Overview
- Officials said more than $1 billion in improper federal student aid disbursements have been prevented or recovered since January, announcing the total on Thursday.
- The June policy requires first-time applicants to present a valid government photo ID in person or on a live video call to an authorized institutional representative, with a copy retained.
- Within the first week of the verification rollout, nearly 150,000 suspect identities were flagged in FAFSA filings and colleges were notified.
- The department cited coordinated international fraud rings, AI-driven “ghost student” applications, and the use of identities of deceased individuals after earlier uncovering nearly $90 million in 2024 disbursements to suspected scammers.
- Officials said they have posted warnings about fake college websites and are hiring a fraud-detection team within Federal Student Aid, while blaming the prior administration for removing verification safeguards.