An Act To amend the Higher Education Act of 1965 to require to the Secretary of Education to use an identity fraud detection system to review each FAFSA to determine whether the FAFSA presents a reasonable suspicion of identity fraud.

H.R. 7892 is legislation introduced in the Senate that amends the Higher Education Act of 1965 to add identity fraud screening for each FAFSA (Free Application for Federal Student Aid). Sec. 2(a) requires the Secretary of Education to use an identity fraud detection system to review each application submitted on or after October 1, 2026, and to notify students and colleges when the system finds a reasonable suspicion of identity fraud. Sec. 2(b) requires colleges to withhold Federal financial aid until they verify the applicant’s identity using approved methods such as in-person checks, live video verification, or NIST IAL2-compliant methods. Sec. 3 adds colleges with a pattern of paying aid to suspicious applications to a program review priority category, unless they follow the verification rules. This matters because it could help stop financial aid fraud and protect taxpayer-funded aid for real students.