A bipartisan group of senators is pushing for new legislation aimed at curbing fraud related to federal student aid. This initiative seeks to address the issue of “ghost students,” individuals who submit Free Application for Federal Student Aid (FAFSA) applications using stolen or false identities. The effort is spearheaded by Senator Ashley Moody (R-Florida), along with Senators Tommy Tuberville (R-Ala.) and Maggie Hassan (D-N.H.), who are all backing the Ghost Student Aid Prohibition Act of 2026.
Moody emphasized the importance of ensuring that taxpayer-funded student aid goes to legitimate students rather than fraudsters. “This bill takes common-sense steps to verify identities, boost oversight, and prevent waste of federal funds,” she stated.
Moody, who previously served as Florida’s attorney general, was appointed to the Senate in January 2025 following the resignation of Marco Rubio. She is currently campaigning for a special election in November 2026 to complete her term.
Senator Tuberville expressed that “our young students are working tirelessly to secure their place on campus,” highlighting that fraud negatively impacts those who earn aid legitimately. He is a co-chair of the Senate task force focused on eliminating waste and fraud in education and is committed to rooting out fraudulent activities.
Senator Hassan pointed out that scammers are employing increasingly advanced techniques, making it vital to enhance protections for students and taxpayers. She endorsed the bipartisan bill, which would mandate the establishment of an identity fraud detection system during the student financial aid process to intercept fraud before it affects government funds.
Recently, the U.S. Department of Education introduced new real-time fraud detection capabilities on the FAFSA form. This system uses risk-based identity screening to assess all applicants as they apply. Those flagged with a higher fraud risk will now need to present government-issued identification prior to accessing federal aid such as Pell Grants and federal loans.
