young students work night and day to earn their spot on campus," Sen. Tuberville said. "Zero federal student aid should go towards ghost students who are stealing money from Americans. As Co-Chair of the Senate Health, Education, Labor, and Pensions task force to root out waste, fraud, and abuse in education, I am proud to introduce this bill and will not stop until we eliminate all fraud."

Read the exclusive on the bill here.

BACKGROUND:

• The legislation amends the Higher Education Act to require the Department of Education (ED) and institutions of higher education to take steps to prevent fraud.
• Specifically, the No Aid for Ghost Students Act:
  • Requires ED to use an identity fraud detection system to review each FAFSA application to determine whether the application presents a reasonable suspicion of identity fraud.
  • Requires ED to notify the applicant if his or her FAFSA presents a reasonable suspicion of identity fraud and notify each institution designated on the FAFSA.
  • Requires institutions to verify an applicant's identity before disbursing federal student aid if the applicant's FAFSA is flagged for reasonable suspicion of identity fraud.
    • Verification must occur through either in-person verification or live, synchronous audiovisual verification.
    • Institutions must notify ED once the applicant's identity has been verified.
    • Institutions must maintain a record of identity verification.
  • Requires ED to establish guidelines for identity verification procedures that institutions must follow when reviewing FAFSA applications flagged for suspected identity fraud.
  • Requires ED to provide Congress with an initial written description of the identity fraud detection system and notify Congress within 30 days of any substantial changes to the system.
  • Requires ED to conduct an annual evaluation of the system and submit a report to Congress on its use and effectiveness
• The ED recently launched a new fraud detection capability for the FAFSA form.

MORE:

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Senator Tommy Tuberville represents Alabama in the United States Senate and is a member of the Senate Armed Services, Agriculture, Veterans' Affairs, HELP and Aging Committees.

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