The U.S. Department of Education announced on June 6 that it will begin requiring stricter identity checks for students applying for federal financial aid, aiming to stop identity theft and fraud.
Starting in the 2025–2026 academic year, about 125,000 students applying for federal student aid for the first time must submit a government-issued ID—such as a driver’s license or passport—to the college or institution where they applied. This can be done in person or via video call.
After students submit the Free Application for Federal Student Aid (FAFSA), the school may request an ID check. Students must then follow the school’s instructions to complete the process.
Previously, identity verification was handled automatically. The federal system checked students’ Social Security Number, name, and date of birth against government databases. Students only had to submit documents if there was a problem.
Under the new rules, the verification will be required even if there are no issues in the system match.
The Department of Education said the change is meant to stop fraud using artificial intelligence (AI).
According to Inside Higher Ed, over $13 million in Pell Grant and Cal Grant funds were stolen in California in the past year. These scams used AI to steal real students’ identities and bots to enroll in online classes and collect aid.
These schemes caused real students to lose out on financial aid. They also disrupted how colleges operate. As a result, the federal government introduced this new policy.
However, some experts have raised concerns that stricter ID checks may hurt low-income students. Not all schools have shared how they plan to run the new verification process. Some may charge a fee, which could place an extra burden on students with fewer financial resources.
