H.R. 7892 — No Aid for Ghost Students Act of 2026

This section establishes an identity fraud detection system under the Free Application for Federal Student Aid (FAFSA) for applications submitted on or after October 1, 2026. If the Secretary of Education identifies reasonable suspicion of identity fraud, the Secretary must notify the applicant and each designated institution of higher education, which may not disburse federal student aid to the applicant until the institution verifies the applicant's identity through in-person or live synchronous audiovisual means, notifies the Secretary of such verification, and maintains related records (amending verification requirements under section 487(a)(15) of the Higher Education Act of 1965). The Secretary must issue institutional verification guidelines by October 1, 2026; submit to authorizing committees a system description by November 1, 2026, and notices of substantial changes within 30 days; and submit annual effectiveness reports beginning October 1, 2027.