CALIFORNIA – The U.S. Department of Education (ED) announced June 6, that it will launch a nationwide effort to eliminate identity theft and fraud in the federal student aid programs for the fall 2025 semester, citing vulnerabilities in California and other states.

The department said the initiative aims to protect taxpayers while reducing the administrative burden on colleges and universities.

The department is requiring colleges to validate the identity of some first-time summer applicants. Federal Student Aid (FSA) expects the number of students requiring identity validation during the summer to be relatively low. 

This fall, the department will introduce permanent FAFSA screening to prevent identity fraud.

FSA fraud detection efforts, earlier this month, identified almost 150,000 suspect identities in current FAFSA forms. These applicants must undergo live identity verification before receiving aid.

Changes to identity validation requirements

During the pandemic, classes moved online as the Biden Administration shifted resources from fraud prevention to loan forgiveness efforts, according to ED.

U.S. Secretary of Education Linda McMahon said the department will develop long-term solutions to ease institutional burdens and protect taxpayers funding federal aid. 

As part of the fraud prevention effort, the department will also make changes to the acceptable documentation for identity validation. 

Applicants must present valid, government-issued photo ID via live video or in person, and schools must retain copies.

Guidance on these new required processes is available here.   

California Community College reported large percentage of applications were fraud

ED cited recent data showing widespread fraud in California Community College applications, resulting in millions lost in federal and state aid.

“Similarly, in 2024, media reports allege that Foothill-De Anza Community College District received around 26,000 applications, and of those, 10,000 were put on hold for possible fraud before the beginning of the quarter,” stated ED in the news release.

Two weeks ago, the Board of Governors for the state community college system voted to require ID verification for all applicants across the state. 

Other states also had fraudulent applications.

Minnesota’s Riverland Community College averaged over 100 fraudulent applications annually, with Century College reporting similar rates to California, the department said.

In addition, the College of Southern Nevada wrote off $7.4 million in the Fall 2024 semester because of fraudulent enrollments.