S. 4428 — No Aid for Ghost Students Act of 2026

This section establishes an identity fraud detection system under which the Secretary of Education must review each Free Application for Federal Student Aid (FAFSA) submitted on or after October 1, 2026, to determine whether it presents a reasonable suspicion of identity fraud. If such suspicion is found, the Secretary must notify the applicant of the determination and transmit notice to each designated institution of higher education, while also subjecting the applicant to additional identity verification requirements. The section further requires the Secretary to submit to the authorizing committees a description of the system by November 1, 2026, descriptions of any substantial changes within 30 days of implementation, and annual evaluations of the system’s effectiveness beginning October 1, 2027. It also amends institutional participation agreements to prohibit disbursement of Federal student aid to applicants with suspected identity fraud unless the institution confirms identity through in-person or live synchronous audiovisual verification, notifies the Secretary, and maintains records of the verification, with the Secretary required to issue related guidelines by October 1, 2026.